FOCUS ON: CDPs SUBSCRIPTION ACCELERATOR INMA S UMMIT W ORKSHOP , NYC https://www.linkedin.com/company/mmatt F EB 26 2020 ers STEVE LOK CO-FOUNDER & CHIEF MARKETING TECHNOLOGIST, M MATTERS FORMER GLOBAL HEAD OF MARTECH, THE ECONOMIST & FRESHFIELDS steve@mmauthority.com https://www.linkedin.com/company/mmatters
YOUR CUSTOMERS ARE NOT JUST DATA
TOO MANY SIGNALS NOT ENOUGH MEANING
WHY I’M HERE TODAY We started M Matters to help senior executives bridge the gap between marketing, product, technology, and data into useable strategies at S TEVE A LESSANDRO their organizations L OK M ORETTI 1996 - 2009 2009 – 2019 2013 – now 24 Years in Tech & Dev 10 Years in Digital Media 7 years in MARTECH Telecom The Economist M Matters Freshfields Healthcare IT Scholastic The Economist Education Hachette Publishing Freshfields
WHAT WE’LL BE DOING TODAY 30 mins – Presentation on CDPs as subscription accelerators The Problem Today What’s the CDP and why now? Exclusive Use Cases: Millennials & Dynamic Paywalls 10 mins – Raising your challenges Mitigating revenue loss from the disruption in media businesses? Changes in the way your customers perceive you due to privacy? Who is trying to personalize? Who has already done enough to be satisfied? Do you believe in data sciences? 20 mins – Q&A – I’m an open book!
CUSTOMER DATA POWERS THE PREDICTIVE ECOSYSTEM: GIVING CONTEXT TO DATA RELATIONSHIPS
MULTIPLE SETS Set A Set C OF SIGNALS Set * Set F Set D Set E Set B
CDPs: AGGREGATE & Set * LEARN & Set A Set C DERIVE Aggregated Normalised Set E Owned Set B Set D Set F
DELIVER (EVER MORE) RELEVANT EXPERIENCES Complexity EYE KNO YOU of Intent
Data Science = Competitiveness
Some CDPs Do Behavioral Scoring - Using behavioral data from multiple data sources often create a paradox of choice in terms of field selection - Behavioral scores provide a multidimensional description of user behavior - Scores help to identify behaviorally unique subsets of users (binge, peruser, etc.) Blog Post: https://www.getlytics.com/blog/post/look_at_lytics_predictive
Content Processing: Affinity - Automatic: Topic tagging is automatic - Acts like a Human : NLP and computer vision allow us to read/view content exactly like a human does, so it can’t be abused like SEO - Behaviorally Driven: Users are telling you exactly what they like. (Not “users who like X also like Y”)
NEED: MACHINE LEARNING Supervised machine learning ● algorithms to derive & predict Likelihood to perform an action or ● make a change individually or in quorum Self-training models use ● anonymous data in user and account profiles
Three KPIs we impact with Data Science 1 Efficiency – suppress people you are wasting money on 2 Discovery – find new behavior patterns which lead people to buy 3 Prediction – spend more money on people who are ready to buy
THE CDP Why now? Opportunities • • What is it? Typical Implementation • • What it isn’t Typical Costs • • Why care? Quick wins • •
WHY CDP NOW? WIN RELEVANCY Journey Customer One to One Knowledge Location One to Few Behavior Patterns Product Relationships One to Many Preferences Channel Consistency Foundation Processes and UI MARKETING MOMENTS
WHAT IS IT? A CDP can help us discover and mobilise audiences, across multiple products & businesses. So let’s focus on just the 3 main capabilities, and why they matter.
WHAT IS IT? #1 A CDP builds 1 st party profiles over time using multiple qualified data sources
WHAT IS IT? #2 A CDP lets you group profiles into meaningful audiences
WHAT IS IT? #3 A CDP activates these audiences with marcomms
WHAT IT ISN’T • Not a DMP – information without identity • Not BI/DW – information without activation • Not CRM – information without behavior • Not Analytics – information without individuality • Not a ‘file’ – information without real-time A CDP combines them all: individual behavior + mapped data + RT machine learning = Self-optimizing activated audiences
GREAT – BUT WHY IS THIS IMPORTANT? YOU GAIN INSIGHTS — AS YOUR CUSTOMERS DEVELOP BEHAVIORS
OPPORTUNITIES • Content Marketing – More relevancy = more engagement • Loyalty – Increase relevancy with individual customer journeys • Value Exchange – Differentiate revenue opportunities across your existing products • Data/Insights – Immediately reach the audiences you want, with limitless connectors to bring data in and ship it out
CDP ECOSYSTEM OVERVIEW Cloud Apps Advertising Digital Properties CDP Campaigns Analytics/Testing 360° Profile ID Resolution Segmentation Orchestration Real-time And more... Real-time or Batch or Batch Data Integrations Data Warehouse & BI Predictive Models Machine Learning Natural Language Behavioural Scoring Content Affinities Decisioning & Machine learning And more... Activation
CDP INTEGRATION ECOSYSTEM OOTB APIs JS Tag Pixel SFTP ● Pre-built ● Data Collection ● Collect data ● Pass data to CDP ● Hourly, Daily or ● Real-time ● Personalisation ● Personalise via Pixel / URL click Weekly ● Segmentation ● Implement using ● Your SFTP Catalog Google Tag ● Our SFTP ● Content Manager or other ● CSV or JSON Management JS
DYNAMIC IDENTITY RESOLUTION Website Cookie: 123456 , Email address: abc@123.com CRM Email address: abc@123.com , CRMID: UID123 ESP Email: abc@123.com Loyalty Loyalty no: ABC12345 Order/Booking Order/Booking: ABCDEF , Loyalty no: ABC12345 Userid UID123 , Email: abc@123.com , Facebook Authentication ID : FB019238
TYPICAL CDP IMPLEMENTATION DATA BLUEPRINT DATA AUDIENCE MEASUREMENT UNIFICATION ACTIVATIONS Scope Develop identity Create centralized Measure impact of o o o o implementation resolution strategy audiences for improved targeting phases and create across data sources activation efforts project plan Import and process Export audiences in Evaluate process o o o Build CDP data imports to CDP real-time to efficiencies and o implementation to connected marketing impact on business blueprint Authorize tools o specifications integrations
TYPICAL COSTS CDPs: Monthly users (active) x number of events Pricing can vary widely! And is always open to negotiation ☺ Nominally:
USE CASES IN MEDIA & PUBLISHING • Content – Dynamic comms with personalized content • Retention & Upsells – Triggered, individual marketing comms on live behavior – create targeted narratives, tell stories • VX – Smart CTAs for every unique type of customer • Audience Mining – Sell high value customer audiences on behavior
CASE STUDY w/CDP: “MILLENNIALS” CAMPAIGN GOAL: INCREASE AWARENESS AND SUBSCRIPTION ADOPTION WITHIN YOUNGER DEMOGRAPHIC
STEP 1: MODEL CDP AUDIENCES (not channel-first, or ad platform-first) + E mail: ending with .edu + Data enrichment: IP Addresses of US/UK University + Title: Student, Intern, or Grad Student + Predictive Modeling: High propensity to become premium subscriber > $500k salary Single - Exclude: Current subscribers (and low propensity prospects)
STEP 2: FIND INDIVIDUALS ACROSS PLATFORMS True Multichannel Campaign Facebook • Snapchat • Google ads • > $500k salary It works: 35% of ad-driven Single subscriptions by millennials
STEP 3: ON-SITE PERSONALIZATION Hold Up! Free Book! This worked too: > $500k salary 9% Click through rate • Single On-site conversion rates • for targeted audiences? 5-10x higher
TL;DR: SMARTER, MODELED AUDIENCES WORK EFFICIENCY LEVEL UP! 37% Improvement on Return On Ad Spend ROAS ROI? YOU BETCHA. < 1 month payback on CDP investment [ [ BAU Segments: Lytics Segment: $2.89 $3.95
COST PER ACQUISITION (CPA) WINS: GO LOW MORE EFFICIENT PPC: • 43% BETTER ROAS Data-agnostic CONVERSION RATE • Structure-agnostic CPA IMPROVEMENTS: Source-agnostic 1 st Party NEAR 200% • 2 nd Party • 3 rd Party SCALE: • • 13% OF SEARCH CONVERSIONS [ [ Business As Usual Lytics-Powered Audiences Audiences $35 $20
2020? BEHAVIOR IS THE NEW BLACK 1. Data Science is a commoditized utility – use it 2. Behavioral Orchestration – from Ads and Web all the way to TV and Outdoor, to paper and post direct mail 3. Shifting to audiences of ONE and away from channel- based measurement, optimization and planning 4. Only have a CRM? Good luck!
BEHAVIOR IS THE NEW BLACK CDP
A UNIQUE USE CASE FOR PUBLISHING Dynamic Content Paywall: A Reality in Just One Quarter
USE CASE INGREDIENTS: • Static Paywalls • Risks & Opportunities • Leveraging Martech • Propensity & Paywall • Quick Wins - Capabilities Now • Creating Future Opportunities
ONE SIZE DOES NOT FIT ALL Nearly 3/4 of The Economist ’s non -paying weekly visitors never saw it Reader behaviour is quite different, but because the paywall is static: ● It’s relatively easy to avoid ● Can make people leave earlier than necessary ● Can discourage discovery ● Treats a loyal reader exactly the same as a cold prospect
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