ncdm 2010 - target customers effectively through advanced analytics - netezza - intuit

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Intuit relies on deep analysis to measure and optimize online campaign effectiveness, improve user experience, and increase customer retention. However, it was spending millions of dollars on multichannel marketing campaigns without knowing which elements of those campaigns were contributing to the bottom line. By analyzing cookie and website data, Intuit was able to conduct better ad targeting and price/volume analysis, understand customer behavior, customize offerings, increase customer satisfaction, and maximize revenue. Brad Terrell, VP & General Manager, Digital Media at Netezza, and Arup Ray, Director, Data Warehousing & Business Intelligence Development and Architecture at Intuit, present on: - Using advanced analytics to drive better decisions for multichannel marketing campaigns. - Learning the benefits of more precise, targeted marketing. - Discovering where customers are in the ad funnel and how to target them appropriately.

TRANSCRIPT

Targe t Cus tomers Effec tive ly Through Advanced Analytics

Brad TerrellVP & General Manager,Digital Media

Arup RayDirector, Data Warehousing & Business Intelligence Development and Architecture

“Innovation distinguishes betweena leader and a follower”

- Steve Jobs

Before…

After…

1 00x THE PERFORMANCE

½ THE COST

UNMATCHEDSIMPLICITY

Right message…

Right person…

Right time…

Netezza wins 2010 DMA Innovation Awardfor Market Segmentation and Optimization technology

“300% to 2,000% conversion rate improvements”

“25% conversion rate increase with 33% lower CPA”

Consumer attention is fragmenting

Digital Exhaustbenefits marketers

Marketing and Data Analysis are Intertwined

The Data Aggregation Problem

High

High

High

Recency of visits to YourWebSite.com

Inco

me

Age: 50-65Income: Low

Recency: Low

Age: 18-24Income: HighRecency: Low

Age: 25-35Income: High

Recency: High

Age: 36-49Income: Low

Recency: High

The Segmentation Problem

Target Segment

Awareness

Consideration

Intent

The Matching Problem

Market X: Price/Volume Curve

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

0.00 1.00 2.00 3.00 4.00 5.00

CPM Bid

IMP

RE

SS

ION

S P

ER

DA

Y

0

500

1,000

1,500

2,000

2,500

3,000

3,500

0.00 1.00 2.00 3.00 4.00 5.00

CPM Bid

PR

OF

IT

Market X: Profit Curve

Price/Volume Forecast Curves Show the Optimal Bid in Each Market:

( ) ( )( )BNBRmax ⋅−R = revenue derived from showing adB = ad’s bid

N(B) = impression volume for bid B as predicted by P/V Curve

The Bidding Problem

Customer Insight Through Deeper Analysis(The Fastest Climbers Win)

BI Reporting and Ad-Hoc Analysis

• What happened?• When and where?• How much?

Predictive Analytics

• What will happen?• What will the impact be?

Optimization

• What is thebest choice?

Arup RayDirector, Data Warehousing & Business Intelligence Development and Architecture

20

Intuit Company Information

Who We Are …A leading provider of business and financial management solutions

Company Founded: 1983 Date Public: 1993 Stock Symbol: NASDAQ: INTU GAAP Net Revenue (Fiscal 2010): $3.2 billionEmployees: ~ 8000Locations: 60 locations in 40 cities around the globe

Trusted Leading Brands

21

Multiple Channels for Online Acquisition

22

• Ad Networks• Portals• Content Sites

Display

• Brand• GenericPaid Search

• Brand• GenericOrganic Search

Affiliates

Email

Life stage of customer acquisition

23

Firs

t im

pres

sion

Aut

hent

icat

ion

Con

vers

ion

Awareness Pre-Conversion

Post-Conversion

What is working?

24

• Which channels are yielding results? Which sub-channels?

• Are channels cannibalizing each other?

• What works at what stage of the acquisition funnel?

High Level Goals of Intuit Marketers

• Optimize spend across

channels

• Coordinate spend across

channels

• Optimize messaging in

ads

• Use early converter

behavior for mid-course

adjustments

Where is the data to help me?

• Doubleclick tracks all converters and non-converters across web sites as well as on key pages of our web site

• Omniture tracks customer behavior on our site

• These data sets are warehoused in our Customer Experience Data Warehouse running on Netezza

• Massive volumes of data – the impression table alone has more than 40 Billion rows!

26

What does the data tell me?

• A lot …

– About the effectiveness of the acquisition channel as well as specific campaigns

– About channel interferences

– About product issues

– About customer behavior with regards to acquisition campaigns

27

CHANNEL EFFECTIVENESSExample of Display Ads from Ad Networks

28

Ad Network – A

29

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

1 10 19 28 37 46 55 64 73 82 91 100

109

118

127

136

145

154

163

172

181

190

199

208

217

226

235

244

253

262

271

280

289

298

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

4.00%

4.50%

1 10 19 28 37 46 55 64 73 82 91 100

109

118

127

136

145

154

163

172

181

190

199

208

217

226

235

244

253

262

271

280

289

298

Con

vers

ion

Rat

eR

each

by

Exp

osur

eF

requ

ency

Display Impressions

Display Impressions

Aver

age

expo

sure

s pe

r co

okie

= 2

8.9

Aver

age

conv

ersi

on ra

te =

3.1

%Av

erag

e im

pres

sion

s pe

r co

nver

sion

= X

X.X

Ad Network - B

30

0.0%5.0%

10.0%15.0%20.0%25.0%30.0%35.0%40.0%45.0%50.0%

1 10 19 28 37 46 55 64 73 82 91 100

109

118

127

136

145

154

163

172

181

190

199

208

217

226

235

244

253

262

271

280

289

298

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

45.00%

1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58 61 64 67 70 73 76 79 82 85 88 91 94 97

Con

vers

ion

Rat

e

Rea

ch b

yE

xpos

ure

Fre

quen

cy

Display Impressions

Display Impressions Aver

age

expo

sure

s pe

r co

okie

= 1

5.6

Aver

age

conv

ersi

on ra

te =

14.

8%Av

erag

e im

pres

sion

s pe

r co

nver

sion

= X

.X

Ad Network - C

31

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

1 10 19 28 37 46 55 64 73 82 91 100

109

118

127

136

145

154

163

172

181

190

199

208

217

226

235

244

253

262

271

280

289

Con

vers

ion

Rat

eR

each

by

Exp

osur

eF

requ

ency

Display Impressions

Display Impressions

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

1 10 19 28 37 46 55 64 73 82 91 100

109

118

127

136

145

154

163

172

181

190

199

208

217

226

235

244

253

262

271

280

289

Aver

age

expo

sure

s pe

r co

okie

= 6

.05

Aver

age

conv

ersi

on ra

te =

3.8

%Av

erag

e im

pres

sion

s pe

r co

nver

sion

= X

X.XX

Portal Home Pages – Distinct Visitors

32

0 1000000 2000000 3000000 4000000 5000000 6000000 7000000 8000000

AOL HP 01/10

0131 AOL HP NB

0201 AOL HP NB

0221 AOL HP 300x250

0124 AOL HP

0125 AOL HP Textlink

0221 AOL HP - Textlink

0125 AOL HP

0124 AOL HP Textlink

0201 AOL HP Textlink

0131 AOL HP Textlink

0201 AOL HP RM - Host

0131 AOL HP RM - Host

0201 AOL RM - User Initiated

0124 MSN HP Money Module Txtlink

0124 MSN HP

0207 Yahoo Marketplace - Logo + text

0131 Yahoo HP RM

0214 MSN HP

0215 MSN HP

0125 MSN HP

0201 MSN HP

0131 MSN HP

0201 MSN HP Money Module Txtlink

0131 MSN HP Money Module Txtlink

Portal Home Pages - Impressions

33

0 10000000 20000000 30000000 40000000 50000000

AOL HP 01/10

0131 AOL HP NB

0201 AOL HP NB

0221 AOL HP 300x250

0124 AOL HP

0125 AOL HP Textlink

0221 AOL HP - Textlink

0125 AOL HP

0124 AOL HP Textlink

0201 AOL HP Textlink

0131 AOL HP Textlink

0201 AOL HP RM - Host

0131 AOL HP RM - Host

0201 AOL RM - User Initiated

0124 MSN HP Money Module Txtlink

0124 MSN HP

0207 Yahoo Marketplace - Logo + text

0131 Yahoo HP RM

0214 MSN HP

0215 MSN HP

0125 MSN HP

0201 MSN HP

0131 MSN HP

0201 MSN HP Money Module Txtlink

0131 MSN HP Money Module Txtlink

0 50000 100000 150000 200000 250000 300000 350000

AOL HP 01/10

0131 AOL HP NB

0201 AOL HP NB

0221 AOL HP 300x250

0124 AOL HP

0125 AOL HP Textlink

0221 AOL HP - Textlink

0125 AOL HP

0124 AOL HP Textlink

0201 AOL HP Textlink

0131 AOL HP Textlink

0201 AOL HP RM - Host

0131 AOL HP RM - Host

0201 AOL RM - User Initiated

0124 MSN HP Money Module Txtlink

0124 MSN HP

0207 Yahoo Marketplace - Logo + text

0131 Yahoo HP RM

0214 MSN HP

0215 MSN HP

0125 MSN HP

0201 MSN HP

0131 MSN HP

0201 MSN HP Money Module Txtlink

0131 MSN HP Money Module Txtlink

Portal Home Pages – Distinct Converters

34

Portal Home Pages – Distinct converters per Impression

35

0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00%

AOL HP 01/10

0131 AOL HP NB

0201 AOL HP NB

0221 AOL HP 300x250

0124 AOL HP

0125 AOL HP Textlink

0221 AOL HP - Textlink

0125 AOL HP

0124 AOL HP Textlink

0201 AOL HP Textlink

0131 AOL HP Textlink

0201 AOL HP RM - Host

0131 AOL HP RM - Host

0201 AOL RM - User Initiated

0124 MSN HP Money Module Txtlink

0124 MSN HP

0207 Yahoo Marketplace - Logo + text

0131 Yahoo HP RM

0214 MSN HP

0215 MSN HP

0125 MSN HP

0201 MSN HP

0131 MSN HP

0201 MSN HP Money Module Txtlink

0131 MSN HP Money Module Txtlink

Portal Home Page – Impressions per distinct converter

36

0 20 40 60 80 100 120 140 160 180 200

AOL HP 01/10

0131 AOL HP NB

0201 AOL HP NB

0221 AOL HP 300x250

0124 AOL HP

0125 AOL HP Textlink

0221 AOL HP - Textlink

0125 AOL HP

0124 AOL HP Textlink

0201 AOL HP Textlink

0131 AOL HP Textlink

0201 AOL HP RM - Host

0131 AOL HP RM - Host

0201 AOL RM - User Initiated

0124 MSN HP Money Module Txtlink

0124 MSN HP

0207 Yahoo Marketplace - Logo + text

0131 Yahoo HP RM

0214 MSN HP

0215 MSN HP

0125 MSN HP

0201 MSN HP

0131 MSN HP

0201 MSN HP Money Module Txtlink

0131 MSN HP Money Module Txtlink

Good value?

CHANNEL INTERFERENCEAffiliate clicks versus paid search

37

Paid Search Clicks and Affiliate Clicks

38

Paid Search does not currently interact significantly with Affiliate

97%

3%

No Affiliate click before

At least one Affiliate click before

85%

15%

No Paid Search click before

At least one Paid Search click before

Paid Search Clicks and Affiliate Clicks

Number of cookies with…

0 1000000 2000000 3000000 4000000 5000000 6000000

Affiliate click followed by Paid Search click

Paid Search click followed by Affiliate click

Affiliate click alone

Paid Search click alone

0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20%

Affiliate click followed by Paid Search click

Paid Search click followed by Affiliate click

Affiliate click alone

Paid Search click aloneConversion rate of cookies with…

Paid Search does not currently interact significantly with Affiliate

PRODUCT ISSUES

40

Why do people not convert?

41

Firs

t im

pres

sion

Aut

hent

icat

ion

Con

vers

ion

Awareness Pre-Conversion

Post-Conversion

Which are the problem pages?

Create alternate flows and do A/B testing

CUSTOMER BEHAVIOR

42

0% 20% 40% 60% 80% 100%

Display Impression

Display Click

Paid Search Click

Affiliate Click

Email Impression

Email Click

0% 50% 100%

Display Impression

Display Click

Paid Search Click

Affiliate Click

Email Impression

Email Click

Converted on Display Click…

43

Awareness Stage Navigation Stage

1.461.921.411.431.3952.0

1.782.401.691.961.9256.5

Percentage of converters who had at least one exposure

Average number of exposures,for converters who had at least one exposure

People who convert on display click tend to stick with display clicks…

0% 20% 40% 60% 80% 100%

Display Impression

Display Click

Paid Search Click

Affiliate Click

Email Impression

Email Click

0% 20% 40% 60% 80% 100%

Display Impression

Display Click

Paid Search Click

Affiliate Click

Email Impression

Email Click

Converted on Paid Search Click…

44

Awareness Stage Navigation Stage

1.441.961.431.311.3426.8

1.722.151.601.871.6734.5

People who convert on paid search click tend to stick with paid search clicks…

Converted on Affiliate Click…

45

Awareness Stage Navigation Stage

1.452.041.341.371.3228.2

1.772.661.831.831.6340.5

People who convert on affiliate click tend to stick with affiliate clicks…

0% 20% 40% 60% 80% 100%

Display Impression

Display Click

Paid Search Click

Affiliate Click

Email Impression

Email Clicks

0% 20% 40% 60% 80% 100%

Display Impression

Display Click

Paid Search Click

Affiliate Click

Email Impression

Email Click

0% 20% 40% 60% 80% 100%

Display Impression

Display Click

Paid Search Click

Affiliate Click

Email Impression

Email Click

Converted on Email Click…

46

Awareness Stage Navigation Stage

1.321.981.411.301.2823.2

1.772.661.831.831.6340.5

0% 20% 40% 60% 80% 100%

Display Impression

Display Click

Paid Search Click

Affiliate Click

Email Impression

Email Click

People who convert on email click tend to stick with email clicks…

RELEVANT MESSAGING

47

Messages that are funnel aware

• Based on where the user is in the funnel we can target them with relevant messages

• This could be a better offer if they are in awareness stage or a reinforcement of value proposition if they are in navigation stage

• Doubleclick provides reach beyond the confines of the Intuit websites

• The impressions in post-conversion stage are used to cross-sell other products and hence are not wasted

48

Keys to success

• Ability to load large data volumes daily

• Complex queries that process billions of rows in minutes and not hours

• Ability to leverage intelligent messaging mechanisms within Intuit website and Doubleclick for intelligent messages across the web

49

Data Insight Action

THANK YOU

50

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