Webinar on December 15th by IBM

1. Webinar available here:
http://w.on24.com/r.htm?e=272891&s=1&k=8EB9C4CBEB1C376A942A644887F45994
IBM Social Analytics - Putting the Science into
Social Business
Mark Heid, Program Director
Social Analytics Solutions,
IBM Dec 15, 2011
mheid@us.ibm.com
© 2011 IBM Corporation

2. Agenda
1 Why be an interactive, social business?
2 The New Marketing Imperative
3 IBM Leads in Social Analytics & Enterprise Marketing Management
4 How to Get Started
2 © 2011 IBM Corporation

3. Marketing’s Challenges…and Opportunities
Years to reach Tablet
§ Channels proliferate… 50M users: 2 Yrs
§ The Internet evolves… Facebook
3 Yrs
Internet
§ The consumer is in control… 4 Yrs
Network of pages Network of people
TV
§ The rate of change accelerates… 13 Yrs
Marketing’s role must evolve…
3 © 2011 IBM Corporation

4. Expanding marketing’s role, and contribution
to the business
+ Transformative CMO
Traditional CMO Agenda:
+ Understand the customer in real time,
across the business
Agenda:
+ Anticipate customer needs
ü Understand the market and + Drive consistent, compelling interactions
the customer across all channels
ü Build awareness and demand + Steward the customer experience across
ü Steward the company’s brand all touch points
ü Drive brand strategy and + Monitor and harness customer evangelism
execution + Accountable for business outcomes and
4 return on investment © 2011 IBM Corporation

5. IBM’s approach to integrated marketing
Integrated Marketing
Deep Customer Insight
Optimized, Relevant Cross-Channel Marketing
Consistent, Compelling Brand and Customer Experiences
5 © 2011 IBM Corporation

6. The vast majority of CMOs are underprepared to manage the
impact of key changes in the marketing arena
Underpreparedness
Percent of CMOs reporting underpreparedness
50%
Data explosion 71%
Social media 68%
Growth of channel and device choices 65%
Shifting consumer demographics 63%
Financial constraints 59%
Decreasing brand loyalty 57%
Growth market opportunities 56%
ROI accountability 56%
Customer collaboration and influence 56%
Privacy considerations 55%
Global outsourcing 54%
Regulatory considerations 50%
Corporate transparency 47%
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 (n = number of respondents who selected the factor as important)
6 © 2011 IBM Corporation

7. Customers are the New Intellectual Property
(Keep the promise)
Customer
Intimacy
Decision
Management
Product Operational
Leadership Excellence
(Make the promise) (Deliver the promise)
7 © 2011 IBM Corporation

8. We are seeing unprecedented upheaval in the
consumer buying process
In the past….there was a funnel
• Many Brands - Consumers start
buying process with a large
number of brands in mind
• Fewer Brands: These choices are
narrowed down to a few
• Final Choice: A decision is made
between the few
• Buy: A purchase is made…
• Post Purchase: Consumers’
relationship with the brand is
focused on the use of the product
or service
Today’s consumer buying process is far more dynamic and interactive…..
* David C. Edelman, McKinsey, Dec 2010
8 © 2011 IBM Corporation

9. Increasingly, customer acquisition is more nuanced.
Generating loyalty is the new marketing imperative
Social Analytics is the key to success in Gain insights and increase positive
this new environment sentiment in social conversations
Accelerate re-purchase
through propensity models
Strengthen brand
preference
through advocacy
* David C. Edelman, McKinsey, Dec 2010
9 © 2011 IBM Corporation

10. Agenda
1 Why be an interactive, social business?
2 The New Marketing Imperative
3 IBM Leads in Social Analytics & Enterprise Marketing Management
4 How to Get Started
10 © 2011 IBM Corporation

11. Knowing the customer… involves creating a complete picture
• Gender / Age
Target • Geography Demographics
Audience • Income
• Channel
• Contact Time Preferences
• Value Buyer
• Visit Frequency
• Purchases Behaviors
Jane Cogswell • Lifecycle stage
Demographic Profile
• Financial Planner
• Single • Hobbies
• 28 years old • Family Interests
• Located in Boston, MA • Lifestyle
11 © 2011 IBM Corporation

12. Social attributes will improve understanding and
results
Typical audience targeting: Social media informs interest, brand
demographics disposition, likes/dislikes
Mom Wife
Accountant Golfer
12 © 2011 IBM Corporation

13. Pulling together the whole scenario
Cookie=24601
Rinse and Email =jane@brainyjanie.com
Regular web site browser Email and cookie are
Repeat Cookie =24601
Recently looked at green widgets tied together
Open rate: 73%
Comes to the web site and gets a cookie, Click-through rate: 5%
@BrainyJanie browses, but does not buy
Tweets sneak preview
link, opened by 25 Later receives an email with a
friends personal URL, and
clicks through to the web site. Connections made between:
§ Cookie and Email
Jane gets an email
invitation to § House Hold and Cookie
attend a sneak Jane makes a purchase and § Email and House Hold
preview of Green enters her email for the
Widget 2.0 and confirmation and address
she can invite her for shipping
friends via Facebook ID
Twitter.
And cookie tied together?
Jane, loves her product
Jane, tweets so much she becomes a
about fan on The Facebook.
#GreenWidget
Channel ID
@BrainyJanie Cookie 24601
Following 53
Email jane@brainy.com
Followed by 152
Direct Jane Cogswell
Facebook ID=01810
210 Facebook friends Facebook 01810
Born in Houston, TX Twitter BrainyJanie
Twitter handle appended Gadget’s Galore Fan
13 through third party © 2011 IBM Corporation

14. An Example: SmartPhone User Personas
SPSS Modeler identifies clusters and maps the
authors in social media to personas established
from the CCI concepts and hotwords.
14 © 2011 IBM Corporation

15. Monetizing Social Media
Execute at the individual level by mapping
aggregate insights to 1:1 social media profiles
Surveys, Focus
Capture, Analyse Optimize Cross
groups
& Model Channel, Integrated
Retailer POS
Campaigns
Extract trends
Data
E-Commerce Marketing Campaigns
PR Activities
Merchandising Mix
Web Browsing Expose patterns
Category Management
Sales
Contact Center
Social Media
Discover relationships
Map Aggregate Models to
1:1 User Profiles
15 © 2011 IBM Corporation

16. Analytics Foundation: Feature Vectors & Action
Clusters
• Start with 30-40 modeled variables – “Feature Vectors”
• Each feature vector is like a gene, which describes a facet, or set of customer behavior traits
• 8-15 Feature Vectors are used to define Action Clusters, all 40 can be used to create sub-groups
5-dimensional typical segmentation ≈ 16,000 views
12-dimensional Action Clusters ≈ 3,138,000,000,000 views
30 Feature Vectors ≈ 17,400,000,000,000,000,000,000,000,000,000 views
Action Clusters are: Most segmentation
approaches only focus
• Highly homogeneous – it
is difficult to get into a here
cluster based on 13
Econometric: Age +
dimensions, ensuring that Annual
Time until Real-estate & Annual Income +
the customers are very Unemployment Transactions
similar to one another Preferred Repurchase in Key Spend Level Geography
Product Categories
• Highly differentiated – Preferred Categories
the AC process ensures as Channel
much “distance” between
Length of Time
clusters as possible as Customer
• Highly actionable –
because the clusters are Participation in
based on the customer’s Return / Loyalty
Use of Service Use of In-House
response to various Exchange
Credit Card Program
dimensions of the value Breadth of Behavior Programs
proposition, they Categories
facilitate highly-specific Response to Shopped
Recency +
targeting Media
Frequency +
Value
16 © 2011 IBM Corporation

17. Social Media Improves Traditional Predictive Analytics
High-value, dynamic approach
- source of competitive differentiation
Interaction data Attitudinal data
- E-Mail / chat transcripts -Market Research
- Call center notes -Social Media
- Web Click-streams
- In person dialogues
360 degree
Customer View
Descriptive data Behavioral data
- Attributes - Orders
- Characteristics - Transactions
- Self-declared info - Payment history
- (Geo)demographics - Usage history
17
“Traditional approach” © 2011 IBM Corporation

18. …..and more accurately answers “Why?”
High-value, dynamic
- source of competitive differentiation
Interaction data Attitudinal data
- E-Mail / chat transcripts - Opinions
How?
- Call center notes
- Web Click-streams Why?
- Preferences
- Needs & Desires
- In person dialogues
360 degree
Customer View
Descriptive data Behavioral data
- Attributes - Orders
- Characteristics - Transactions
Who?
- Self-declared info
- (Geo)demographics
What?
- Payment history
- Usage history
“Traditional”
18 © 2011 IBM Corporation

19. Drill-Down: Web Analytics and Predictive Analytics
With web analytics data alone, we get some insight into web metrics that are important in
predicting item sales.
19 © 2011 IBM Corporation

20. Drill-Down: Web Analytics, Social Media and Predictive
Analytics
With web analytics and Cognos Consumer Insight data, we get more insights into other factors that may be
important in predicting item sales, such as conversations around “modern” designs, mattress and lounge
chairs, with a higher confidence level.
Key Social Media Insight:
Referencing “Modern” really
matters. This wasn’t
picked-up with traditional
predictive analytics
20 © 2011 IBM Corporation

21. Agenda
1 Why be an interactive, social business?
2 The New Marketing Imperative
3 IBM Leads in Social Analytics & Enterprise Marketing Management
4 How to Get Started
21 © 2011 IBM Corporation

22. Three types of media: Paid, Owned, Earned
Owned
media
Paid Customer Earned
media media
22 © 2011 IBM Corporation

23. Earned Media
Delivered through a third party
without exchange of payment.
Traditional Digital
§ Public relations • Twitter
social
generated news media • Blogs
PR
§ Analyst coverage • Product reviews
word of mouth
23 © 2011 IBM Corporation

24. Owned Media
Media, content, and channels that the company
directly delivers, has control over, or owns.
Traditional Digital
Includes
DIRECT MAIL POS CALL CENTER WEB SITE EMAIL off domain digital
outposts
ATM BRANCH KIOSK MICROSITES FAN PAGES
24 © 2011 IBM Corporation

25. Paid Media
Delivered through a third party or intermediary
in exchange for payment.
Traditional Digital
Ads
TV radio display
Google PPC
Ads
outdoor
print
25 © 2011 IBM Corporation

26. Looking ahead – The future must be intelligent marketing that
understands the interrelations of all channels and media
e
Owned
media
PR
Paid Customer Earned
Ads media media
Google Google
26 © 2011 IBM Corporation

27. 3 simple steps to a great social strategy
1. Capture
2. Monitor and Analyze
3. Act and Engage
27 © 2011 IBM Corporation

28. 1. Capture
Social
Sources FORUMS/ MICROBLOGS VIDEO SHARING SOCIAL WIKIS PHOTO S SOCIAL MEDIA BLOGS
NEWSGROUPS NETWORKS HARING NEWS
(Publicly available) 100+ million
120+ million AGGREGATORS
Consumer Insight
Social
“owned” media outposts
“Earned” media feeds Social referrals and
downstream conversations
Social Email Analytics
Links from emails and websites
that are shared, liked, and
commented on
28 © 2011 IBM Corporation

29. 2a. Monitor and Analyze “Earned” Media
Social Media Analytics with CCI
Social Media Analytics
Consumer Insight
Analyze “earned” social media,
identify brand sentiment,
emerging topics
29 © 2011 IBM Corporation

30. 2b. Monitor and Analyze
“Owned” Social Analytics and ROI with Coremetrics Social
Social Media Analytics
Social
Analysis of “owned”
media outposts
ROI of social clickthroughs
30 © 2011 IBM Corporation

31. 2c. Monitor and Analyze
Social Email Analytics with Unica
Social Media Analytics
Social Email Analytics
Analytics for email and web links
that are shared, liked, and
commented on
31 © 2011 IBM Corporation

32. 2d. Monitor and Analyze
Predictive Social Analytics with SPSS
Social Media Analytics
Predictive Social Analytics
Social segmentation
Predict behavior based on social
attributes
32 © 2011 IBM Corporation

33. 3a. Act and Engage
Social Media
Marketing Execution
Social segmentation,
social sharing, and
real-time offers inside of
social media widgets /
applications.
33 © 2011 IBM Corporation

34. 3b. Act and Engage
Social Media
Customer Experience Suite
Business Execution
Social Media
Business Execution
Social commerce,
branded communities,
social widgets,
product ratings, and
more…
Social Media
Business Execution
34 © 2011 IBM Corporation

35. What is
Enterprise Marketing Management (EMM)?
A marketing technology category that supports
the end-to-end marketing function
across all marketing disciplines
35 © 2011 IBM Corporation

36. IBM Vision for the EMM Suite
Owned Media &
Interaction Channels
Owned
media
Paid Earned
Media Media
Paid Earned
media media
36 © 2011 IBM Corporation

37. IBM Vision for the EMM Suite
Owned Media &
Interaction Channels
Paid Earned
Media Brand Media
Optimization
37 © 2011 IBM Corporation

38. IBM Vision for the EMM Suite
Owned Media &
Interaction Channels
Interaction
Optimization
Paid Earned
Media Media Marketing Brand Media
Optimization Analytics Optimization
Data &
Content
Marketing Performance Optimization
Open Integration
38 © 2011 IBM Corporation

39. Mark Heid
mheid@us.ibm.com
twitter: @mheid
39 © 2011 IBM Corporation