This session includes an overview of data science integration capabilities, strategic considerations, and software platforms that supercharge your direct marketing stack. Direct Marketing has evolved dramatically. Reimagine your direct marketing stack in this session.

1. KEYNOTE
Alex Sofronas
LEAD MEDIA MANAGER
DIRECTV
Supercharge your Direct
Marketing Stack with
Data Science
CHICAGO, IL ~ MAY 3 - 4, 2023
DIGIMARCONMIDWEST.COM | #DigiMarConMidwest

2. Alex Sofronas

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4. ⩥ Overview of Direct Marketing
⩥ Ensemble Methods
⩥ Data Management
⩥ Using Models in Direct Marketing
⩥ Innovations in Direct Marketing
4

5. Every piece of mail sent
influences an individual
toward a purchase.
• SMS
• Email
• Direct Mail
• Alternative Media

6. ⩥ Can operate in any funnel stage depending on business need. Alter targeting and
creative for most impact.
⩥ Targeting based on behavior is more impactful to the prospect
⊳ 3P Purchase data, Organic 1P data (web visitors, callers), 1P Predicted Lifetime
Value, 3P Life Stage & other predicted attribute data.
⩥ Powerful combination of individual-level targeting and variable gift card distribution
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Story: Reward Card Modeling

7. ⩥ In the context of time-series forecasting, ensemble methods are applied to increase
predictive accuracy by averaging multiple models.
⩥ Hypothesis of each model must be disjointed for increased predictability.
⩥ Simple averaging of model outputs beats weighted.
⩥ You can predict call responses, sales, churn, customer lifetime value, and more with
ensemble methods.
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Story: Switching to Ensemble and increasing accuracy 40%

8. ⩥ Recommend Snowflake or similar data warehouse that has
easy sharing capabilities to bring data science and reporting
together for tests and modeling.
⩥ Prospecting database, recommend working with a vendor to
avoid legal headache.
⊳ Think through how to connect your prospecting database to other
tactics and how models built on it can serve customers in different
channels.
⩥ Current customer and opted-in marketing leads
recommended to be stored on a database you own.
⊳ Enables significantly-reduced cost of data management
and allows for faster improvements/changes.
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Additional Database Options
1. Amazon Redshift
2. Google BigQuery
3. Microsoft Azure Synapse Analytics
4. IBM Cloud Pak for Data
5. Oracle Autonomous Data Warehouse
6. Databricks Delta Lake
Story: Switching to Palantir, Snowflake

9. ⩥ Targeting model
⊳ Built on large prospecting databases
⊳ Model developed using 10-20 variables and outputs a decile that the
audience belongs in
⊳ Can develop different targeting models for different audiences
■ High-value prospects
■ MDU (Multi Dwelling Units)
■ General Population
⊳ Additional modeling can be done on how many deciles from each model
should be selected
⊳ Random hold outs of 10% can be used to measure overall lift from direct
mail
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Story: Targeting Model Build/Rebuild

10. ⩥ Mail every week for a couple months and collect results.
⊳ Which month had the highest response and close rate?
⊳ Use name / email on billing address to connect sales to direct marketing
prospecting list to collect results
⊳ Applies to direct mail, email, SMS. Adapt this test structure for times of day an
email goes out, number of days following a triggered event, etc.
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Story: Cadence Test
⩥ A/B testing with randomized selection is best practice. Only change one variable at a
time.
⩥ Depending on volume available, multiple tests can be run at the same time. Use
average response rates to determine minimum quantity to achieve statistic
significance.
Story: Product Specific Messaging Test

11. ⩥ USPS Informed Delivery
⩥ SMS Marketing
⩥ Digital Surround with Online Ads linked to Direct Marketing
targeting models
⩥ Modular Creative for faster mail production
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Story: informed Delivery

12. 12
Questions?
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