rapid fire analytics attribution strategy

Rapid Fire Strategy

How Rackspace Uses EMM Attribution Techniques to Improve Marketing Goals

Twitter:#SmarterCommerce | @IBMEMM

Twitter: #SmarterCommerce | @IBMEMM© 2013 IBM Corporation

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• Performance is based on measurements and projections using standard IBM benchmarks in a controlled environment. The actual throughput or performance that any user will experience will vary depending upon many factors, including considerations such as the amount of multiprogramming in the user's job stream, the I/O configuration, the storage configuration, and the workload processed. Therefore, no assurance can be given that an individual user will achieve results similar to those stated here.

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Speakers

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Sameer KhanHttp://www.keywebmetrics.com

Senior Marketing Manager, Rackspace

David ReedSenior Marketing

Analyst, Rackspace

Ravi ShahProduct Manager,

MPO


“What campaign channel combinations drive the highest lift?”

Business Challenges Addressed by Marketing Performance

AnalysisStrategy

Mar

keti

ng

L

ead

ers

Marketing Analyst

CMO

Marketing Manager

And how do I divide credit?”

“What influences conversions?”

“What influences customers to migrate through the

conversion cycle?”

“How am I performing against my forecast and what do I need to change to stay on track?”

“How can I strike the right balance between competing marketing objectives (e.g. revenue vs profit)?”

“What is my optimal marketing mix under different scenarios?”

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Two simple reasons why accurate attribution is important

Understand marketing ROI of past activities

Plan and optimize future marketing mix

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Two simple reasons why accurate attribution is important

Demonstrate marketing’s value

Increase marketing’s value

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Rackspace’s journey towards optimizing marketing mix

Coremetrics AttributionMonthalizer

modeller

Attribution ModelerMarketing

Performance Optimization

1. 2.

4. 3.

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ABOUT RACKSPACE®

Important Facts & Figures*

200,000+CUSTOMER

S84,000+ SERVERS

5,500+ RACKERS

10 GLOBAL DATA

CENTERS

120 +COUNTRIE

S

60%FORTUNE® 100

OFTHE

WE SERVE

Annualized Revenue

OVER $1BILLION $$$$

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Phase 1- Coremetrics Attribution


modeller



1. 2.

4. 3.

9


Disconnected CRM and Web Analytics

• More than 50% of the leads are generated through chats and phone• Rep enters the lead data into CRM manually• Significant amount of time spent data cleanup and manually integrating

systems

Live Chat CRM

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Solution – Coremetrics CRM Integration

Significant reduction in report creation

Built-in 180 day backward looking attribution

Coremetrics UI accessibility

Live Chat CRM

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Revenue Attribution for Utility Products

• Users can create a free Rackspace cloud account• Pay per usage billing model starting at 10¢/GB/month• Marketing Channel level ROI attribution was a major challenge

Free Cloud Account

Usage based billing

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Phase 2- Monathalizer Modeler


modeler



1. 2.

4. 3.

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Attribution Based Budgeting (ABB)

• Traditional Media mix methods are becoming obsolete• Campaign attribution throws unidirectional media mix off the charts• Big need for bidirectional budgeting models

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Solution: IBM Lifecycle Channel Attribution

40%30%

10%20%

Order on 6th Visit

60%

15%25%

Order on 1st Visit

Huge Variability

Channel Mix

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Solution: Developing Attribution Based Budget Models

Channel Mix Control Panel

Confidential © Rackspace US, Inc. All rights reserved 16


Phase 1 & Phase 2 helped answer key tactical questions

AnalysisStrategy

Mar

keti

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L

ead

ers

Marketing Analyst

CMO

Marketing Manager



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Phase 3- IBM Attribution Modeler


modeller



1. 2.

4. 3.

Statistical attribution for

better understanding of

performance drivers

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Popular attribution methods

Last Response – the last action taken by customer receives full credit (response)

First Response – the first action taken by customer receives full credit (response)

Average Credit - all actions that incurred a positive response within campaign window receive same credit

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These attribution approaches yield mixed results…

EMAIL DIRECT MAIL

e

SEARCH

Last Response

First Response

.25 Equal – Response

1

1

Equal – Response.25 .25 Equal –

Response .25

TV

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They don’t tell the whole story…

EMAIL DIRECT MAIL

e

SEARCH

awareness influencer influencer conversion

TV

.17

21


…statistical attribution modeling can provide a more precise view of campaign value

EMAIL DIRECT MAIL

e

SEARCH

.31awareness

.17influencer

.14influencer

.38conversion

Statistical Attribution

TV

.17

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Statistical modeler identifies the true winner allowing marketers to efficiently invest marketing budget and avoid over/under spending

LT winning offer SIRA winning offer #Occurrences

Natural Search Referring Sites 208

Email Marketing Natural Search 26

Natural Search PPC D. 22

PPC D. Referring Sites 21

PPC C. Referring Sites 19

All Other MMC Vendors Natural Search 15

Email Marketing Referring Sites 14

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Attribution Modeler helps in understanding contribution of each channel

What is the contribution of each channel in driving marketing ROI?

• True cross-channel attribution

• Statistically inferred response attribution (SIRA) prevents errors

• Efficient marketing budget investment and better ROI measurement

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Attribution Modeler provides 5 attribution approaches for a more precise view

Display Ads

Email

Search

Social

Referral

Call Center

POS/ Kiosk

Direct Mail

Web Site

Mobile

Mass Media (future)TV Ads, Radio Spots, Billboards

Cross-cha

nnel Attribution via M

arketin

g Perform

ance Opt.

Digital A

ttribution via Digital

Marketing

Attrib

utio

n M

an

ag

em

en

t

Attribution M

odeler

Interaction History

Marketing performance measurement

KPI measurement across channels and programs

– Cost and Revenue– Return on Investment– Number of Responses– % Response– Number of Responders– % Responders– Average Revenue per response

Attribution comparison– SIRA (Statistically Inferred

Response Attribution) – Cross-channel last touch– Cross-channel first touch– Cross-channel equal credit– Direct Attribution

Attribution Engine

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Phase 3 helped understand cross-channel performance

“What campaign channel combinations drive the highest lift?”

AnalysisStrategy

Mar

keti

ng

L

ead

ers

Marketing Analyst

CMO

Marketing Manager



“What influences customers to migrate through the

conversion cycle?”

26


Phase 4- Marketing Performance Optimization


modeller



1. 2.

4. 3.

Data-driven marketing mix

allocation

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Data-driven Strategic Marketing Planning

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Uncover the optimal

sequence of future actions

Determine the value of

marketing touch


Marketing Performance Optimization Maximize marketing ROI by optimizing marketing investment and improving marketing operations

Current capabilities New capabilities

Tactical focus

Deliver insights about past

Strategic focus

Recommend concrete future actions

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Data-driven Strategic Marketing Planning

Interaction History

Market Mix Analysis

(Rich visualizations

)

Marketing Performance

Reports

Customer Micro-segmentation

Attribution Modeler

Scenario PlanningMarketing Performance

Forecast

Performance Forecaster

Optimized Marketing MixBudget Optimizer

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Scenario Planning and Marketing Mix Analysis Allow users to create what-if scenarios and deliver data-driven analytics to optimize marketing mix under each scenario

Gold; 12000; 39%

Silver; 10000; 33%

Other; 8500; 28%

Marketing Mix By Segment - Scenario A

Gold; 11000; 36%

Silver; 9000; 30%

Other; 10500; 34%

Marketing Mix By Segment - Scenario B

Scenario A Scenario B$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000$30,500.00

$32,500.00

Marketing Mix - By Channel

Social

Mobile

Web

eMail

Direct Mail

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Marketing Performance Optimization Vision

Leverage Big Data and Smarter Analytics to maximize marketing ROI across

channels

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Sameer Khan / David Reed

• [email protected] / [email protected]

• Rackspace

• Senior Marketing Manager / Senior Marketing Analyst

• @sameerkhan / @davidreed

Ravi Shah

• [email protected]

• IBM

• Product Manager, MPO

• @shahravi

Follow us on Twitter for latest product updates, etc.

• @IBMEMM

Questions and Answers ….

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Understand each customer as an individual

more than a demographic,

more than a segment.

© 2013 IBM Corporation

rapid fire analytics attribution strategy

Business

potential

chief executive

marketing

conversion

cmomarketing

accurate attribution

revenue attribution

influences