Business Analytics

IBM Software Marketing analytics

Measure, analyze and manage:
optimizing marketing results with
business analytics
2 Measure, analyze and manage: Optimize marketing results with business analytics
Contents
2 Introduction
4 The evolution of marketing
Imperatives for todays marketing leaders
7 Marketing Analytics: A foundation for marketing success
Marketing analytics for demand generation
Marketing analytics for marketing operations
Marketing analytics for brand managers
15 Conclusion: Making analytics actionable
16 About IBM Business Analytics
17 Request a call
The marketing landscape has changed dramatically from what it
was a few years ago. Organizations today face overwhelming
amounts of data. Savvier customers are more demanding and
require more value than in the past, compelling marketers to have
a deeper understanding of both individuals and markets. Chief
marketing ofcers (CMOs) are under pressure to deliver
insight-driven programs and results, yet their teams lack the
tools and skills to do so. Marketers are now also expected to
generate revenue, rather than just leads. Combined with the
need to expand digital strategies to address the proliferation
of social media and new channels such as mobile commerce,
its a challenging time to be a marketing executive.
For many leaders, the rate of change is outpacing their ability to
keep up. An IBM study of 1,700 chief marketing ofcers in 19
industries reveals that marketing organizations are largely
unprepared to deal with key market factors, including two of the
biggest technology shifts.
59 percent of CMOs surveyed said they have made surprisingly
little progress in the last several years towards implementing
key digital marketing strategy components.
82 percent of marketing leaders feel underprepared to cope
with the data explosion, an increase of 16 percent from the
2011 CMO survey.
66 percent said they are not ready to take on the proliferation
of social media.
Three distinct CMO proles also emerged from the analysis, with
one making signicantly more progress in preparing for a digital
marketing future than the others.
37 percent of marketing organizations are just setting out
on their quest to build capabilities around social, mobile and
digital marketing.
33 percent put social at the front and center of their sales,
marketing and customer service strategy.
30 percent are making good progress towards building end-to-
end connections between the customer and their organization.
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IBM Software 3
What distinguishes the third, and smallest, group of CMOs is
their regular use of advanced analytics to extract insights from
customer data. These organizations are also reasonably prepared
for the data explosion, well-positioned for the growth in social
and mobile channels and the proliferation of devices, and are
actively integrating their physical and digital sales and service
channels. Such ndings point to the need for all marketing leaders
to rethink their roles, seek out new kinds of skills and tools, and
reshape their organizations to make the most of the information
and channels available to them.
Organizations that build a strong analytics foundation typically
outperform their peers and grow prot faster than revenue.
This paper discusses the advantages of an analytics-driven
marketing platform that can provide marketers with the tools
to tackle the opportunities and challenges of a data-and
consumer-driven marketplace.
Marketing is a data-driven science. People
often see it as a nice-to-have because they
dont think it drives the future of the company.
But marketing is actually about using data to
target audiences and create value. Its about
monetizing things.
Chief Marketing Ofcer, Chemicals and Petroleum, Germany
The evolution of marketing
The business of marketing is changing dramatically. Companies
are collecting, storing and linking to massive amounts of data.
Customers are generating huge amounts of new digital information
through postings on web sites, social media platforms, transactional
data, product reviews, emails, chat and more. This data is growing
in both size and value and is a gold mine for marketers but to
tap into it, they need a structured approach that will enable them
to uncover insights and drive action and results.
The explosion of mobile technology has changed how, when and
the ease with which consumers purchase people now have the
ability to shop anytime, anywhere. Many shoppers regularly use
smartphones and tablets to compare products and prices while
they browse store shelves, and buy from the source with the
lowest price. Mobile technologies will continue to inuence
every stage of the customers buying journey from in-store
price checking and location-based marketing to mobile payment
systems. Marketers need to exploit this opportunity to reach
people whenever and wherever they happen to be.
4 Measure, analyze and manage: Optimize marketing results with business analytics
Social media is transforming everyone into a potential inuencer
who can drive purchase decisions or brand perceptions.
Consumers have access to hundreds or in some cases thousands
of customer reviews, and can instantly comment on buying
decisions using tools such as Facebook and Twitter. Up until
recently, social media has remained relatively siloed. But
integrating social media behavior and data into the rest of the
marketing mix has become crucial in order to reach customers
with relevant messages in real time.
CMOs have a strong desire to engage with customers at a more
personal and meaningful level, but remain hampered and
frustrated by their inability to access and integrate all of the data
being generated by a growing number of marketing channels and
gain a complete, unied understanding of each customer. As
CEOs begin to look to their marketing executives and chief
nancial ofcers for strategic input at the enterprise level,
marketing executives are under increased pressure to show
that they can turn their initiatives into revenue generators.
Imperatives for todays marketing leaders
Marketing is entering an exciting new era where capabilities that
were impossible a few years ago a true 360-degree view of the
customer, integration of rich social media insights and extending
personalized ofers in real time are a reality. Given this rapid
change, marketing leaders must consider new approaches, tools
and technologies that will enable them to:
Reach customers and prospects in the way they prefer to be
contacted, regardless of location or device.
Create a digital strategy that places increasing importance on
mobile commerce and social intelligence.
Use advanced analytics to deal with the data explosion and
capture customer insights across every touch point inclusive
of all relevant interactions.
Understand trade-ofs and generate measurable return on
investment (ROI) from all marketing activities.
Develop strong measurement and monitoring systems and
practices to guide marketing performance.
These imperatives demand the more widespread and efective
use of data and insight across the full range of marketing
functions, from the CMOs ofce to email, mobile, web and
social media campaigns.
By adopting a data-driven approach that incorporates business
intelligence (BI), predictive analytics and performance
management capabilities, marketing executives can empower
their teams to measure, analyze and manage marketing eforts for
greater efectiveness and contribution to top line revenue growth.
These advanced analytics techniques help marketers harness all of
their data, detect patterns of customer behavior, nd associations
and relationships, and acquire a deeper understanding of
customers as individuals ultimately leading to new methods of
personalized engagement. CMOs that succeed with this approach
will have a huge competitive edge in the market, in addition to
providing a superior customer experience.
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Maximize 1:1 consumer
relationships
Brand reputation
Marketing productivity
Deliver value across
all touch points
Marketing innovation
Optimize marketing mix
Customer growth
and retention
Develop new, differentiated, and unique ways
to connect with the empowered customer
Build opportunity for revenue growth
throughout marketing value chain
Deliver personalized offers aligned to
unique behaviors, needs and desires
Model and plan balancing needs
of channels, probability of ROI
success and resource constraints
Demanding customers,
commoditized products and
crowded competitive marketplace
Right message to the right customer
through the right channel
Increased breadth of digital channels,
emphasis on cross-sell / up-sell opportunities,
understanding and embracing ROMI
Marketing Analytics: A foundation for
marketing success
Marketing analytics comprises the processes and technologies that
marketers can use to evaluate how their programs are performing.
It helps them gather data from multiple sources and channels,
aggregate that data into a single view and extract insights that can
help them continuously assess and improve their marketing
results. In addition to providing the ability to measure, calculate
and evaluate traditional marketing (KPIs) such as response, lead,
conversion and pipeline coverage ratios, marketing analytics can
ofer new insights into customer preferences and trends, helping
to make your analytics actionable.
Gaining the greatest benet from business analytics requires
an approach that is:
Personalized: Marketing analytics harnesses sophisticated
analytics techniques that enable marketers to better listen to,
acquire, grow and retain a unique relationship with their
customers over time making deep customer insight and
relevant response central to the relationship, not a relationship
simply dened as a series of disconnected revenue and
service transactions.
Contextual: Marketing analytics empowers marketers through
automated intelligent and real-time decision-making to meet
ever-heightening consumer demands for relevancy.
ROI-driven: Marketing analytics provides the ability to
accurately and repeatedly model, measure and quantify the
impact of omni-channel campaign marketing execution,
removing the investment guesswork and replacing it with
fact-based insights that drive objective allocation and
reallocation of marketing funds.
Figure 1: Chief marketing offers are faced with marketing imperatives that are expanding and becoming more complex. An analytics-driven marketing platform
can provide them with the tools to tackle the opportunities and challenges of a data- and consumer-driven marketplace.
6 Measure, analyze and manage: Optimize marketing results with business analytics
IBM business analytics solutions provide all of these capabilities in
an integrated portfolio that supports all types of marketers, data
and decisions. The remainder of this paper provides an overview
of the capabilities available with IBM business analytics software,
and includes examples of how IBM customers have used these
solutions to meet, or exceed, their marketing objectives.
Marketing analytics for demand generation
Demand generation professionals are focused on improving the
customer experience through channel-neutral, relevant, timely
ofers based on their understanding of where buyers are in the
buying journey. To do this efectively, demand generation experts
need to know which ofers are relevant, down to the micro-
targeting level or developing markets of one. They need
tools to help them:
Attract and acquire the ideal customer.
Increase customer repeat visits and grow loyal and
protable relationships.
Deliver a smarter, personalized, seamless customer experience
regardless of channel.
Provide relevant ofers at point of impact to minimize risk
of churn.
Make smart, fact-based decisions to improve marketing ROI
and contribution to the business.
With IBM marketing analytics software, demand generation
professionals can perform more accurate customer segmentation
to help them acquire the ideal customers, including insights from
sentiment analysis, survey research, chat interactions, inuencer
scores and insights gleaned from traditional data sources such as
billing, nancial, customer intelligence and marketing automation
systems. Analysis and reporting tools help marketers track,
analyze, measure and report marketing campaign results across all
channels, markets and customer segments no matter the size or
permutation of dimensions. Using powerful visualizations,
campaign managers can share insights and act on ndings to drive
the company forward.
Predictive customer intelligence solutions that determine
real-time recommendations during web and contact center
interactions enable marketers and customer service
representatives to build long-term, protable relationships that
drive enterprise business results one interaction and one decision
at a time, and recommend the most appropriate action at the
right time and the right place for each unique customer.
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Analytics for promotional planning make it easier for marketers
to optimize and evaluate plans using scenario modeling and
planning. They can also analyze and evaluate the success of
promotions, and predict the response rates of direct marketing
promotions based on customer attributes, driving conversions
and net margins.
Campaign insight and optimization solutions for banking help
marketers conduct efcient and efective marketing campaigns to
enhance customer wallet share. Using these tools, marketers can
signicantly improve bank marketing campaigns by increasing
lead generation and conversions while at the same time reducing
costs by better targeting to run and implement campaigns.
Solutions designed for telecommunications churn prediction
provide marketers with the tools to predict which customers are
likely to leave, and determine and make personalized retention
ofers to keep them, using customer interaction history,
transactional history and social media behavior to present
customers with highly personalized and relevant ofers at point
of impact.
Likewise, marketers in the insurance industry can use targeted
IBM solutions to improve customer retention and growth. For
example, predictive analytics tools enable them to analyze the
results from historical campaigns and products, then build models
to accurately predict how likely each individual customer is to
accept each individual ofer.
Figure 2: Marketing analytics solutions provide marketing organizations with the ability to link all customer data types to analysis, and analysis to personalized
recommendations that are deployed at the point of interaction.
Data Sources
Linking all customer data, to analysis, to personalized
recommendations deployed at the point of contact
Information Analytics Operations Channel
IVR Web
Mobile Apps SMS
Social Media Chat
Email Voice
8 Measure, analyze and manage: Optimize marketing results with business analytics
Retailer builds 360-degree view of customer satisfaction
A fashion and lifestyle products retailer wanted to provide its
brands with a common, user-friendly predictive analytics tool
that would be able to operate in a big data environment and
help them optimize their marketing strategies.
Using IBM predictive analytics, the company created a solution
that enabled it to exploit its colossal customer database,
ultimately reducing data processing time by a factor of 10. The
result is that the retailer can make strategic data on purchase
history and customer satisfaction available rapidly, and
transform it into meaningful, actionable insights. The company
can also spread predictive analytics best practices throughout
the group via an increasingly web-oriented environment.
Marketing analytics for marketing operations
Marketing operations professionals work to increase marketing
efciency and build a foundation for excellence by reinforcing
marketing with processes, technology, metrics and best practices.
Individuals in these roles typically rely on manual spreadsheet-
based processes, or need to pull nancial and campaign/program
data from multiple, disconnected sources. To succeed they need
the ability to:
Engage in what-if analysis and reallocate resources to meet
uid funding and revenue reforecasts.
Measure, track, report and share marketing KPIs
and return on marketing investment (ROMI).
Determine protable customers, segments, channels, markets,
products and combinations of these factors.
Improve contribution to revenue growth, customer retention
and wallet share.
Improve campaign, channel and customer segment ROMI.
Improve marketing efectiveness across all touch points.
Understand best-performing program assets.
Marketing performance analytics empowers marketing
operations managers with the tools to improve campaign and
performance insight, marketing mix decisions and ROMI, so
they can eliminate the guesswork from marketing program
execution and prioritization.
Marketers use these solutions to gain visibility into key marketing
performance indicators across all touch points and campaigns.
Capabilities such as powerful what-if scenario modeling help to
optimize marketing resource allocation. Marketers can simulate
marketing scenarios to improve decision-making, planning and
budgeting and understand investment tradeofs. Insights from
multiple data sources including marketing automation
platforms, social media, CRM and nancial systems can be
unlocked. Customized reporting options such as dashboards,
KPIs and powerful visualizations enable them to track, analyze,
measure and report marketing performance analytics results,
then share insights and act quickly on ndings to drive the
company forward.
Specialized customer protability analysis solutions are designed
to make it easier for marketers to optimize customer interactions
and deliver increased customer lifetime value. With tools such as
pre-built executive reports, scorecards and dashboards, these
solutions enable organizations in any industry to build or enhance
existing customer protability models based on any number of
target customer attributes and any type of desired aggregation to
support campaign objectives.
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Figure 3: Using IBM marketing analytics, marketers can understand calculated protability measures by region and product through dashboards that offer
drill-down capabilities into individual customer and account details.
Bank optimizes customer cross-selling and acquisition
An Argentine bank wanted to increase customer satisfaction
and life-time value while maximizing bank protability by analyzing
and carrying out optimal cross-selling and acquisition strategies.
It chose IBM SPSS predictive analytics software, which it
implemented in four consecutive phases: predictive models for
identifying clients most likely to accept an offer; a cross-selling
machine to anticipate the next best offer for each customer;
sales system optimization to maximize the protability of the
sales system; and nally, delivery of personalized, customer-
guided offers.
The new analytics solution also predicted the payback on each
product offering while tracking several variables, including budget
limits and contact restrictions. With a better-informed view of its
customer base, the bank achieved a 40 percent revenue increase
from existing customers and a 60 percent margin increase from
retail customers.
10 Measure, analyze and manage: Optimize marketing results with business analytics
Marketing analytics for brand managers
In the age of social media, your brand is whatever people say it is.
Many factors drive customers to insist upon or be loyal to specic
brands. If their preferred brand is not available from one source,
they will seek it out somewhere else or wait until it is available
again rather than purchase a substitute product or brand. Brand
managers need the ability to identify, understand and translate
customer needs and preferences for product and service oferings
and feature sets, and align these needs with pricing, placement,
and promotion requirements. Their goal is to improve
diferentiation through better execution upon the four Ps and
outcompete other brands.
Many brand managers today lack the tools or ability to:
Increase product protability with customer and market
demand transparency.
Obtain 360-degree understanding of the customer and their
preferences and opinions.
Meet the changing needs of local markets.
Understand evolving sentiment and share of voice in
the marketplace.
Optimize pricing, improve margins and interpret brand
perception in the market through the lens of social intelligence.
IBM social media analysis software enables brand managers to
understand and obtain a clearer picture of who their customers
are, and how they perceive the companys products or services, by
looking at data from digital sites such as blogs, forums, and social
sites, and combining this information with traditional data from
CRM, ERP, and billing systems for example.
Compare sentiment distribution within top 10 sites
Positive
Negative
Neutral
Ambivalent
0% 20% 40% 60% 80% 100%
Percent of Snippets
facebook.com
twitter.com
myco.com
individual.com
yertalk.com
youtube.com
fool.com
businesswire.com
seekingalpha.com
reuters.com
Figure 4: IBM solutions enable brand managers to measure customer
sentiment by analyzing and comparing comments on web and social
media sites.
Protability analysis solutions enable marketers to identify
protable customers, products and services, and identify and
segment less protable areas for migration campaigns. Tools
are available to help determine the protability contribution of
relationship managers, including cost allocation and activity-
based costing techniques which can provide additional insight.
In addition, protability models ofer alternatives for
customer responses or retention strategies and can be used
to communicate customer insight to front-line employees
along with cross-sell ofers.
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With IBM sales and operational planning solutions, brand
managers can improve decision-making through integrated
strategic planning, and integrate sales, supply chain and nance to
collaborate on strategy for a nancially-driven sales and
operations planning process.
Retail product protability can be increased with business
analytics solutions that enable marketers to raise brand reputation
with customers and partners; assess investment in marketing
campaigns; and provide a better understanding of the impact of
product features on brand perception.
Firm monitors and responds to online feedback
A global group that offers individual and corporate customers a
comprehensive range of nancial and non-nancial products and
services, needed an online tool to detect possible risks to its
reputation and to increase positive feedback and customer
satisfaction. Branches around the world reported individual
analyses about the rms online presence to communications,
brand and reputation, and customer service departments, but
widely differing samples and criteria in different countries made
reporting inconsistent.
IBM marketing analytics solutions for social media automate
the online analytic process, identifying online comments made
about the company and its brands on news channels, blogs,
forums, Facebook and Twitter. This approach helps marketers
get in-depth insight in consistent, easy to understand packaged
reports, so they can focus on the most important topics of
online discussions and immediately plan the correct and most
suitable reactions.
Conclusion: Making analytics actionable
We are in the midst of a marketing revolution. For the rst time,
marketers have the ability to gather, analyze and use hard data to
discern marketing efectiveness and make fact-based investment
decisions that contribute to revenue growth. Marketing analytics
is the foundation that allows marketers to engage with customers
as individuals across interactions and channels for smarter
decisions, more successful campaigns and stronger, more
protable customer relationships.
IBM marketing analytics solutions combine business intelligence,
predictive analytics and performance management features,
providing a real-time, 360-dgree view of the customer and insight
into past, present and future marketing performance. Through
analysis of structured, unstructured, hybrid, streaming and static
data, marketers can now provide the right ofer, at the right time,
at the moment of impact. In addition, these solutions ofer
marketers the ability to respond more quickly to new customer
insights, strengthen the customer relationship with relevancy over
time and provide ROI transparency, accuracy and objectivity for
all marketing investment decisions.
Applied holistically, marketing analytics allows for better,
more successful marketing by enabling you to close the loop
on your marketing eforts. It can lead to better customer
understanding, which can in turn improve lead nurturing
and conversions. This leads to higher rates of new customer
acquisition, increases customer lifetime value and protability,
and results in more consistent and predictable revenue streams.
To learn more, visit ibm.com/software/analytics/solutions/
marketing-analytics.
About IBM Business Analytics
IBM Business Analytics software delivers data-driven insights
that help organizations work smarter and outperform their
peers. This comprehensive portfolio includes solutions for
business intelligence, predictive analytics and decision
management, performance management, and risk management.
Business Analytics solutions enable companies to identify and
visualize trends and patterns in areas, such as customer analytics,
that can have a profound efect on business performance. They
can compare scenarios, anticipate potential threats and opportu-
nities, better plan, budget and forecast resources, balance
risks against expected returns and work to meet regulatory
requirements. By making analytics widely available, organi-
zations can align tactical and strategic decision-making to
achieve business goals. For further information please visit
ibm.com/business-analytics.
Request a call
To request a call or to ask a question, go to ibm.com/business-
analytics/contactus. An IBM representative will respond to your
inquiry within two business days.
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1 Institute of Business Value, Stepping up to the Challenge: CMO Insights from
the Global C-Suite Study, IBM Institute for Business Value, 2014.
(http://ibm.co/1qC49aN)
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