Remodel Your Marketing With Analytics And Dashboards

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• Option 0.2
Remodel Your Marketing With Analytics
and Dashboards
© Koen Pauwels, 2015

About the Presenter
 Professor of Marketing at Ozyegin
University, Istanbul & Honorary
Professor at the University of
Groningen
 Chosen amongst “Top 100
Inspirational Alumnus” from UCLA
 Associate Editor at the International
Journal of Research in Marketing
 Consulted large and small companies
across 3 continents, including Amazon,
Credit Europe, Ferrero, Inofec, Heinz,
Kayak, Knewton, Kraft, Marks &
Spencer, Nissan, Unilever, Sony,
Silverline, and Tetrapak
KOEN PAUWELS

About Regalix
 An award-winning Global Co - Innovation company that
leverages technology and marketing to help companies grow.
 Forefront of Innovation
o Digital Marketing Services
o Technology Enabled Services
o Regalix Labs
 Multi-disciplinary Leadership Team & Strong Advisory Board,
175+ Team
 Fortune 500 and Venture Backed Customers (B2B and B2C)
 Global Operations: HQ in Silicon Valley, 2 Offices
 Industry Recognition

IT’S HOW YOU USE DATA
1) Your decisions that data + analytics can inform
2) Vision + process to measure marketing success
3) Which metrics do industry leaders use?
4) How to convert data into productive action?
5) How to nurture the culture of accountability?

Case studies on brand tracking, data management, offline + online
marketing communication, direct mail, social media, search,
promotions, pricing, product age, retargeting…
Large and small companies, B2C and B2B across 3 continents
Even a small improvement in using marketing analytic dashboards
brings companies on average 8% higher Return on Assets compared
to their peers (Germann et al., IJRM, 2012)
Decisions that data + analytics can inform

ACROSS INDUSTRIES IN CASE STUDIES
Fast moving consumer goods: P&G, Unilever, snacks, delicacies
Financial services: Discover, Vanguard, First Tennessee Bank
Consumer durables: cars, furniture, male shaving
Entertainment: EB Games, Harrah’s
Services: online retail, fashion retail, online travel, insurance
Business-to-business: Avaya, Unisys, global packaging
Not-for-profit: Atlanta city dashboard

Analytic Dashboard: a concise set of interconnected performance
drivers to be viewed in common throughout the organization
It helps you deal with:
1. poor organization of data,
2. managerial biases in information processing and decision-
making,
3. the increasing demands for marketing accountability, and
4. the need for cross-departmental integration when needed
What Marketing Analytics Dashboards Can Do
for You

VIEW PERFORMANCE DRIVERS: EXAMPLES
EUROPEAN SME US-BASED LARGE FIRM
SOURCE: HTTP://W WW.MARKETDASHBOARDS.COM HTTP://W WW.DUNDAS.COM/

CONNECT YOUR ACTIONS WITH RESULTS

DO YOU NEED AN ANALYTIC DASHBOARD?
Is your organization suffering from:
1) Confusion about the effectiveness of new
media (what is your social media ROI?)?
2) Lack of comparable metrics across media
(online vs. offline) or countries?
3) Too many ‘key performance indicators
without proof of their sales impact?
Can marketing answer the questions:
1) If we need to cut 20% from our marketing
budget, what would we cut?
2) If we need to get 10% more revenues
next year, where would they come from?
3) When does our marketing action affect
performance, and how long does it last?
Do you want to:
1) Agree on facts so meetings
focus on plans to action?
2) Justify budget (changes) in
winning financial language?
3) Deploy analytics to turn data
into better decisions?
You need an analytic dashboard
You want to read this book
You’re gonna like the way it helps
you lift your performance
Not
Really
YES

A. Is it CONCISE?
1. Does it give your boss or CEO an at-a-glance overview of key business drivers?
2. Does it focus on a key few output metrics at each level of decision making?
3. Does it focus on a few inputs the decision maker can influence at each level?
B. Is it INTERCONNECTED?
1. Does it connect key performance indicators to each other?
2. Does it connect marketing inputs to relevant outputs for decision makers?
3. Does it allow users to change the input and observe how outputs change?
C. Is it used ORGANIZATION-WIDE?
1. Does it have short-term + long-term metrics for tactical + strategic decisions?
2. Does it help manage, not just measure performance at each decision level?
3. Is it used in meetings and performance reviews?
IS YOUR REPORTING SYSTEM AN ANALYTIC
DASHBOARD?

2) VISION + PROCESS
How should you measure marketing’s success to contribute to business
goals ?
How do you measure it now ?
How can you bridge that gap?

“It is possibly the single most important opportunity, in a decade, for
your management to reinvent.
But to do so you need to have good metrics, measurements you can
trust and from which you can make sound decisions that advance your
company's business plan.
You need to measure what really counts. Once identified, these
metrics should then be placed in your Dashboard.”
Borenstein, 2009
Start With the Vision

Better performance by analytic dashboards =
Goal alignment with company’s vision
*
Top management support
*
Employee engagement
Start With the Vision

How goal alignment and metrics consensus
get results
Ability to
measure brand
equity
Goal alignment
Ability to
measure
financial
returns
Use of a
dashboard
Metrics
consensus
Revenue
improvement
Learning
Measurement
Enablers
Measurement
Abilities
Outcomes
+
-
++
+
++
++
+
+
++

Today’s marketers must possess a hybrid of traditional marketing skills
and quantitative skills – mixing both art and science. But it’s not enough
to have both on the team; you have to some of each in everyone (like
having a major and minor in college). We’ve started living this at SAP.
To let the science influence the art, we gather data and feedback on our
marketing ideas before we make a full commitment
Jonathan Becher, Chief Marketing Officer, SAP
Process: a) Assemble Your Team

Process b) Gain IT support on data big & small
7 pillars to bridge IT and business units into cooperation
1. IT understands its role is to support business
2. IT knows strengths and quirks of its customer, i.e. business
3. IT does not get isolated, but integrated into decisions
4. Business sees how its ‘need for speed’ creates IT problems
5. Business develops self-discipline for long-term feasibility
6. Business understands set-up costs and maintenance efforts
7. Standardize IT service, but do leave the room for flexibility

Process c) Build your Database
The main goal of a database is to collect, analyze, and distribute
information to the right people at the right time.
5 out of 10 tips on how to manage your database:
1. Make sure your data is accurate and up-to-date
2. Distribute key information to all stakeholders
3. Customize your database
4. Keep it simple and clean
5. Utilize your database at its full capacity

3. SELECT THE BEST METRICS
How have industry leaders come up with the metrics they now use
to guide their decisions?
a) Generate potential Key Performance Indicators
b) Select Leading Key Performance Indicators
c) Integrate online and offline LKPIs
d) Standardize metrics but recognize their different performance
power across setting

3a) What are KPIs ?
Key business
drivers
Aligned with
strategic goals
and objectives
Few in
number
KPIs

GENERATE
POTENTIAL
KPIS WITH
THE KPI
WHEEL OF
DISCOVERY
© BRIGHTPOINT
CONSULTING

3b) Select Leading KPIs that drive
performance
Research and Marketing Input
Metric Source
Potential Key Performance
Indicators (KPIs)
Experience
Attitudes, Benefits, Claims
(ABCs)
Insight, qualitative &
quantitative
Leading Performance
Indicators
Lead/Lag
Causality test
Leading Key Vector
Performance Autoregression
Indicators Analysis
Brand
Performance

VAR MODEL CONNECTS MARKETING,
ATTITUDES AND PERFORMANCE

How Your Systems Fit Together to Identify
Leading KPIs
Brand Health
Monitoring
Marketing
Pressure
Marketing Mix
Modeling
Vector Autoregression (VAR)
Consumer
Response
Sales/Share

3c) Include Emerging Channels: Online and
Social Media
3 rules for social media marketing:
1. Begin with setting clear marketing goals and objectives and then
move on to metrics
2. Use both quantitative and qualitative metrics: there is no “silver”
metric
3. Use metrics specific to your company, business and marketing
goals and objectives

Consumer-Initiated Contracts
and Metrics
Metrics
Quantity: e.g. Facebook likes and “talked about”, Twitter followers
and retweets
Sentiment: how many of the social media mentions are positive,
negative or neutral?
Dispersion: do most social media mentions share similar sentiment,
or do they differ a lot?
Topic: what exactly are they talking about?
Consumer-Initiated
Contracts
Content separated activities Content integrated activities

3d) : Include and Leverage Learning From
Emerging Markets
3 key differences between mature and emerging markets
Mature Markets Emerging Markets
Communication awareness is LESS
responsive to marketing
communication
Communication awareness is MORE
responsive to marketing
communication
The brand attitudes, consideration and
liking are MORE responsive to
marketing communication
The brand attitudes, consideration and
liking are LESS responsive to
marketing communication
Brand liking has a HIGHER sales
conversion
brand liking has a LOWER sales
conversion

Advertising has a
harder time to win
consumer minds in
mature markets, and
to win consumer
hearts in mature
markets
(long-term elasticity)
ADVERTISING RESPONSE OF MIND METRICS

Awareness drives
sales more in
emerging market,
brand liking drives
sales more in mature
market
(long-term elasticity of
sales to MS metric)
SALES CONVERSION OF MINDSET METRICS

4) HOW TO CONVERT DATA INTO
PRODUCTIVE ACTION?
a) Visualize metrics in a dashboard
b) Launch & Renew dashboard in organization
c) Help transition from interpretation to action

4a) Design Your Dashboard
Dashboard design key attributes:
• Simplicity
• Focus
• Clarity
• Compactness
• Leading to action
• Readability
• Insightfulness
• Flexibility

4a) Design Your Dashboard
5 out of 10 tips on how to visualize your dashboard:
1. Highlight key metrics that require attention
2. Categorize information with color
3. Present data on dashboards in a consistent way
4. Use meaningful and descriptive titles
5. Avoid cluttering dashboards

Source: http://www.dundas.com/

4b) Launch & Renew Your Dashboard
7 things to remember for your dashboard project
success:
1. Dashboards should be useful
2. Dashboards should be aligned with strategy
3. Dashboards should contain the right KPIs
4. Dashboards should be clear and easy-to-read
5. Dashboards should be well planned
6. Dashboards require effective execution and committed people
7. Dashboards are not set in stone, require response to feedback

4c) Change Your Decision Making: From
Interpretation to Action
“Information is not knowledge. The only source of knowledge is
experience.”
Albert Einstein
“The best business decisions come from intuitions and insights
informed by data. Using data in this way allows your organization
to build institutional knowledge and creativity on top of a solid
foundation of data-driven insights”
Bladt and Filbin, Dosomething.org , 2013

Change Your Decision Making: From
Interpretation to Action
Adapt the dashboard output to the needs and
decision making style of the user (heatmap, slide
bar, more tactical planning tools)
Decide on rules for setting marketing budget and
allocation (budget allocation only, budget size and
allocation)
Design a (field) experiment to compare
marketplace results of proposed action vs. status-
quo (optimal budget setting rule)
Address implementation challenges

HEATMAPS EXPLORE FEASIBLE PROFIT
LIFTS
Heat Map of the Interaction of Two Marketing Variables on Profits
Price in $
#REF! 10 15 20 25 30 35 40 45 50 55 60 65 70 75
TVadvertisinginthousandsof$
0 0.02 1.04 1.92 2.64 3.22 3.65 3.93 4.06 4.04 3.87 3.56 3.09 2.47 1.71
250 0.65 1.68 2.56 3.28 3.86 4.29 4.57 4.70 4.68 4.51 4.19 3.73 3.11 2.35
500 1.25 2.27 3.15 3.87 4.45 4.88 5.16 5.29 5.27 5.10 4.79 4.32 3.70 2.94
750 1.79 2.81 3.69 4.41 4.99 5.42 5.70 5.83 5.81 5.64 5.33 4.86 4.24 3.48
1000 2.28 3.30 4.18 4.91 5.48 5.91 6.19 6.32 6.30 6.13 5.82 5.35 4.73 3.97
1250 2.72 3.74 4.62 5.35 5.92 6.35 6.63 6.76 6.74 6.58 6.26 5.79 5.18 4.41
1500 3.11 4.13 5.01 5.74 6.32 6.74 7.02 7.15 7.13 6.97 6.65 6.18 5.57 4.80
1750 3.45 4.48 5.35 6.08 6.66 7.09 7.37 7.50 7.48 7.31 6.99 6.52 5.91 5.14
2000 3.74 4.77 5.65 6.37 6.95 7.38 7.66 7.79 7.77 7.60 7.28 6.82 6.20 5.44
2250 3.99 5.01 5.89 6.62 7.19 7.62 7.90 8.03 8.01 7.84 7.53 7.06 6.44 5.68
2500 4.18 5.21 6.08 6.81 7.39 7.81 8.09 8.22 8.21 8.04 7.72 7.25 6.64 5.87
2750 4.32 5.35 6.23 6.95 7.53 7.96 8.24 8.37 8.35 8.18 7.86 7.40 6.78 6.02
3000 4.42 5.44 6.32 7.05 7.62 8.05 8.33 8.46 8.44 8.27 7.96 7.49 6.88 6.11
3250 4.46 5.49 6.36 7.09 7.67 8.10 8.38 8.51 8.49 8.32 8.00 7.54 6.92 6.15
3500 4.46 5.48 6.36 7.09 7.66 8.09 8.37 8.50 8.48 8.31 8.00 7.53 6.91 6.15
3750 4.40 5.43 6.30 7.03 7.61 8.04 8.32 8.45 8.43 8.26 7.94 7.48 6.86 6.09
4000 4.30 5.32 6.20 6.93 7.50 7.93 8.21 8.34 8.32 8.15 7.84 7.37 6.75 5.99
4250 4.14 5.17 6.04 6.77 7.35 7.78 8.06 8.19 8.17 8.00 7.68 7.22 6.60 5.84
4500 3.94 4.97 5.84 6.57 7.15 7.57 7.85 7.98 7.97 7.80 7.48 7.01 6.40 5.63
4750 3.69 4.71 5.59 6.32 6.89 7.32 7.60 7.73 7.71 7.54 7.23 6.76 6.14 5.38
5000 3.38 4.41 5.29 6.01 6.59 7.02 7.30 7.43 7.41 7.24 6.92 6.46 5.84 5.08

DECISION RULE: OPTIMIZE OR ADJUST
BUDGET ALLOCATION AND/OR SIZE
Budget allocation only Budget size + allocation
Optimize Ratio of elasticities
Case: online retailer
Rules for optimizing budget
1) Constant ad-sales effect
2) Constant % ad-sales effect
Adjust
Shift allocation in
recommended direction
Case: furniture marketer
Shift size and allocation
in recommended direction
Case: Inofec

CONSTANT EFFECT VS CONSTANT
ELASTICITY
0
2
4
6
8
10
12
1 2 3 4 5 6 7 8 9 10
SalesIncrease
Marketing Spending
Linear Sales (constant effect)
Multiplicative Sales (constant elasticity)

5) Nurture the Culture and Practice of
Accountability in your organization
“The real revolution in data will be a change in organizational behavior
and culture — and those changes are hard and take time. Many
organizations will struggle with the shift, and frankly, many will be
usurped by new competitors who grow up natively with this new
worldview.”
Scott Binker, Chief Marketing Technologist, 2013.

Nurturing the Culture and Practice of
Accountability in your Organization
Dashboard implementation is an everyday responsibility and requires a
cultural shift towards adoption of measurement practices
5 ways to stimulate dashboard use as a part of your culture
1. Make dashboard software a part of user desktops;
2. Emphasize employee benefits: ability to track, adjust, show;
3. Encourage a dashboard trial;
4. Incorporate dashboards into day-to-day operations;
5. Develop a performance-related incentive scheme.

CONCLUSION: CALL TO ACTION
Germann et al. (2012) uncover 5 key success factors for effective use
of marketing analytic dashboards that increase company’s performance
by 8-20%:
Top management support (see Chapters 1 and 3)
A supportive analytics culture (see Chapters 4 and 14)
Information technology support (see Chapter 5)
Appropriate data (see Chapter 6)
Analytic skills (see Chapters 7-10 and 13)

CONCLUSION: CALL TO ACTION
“You don’t need software –
You need courage and a vision”
Borenstein (2009)

Check out the book on Amazon.com
in the U.S. and McGraw-Hill in Europe.
For questions and feedback, please
contact the author!
Prof. Dr. Koen Pauwels
koen.pauwels@ozyegin.edu.tr
www.notsizedata.com

Remodel Your Marketing With Analytics And Dashboards

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