marketing natives event #3 big data - simon hefti

2 Marketing Natives | Big Data in Marketing - Risks and Opportunities | 2014-09-15 | (c) 2014 D|ONE

EVOLUTI

ON

3 Marketing Natives | Big Data in Marketing - Risks and Opportunities | 2014-09-15 | (c) 2014 D|ONE

15’

4 Marketing Natives | Big Data in Marketing - Risks and Opportunities | 2014-09-15 | (c) 2014 D|ONE

DATA DRIVEN VALUE CREATION:

OPPORTUNITIES FOR MARKETING

RISKS

RECIPIE

5 Marketing Natives | Big Data in Marketing - Risks and Opportunities | 2014-09-15 | (c) 2014 D|ONE

OPPORTU

NITIES

6 Marketing Natives | Big Data in Marketing - Risks and Opportunities | 2014-09-15 | (c) 2014 D|ONE

EFFECTIVE CAMPAIGN

Identify perusable customers and lost

cases to define campaigns with high

sales/cost ration and which are perceived

well.

7 Marketing Natives | Big Data in Marketing - Risks and Opportunities | 2014-09-15 | (c) 2014 D|ONE

ANTICIPATE DEMAND

Identify products and/or services which a

specific customer might be using in the

future. Typically combined with campaign.

8 Marketing Natives | Big Data in Marketing - Risks and Opportunities | 2014-09-15 | (c) 2014 D|ONE

RECOMMEND DURING SHOPPING

Propose products which complement the

basket while shopping (in brick & mortar

shop).

9 Marketing Natives | Big Data in Marketing - Risks and Opportunities | 2014-09-15 | (c) 2014 D|ONE

DETECT COMPLAINTS

Conceive an early-warning system which

reacts on subtle signals in the client

relationship to indicate clients which you

risk losing.

10 Marketing Natives | Big Data in Marketing - Risks and Opportunities | 2014-09-15 | (c) 2014 D|ONE

ANTICIPATE ORDER

Prepare for an order even if the actual

order has not yet arrived, e.g. by pre-

delivering to close-by ware house

(Amazon) or by dynamic pricing.

11 Marketing Natives | Big Data in Marketing - Risks and Opportunities | 2014-09-15 | (c) 2014 D|ONE

DETERMINE OPTIMUM PRICE

Use a different price, drawn from a

distribution, for each proposal,

and track conversion to find optimum

price, i.e. price with best margin and best

acceptance.

12 Marketing Natives | Big Data in Marketing - Risks and Opportunities | 2014-09-15 | (c) 2014 D|ONE

DESIGN TO DEMAND

Use customer events to understand

preferences, and design product

accordingly (e.g. House of Cards).

13 Marketing Natives | Big Data in Marketing - Risks and Opportunities | 2014-09-15 | (c) 2014 D|ONE

RISKS

14 Marketing Natives | Big Data in Marketing - Risks and Opportunities | 2014-09-15 | (c) 2014 D|ONE

15 Marketing Natives | Big Data in Marketing - Risks and Opportunities | 2014-09-15 | (c) 2014 D|ONE

TRIVIAL RESULTS

Annoy customers with information which

they already have. Example: recommend

vacation location even though customer

has spent vacation.

16 Marketing Natives | Big Data in Marketing - Risks and Opportunities | 2014-09-15 | (c) 2014 D|ONE

≠ 42

17 Marketing Natives | Big Data in Marketing - Risks and Opportunities | 2014-09-15 | (c) 2014 D|ONE

WRONG RESULTS

Article on the Web:

«If TiVo Thinks You Are Gay, Here's How

To Set It Straight»

18 Marketing Natives | Big Data in Marketing - Risks and Opportunities | 2014-09-15 | (c) 2014 D|ONE

GO RIGHT

19 Marketing Natives | Big Data in Marketing - Risks and Opportunities | 2014-09-15 | (c) 2014 D|ONE

UNEXPECTED RESPONSE

Intention: subscription extension.

Response: cancellation.

20 Marketing Natives | Big Data in Marketing - Risks and Opportunities | 2014-09-15 | (c) 2014 D|ONE

21 Marketing Natives | Big Data in Marketing - Risks and Opportunities | 2014-09-15 | (c) 2014 D|ONE

PRIVACY INVASION

Drive customers away through concerns

about privacy invasion. Combine two

recent apple stories: selfies on iCloud and

health data on iWatch.

22 Marketing Natives | Big Data in Marketing - Risks and Opportunities | 2014-09-15 | (c) 2014 D|ONE

23 Marketing Natives | Big Data in Marketing - Risks and Opportunities | 2014-09-15 | (c) 2014 D|ONE

DATA MISUSE

Destroy brand by misusing data, e.g. to

define a personalized risk premium.

Note that misuse can also occur through

theft (recent story: leaked gmail

passwords).

24 Marketing Natives | Big Data in Marketing - Risks and Opportunities | 2014-09-15 | (c) 2014 D|ONE

TAKE AWAY #1

ES LOHNT SICH,

SICH SELBST ZU

ÜBERFORDERN.

RECIPIE

25 Marketing Natives | Big Data in Marketing - Risks and Opportunities | 2014-09-15 | (c) 2014 D|ONE

MITIGATE:

TRIVIAL OR WRONG RESULTS

26 Marketing Natives | Big Data in Marketing - Risks and Opportunities | 2014-09-15 | (c) 2014 D|ONE

TAKE AWAY #1

ES LOHNT SICH,

SICH SELBST ZU

ÜBERFORDERN.

USABLE DATA

Obvious, right? Important nevertheless.

Data is the core ingredient for data driven

value creation and needs proper handling.

Invest in good data.

27 Marketing Natives | Big Data in Marketing - Risks and Opportunities | 2014-09-15 | (c) 2014 D|ONE

TAKE AWAY #1

ES LOHNT SICH,

SICH SELBST ZU

ÜBERFORDERN.

THE RIGHT TEAM

You need a team which knows your

business and your data, can deal with the

data gaps and peculiarities, and masters

and maintains its tools.

28 Marketing Natives | Big Data in Marketing - Risks and Opportunities | 2014-09-15 | (c) 2014 D|ONE

TAKE AWAY #1

ES LOHNT SICH,

SICH SELBST ZU

ÜBERFORDERN.

MODEL MAINTENANCE

Predictive models are not based on first

principles. They are just tuned to work. No

guarantee that they still work next year.

Monitor model performance and maintain

the models.

Recent story: Google flu trends.

29 Marketing Natives | Big Data in Marketing - Risks and Opportunities | 2014-09-15 | (c) 2014 D|ONE

MITIGATE:

UNEXPECTED RESPONSE

30 Marketing Natives | Big Data in Marketing - Risks and Opportunities | 2014-09-15 | (c) 2014 D|ONE

TAKE AWAY #1

ES LOHNT SICH,

SICH SELBST ZU

ÜBERFORDERN.

SMALL BATCHES, ADAPT OFTEN

Instead of doing choose approach for all

customers / all products, use an

evolutionary approach and test ideas in

small batches. Adapt approach often and

select best performing.

31 Marketing Natives | Big Data in Marketing - Risks and Opportunities | 2014-09-15 | (c) 2014 D|ONE

MITIGATE:

PRIVACY INVASION AND DATA

MISUSE

32 Marketing Natives | Big Data in Marketing - Risks and Opportunities | 2014-09-15 | (c) 2014 D|ONE

TAKE AWAY #1

ES LOHNT SICH,

SICH SELBST ZU

ÜBERFORDERN.

GOVERNANCE

Define and publish standards and

guidelines for data use. Establish

processes to monitor and control data

use. Align with Datenschützer.

33 Marketing Natives | Big Data in Marketing - Risks and Opportunities | 2014-09-15 | (c) 2014 D|ONE

SUMMARY

34 Marketing Natives | Big Data in Marketing - Risks and Opportunities | 2014-09-15 | (c) 2014 D|ONE

THE

IMPACT,

STUPID.