High-level intro to basic capabilities

1. A brief introduction
Prepared for:
1

2. Who we are …
Optimization Group is a marketing analytics firm
offering the following solutions:
 Traditional and on-line focus groups
 Traditional survey services (CATI and on-line)
 Text mining analytics
 Conjoint (trade-off) analysis
 Data mining and modeling
 Dashboard analytics
2

3. Our People
Optimization Group consists of people
from two worlds:
– Technology “Automate and systematize complex data sets”
• Systems analysts
• Programmers
• Database designers
• Process engineers
– Marketing “Make data and analyses work
in the real world”
• Marketing research & consulting
• Corporate brand management
• Agency account service
• Marketing & media database (applications focus)
3

4. Our Global Experience
 US
 Canada
 Brazil
 Mexico
 UK
 France
 Spain
 Poland
 Italy
 Germany
 India
 China
 Australia
 South Korea
 Japan
4

5. Some of our Clients
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6. Proprietary tools  Unique Solutions
IdeaLoopz®  Generating and optimizing ideas
Model Incite  Finding the “marketing signal” in
“noisy” data
Search Incite™  Context based text search
SiteCRM™  Brand website effectiveness
6

7. IdeaLoopz
 Components:
– brandDelphi™ online ideation system, based on
Rand Corporation geo-political (Delphi) research
technique
– IdeaMap® online concept and messaging
optimization, rooted in conjoint analysis
– Brand Impact Analysis identifies how brand
linkage “turbocharges” specific features and benefits
7

8. IdeaLoopz:
“The Diamond Principle”
Idea
Expansion
Optimized
Idea
Reduction
8

9. Case Study: Blades Servers
9

10. Sample
Definitions:
 Company size segments were defined as follows:
– Medium business = 250-999 employees
– Enterprise = 1,000+ employees
– Public sector = federal/state/local government, education, medical
 IT Decision Maker:
– Work in a IT function AND check at least one of the following as it relates to
their job:
– Managing and maintaining the servers and storage environment at your site
– Helping to set overall company/site strategy regarding servers and/or
storage
– Evaluating and recommending new servers and storage products
– Recommending or selecting the specific brand of servers and storage
– Recommending or selecting the specific configuration of servers and
storage
 Business Decision Maker:
– Do not work directly in an IT function AND have influence over the server
and storage purchases at their company
10

11. 11

12. Check the ideas you
like (the basis for the
relevance score)
Then add your own idea
or build on one input by
someone else
12

13. Next rate the ideas
you just checked (the
basis for the
importance score)
13

14. Ideal Blade Server
 Overall, respondents defined the ideal Blade
server as…
Q1
Key Phrase(s) % of Ideas with Word/Phrase
Price/affordable/cost 15.7%
Large/capacity/room/space 11.8%
Service/support/warranty 9.8%
Reliability/quality 9.8%
Fast/quick/time 3.9%
Easy/friendly/simple 3.9%
14

15. Filter on “Best Ideas”
Idea Innovation Map
Niche Stars
IMPORTANCE
Static Question Marks
RELEVANCE
15

16. Q1: Stars - Potential Differentiators
16

17. IdeaLoopz:
“The Diamond Principle”
Idea
Expansion
Optimized
Idea
Reduction
17

18. The Principles of IdeaMap
1. Rooted in conjoint…determines cause and effect
2. Based on fundamental communications theory
(stimulus response)
18

19. Methodology Overview
 Based on customer input from 1st Phase, team
generated 9 “tight” attribute/benefit statements
– Four categories of elements included:
• Brand/Price
• Servers
• Storage
• Better Together
 Elements mixed and matched in an
experimental design to form holistic concepts
 Respondents evaluate concepts  we analyze
impact of each element
19

20. Key Learning
 Consistent with work in the PC space among
the B2B target, language that communicates
the ability to keep things running rose to the
top…
– Upgrade/add/replace without taking down infrastructure
– Lower operational expenses – setup time drops from 12
hours to less than 30 minutes
– 24x7 support before, during and after
– Work is transferred to a spare if blade fails
20

21. Example of “Slicing and Dicing” the Data
 Most motivating elements are shared regardless of
OS
 Those with a VMS operating system find several
elements significantly more motivating
– These elements have a “do more with less” theme
21

22. Actionable Information for You
 What is on your
customers’ minds?
– What are there problems? Idea
– What would they like to Expansion
see?
 What are the “hot
Optimized
buttons”?
Idea
– How to position the idea Reduction
– How best to express it
– Messaging to target
segments
22

23. Model Incite
Optimization Group’s outsourcing solution which
uses our proprietary genetic programming based
modeling software GMAX and other statistical
techniques and tools that your projects require.
23

24. Classic Regression
50
45
40
R N
35
$10 R
$9 $5
30
25
$7R R
N
$4 $8
20
N$3
15
10 $2 N
5 $1
0
$6 R
0 1 2 3 4 5 6
24

25. Statistical View Of Data
 Tools like SPSS would look at the potential relationship between
the likelihood of fraud and:
 > income
 > filing status
 > married status
 > SIC Code (if business) (2 digit, four digit)
 > Gross Revenue
 > Date of filing
 > etc.
 The available universe of variables is limited to only the ones
the modeler has input. The limits the potential for greater insight
and predictability.
25

26.  One day while perusing the stacks at Powell's Technical, I came across
an appealing title: Genetic Programming: On the Programming of
Computers by Means of Natural Selection by John R. Koza. He posed an
intriguing question: How can computers learn to solve
problems without being explicitly programmed? In other
words, how can computers be made to do what needs to be done,
without being told exactly how to do it?
 There is a brave, new way for computers to solve
problems without being explicitly programmed and it is
Genetic Programming (GP).
 Koza's innovation represents an extension of the GA involving more
complex structures—computer programs, rather than bit strings. Each
program, like the bit strings of the GA, is measured for fitness, the
most fit reproducing, the least fit dying off. Eventually,
a program is found that solves the problem.
 In short: One can harness the principles of Genetic
Programming to create software that programs itself.
26

27. Genetic Programming
50
45
40 R N
35 $10 $9
R $5
30
$7 R
X1 25 N
$4 R $8
20
N$3
15
N
$2
10 N
R $1
5
$6
0
0 1 2 3 4 5 6
X2
27

28. How GP works
PARENT 1 PARENT 2
+ -
A + * X
B C Y Z
28

29. How GP works
PARENT 1 PARENT 2
+ -
A + * X
B C Y Z
OFFSPRING 1 OFFSPRING 2
+ -
A * + X
Y Z B C
29

30. Mining Key Data Variables
Data mining enables you to see the strength of individual
variables as well as powerful new combinations that help you
better understand your “Key” business drivers.
Variable Lift
Commissions earned 375
High face amounts on policies 352
Mix of business sold 240
Sales to first time customers 205
Ratio of policies issued to price quotes 200
Rate of underwriting approval 190
Weeks since last activity 188
Multiple product sales to same client 170
High retention rate for policies issued 167
Policies denied in underwriting process 153
Lift is a measure of predictability.
30

31. Targeting your best Prospects
Decile $500K Active Past
Decile Total Donors Donors Donors Unknown
1 5,704 148 1,263 2,225 2,068
2 5,704 29 660 1,919 3,096
3 5,704 17 578 1,677 3,433
4 5,704 14 496 1,435 3,759
5 5,704 7 369 1,261 4,068
6 5,704 3 335 921 4,445
7 5,704 0 280 767 4,657
8 5,704 0 125 560 5,020
2,068 “unknown” alums have the same predictive variables as the top4,749
9 5,704 1 160 795 10%
of alums who have donated $500,000.
10 5,704 0 98 471 5,136
Total 57,044 219 4,364 12,031 40,431
In the first decile, there are 2,068 “unknown” alums who have the same
predictive characteristics as 148 alums who have donated $500K to the
organization.
31

32. Customer Satisfaction Model
Our data mining revealed the variables that influence satisfaction.
New Data Combinations
Length of Time for
Call resolution
Team: Durangos,
Thunderbolts
Overall satisfaction
W/rep
Getting through to
Cust. Service rep
32

33. Customer Satisfaction Window
The Customer Satisfaction Window contrasts the perception of the
company’s delivery rating in an area against that area’s importance to
overall satisfaction (GCSI). Here is a list of the areas included in the survey.
A Easy to Get Started
A
F B Sales Person Support
C Easy Installation
Highest Leverage D Quality soft/training
0.500
A A E Easy Info Access
J L
A
N
F Pick-up Reliability
A G Helpful Driver
B A
M
A H Professional Driver
A
G A
V Some Potential I Easy Tracking
H A
A
O J Delivery Reliability
0.400 T
A A
K E K Package Condition
A L CSA Helpfulness
S
M Easy Claims Resolution
A A
I U N Fair Claims Resolution
Lowest Leverage
A
O Accurate Invoices
A
P D
0.300 P Timely Invoices
Q Easy Acct. Maint.
Cost of Entry R Easy Supplies
A A
A Q C S Easy Website
R
T Easy Paperwork
1.40 1.60 1.80 2.00 2.20 U Easy Customs clear.
V Easy Preparation
33 Delivery Rating

34. Customer Satisfaction Window
The Customer Satisfaction Window contrasts your “ability to deliver”
customer satisfaction variables against the “expected value” of those
variables.
Customer Satisfaction Window
0.200
A
Some A Time to Answer
potential Highest leverage G Number of Transfers
Modeled Expected Value
K B G I Overall Rep Quality
D
0.100 I
H
Lowest
leverage
0.000
J
Cost of entry
L
F
-0.100
E C
20 40 60 80
Ability to Deliver
34

35. Monetizing Customer Satisfaction
35

36. Case Study: GMAX™ and ROMI
36

37. Objective
 Develop model and understanding of
relationships between marketing expenditures
and sales
Direct Mail
Catalog
Print Ads
Client Emails
Controlled Online Advertising
Advertising Total Sales $
Pricing
Attitudinal Customer Awareness
Outcomes Customer Experience
Sales Sales
Outcomes Market Share
37

38. Print Costs
 While print costs appear in the GMAX model, the relationship
is not clearly seen in graphical analysis of print costs by
themselves
400000000
300000000
200000000
ALL Enterprise
100000000
100000 200000 300000 400000
Print Out of Pocket
38

39. Marketing Communications
Variable Tree
Share of
voice, print,
online, and
Prod B Print
direct mail all Share of voice Out of pocket
have an
affect on
sales Sales
Shipments
Prod A
Share of voice
Direct
Mail
Note how Print has an impact by itself Print
AND in combination with Direct Mail Online costs Out of pocket
39

40. Typical ROMI Output
Estimated Sales Impact per $ Invested
Type of Data Total Sales (Direct + Indirect)
Direct Mail $330 -350
Online Advertising $54
Catalog Out-of-Pocket $ $124
Print Varies by CPM “tier”
Overall (SOV) Varies
Email $82
Pricing - 1% change $22MM-$26MM
40

41. ROMI Model
Using this model to predict sales does a very good
job of matching the actual data
700,000,000 A
600,000,000
A
A A
500,000,000
A
A
A
R-Square = 0.62
400,000,000
A
A
A
A
A
A A
A
300,000,000
A
200,000,000
20000000.00 30000000.00 40000000.00 50000000.00
Predicted Sales Using Model
41

42. ROMI Simulator
Linear Effects
Value of +1 point change
Commercial Education Hospitality
Value of +1 pt in Awareness $11,777,724 $4,611,587 $847,189
Share impact 0.22% 0.35% 0.19%
Value of +1 pt in Consideration $42,152,400 $ 11,212,500 $ 2,849,408
Share impact 0.78% 0.86% 0.63%
Value of +1 pt in ITB $53,394,000 $12,653,368 $4,506,830
Share impact 0.99% 0.97% 1.00%
42

43. ROMI Benefits
 Identify the marketing levers which
contribute to sales
– And those which don’t
 Calibrate the impact to guide marketing
investment decisions
 Conduct “what if” analyses
– How much should I spend to achieve $X sales?
43

44. Search Incite™
Context based search technology
44

45. Typical Keyword Search
45

46. Search Incite Results
46

47. How Search Incite Works
Search Incite consists of three components:
Query
Ontology Algorithm Index
Data
- Developed by a team of - Inference engine
experts over 3 ½ years (over
30 man years of work) - Based on Search Incite’s
intelligent sort algorithm
- Over 50,000 linguistic
elements - Combines linguistic
analysis with automatic
- Up to 500 keywords and pattern matching
phrases relevant to each
knowledge domain
- Customizable, scalable
and upgradeable to adapt
to your changing needs.
47

48. Ontology Development
48

49. Content Selection
49

50. AMEX Verbatim Comments
50

51. Isolating Problems
51

52. Automated Corrective Action
Specific words, terms, phrases and issues can be
programmed for automatic intervention/handling.
52

53. Search Incite Hardware Overview
PC PC PC
Firewall
CALEA
Police Dept Accreditation
Intranet Program
Transfer Standard Manual
Web
Protocol Server
Server
Intranet Server can be hosted
internally or remotely depending
on security, IT infrastructure, and
response time requirements

54. SiteCRM™
Measuring Brand Website
Effectiveness
(In partnership with crmmetrix)
54

55. Illustration showing the flow of website visit experience of a single visitor
Business Impact (Sales) Measurement
Lift In Purchase Intent
Lift In Brand Health Purchase Impact=Estimated ROI
Purchased
Probably will Definitely
Brand
purchase will purchase
Media Pull
TV
Re-contact survey 1 week
Packaging after website visit
WOM
Search SiteCRM™ SiteCRM™
Online Ad Entry Survey Exit Survey
Email On Site Entry On Site Exit
Typed URL
Offline Media Site Exposure
ROI (Purchase Tracking) Module
Purchased the brand within past 7 days
Spent $4 on most recent purchase
Media Impact – website visit influenced 50%
Estimated Web Influenced Revenue = $2.00
Estimated Web Influenced Revenue (aggregated)– Monthly
Total Unique Visitors/Month = 65,000
Estimated ROI = 23.8% Average Estimated Web Influenced Revenue / Visitor = $2.00
Total Estimated Web Influenced Revenue = 65,000 x $2.00 = $130,000
Total Interactive Marketing Spend / Month = $105,000
55
55

56. 6 Dimensions of
Brand Website Effectiveness
The Six Dimensions analysis, developed by crmmetrix, aims to help marketers identify what
to leverage, in order to turn your website into a powerful marketing engine.
VISITOR
QUALITY
CRM IMPACT Who are you attracting SITE
to your website?
PERFORMANCE
Is the website building
customer relationships? Is the site performing to
How many of my visitors
registered for the
VISITOR QUALITY my visitors
expectations? What are
newsletter? the improvements I
Is the content of the need to make to the
website building a website? Are the
positive brand visitors accomplishing
perception? Six their goal for coming to
the site?
Dimensions BRANDING
CAMPAIGN
EFFECTIVENESS IMPACT
Is the visit to the
Which campaign
website driving a
increases Purchase
positive change in
Intent?
opinion for the brand?
Which campaign drives
offline purchase? BUSINESS Is the content of the
website building a
Does the campaign IMPACT strong brand
engage visitors?
perception?
Is the website driving a
lift in purchase intent?
Is it driving offline
purchase?
And brand
recommendation?
56

57. What’s keeping you up at night?
57

58. Contact Information
Jeff Ewald
T: 248.459.1194
E: jewald@optimizationgroup.com
Kenn Devane
T: 917.208.4649
E: kdevane@optimizationgroup.com
58

59. Intersecting marketing, science and technology™
59

60. Search Incite Software Overview
Search Incite Web 2.0 SAAS/ASP Interface Search Incite Pre-
Indexer Background
Process
User Auth. Filter
(role/permissions)
User Search Incite's
Intelligent Sort Algorithm
Organization &
Web html via ajax User Manager
Browser http
DBI DBI
Ontology Editor Database Management System
Document
Manager Ontology
Doc
3rd Party External Applications SAAS/ASP Interface Core DB Meta
Document Data
Automatic Store
E-Mail DBI
smtp Import
imap
Custom Views DBI DBI Customer
Other DBMS & Reports Specific
xml-rpc
Filter Logic
for Results Filter Algorithm and
Triggers
Document Document Notification Queue
Warehouse Search (Email/XMPP)