Transcript The Marketing Data Warehouse.pps

The Marketing
Data Warehouse
Peter Nolan
www.peternolan.com
Introduction
 What is possible today?
 What
is the opportunity?
 Why is the opportunity so large?
 Some examples from Tom Peters
 What are people saying?
 Classic Marketing Data Warehousing
applications
 Case
studies
 Getting Started
 How
would your company benefit?
 A great way to get started
What is Possible Today?
What Is Possible?
 New technologies/public data
 Data Warehouse Techniques
 “Mass Customisation”
 Marketing Campaigns
 Highly
targeted
 Highly personalised
 With returns like never before
What is the Opportunity?
 How much money is spent on marketing?
 What is the incremental profit improvement?
 Double that
 Simply put the opportunity is to:
“Double the Effectiveness of the Marketing
Dollar”
Why is the Opportunity So Large?
 “Half of all the money I spend on Marketing is
wasted, I just don’t know which half.”
 The Marketing Data Warehouse will tell you
which half
 Then you can choose to spend it where it does
make a difference
Examples From Tom Peters
 Reducing Customer Defections
 5%
reduction
 30-80% Profit Improvement
 Targeting New Customers
 Kimberly
Clark Case Study
What are People Saying?
What are People Saying?
 Tom Peters
 We
are living through a shift from selling virtually
everyone the same thing a generation ago to
fulfilling individual needs and tastes... by supplying...
customised products and services. The shift [is] from
“get the sale now at any cost” to building and
managing ... databases that track the lifetime value
of your relationship with each customer.
What are People Saying?
 Rapp & Collins
 it
may almost be time to replace
“location, location, location”
with
“database, database, database”.
What are People Saying?
 Stanley Davis - Future Perfect
 Mass
Customisation
 Standardise the Commodity and Customise the
Service that Surrounds It
 Example:
Telephone calls
What are People Saying?
 Philip Kotler - Marketing Management
 Mass
markets are fragmenting into micromarkets; multiple channels of distribution are
replacing single channels...
The winners are those who carefully analyse
needs, identify opportunities and create valueladen offers for target customer groups that
competitors can’t match.
Classic Marketing
Data Warehousing
Applications
A Classic DW Application
Targeted Marketing
CAMPAIGN
MGT
ANALYSIS
DISTRIBUTION
CONTACT
MGT
CUSTOMER
SERVICE
ADMIN
Marketing Cycle
Target Marketing
 Situation
 Legislation
changes causes confusion for
thousands over whether to retire. June 94.
 Solution
 Profile
customer database, select all those people
who would benefit from retiring before legislation
change and target them for rollover products.
 Value
 $440M
deposited into rollover fund. Some $300M
up on product managers forecast.
Cross Selling
 Situation
 Customer
wishes to cross-sell existing clients
 Solution
 Provide
analysis capability to profile existing clients
to determine who owned the product. Use DW to
select targets who did not own the product.
 Value
 Response
rate for new product purchase direct
mail 18%. (As opposed to 2% for third party mailing
list)
Up Selling
 Situation
 Customer
wishes to up-sell existing clients
 Solution
 Provide
ability to select existing customers to
upgrade products
 Value
 Response
rate for upgrade direct mail 33%
Getting Started
How Would Your Company Benefit?
 Double you Marketing Dollar Effectiveness?
 What would that do for your company?
A Great Way to Start
 Run 3 marketing campaigns to 3 similar
groups
 Campaign
Run
1
like any other campaign, capture everything
 Campaign
Targeted
using DW, capture everything
 Campaign
Targeted
2
3
using DW + lessons learned from Campaign 2
 Usual result: 2-4 times better response
 Double your marketing dollar effectiveness
Summary
 What is possible today?
 What
is the opportunity?
 Why is the opportunity so large?
 Some examples from Tom Peters
 What are people saying?
 Classic Marketing Data Warehousing
applications
 Case
studies
 Getting Started
 How
would your company benefit?
 A great way to get started
Thank You for Your Time!