The document discusses how companies can mine big data to find new markets and growth opportunities. It provides examples of how analyzing large amounts of diverse data from multiple sources at varying frequencies can provide insights into micro-markets. Companies can use these insights to better target sales efforts, tailor promotions, and improve decision making. The case studies describe how companies doubled growth rates and lifted renewals bookings by 20% by aligning sales territories and efforts with opportunities identified through big data analytics at the micro-market level.

1. Mining Big Data to Find New Markets
Featuring a team of McKinsey partners: Manish Goyal and Homayoun Hatami
SEPTEMBER 5, 2012

2. Today’s Speakers
Manish Goyal Homayoun Hatami

3. Big data insights
What color of a used car How can a retailer use
How did Google make big
should you chose to product purchase data to
money with a subtle
minimize after sales estimate a pregnant
change?
issues? woman's due date?

4. Big data
Scale Timeliness Diversity
Apple generates 8M log Expedia updates flight Google uses social data for
entries per second for Siri prices by the minute targeted advertising
Distribution Analytics
Hospitals share patient Cars drive themselves with
info around the world machine learning

5. Mining big data to find micro-markets
• Collect data from multiple sources: Company, channel partners, market
research, customers and generate insights through advanced analytics and
experimentation
• Get personal in selling: Use micro-segmentation to target sales time,
promotions (e.g., special bundling of products) and selling propositions (e.g.,
next product to buy)
• Make it easy for the sales team: Create easy-to-understand toolkits that the
sales team can act upon
• Put big data at the heart of marketing and sales: Leverage insights to improve
decision making and innovate your sales model (e.g., real-time decision-
making)

6. CASE STUDY
Case study: Doubling rate of growth
Situation Pain points Impact
▪ Leading chemicals player ▪ Low sales time Doubled rate of growth
with high market share
▪ Unclear on where 200
▪ Little or no growth in last opportunity exists
few years
▪ Multiple different Lift
data sources, no
100
“one source” of truth
▪ Inability to pin point
root causes of
underperformance
Baseline Rollout

7. CASE STUDY
Alignment of sales time with micro-markets to drive
new business revenue
Actions
• Redefined criteria for defining =Rep location
rep territory Before After
– Historically set based on ~200 miles ~200 miles
existing customer base; not
set based on opportunity for • 55% of time • 25% of time
generating new business • 25% of • 25% of
– Resulted in sales reps opportunity opportunity
functioning as farmers rather
than hunters
• Setting rep territory based on
areas of greatest opportunity ~50 miles ~50 miles
significantly helped boost • 45% of time • 75% of time
productivity • 75% of • 75% of
– Doubled selling time for reps opportunity opportunity
– 2x rate of new business
production, 18 months after
program launch

8. CASE STUDY
How to identify root cause by micro-market

9. CASE STUDY
Unlocking deeper and deeper insight
Market share in California is 40%; no
opportunity for growth
Market share by
Market share in California county
countries varies by 4x
Sales rep coverage
Napa which has 10% share is not covered by
any sales rep Partner coverage
San Luis Obispo with 15% share has no partners
Social media
Acme plumbers are the most influential influencers
partners to sign up in San Luis Obispo
Competitor
Riverside has a strong local competitor with better value prop
Voice of customer
Perceived ease of installations is primary reason for superior
competitor value prop in Riverside
Marketing spend
Marketing spend in Riverside should be doubled to
counter competition Cluster analysis
Nashville (TN) shows the same characteristics as Riverside. Share
best practices across micro markets
Note: Example of faucets manufacturer selling through own sales force, channel partners and DIY stores

10. CASE STUDY
Driving 20% lift in renewal bookings
Situation Pain points Impact
• New CRM deployment • Inaccurate 20% renewals bookings increase
provided basic reports, renewals contract
however failed to provide quoting 120
integrated customer view • Missing contracts Lift
100
• Renewals sales practices • Excessive use of
were driven by rep’s discounts to drive
account knowledge rather sales
than guided by true • Same amount of
analytic insight effort applied to
• Rep selling time was limited small and large
by dirty data requiring lots valued
of manual clean up, e.g. opportunities
>60% of time was spent on
non-customer facing
activities Baseline Pilot
1 Bookings target indexed to 100

11. Build a Big Data toolkit to bring micro-market
insights to the frontline
Big Data toolkit changes the way data has traditionally been used
From … To …
The front line (e.g., country managers)
Big Data held centrally in
access the analysis output and ongoing
headquarters but fragmented
performance monitoring
across 20+ data warehouses
Focused benchmarked approach leads to
Analysis paralysis leads to prioritized tactical granular moves
limited insights
Looking backwards at what Predicting greatest impact going forward
went wrong across comprehensive levers
Time-consuming, one-off Repeatable standardized metrics and
hypothesis-driven efforts templates tied to client’s systems

12. “Sales Growth: Five Proven Strategies from the World’s Sales Leaders”
provides practical insights from sales leaders to sales leaders
Contents
I. Find growth before your competitors do
1. Look 10 quarters ahead
2. Mine growth beneath the surface
3. Find big growth in big data
II. Sell the way your customers want
4. Master multichannel sales
5. Power growth through digital sales
6. Innovate direct sales
7. Invest in partners for mutual profit
8. Sell like a local in emerging markets
III. Soup up your sales engine
9. Tune sales operations for growth
10. Build a technological advantage in sales
IV. Focus on your people
@McK_CMSOForum 11. Manage performance for growth
12. Build sales DNA
www.youtube.com/McKinseyCMSOforum V. Lead sales growth
13. Drive growth from the very top
marketingandsales@mckinsey.com 14. Make it happen