big data and analytics: how can they help you be more relevant to your customers and drive...

Big Data and Analytics: How can they help you be more relevant to your customers and drive significant profits?

Dr. Jeni BunnerDirector of Insight; Outsell, LLCJennifer.Bunner@outsell.com

Agenda

• Consumer Expectations• The Importance of Being Relevant• Irrelevance• How to be Relevant

• Big Data • Predictive Analytics

• What’s the solution?• Relevance Done Well• Questions and Answers

CONSUMER EXPECTATIONS

Modern Consumers Expect:• An engaging brand experience

• On their own terms

• Via any and all of their devices

Industry Challenge

AGENCY OF RECORD MARKETING

SERVICE PROVIDERS

MEDIA BUYER

PRINT OPERATIONS

LOCAL MARKETING

AGENCY

CORPORATE MARKETING

PRINT OPERATIONS

Sales Department

Service Department

PartsDepartment

F&IDepartment

OEM Dealers

Addressable Media and Channels

Media or channels that allow communications to consumers at an

individual level

More Channels are Becoming Addressable

Mass

Newspapers

Magazines

RadioOutdoor

TVFace-To-Face

Inbound Phone

DRTVTelemarketing

Direct Mail

Direct Online

Banner Ads

Social Networks

Search

Web Sites

BlogsMobile

EmailKiosks

Age of the Customerjksdfhkds

Source: Forrester Research, Inc.

Source: Forrester Research, Inc.

“In the future, only companies that understand and

anticipate their customer’s needs and can

consistently deliver unique, tailored customer

experiences will be able to attract and retain loyal

customer revenue streams.”Source: Forrester Research, Inc.

Be Relevant!!!

THE IMPORTANCE OF BEING RELEVANT

Consumer Engagement is Elusive

Relevance Matters

50%Disengage

60%Not Relevant

2X$$$

Source: DM News

IRRELEVANCE…

The 40 yr. old woman with the 18 yr. old boy gene

Dear Ford,

Seriously? I own a Mustang. You know I do. I follow Mustang on Twitter and liked it on Facebook. I've clicked through emails you've sent me to go search your site for Mustang paraphernalia and badges, check out the current model, and "customize" my dream Mustang (three times!). I've clicked through Mustang ads (and Camaro ads, not that you'd know that). I've never once expressed any interest in an SUV. Why on earth would you email me about the Escape? It may be all new, with cool features and whatever, but clearly I'm interested in sports cars, not sports utility vehicles. You may want to reconsider your segmentation strategy. Thanks for thinking of me, though.

Source: DM News

?

HOW TO BE RELEVANT

How can Brands be more relevant to Consumers?

Put DATA in the drivers seat!

VOLUME

VELOCITY

VARIETY

VALUE

Big Data

The most important dimension of “Big Data” is how you derive profits from it

Auto Dealership “Big Data”

The power of your Big Data

• Collectively dealers maintain more customer data than parent OEMs

• Dealer data is rich but underutilized

Discover Shop

Buy

Own

Advocate Bond

What Does Your Big Data Tell you?

Multi-channel targeted communications

Predictive Analytics

The analysis of current and historical facts to make predictions about future events

Predictive Analytics Examples• Which consumers will

purchase in the next 30 days?

• Who are my most valuable consumers?

• Where is each consumer in their lifecycle (shop, buy, own)- segmentation

• What vehicle is a consumer most likely to purchase?

WHAT’S THE SOLUTION

4 Steps to Relevance

Build Your Database

Segment and Test

Get Personal

Target Even Smarter

Step 1: Get Your Data in Order

• Multi-channel• Online and offline• Behavioral

CRM

DMSChat

Click

SocialMobile

Weblog VideoBlogs

Step 2: Segment and Test Relevant Messages

• Start small• Segment consumers• Determine what's

working• Make incremental

improvements

Step 3: Personalized Marketing

• Real-time responses• Driven by

consumers’ actions (or lack of)

• On their terms• Personalized to

each and every consumer

Step 4: Get Smarter With Predictive Analytics

• Gold standard for driving relevance

• Requires a specialized skillset

• Could double your incremental sales lift (uplift from Marketing)

RELEVANCE DONE WELL

“My daughter got this in the mail!” he said. “She’s still in high school, and you’re sending her coupons for baby clothes and cribs? Are you trying to encourage her to get pregnant?”

The manager didn’t have any idea what the man was talking about. He looked at the mailer. Sure enough, it was addressed to the man’s daughter and contained advertisements for maternity clothing, nursery furniture and pictures of smiling infants. The manager apologized and then called a few days later to apologize again.

On the phone, though, the father was somewhat abashed. “I had a talk with my daughter,” he said. “It turns out there’s been some activities in my house I haven’t been completely aware of. She’s due in August. I owe you an apology.”

The “pregnancy–predictor” Model

QUESTIONS AND ANSWERS

THANK YOU!

Dr. Jeni BunnerDirector of Insight; Outsell, LLCJennifer.Bunner@outsell.com