strata big data camp 2013

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© 2013 Alpine Data Labs Your Customers Are More Brutal Than You Think A renewed look at acquiring and retaining customers to enhance their experience.

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Your customers are more brutal than you think. An inspiring talk on how to retain customers and market in the age of analytics. Big Data, Predictive Analysis, and Cloud Applications.

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Page 1: Strata Big Data Camp 2013

© 2013 Alpine Data Labs

Your Customers Are More Brutal Than You Think

A renewed look at acquiring and retaining customers to enhance their experience.

Page 2: Strata Big Data Camp 2013

© 2013 Alpine Data Labs

Many names, but it’s all the same.

PAST: Cold Calling, Well Positioned Advertising, and Networking.

PRESENT: Search, Lead Nurturing, and POCs.

FUTURE: Content, Product, Hook, Engagement

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Page 3: Strata Big Data Camp 2013

© 2013 Alpine Data Labs

Use Case: Consumer Security Software

• 10 MM New Unique Visitors per Month.

• 110 MM Active Users but Declining.

• < $1 ARPU

• 23% 30 Day Retention

Page 4: Strata Big Data Camp 2013

© 2013 Alpine Data Labs

Problem Statement

We have these signals in the data gathered from Marketing, Engineering, Product, and Sales.

How do we link all of this information together to tell a compelling story and make a recommendation?

This was only part of the maze…

Page 5: Strata Big Data Camp 2013

© 2013 Alpine Data Labs

Enter Analytics. A Definition.

Analytics is the application of computer technology, operational research, and statistics to solve problems in business and industry.

Historically, Analytics was heavily used in banking for portfolio assessment using social status, geographical location, net value, and many other factors.Today, Analytics is applied to a vast number of industries and is re-emerging due to the phenomenal explosion of data from our connected world.

Big Data  consists of data sets that grow so large and complex that they become awkward to work with using on-hand database management toolsMcKinsey Global Institute estimates that big data analysis could save the American health care system $300 billion per year and the European public sector €250 billion.

Page 6: Strata Big Data Camp 2013

© 2013 Alpine Data Labs

Solution: Analytics

1. Agency – Customer feedback analytics. “Garbage in, Garbage Out.”

2. Enterprise Suite – Index, Customize, Overkill, and Expensive.

3. Application for Hadoop – Excel Programming

4. Hadoop + SQL – Data warehousing on the cheap

A. Hive – Relational Database for Unstructured Data

B. Mahout – Open Source Predictive Library for Hadoop.

Page 7: Strata Big Data Camp 2013

© 2013 Alpine Data Labs

Our Analytics Architecture

Page 8: Strata Big Data Camp 2013

© 2013 Alpine Data Labs

What We Found

• We aligned our acquisition flow over multiple touch points. From clickstream, content delivery network, application logs to licensing server.

• Over 60% of customers who clicked on Download failed to activate as a user.

Page 9: Strata Big Data Camp 2013

© 2013 Alpine Data Labs

But wait, there was more…

• Customers who opted in to our product improvement program were 2X more likely to retain.

• Customers who installed a utilities product were 3X more likely to retain.

• The best time to up-sell a customer is NOT in the shopping cart but during the installation.

Page 10: Strata Big Data Camp 2013

© 2013 Alpine Data Labs

Summary and Conclusions

• Customers will not wait for you… they are going to try your product and if it doesn’t work they’ll never look back.

• B2B or B2C, it won’t make a difference.