#MakePudding @AMP_Agency Boston • New York • San Francisco

Always Make Pudding: Dig in to Find the Proof of Success

September 19, 2013

#MakePudding @AMP_Agency

AMP Agency

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As a full service, strategic marketing agency, we are: Creative minds, digital strategists, social and behavioral scientists, media experts and experiential innovators that focus on creating contextually

relevant and seamless consumer engagements across physical and digital brand experiences. We are inspired by insights and driven by results.

#MakePudding @AMP_Agency

About the Presenter

– Rich Grogan is the VP of Measurement & Analytics at AMP Agency

– Designing and delivering

solutions allowing businesses to better understand their prospects and strengthen existing customer relationship

– Past positions include Analytics & Measurement roles at Digitas, Allen & Gerritsen, Studiocom and Arnold Worldwide

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Agenda

– How We Make Pudding

– What is Big Data

– What to do with Big Data

– The Analytics Maturity Model

– Case Study

– Key Takeaways

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AMP Measurement & Analytics

– AMP’s M&A practice is made up of a unique combination of digital analysts, statisticians, social scientists, and technicians

– This unique combination of skills and experience allows AMP to help our clients better understand their prospects and strengthen relationships with existing customers

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Analytic Strategy

Development

Analytics Solutions Support

Primary & Secondary Research

Predictive Modeling

Program Reporting

Social Analytics

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What is Big Data Analytics Anyway?

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“Big data analytics is the process of examining large amounts of data of a variety of types to uncover hidden patterns, unknown correlations, and other useful information. Such information can provide competitive advantages over rival organizations and result in business benefits, such as more effective marketing and increased revenue1.”

1 Margaret Rouse, Editorial Director, WhatIs.com

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Big Data is Growing Fast

Here are some fun facts:

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2.7 Zetabytes1 of data exist in the digital universe today

The volume of business data worldwide, across all companies, doubles every 1.2 years

By 2020, business transactions on the internet will reach 450 billion per day

1 1 Zetabyte = 10007 bytes

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Key Driver of Growth: Digital

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YouTube users upload 48 hours of new video every minute of the day

571 new websites are created every minute of the day

Brands and organizations on Facebook receive 34,722 Likes every minute of the day

According to Twitter’s own research in early 2012, it sees roughly 175 million tweets every day and has more than 465 million accounts

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It’s not the size of your data.

It’s how you use it.

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Continuous measurement helps optimize ongoing programs, track success and reveal inspiration for future programs

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DATA DRIVEN METRICS

Analyzing campaign performance and maximizing ROI through ongoing optimization and measurement

PERFORMANCE ANALYTICS

Evaluating brand measured performance such as sales, ratings, site

traffic and attendance

CONSUMER BASED RESEARCH

Measuring Brand Health through custom research plan utilizing

proprietary tools

AMP’s Commitment to Results

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Elements of an Analytics Game Plan – Analytics Maturity Model

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INFO

RM

ATI

ON

O

PTI

MIZ

ATI

ON

HINDSIGHT FORESIGHT INSIGHT

BU

SIN

ESS

VA

LUE

COMPLEXITY

What happened?

DESCRIPTIVE ANALYTICS

Why did this happen?

DIAGNOSTIC ANALYTICS

What if….?

TESTING & FORECASTING

What will happen?

PREDICTIVE ANALYTICS

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ONLINE SHOPPER ANALYSIS

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The Challenge

Our client challenged AMP to develop a series of analyses that will result in a greater understanding of their customers’ journey from initial research to conversion.

The goals of this analytics effort were as follows:

1. Better understand the impact of key online touch points that influence our client’s online shoppers

2. Identify and quantify the impact of site engagements that correlate with digital conversion

3. Quantify the impact of digital investment on digital sales

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The Solution

AMP’s analytic team designed a series of analyses to address our client’s challenge. The combined analyses are referred to as AMP’s Online Shopper Analysis.

CHALLENGE

Better understand the impact of key online touch points that influence our client’s online shoppers

1. Path-to-Conversion Analysis

Identify and quantify the impact of site engagements that correlate with digital conversion

2. High Value Behavior Analysis

Quantify the impact of digital investment on digital sales

3. Channel Attribution Analysis

Clickstream Analysis

Clickstream Analysis & Predictive Modeling

Econometric Modeling

SOLUTION METHODOLOGY

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PART I: PATH TO CONVERSION

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Path-to-Conversion Analysis: Overview

– Goal: Better understand the impact of key online touch points that influence our client’s online shoppers

– Data Source: Partner’s online consumer panel. No data from our client was required.

– Time Period: Full Year 2012

– Every move a panel member made was logged, parsed and analyzed.

– Methodology: Clickstream Analysis

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Path-to-Conversion Analysis: Results

The analysis yielded insightful results that provided our client with a view of their online shopper’s online behavior, leading to conversion.

– Where shoppers began their shopping process

– Key brand engagement touch points and in what order

– Touch points with the highest intensity

– Resources shoppers use throughout their research process

– Types of websites with which they engaged most

– Brands and products in their consideration set at the beginning, middle and end of the process

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PART II: HIGH VALUE BEHAVIOR ANALYSIS

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High Value Behavior Analysis: Overview

– Goal: Identify and quantify the impact of site engagements that correlate with conversion events.

– Data Source: Site behavioral data sourced from

website analytics solution. – Time Period: Full Year 2012 – Methodology: Clickstream & Predictive Modeling – Models were built to test each engagement point

to determine if there is a correlation with that point of engagement, or a combination there of, with specified conversion events.

– The models not only identified important site engagements, but we also quantified their impact on conversion.

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Find a Store

Request a Quote

Video View

Conversion Event

Product View

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High Value Behavior Analysis: Overview

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Identify relevant site behaviors for model

Process behavioral data

Data Analysis

Variable Correlations

Model Development

The following are the steps involved in the High Value Behavior Analysis:

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High Value Behavior Analysis: Results

The analysis yielded insightful results that provided our client with insight into what site behaviors influenced particular behaviors, both positively and negatively.

– Visitors engagement with particular content

– How visitors are engaged with the various brand sites, and what the relative influence of these engagements were, as it relates to a conversion event

– What are the least and most influential drivers on the site?

– What are the least and most influential combination of engagements as drivers of online conversion?

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PART III: CHANNEL ATTRIBUTION ANALYSIS

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Channel Attribution Analysis: Overview

– Goal: Quantify the impact digital channels have on conversion events and POS.

– Data Source: Detailed media data, including all

relevant channels, along with detailed site conversion and POS data (both Digital and Overall) were aggregated for this exercise.

– Time Period: Full Year 2012 – Methodology: Econometric Modeling – These aggregated data sources were modeled to

identify and quantify the impact each channel, or combinations there of, on conversion events and sales

– Ultimately this analysis may yield learnings that will

guide media investment across channels.

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Channel Attribution Analysis: Overview

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Identify data sources

Process data

Data Analysis

Variable Correlations

Model Development

The following are the steps involved in the HVB analysis:

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Channel Attribution Analysis: Results

– Established and quantified the relationship between purchase intent on the site and conversion on partners sites

– Identified how the level of spend in the various media channels (e.g. Display, TV, Search) impacts revenue

– Identified a halo effect across channels

– Determined which channel has the greatest return on investment

– Illustrated how the impact by individual channels change across brands and brand categories

– Determined the impact of a particular channel change across partner sites

– Identified a halo effect across brands

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Through this analysis we were able to quantify, holistically, the ROI of their digital investment for the first time in their history.

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Online Shopper Analysis: Conclusion

At the conclusion of these analyses our client had a greater insight into its online shoppers’ digital journey from initial research to purchase.

– Our client’s marketing team better understands the key touch points their online customers engage with during their shopping journey, allowing their media teams to create more efficient and effective media plans, investing smarter.

– Understanding the impact and value of specific engagements on their

brand sites has allowed the teams to define new success measures that can be leveraged to optimize online media efforts and site content, increasing conversions and revenue.

– A deeper appreciation for how the various media channels impact on-site

conversion, and ultimate sales, either on their own or in combination, has allowed marketing teams to optimize media mix, maximizing return on investment.

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Key Takeaways

1. When capturing the right “big data,” there are unlimited possibilities.

2. Every marketing effort is measurable.

3. Build a balanced plan around four elements of the Analytics Maturity Model:

– Descriptive Analytics • Sifting through the “big data” via tools like Google Analytics (What

Happened)

– Diagnostic Analytics • Generating insights garnered from the descriptive analytics (Why Did This

Happen)

– Testing & Forecasting • Leverage data + insights to build tests (testing “What If”)

– Predictive Analytics • Utilizing the data to answer what will happen

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Thank You!

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More questions? Send a note to Rich Grogan, VP of

Measurement & Analytics at rgrogan@ampagency.com

Business inquiries?

Send a note to Steve McCall, SVP of Integrated Marketing, smccall@ampagency.com