Summary of the book: "The Big Data-Driven Company." Contains insights into leveraging data to drive marketing innovation. To buy this book: http://amzn.to/1YTdtqY

1. Leveraging Big Data to Drive Marketing Innovation
Andrew Leone, BS Engineering, MBA, MS Finance
Summary of “The Big Data-Driven Business”

2. 2
Information Processing Engine
Big Data is incredibly fast analysis enabled by increased processing speeds & cheap storage
Moore’s Law: Gordon
Moore, co-founder of
Intel
The number of
transistors on a
computer chip will
double every two years
IBM’s “Big Data at
the Speed of
Business”
We create 2.5
quintillion byes of data
every day. 90% of the
world’s data has been
created in the last two
years
“In three decades between 1980 and 2009, the cost per gigabyte of storage plummeted from
$193k per gigabyte to 7 cents per gigabyte”

3. 3
Three Primary Categories of Individuals
Despite obvious power, the understanding and use of Big Data has remained sporadic
The Frozen
Either don’t know how to get started or don’t want to uncover the
truths that data might deliver
The Pioneers
Embracing troves of data that they have access to and who are
truly transforming the way businesses are run and how customer
communication is done
The Denialists
Don’t believe big data has any value to deliver and whose
businesses are dead or dying
“The winners create cultures that embrace big data, employing data scientists to analyze data and draw conclusions
that may contradict the company’s assumptions, and to take action that takes advantage of the truth the detail reveals.”

4. 4
Successful & Highly Polarizing Case Study
How Dan Stroker used Big Data to help elevate Barack Obama’s campaign to the White House
• Who is Dan Stroker: ex-Google employee
 Joined campaign after Obama mentioned bringing digital & data expertise to government
• Obama was in 3rd place behind John Edwards and Hilary Clinton before joining
• Stroker introduced Big Data approach to campaign including web optimization, A/B testing
 Digital campaigns used A/B testing on combinations of 3 videos, 3 photos, 4 calls to action
 Analyzed results on >300k web visitors, 24 permutations,
 Discovered winning combination (“learn more” w/ family photo)  40% higher performance
• Generated incremental $60 million in campaign contributions to vault into 1st place
• Fundamental to winning Party nomination

5. 5
Business area of highest impact: Marketing
“A company has only two functions: marketing and innovation” – Peter Drucker
“Marketing is purchasing
significant marketing related
technology and services from
their own capital and expense
budget – both outside control
of the internal IT organization
and in conjunction with
them… By 2017, the
CMO will spend more on IT
than the CIO
- Laura McLellan, Gartner
Research VP
Marketing stack: 360◦ customer view
Central marketing data repository
Product discovery, decision, experiences
Right message, time & channel
Optimizing tactics and resources

6. 6
Shift in control from Salesperson to Buyer
Potential customers completed 90% of buyer journey before talking to Salesperson (Forrester Research)
“A sales professional's ability to observe and understand the buyer’s body language was an irreplaceable
component of his success. That’s no longer possible in the new paradigm. Instead marketers must rise to
the challenge: marketers must cultivate new skills to observe and understand the buyer’s digital body
language” – Steve Wood, Digital Body Language
Traditional Sales Digital Marketing
Information
Learning
Relationship
Purchase control
Asymmetrical (sales advantage) Symmetrical (buyer parity)
Salesperson Search engine, web, reviews, blogs
Salesperson relationship Customer review, communities
Salesperson Buyer
vs

7. 7
Importance of CMO & CIO Relationship
“Where the CMO and the CIO work well together, the enterprise is 76% more likely to outperform…” - IBM
Set well defined goals, together
McKinsey tips for solidifying relationship (Getting the CMO & CIO to work as partners, 2014):
1
2
3
4
5
CMO is metric driven, transparent
CIO must shift mindset
Team building is essential
Think big but start small
• Alignment on targets
• Shared accountability to reach goals
• Right metrics for gauging outcomes, tech & data
• Both marketing & IT ability to track progress
• Revenue generation vs. cost center
• Hire people with understanding of both sides
• “Marketing & IT translators”
• Agile vs. waterfall
• Pilot and fail fast; constant improvement

8. 8
Elements of the Marketing Technology Stack
Marketing
Automation
Segment
audience and
use to nurture
flows and
deliver relevant
content
CRM System
Sales & account
management
teams as
customer
system of
record. Track
activities vs.
pipeline
Content
Management
Fast and easy
posting &
changing of
content to web.
Includes text,
images &
videos
Blogging
Platform
Easy to push
out content via
email,
newsletters,
SEO aids, RSS
feeds. Data on
readership,
traffic & time
Data
Management
Use 1st & 3rd
party cookies as
well as APIs to
create audience
segments for
targeting
Analytic
Tools
Data-driven
window into
web traffic
Social Media
Management
Includes social
listening, post
scheduling,
social selling,
customer care,
curation and
promotion
Predictive
Analytics
Statistical
analysis
performed on
leads to
determine best
leads and
predictors of
success
E-Commerce
Platform
Understand
who is buying,
what they are
buying, and
how much they
are spending
Search Engine
Mgmt Platform
Manage,
automate, and
optimize search
engine
marketing &
pay-per-click
Demand-side
Platform
Enables
marketers and
agencies to use
real time
bidding
Call Center
Software
Answer
questions and
solve problems
as quickly and
easily as
possible

9. 9
Overview of top software Giants
Major players are acquiring and developing software and systems, enabling more sophistication
• ‘09: Omniture, web analytics
• ‘11: Demedex, data mgmt.
• ’11: Auditude, video ad
• ‘11: Efficient Frontier, Programmic
search mktg
• ‘14: Neolane, marketing auto
• ’06: aQuantive
• Microsoft Dynamics ERP/CRM
• ’06: Youtube, online video
• ‘07: Double Click: ad server
• ‘09: AdMob: mobile ad network
• ‘09: Teracent: ad platform
• ‘11: AdMeld, supply side
• ‘12: Motorola Mobility
• ‘14: Spider.iO, Nest
• ’12: Vitrue, social mgmt.
• ’12: Involver, social development
• ‘12: Eloqua: mktg automation
• ‘13: Compendium, blogging
• ‘13: Responsys: mktg automation
• ‘14: BlueKai, data mgmt
• ‘07: Cognos, BI platform
• ‘09: SPSS, analytics
• ‘10: Coremetrics, web analytics
• ‘10: Unica, customer preference
• ‘10: Sterling commerce
• ‘10: Jigsaw, crowdsourced
business database
• ‘11: Radian6: social media
• ‘12: Buddy Media: social media
• ‘13: Exact Target, mktg
automation

10. 10
11 Principles: Bringing Big Data into Business
Basic advice applicable to businesses of all sizes
1. Focus on the customer to determine what questions you want your data to answer
 Ex: What do best customers have in common? Where can you find more? What behaviors indicate leaving?
2. Its Big Data, but start small
 Look for small wins: 1) won’t tax budget, 2) build processes in controlled fashion, 3) earn decision maker buy-in
3. Don’t bet everything on technology
 Human element is critical. Start w/ buyer’s journey, customer needs and company culture
4. Hire the right people
 Embracing big data means hiring more mathematicians, data scientists and marketing technologists
5. Maintain some control of the technology piece
 Have technical and analytic arms that report up thru the Marketing org.
6. Measure, measure and measure some more
 A/B testing, dashboard tracking, Campaign measurement including engagement & effectiveness
7. Stay on top of your data and the processes around that data
 Strategy and software are linked. Do not cede control
8. Conduct an audit and strive to integrate data silos
 Take stock of all sources of data; centralize sources into 360-degree view of customers
9. Cooperate w/ IT, Sales, Human Resources and other key stakeholders
 Biggest barriers often relate to business management and process change
10. Practice good data hygiene
 Data-entry priority, update customer info frequently, streamline cleansing, contact cust. to update but allow access
11. Develop a road map, but anticipate detours
 Get data in place for measurement; do things out of the box to create unique advantage

11. 11
Data Measurement and Testing
Test initiatives, measure responses and focus efforts on those that maximize revenue & income
Measurement
• More sophisticated & holistic
view
• Precise measurement
• Enabled real-time
Testing
• Focus groups limited; handful of
opinions w/ opinions not actual
behaviors
• Use A/B testing w/ immediate
feedback

12. 12
Data and Attribution
System that accurately attributes contributions made by each and every one of tactics
Last-click attribution
100% credit to last element the prospect interacted
with prior to a sale
Rules-based attribution
Marketer assigns a certain value to particular tactics
based on predetermined rules
Algorithmic attribution
Assigns values to each interaction based on
statistical regression or probalistic models

13. 13
Central Trends to Big Data’s Future
Personalization
Integrating data silos and platforms
Predictive analytics / machine learning
Internet of things
Mobile

14. 14
Recommended Reading
Glass, R. and Callahan, S. (2015). “The Big Data-Driven
Business,” Hoboken, New Jersey: John Wiley and Sons, Inc.

15. 15
Continue the Conversation
www.Governingthought.com