strategic case study: investment optimisation for executives using big data, dell
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Strategic Case Study: Investment Optimization for Executives using Big Data
Big Data InnovationApril 2013
Natalie Kortum
Natalie Kortum @NatalieKortum marketingmathgirl.com
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Global Marketing
*Numbers for illustrative purposes; not actual Dell figures
Natalie Kortum
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Global Marketing
*Numbers for illustrative purposes; not actual Dell figures
Natalie Kortum
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Global MarketingNatalie Kortum
What impact is marketing having on Revenue in comparison to other factors?
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Global Marketing
Big Data Collection
Over 1100 variables used by
other groups to run the business
Over 100 distinct data owners
(people)
Over 10 different data systems
Over 25 different vendors
Natalie Kortum
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Global Marketing9 Confidential 9/18/2013
Questions?
Natalie Kortum
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Global MarketingNatalie Kortum
Product Innovation
Ship Commit Accuracy
Marketing Spend
Sales Investments
Support Satisfaction
Pricing
Product Quality
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Global MarketingNatalie Kortum
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Global Marketing12 Confidential 9/18/2013
Questions?
Natalie Kortum
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Global Marketing
Starting Revenue
*Numbers for illustrative purposes; not actual Dell figures
Ending Revenue
Explaining the Changes in Revenue
Natalie Kortum
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Global Marketing
Starting Revenue
*Numbers for illustrative purposes; not actual Dell figures
Ending Revenue
Explaining the Changes in Revenue
Natalie Kortum
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Global Marketing15 Confidential 9/18/2013
Questions?
Natalie Kortum
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How investment levers compare
SalesMarketing
Demand GenPricing
Marketing Brand
Marginal Return on Investment
0.9 X 1.3 X 0.4 X 2.2 X
Social Media
4.1 X
If $1 M additional were available to invest, what’s the marginal ROI?
*Numbers for illustrative purposes; not actual Dell figures
Product
2.5 X
Natalie Kortum
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Global Marketing
Short-term and Long-term ROIs and Cross BUs of B2B
Sales Marketing Transactional
PricingBrand
Campaign
B2B Revenue in period 0.7 X 1.2 X 5.7 X 0.2 X
Additional long term benefits on B2B (12-18 months)
+ 0.1 X + 0.06 X - 5.4 X + 1.9 X
Cross BU Impact + 0.1 X + 0.04 X + 0.1 X + 0.1 X
Total Return of $1M investment in lever = 0.9 X = 1.3 X =0.4 X =2.2 X
+ 0.3 X
+ 2.2 X
0 X
=2.5 X
Product
*Numbers for illustrative purposes; not actual Dell figuresNatalie Kortum
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Global Marketing
Inception
Sales Investments
Re
ve
nu
ePlateau
Current Level
Range of Sales Spends over the last 3 years
Sales Investments
Re
ve
nu
e
A saturated curve shows that we are in the plateau stage of the S curve
Natalie Kortum
*Numbers for illustrative purposes; not actual Dell figures
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Global Marketing
What’s in the future?
Natalie Kortum
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Global Marketing20 Confidential 9/18/2013
Questions?
Natalie Kortum
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Global Marketing
Tips for explaining to non-Technical folks
• Walk a mile in their shoes. • Run your presentation past a nontechnical supporter.
– Pretend your audience is your 10 year old nephew or mother.
• Only two minutes (and no more!) to explain your methodology.
• Create proof points for your techniques – Execs who have used this approach. – Companies/markets using this approach.– Respected PhD or Tech person they trust to back the approach.
• Watch the assumptions.– Choose only two or three if you must that might be highly suspect.
• Use Analogies! Natalie Kortum
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Global Marketing22
Direct Attribution has a big downfall
• Direct = All or Nothing
Traditionally Understated Traditionally Overstated
Social Media Coupons
Brand Campaigns Online Promotion/Referral
Events Sales
Corporate Social Responsibility Transactional Actions
22Natalie Kortum
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Global MarketingNatalie Kortum
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Global Marketing
Human Brain Network
24Natalie Kortum
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Thank You
Natalie Kortum @NatalieKortummarketingmathgirl.com