1. IBM Case Study
Agility& Analytics
Pam A. Evans
Marketing Consultant
pam@pamevans.net
Bob Slaker
IBM NA Demand Programs Lead &
WW Project Director - SPSS

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Agility and Analytics Agenda
• CMO Priorities on Data and Social Media
• Engagement, Branding and Segmentation
• How IBM Tracks the Health of Its Business
─ SPSS Experiences
─ SPSS Story
─ Customer Stories
─ Thoughts
Social Networking
Sites and
Communities

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CMO's Top 2 Issues: Data Explosion and Social
Media
Source: Q8 How prepared are you to manage the impact of the top 5 market factors that will have the most impact on your marketing organization over the next 3 to 5 years?
n=149 to 1141; Q20 To what extent will the opportunity to collect unprecedented amounts of data require you to change? n=1629 to 1673
Under preparedness
Percent of CMOs selecting as “Top 5 Factors”
Data explosion 71%
Social media 68%
Channel & device choices 65%
Shifting demographics 63%
Financial constraints 59%
Decreasing brand loyalty 57%
Growth markets 56%
ROI accountability 56%
Customer collaboration 56%
Privacy considerations 55%
Global outsourcing 54%
Regulatory considerations 50%
Corporate transparency 47%
Need for change to deal with data explosion
Percent of CMOs indicating high/significant need
Invest in
technology
Understand
analytics
Collaborate
with peers
Validate
ROI
Address
privacy
Integrate
insights
Rethink
skill mix
73%
69%
65%
64%
52%
49%
28%

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From the HBR Blog …
Marketers Flunk the Big Data Test
• “Most rely too much on gut”
• “A majority struggle with statistics”
– 44% got four or more answers wrong on a five question aptitude test;
– Only 5% of marketers even own a statistics text book
• “Some are dangerously distracted by data”
– Over react to “blips” in dashboard data
– Focus on response-metrics vs customer loyalty or lifetime value
• “The best focus on goals and filter out noise
– But that is only 10%
– Need to reiterate critical business goals, and teach to put data front and center
Read the article at: Harvard Business Review Blog Network

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The point …
– You will need to develop or acquire the expertise
to use analytics
– Short term, there are not enough “data scientists”
to go around
– Marketers will need to be able to “speak data” to
help ensure successful outcomes

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Agility and Analytics
1. Set Measurable Goals
2. Ensure KPIs align to goals
3. Understand the results in
terms of actions

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Creating a system of
engagement.

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What is the speed at which you can get
data for decision-making?

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Full Landscapes rely on
timely and usable data

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Data
Mining
Social Media
Analytics
Statistical
Analysis
Social Network
Analysis
Analyze Relevant Customer Data
Sentiment
Analytics

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Are your tools and methods
enablers?

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IBM Digital Dashboard: An Agility Project
• Key performance metrics defined to
understand and act
– Importance of connecting marketing
data to sales
 Two -week status checkpoints on new
enhancements
– Analysts recommend actions based
on a series of factors and trends

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Worldwide analytics for Smarter Planet
• Total visits continue to climb, with 30% more visits in 2011 compared to 2010
• WW Dashboard by Smarter Planet topic to understand visitor behavior
– Reach and Engagement
– Daily and monthly visits trends
– Top pages and page types
– Traffic Sources
• Top Domains
• Organic Search and Paid Search
• Social Media
– PDF downloads, Video plays and Top Solution pages

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Web Analytics investigates Customer Navigation
Funnel Analysis
• What % of customers are reaching
their destination?
• What % of initial customers
completing the form?
Path Analysis
• What % of customers are leaving
the site?
• What are the most popular links for
this path?

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Social Impact Metrics*
SiriusPerspective: The shift away from traditional brand metrics
(reach, sentiment, share of voice) is critical to show impact.
28%
8%
16%
34%
14%
Traditional brand metrics
Customer
satisfaction/loyalty
Analyst influence
Demand increase
Revenue
What are the top metrics you use to measure impact?
*Copyright by Permission of

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IBM SPSS … our own case

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While we sell analytic software…

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…we were
the cobbler’s kids.

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“Membership”
has its advantages„

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Analytics provides
the ability to
understand each
step in the
waterfall

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Predictive factors to get that win!
Firmographic
Psychographic
Buying cycle
Sales Cycle
Demographic
Marketing cycle

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Buying Cycle Interactions
22
A I C E P
CA ED CV
N T A B
Marketing Cycle—CA > ED > CV = Create Awareness > Educate > Convince >
Offer
Buying Cycle—A > I > C > E > P = Awareness > Interest > Consideration >
Evaluation > Purchase
Sales Cycle—N > T > A > B = Need > Timing > Authority > Budget
Marketing
Cycle
Buying
Cycle
Sales
Cycle
O

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Consistently capture and analyze
interactions developing a digital
thumb print

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Synchronize marketing
processes to create a
closed loop and global
view of the customer
Synchronize marketing processes
to create a closed loop and
global view of the customer

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Embed predictive capabilities to
drive personalized campaigns and
micro-targeting

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Gain real-time intelligence

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Combine attitudinal and survey-based
data with social media sentiment to
anticipate and target new segments

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What did it take?
Give up old views
Better alignment with sales
Recognize that it takes more than great creative to get
results
Understand that we no longer control the message
“Radar” has to go out further
Organizational behavior affects individual behavior

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Quick Case Studies

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Meteolytix
Hidden influences

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Meteolytix – uses analytics to build sales
forecasts for retail and service sector clients
The Challenge: Develop improved ability to make precise sales predictions at branch locations for
bakery chain
The Process
• Client bakeries had observed that purchase types varied with weather
• Combined data from multiple sources …
– Historical sales figures
– Vacation and holiday dates
– Local competitive environment
– Marketing activities
– Weather
• Provides sales forecast to identify how much of what to produce at local bakeries
– Drizzle is typical cake weather
– Heat wave associated with higher sales of grilled sandwiches
– Continuous rain increases sales in some locations, and decreases in others
• Beginning to apply microforecasts to other industries … hairdressers, energy
producers etc.

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Meteolytix
The outcome …
– Improved availability of exactly the right products
– Reduces returns/spoilage by 33%
– Reduces waste and environmental impact
– Increases customer satisfaction
The Point …
What hidden influences do you have that affect your business? Are
you taking advantage of available data about them?
Learn more at: meteolytix case study

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Rabobank
Real time for real results

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Rabobank – financial services leader
The Challenge: To Better understand individual customers to create strategic offers for
cross, up and deep selling
The Process …
• Combined data from three types of interactions: outbound campaigns, “event”
driven (like birth, marriage etc.) and incoming activity
• Added in knowledge from market research and data mining.
• Identified product clustering and sequencing
– Customer with savings account, responsive to investment offers
– Transfer of large sum to account indicates potential immediate interest – requires rapid response –
trigger lead or offer
• Identified customer channel preferences for contact by an advisor directly or
through a direct marketing channel
• Target campaigns by identified groups, using the appropriate channel
• Using analytic software, able to deploy predictive models immediately
• Synchronize customer data with analytics in real time – daily updates to branches
on who to target and how

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Rabobank
The Outcome …
– Contact channel optimized for each customer
– Marketing campaign launch cycle reduced by at least four weeks
– Just in time identification of leads for quick response to customer
opportunity
– Campaign costs reduced, and success rates increased
The point … Are you integrating analytics into your normal work
stream to increase agility and success? What can you do to
make that happen?
Learn more at: Rabobank case study

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UNICEF
No more “not you again”

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UNICEF – child rights organization of the UN
The Challenge – increase funding from contributions, with
minimal resources - outbound direct mail had lost growth
potential and CRM system with operational data had limited
analytical capability
The Process …
• Combined third party lifestyle data with millions of house
records
• Incorporated results data from marketing activities over the
years
• Applied analytics on massive data to identify who to include
and who to exclude from campaigns

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UNICEF
The Outcome …
– Identification and mapping of contributors identified clear-cut donor
segments
– Analysis and results easily put in visual presentations to improve insights
– Doubled response on neighborhood level campaigns
– Yield became predictable, so campaigns became more effective and efficient
– Minimized “irritation” of mis-targeted campaigns
The Point …
Use of analytics enabled not only improved campaign results, but minimized
negative reaction from off-target recipients.
Who you don’t market to can be as important as who you do market to. Do you
know who to leave out?
Learn more at: UNICEF case study

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Telerx
Listening to the voice
of the customer

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Telerx – contact center
• The Challenge – transform to gain competitive advantage in evolving
market
• The Process …
• Analyze unstructured and structured data
• Unlock value in thousands of daily voice recordings
• Support advanced predictive modeling
• How …
– Incorporated data from social media channels, such as FB, Twitter, blogs and
forums
– Automatically transcribed voice recordings
– Consolidated into data mart along with call center notes and CRM data
– Mined text data
– Presented as a series of intuitive graphical reports

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Telerx
Outcome …
– Incorporating voice transcription yielded twice as many insights as
social media or notes alone
• Analysis identified areas of interest that the call center scripted questionnaires
would not have captured
– Able to identify “hot topics” in social media and prep call center for
volumes and scripted responses even before calls begin coming in
– Automated dashboard report highlight patterns and trends in
consumer behavior so can act
The Point …
Are you taking advantage of what your customers and prospects are literally telling
you? Or are you forcing their feedback into what you think they are talking about?
Learn more at: Telerx case study

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Some additional thoughts …

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Thoughts …
• Ready or not, analytics is part of marketing
• Nothing has changed, everything has changed
• Look for data in places you may never have
considered
• Agility is essential
• Need to focus on the right data
• Fast is good; faster is better

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Thank You!
pam@pamevans.net
bslaker@us.ibm.com