Keynote: Data-Driven Marketing -- Trends and Implications for Search Marketers

Data-Driven Marketing: Trends and Implications for Search Marketers

Data-Driven Marketing: Trends and Implications for Search Marketers

Mark JefferySenior Lecturer of Executive Programs, Kellogg School of Management and Managing Partner, Agile Insights LLC [email protected]

© Mark Jeffery 2012, All Rights reserved

Data-Driven Marketing: Trends and Implications for Search Marketers 04/10/20232

Data-Driven Marketing: Trends and Implications for Search Marketers

• 1. Motivation• 2. The Marketing DivideData-Driven Trends:• 3. Big Data• 4. Agile Marketing• 5. (Social)2

Overview: 5 ideas in 25 min

04/10/20233

Data-Driven Marketing: Trends and Implications for Search Marketers

Idea 2: The Marketing Divide

04/10/20234

Data-Driven Marketing: Trends and Implications for Search Marketers

Data-Driven Trends

Idea 3: Big Data

5

Data-Driven Marketing: Trends and Implications for Search Marketers

SEARS• The Business

– Major US general merchandise retailer with over $30 Billion revenues– Direct mail more than 250 Million catalogs per year. Targeting 14 - 18 Million

customers. Spread over 18 separate mailings. – Generating incremental sales of $900 Million per year.

• New strategy – Split the targeted customers into 25 distinct segments, based on a robust series of

variables, attributes and purchase characteristics – Version the mailers, based on products & categories relevant to the various groups

• Results– Increase in mailer revenue of $215 Million dollars per year, based on improved

targeting and campaign management• 1% improvement in number of trips generated among mailed customers• 5% improvement in average purchase dollars per trip• 2% improvement in gross margin, as "right" product featured captured sales without reliance

on 'off-price' promotions

– Catalog Targeting project alone had an NPV exceeding $40MM

04/10/20236

Data-Driven Marketing: Trends and Implications for Search Marketers

Data-Driven Trends

Idea 4: Agile Marketing

7

04/10/2023Data-Driven Marketing: Trends and Implications for Search Marketers8

Data-Driven Marketing: Trends and Implications for Search Marketers

Summary Program Metrics

9

Data-Driven Marketing: Trends and Implications for Search Marketers

Data-Driven Trends

Idea 5: (Social)2

10

04/10/2023Data-Driven Marketing: Trends and Implications for Search Marketers11

The Midnight Ride (1775)

Wm. Dawes

Redundant Contactsin different towns

Paul Revere

Diverse Contacts in

Different towns

04/10/2023Data-Driven Marketing: Trends and Implications for Search Marketers12

Social Attribution Modeling

Source: Katrin Ribant et al, “Social Media Attribution – Beyond User Engagement,” Havas Digital, 2011

Data-Driven Marketing: Trends and Implications for Search Marketers

Summary

04/10/202313

• 1. Motivation• 2. Marketing Divide

Data-Driven Trends• 3. Big Data• 4. Agile Marketing• 5. (Social)2

Data-Driven Marketing: Trends and Implications for Search Marketers

Questions?

Mark [email protected]