This document introduces predictive analytics for marketers. It summarizes how Target used purchase data to identify a teenage girl who was pregnant before her father knew. It discusses how retailers now use data scientists and predictive models to personalize recommendations and drive sales. The document advocates for an "auth-in" approach where users voluntarily provide data in exchange for personalized benefits rather than retailers scraping or buying less accurate data without permission.

1. introduction to predictive analytics for marketers.
this is a takeaway deck with descriptive text.
contact us for the real thing in person!
more sales from site and social data
TM

2. "Technology enables us to
create better intimacy."
- Mindy Grossman - CEO, HSN Inc.

3. In 2012, Target sent baby product coupons to a
teenage girl in Minneapolis*.
Her father angrily asked the store manager, “Are
you trying to encourage her to get pregnant?”
*Source: http://www.nytimes.com/2012/02/19/magazine/shopping-habits.html?smid=pl-share

4. Two days later when the store manager followed up,
the father had a surprising response.
“She’s due in August.
I owe you an apology.”

5. Marketers were vocal with their disapproval.
“Privacy breach...”
“...Disturbing”
“Creepy...”

6. But behind closed doors they asked,
“How can we
do that?”

7. Why is this valuable? Because people buy on
habit. And outside of a few brief windows in
life, it’s hard for marketers to break those habits.
The early days of parenthood are one of
those windows. The key is to reach them
before the baby is born and the parents
get flooded with advertising.
Enter predictive analytics. Target’s data scientists
built a model to identify pregnant women based on
purchases like unscented lotions and
soaps (2nd trimester), hand sanitizers
and washcloths (3rd trimester).

8. Big retailers now have data scientists on staff
turning data into recommendations to drive sales.
data
recommendation
shopper recommendation
engine

9. “It’s like an arms race
to hire statisticians
nowadays.”
- Andreas Weigend, former Chief Scientist, Amazon

10. Three companies used predictive analytics to
redefine retailing for books, movies, and music...
...while others are simply storing data or following
dashboards. What does it take to do big data right?

11. Making data work takes three disciplines pursuing
the same goal under one roof.
Data
Technology Marketing
Sciences
And you need the right data. On the right terms.
What does that mean? ...

12. Seth Godin summarized it best in his 1999 book
Permission Marketing. The strongest messages are
relevant
personalized
anticipated

13. The best data is private. It
requires permission.
Scraped data isn’t often
accurate or complete. And
cookies are more than
just creepy - The Federal
Trade Commission and
the EU are clamping down
hard with privacy policies.
Respect for privacy is one of our founding pillars.
Want proof? Our Chief Science Officer helped write
the privacy act for the Digital Analytics Association.

14. The auth-in is the key. Really valuable data can’t be
scraped or bought; it needs to be user-authorized.
auth-in
data
recommendation
shopper recommendation
engine

15. Will people auth-in? Yes, if they find value. eMail
marketing and loyalty programs prove it.
How many of your fans and customers will auth-in?
Every brand is different. We’ll find out before we
build anything.

16. Auth-in... authentic data... see what we did there?
Welcome to Authintic. We are Analytics technology
for permission marketing.
more sales from site and social data
TM

17. What’s in store for 2013? Here’s what our CEO
heard in his interviews with retail execs at the
National Retail Federation’s Big Show.

18. You have millions of social fans
Now what?
3m 6m 10m
102k 303k 151k

19. Brand building
Customer service
Sales?

20. twitter followers
twitter followings
name
gender
facebook check-ins
scraped data wall posts to brand
permission data name
email
age
gender
likes
interests
The best data
friends
activities
is private
check-ins
wall posts
education
events
It requires
location
hometown
permission
relationships
subscriptions
friend likes
friend interests
and 45 others

21. But you don’t want more data. You want more
sales, loyalty and retention.
You can earn it through smart targeted marketing.
Not with the same message to all shoppers.
conversions network
marketing
behavioral
segmentation targeting
batch & blast
data

22. What if you offered autofilled registration and
included behavioral social data instead of a
blank form? Would it create more intimacy?

23. “2013 will see the acceleration of a shift
to behaviorally targeted marketing (in all
channels) over older, less efficient media.”
- Jonah Bloom, Chief Strategy Officer, KBS+P
“Listening will balance with interpreting.”
- James Roberts, Chief Strategy Officer, Partners + Napier
“We’re ruled by the algorithm--be it Google, Amazon, or Netflix.
We make decisions that we think are free will but are in fact
driven by the recommendations we get--choices that we never
would have otherwise considered.”
- Lee Maicon, SVP Insights and Strategy, 360i
From How Marketing Will Change in 2013: The Strategic Forecast - Fast Company Co.Create

24. Where do we begin? Advise, Implement, Optimize.

25. If you knew who your best customers were,
how would you treat them differently?
Decision Velocity
What is the average time between data discovery (Eureka!) and execution
on that data? How does this timing influence action?
Data Velocity
How long between data capture, access, analysis, communication and
action?
Data Unity
How much and what data is stored? eMail, CRM, social, consumer, web
analytics?
Data Granularity
Are attributes about individuals stored and accessible? Can you map
each consumer lifecycle across channels?
Data Accuracy
Do you trust the data? Is it consistently accurate and likely to be believed?
Contact us to start the advise step today.

26. Andrew Cherwenka
CEO
Our CEO built interactive ad agencies and handled digital strategy for the
world’s top brands. He has worked closely with Facebook since 2007.

27. Christopher Berry
Chief Science Officer
Our Chief Science Officer is a rare breed of data scientists. He’s a pioneer
in making unstructured social data useful while respecting privacy.

28. Interested?
Let’s talk.
Andrew Cherwenka Christopher Berry
Co-Founder, CEO Co-Founder, Chief Science Officer
cell: 647.455.1352 cberry@authintic.com
acherwenka@authintic.com
www.authintic.com
New York City 902 Broadway, 4th Flr, New York, NY 10010
Toronto 10 Dundas St East, Suite 502, Toronto ON, M5B 2G9