marketing satisfaction with decision related to perceptions of confidence in the processes for...

Marketing

• Satisfaction with decision related to perceptions of confidence in the processes for making the decision

• The ways information was acquired

• The amount of information obtained

• Strategy used to evaluate the information

How to Facilitate a Customer’s Search and Evaluation

processes?• Online –

• search costs are reduced

• Significant increase in number of resources

• May lead to higher evaluation costs

• Many vendors with different forms

• Increased complexity

Content Resource

• Airline reservations

• Enter a sweepstakes

• Look up medical information

• Buy a birthday gift

• Scan the news headlines

• Play a game

• Buy stock

• Check your bank account

Importance of Content

• Driven by –

• the amount of information

• the rate of access

Sources of Site ContentCompany Customer Competitor Other

Product information

Testimonials Site links for comparisons

Press

Promotional information

Articles Product information

Links to databases

Databases Product reviews

Links to lists (partners, related sites)

Articles Content submission

Chat rooms

Bulletin boards

External Sources & the 3 “I’s”Model Sample Link Type Desired Effect

Image Prestigious partners Halo effect – recategorization of product as higher level or quality

Incentive Competitors who are inferior on a key feature

Underscore product function or need

Public sites/databases (health related)

Improvement Sites with related products Position product as central; simplify acquisition of other complementary products

Sites with product use-related information (camping grounds)

Stimulate product involvement; increase perceived benefits

Types of Content

• Multimedia

• Downloadable audio/video

• Benefit – can be replayed

• Disadvantage – time to download, use of memory

• Streaming audio/video

• May require plug-ins

• Three-dimensional animation

Types of Content (con’t)

• Interactive content

• Online games

• Stay on site longer

• Increased brand awareness

• Incentive to return

• Register-acquire data



• Online contests

• Registration

• Provide site content (photo contest)



• Online customer support

• Moderated discussion groups

• Mailing lists

• Real time help

Marketing and the Internet – Eloise Coupey

Mission

Optimize e-businesses by applying data mining analytics and pay-for-performance personalization services that increase sales immediately

WebMiner 3.0: How it Works

Outsourced, Online, Expert Salesforce

Website sales database

Catalog sales database

EmailCampaign database

Phone sales database

Store sales

Survey and sweepstake

database

Integrated view of the customer across channels

Enriched with 3rd party

demographics

Integrated view of the customer across channels with appended demographic

data

Expert Data Mining

Data Mining Analytic Report

• Highly customized report developed over 2-3 weeks by an experienced data miner.

• Reveals Patterns, correlations and causal links in the data that are “invisible to the human eye” but , if acted upon, can make a dramatic difference in profitability.

• Quantified estimates of the value of each opportunity.

• Actionable plan for each opportunity

• Hundreds of rules directly derived from the data insight

• Can power website to deliver profits within weeks using WebMiner ASP (see next slide)

• Can also be imported to power personalization tools (Broadvision, etc.)

Insight-driven rules to power your website(predictive model)

The Initial Data Mining Process

Is located in Portland orDallas

Is referred by a Search Engine

Made 2-4 recent visits

Last visited Men’s polo & t-shirt section

AND AND ANDIF VISITOR

THEN feature rugby shirt sale

is in group who spends > $700/year in men’s apparel

Impulsive buying style

Is economy-minded

Uses money-off couponsAND AND ANDIF VISITOR

THEN feature water shorts 10% off coupon

ANDEnjoys swimming AND

Owns swimming pool

Some rules are based on a few clickstream parametersThese rules are designed to target anonymous visitors who haven’t yet volunteered any information about themselves

Some rules also bring lifestyle and demographic info into the equationThese rules are designed to target anonymous visitors who have volunteered an address or just a zip code

Others even add purchase history to clickstream and demographicsThese rules are designed to target repeat customers



Is economy-minded

Uses money-off couponsAND AND ANDIF VISITOR

THEN feature special 20% off loyalty coupon on chinos

ANDplaced > 3 orders in last 3 months

AND

Majority of items bought are business casual

ANDAs been a customer for over 1 year

What do data mining issued rules look like?

These rules (and hundreds of others)are uploaded into the WebMiner ASP

Is located in Portland orDallas

Is referred by a Search Engine


AND AND ANDIF VISITOR

THEN feature rugby shirt sale



Is economy-mindedAND AND ANDIF VISITOR




Is economy-mindedAND AND ANDIF VISITOR

THEN feature special 20% off loyalty coupon on chinos

WebMiner ASP

1.Serving Scripts will call our server to select and display targeted offers

2.Collection Scripts will send our server user data such as ZIP code to inform our predictions

3.Sales Reporting Scripts will inform our server of your sales so that we can provide you with detailed online reports

WebMiner Scripts are pasted into a few pages of your site

… and you’re ready to start targeting all your visitors with unmatched precision

x

Casual OnlineCasual Online View cartOrder CatalogHelp

MEN WOMEN

www.casualonline.com

Here’s how WebMiner targets anonymous visitors

Real-time anonymous visitor profiling

Past visits:

3rd recent visit

Last section visited:

Men’s shorts

info passed by the browser

WebMiner cookie on visitor’s PC

WebMiner clickstream

database

New York City

visiting from:

x

Casual OnlineCasual Online

View cart Order Catalog Help

MEN WOMEN


Referring site:

WebMiner geolocation server

IP = 216.128.23.5

Manhattan, NY

THEN feature men’s Plain-Front Stretch Chinos

Is located in New York or Boston

Was referred by banner ad

Made <2 recent visits

Last visited men’s pants

AND AND ANDIF VISITORIs located in Portland orDallas

Was referred by a Search Engine


Last visited men’s polo & t-shirt sectionAND AND ANDIF VISITOR

THEN feature men’s rugby shirt saleTHEN feature shorts with free shipping

Is located in New York,Atlanta or Chicago

Was referred by a Search Engine

Made >2 recent visits

Last visited men’s shorts & swimwearAND AND ANDIF VISITOR

Real-time profile - rules matching

The anonymous visitor profile gathered by WebMiner

Hundreds of marketing rules obtained from Data Mining

is matched against…

FREE SHIPPINGon shorts

Go to Shorts

Check out our large selection of shorts. Many colors and fabrics available. Shipping is on us!

template-based 100% dynamic content in real-time!

to serve…

Past visits:

3rd recent visit


Men’s shorts

New York City

visiting from: Referring site:

Casual OnlineCasual OnlineView cartOrder CatalogHelp

Top SellersPantsShorts and SwimwearPolos & T-shitsShirtsSweatersBusiness CasualOuterwearShoesAccessoriesUnderwear

FREE SHIPPINGon shorts

Go to Shorts

Check out our large selection of shorts. Many colors and fabrics available. Shipping is on us!



To see the regionally specific products that are available for delivery in your area, please enter the ZIP code where you want your order delivered:

Delivery ZIP code: Browse now!10027

What WebMiner already knew…

Past visits:

3rd recent visit


Men’s shorts

New York City


Yes Yes1,230

yearly spending on men’s apparel

Impulsive buyer

Economy minded

Use money-off coupons

Enjoys swimming Owns swimming pool

Yes Yes No

x

Casual OnlineCasual Online

View cart Order Catalog Help

MEN WOMEN



Buy products from the comfort of your home or office and have them conveniently delivered to your door in a few days by UPS.

To see the regionally specific products that are available for delivery in your area, please enter the ZIP code where you want your order delivered: Delivery ZIP code: 10027

Lookup lifestyle & demographic infoOver 320 up-to-date demographic variables

10027

ZIP code yearly spending on men’s apparel

Impulsive buyer

Economy minded


… Age

10001 $450 Yes Yes Yes … 34

10002 $1,578 Yes No No … 42

10003 $742 No Yes Yes … 38

… … … … … …

10027

$1,230 Yes Yes Yes … 37

… … … … … … …

95604 $823 Yes No No … 49

Additional relevant info extrapolated from the zip code

Demographic and lifestyle lookup at zip code level

What WebMiner already knew…

Past visits:

3rd recent visit


Men’s shorts

New York City


Yes Yes1,230


Impulsive buyer

Economy minded



Yes Yes No

info extrapolated from the geocode

This means targeting at the…This means targeting at the…

Block level!Block level!

…and at “geocode” level

Note that WebMiner ASP 3.0 can also do the same lookup at the “geocode” level if the full address is entered (sweepstake, returning customer, etc.)

Past visits:

3rd recent visit


Men’s shorts

New York City


Yes Yes1,230


Impulsive buyer

Economy minded



Yes Yes Yes



Is economy-minded

Uses money-off couponsAND AND AND

IF VISITOR


ANDEnjoys swimming AND

Owns swimming pool

Once again, the anonymous visitor profile gathered by WebMiner…

the marketing rules obtained from Data Mining

is matched against…

template-based 100% dynamic content in real-time!

to serve…

•Fast-drying Supplex® nylon shorts

•Adjustable elastic/drawstring waistband

•Removable stretch belt with plastic snap closure

•Two front zip pockets with self-fastening closures

•Front key loop

10% OFF WATER SHORTS

Real-time enriched profile - rules matching



•Fast-drying Supplex® nylon shorts

•Adjustable elastic/drawstring waistband

•Removable stretch belt with plastic snap closure

•Two front zip pockets with self-fastening closures

•Front key loop

10% OFF WATER SHORTS

If the visitor doesn’t buy right away but comes back later…



BUY 2 SHIRTS

GET ONE FREE

Browse shirts

When you buy 2 short sleeve shits, the 3rd shirt of equal or lesser value is on us.

View all my offers

Your OffersCasual OnlineCasual Online

BUY 2 SHIRTS

GET ONE FREEBrowse shirts

10% OFF WATER SHORTS View item

FREE SHIPPING on shorts

Browse shorts

WebMiner moves on to the next best

offer for this visitor…

WebMiner moves on to the next best

offer for this visitor…

…while still letting the visitor access all their previous

offers

…while still letting the visitor access all their previous

offers

WebMiner tracks your visitor’s interactions and provides you with real-time reports

The following reports are just a few examples…

ASP 3.0 Key Features

Advanced Visitor Profiling Locates first-time visitors down to the city level – as soon as

they hit home page – using real-time geolocation technology

Makes use of clickstream information to predict behavior (products viewed, repeat visits, etc.)

Identifies visitor demographics and lifestyle in real-time down to the city-block level based on additional information entered in forms such as ZIP code or full address

Dynamic Content Delivery Proprietary content/offer management system that allows

subscribers to create dynamic templates containing text, links, images and other conversion tools (banners, pop-ups, etc.)

ASP 3.0 Key Features

Real-time Performance Reporting

Graphical charting of key performance indicators such as sales lift, increase in order size, and revenue per visitor

High Availability Infrastructure

WebMiner partnered with Digex ASP services to provide a fast and highly reliable service to its customers

Proprietary “suicide pill” technology ensures that site visitors will NEVER perceive a delay due to WebMiner

WebMiner Software Architecture

client area(password protected)

client area(password protected)

Data Collection ScriptsData Collection Scripts

Geolocation module

(Locates IP addresses in real-time)


Rules upload engine

Oracle databaseOracle database

Online reporting module


Data Mining tools suite

Predictive models

Predictive models

Dynamic visitor profiles

Dynamic visitor profiles

Visitor Interaction +

sales logs

Visitor Interaction +

sales logsDemographic and lifestyle

data

Demographic and lifestyle

data

Campaign admin

interface

Content selection and

serving

Template based offer/content management

Geolocation database

Geolocation database

Geocoding database

Geocoding database

Campaign Offers / Content

Campaign Offers / Content

Advanced rules matching

engine

3rd party data:•Demographics•Lifestyle•IP geolocation•Address geocoding

Geocoding module

(converts full addresses into geocodes)

LEGENDLEGEND

Batch updateBatch update

Real-timeReal-time

Data Collection ScriptsData Collection ScriptsData Collection ScriptsData Collection Scripts

Serving ScriptsServing Scripts Sales Reporting ScriptSales Reporting ScriptClientWebsite

ClientWebsite

Carrier Case StudyProblem

•Low online sales of air conditioners at its roomair.com site

•Could not justify an eCRM

Why WebMiner•Convert data into customer understanding

•Apply understanding to increase online revenue

• Immediate results and performance pricing

RESULTS•25% conversion rate: 9-times higher than control group

• Increased revenue per visitor from $1.94 to $37.98

The WebMiner ASP: Converting Insight into Revenue in Real TimeThe WebMiner ASP: Converting Insight into Revenue in Real Time

WebMiner

targeted offer

WebMiner

targeted offer

Sales lift of 160%

$5,432$45,118

$664.634

$255,091

roomair.com results after 2 months:– Sales conversion

rate up by 9x– Online sales lift

160%

Pfaltzgraff Case Study Problem

•Masses of underutilized multichannel data

•Rapid growth online but no customer understanding

Why WebMiner•360-degree customer understanding

•Multichannel implementation plan

SIMULATED RESULTS

•2,780 distinct demographic customer groups with distinct product preferences

•71% increase in online conversion rate

•14% increase in total sales

Jos. A. Bank Case StudyProblem

•Booming traffic but low conversion rates

Why WebMiner

• Immediate results

•No integration hassle

SIMULATED RESULTS

•600 distinct demographic customer groups with distinct product preferences

•2.7-times increase in online conversion rate

•33% increase in total sales in 60 days

Liz Claiborne Case StudyProblem

•Low conversion rates

•Existing BroadVision and MicroStrategy platforms ineffective

Why WebMiner•Optimize existing infrastructure

• Immediate impact

•No distraction of internal IT personnel

SIMULATED RESULTS•117 customer clusters with distinct category preferences

•87% increase in conversion rate impact (> 30% revenue lift)

Priceline.com: Data Mining Project

Problem•Minimal understanding of core customer segments

Why WebMiner•Comprehensive profile of “Frequent Binders”•Easy implementation•No risk of site performance degradation

RESULTS•Confidential

American Airlines: Data Mining Project

Problem•Minimal understanding of online customers•Historic personalization efforts were disappointing

(BroadVision, E.piphany, etc.)

Why WebMiner•Comprehensive understanding of AAdvantage

program’s 40M members• Immediate revenue impact


Staples, Inc.: Data Mining Project

Problem•Need intelligence to power E.piphany platform•Acquire customers with high-value profile

Why WebMiner•360-degree customer understanding•Multichannel application• Immediate results


WebMiner 3.0 ASP Pricing

•Data Mining Analytics and Insight Report•Revenue Increase Simulation Model•Data Mining Analytics and Insight Report•Revenue Increase Simulation Model

•ASP Deployment (one time)•ASP Deployment (one time)

•Monthly Optimization•Online Reporting •Quarterly Model Update

•Monthly Optimization•Online Reporting •Quarterly Model Update

•Pay-for-performance Commission•Pay-for-performance Commission

$25,000 - $50,000$25,000 - $50,000

$5,000 - $15,000$5,000 - $15,000

$4,000 - $10,000$4,000 - $10,000

8% of incremental sales8% of incremental sales

marketing satisfaction with decision related to perceptions of confidence in the processes for...

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