Marketers have more data available than ever before, and even more is on the way. Learn how to use that information to connect with your customer and beat your competition.

1. Big Data & Marketing Analytics:
How To Use Available Data, And How
To Prepare for the Data That’s Coming
BYU Guest Lecture March 22nd
2016
www.emperitas.com / 801.810.5869 / 4609 South 2300 East Suite 204, Holladay, UT 84117

2. Hi, I’m Luciano Wheatley Pesci…
Founder & Director, Utah Community Research Group (UTAHCRG), Univ. of Utah
• Teach microeconomics, statistics, applied research & data analytics, and American
economic development & history
Co-Founder and CEO, EMPERITAS
• Team of data analysts, data scientists, and economists who find actionable business
intelligence through analytics, agile research and Economic AI to help our clients beat
their competition
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3. My Basic Argument Today…
• The Coming Datapocalypse: 50% of Big Data projects are destined
to fail and 40% of businesses won’t be here in 10 years as a result.
• Survival Requires a Data Plan: Successful projects start with a
clear strategy and the support of the entire organization.
• Nature Provides a Roadmap: the Pareto Principle is a well
established fact of nature, your marketing efforts are no exception.
• Customer Journey Segmentation: not all customers are created
equal, identifying the 20% that’s most profitable is key.
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4. …My Basic Argument Today
• Product, Price, Message & Channel: optimize what matters to your
best customers, not the average customer.
• Use Agile Research: it’s easier than ever to produce your own data,
but traditional research approaches are outdated, inefficient and
expensive. There’s a better way.
• Spera Case Study: data-driven product development and marketing
are accelerating the growth of the Freedom Economy, one awesome
startup at a time.
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5. The Coming Datapocalypse

6. Half of Big Data Projects Will Fail
• “I predict half of all big data projects will fail to deliver against their expectations.”
–Bernard Marr, Forbes (May 2015)
• Organizations lack data culture: no overall data strategy and unclear goals.
• Data and insights isolated by department (siloed) and the
results are too complicated for decision-makers to
understand (analysis paralysis).
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7. Bigger Data Is Coming
• Acting on data will be the biggest decider of who
survives and who will be disrupted.
• “Forty percent of businesses in this room, unfortunately,
will not exist in a meaningful way in 10 years… ”
-John Chambers, Outgoing CEO, Cisco
• It’s the technologies we can’t imagine (yet) that pose
the greatest danger to overloading the grid.
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“Big” Data Now
Data On Its Way

8. Brave New Technological World
• Population is growing. By 2050 the estimated global
population will be ~9.6bn people and the number of
connections-per-person growing exponentially.
• Emerging markets are getting connected to the
internet (Facebook drones and Google loon balloons).
• Planetary Resources Inc, SpaceX, Blue Origin will
open Space to humanity.
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9. The Internet of Things Is Already Underway
• Everything will be connected. Everything.
• It will allow us to quantifying the
previously unquantifiable.
• Allows for massive efficiency
gains through data analysis
and better decision-making.
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10. Survival Requires a Data Plan

11. How Will You Use the Information?
• Identifying what information is needed and how it will be used is the most
important step in any data research design. It keeps you from
chasing information that serves no strategic goals.
• Formalize information needed in a list that’s accessible to
everyone on your team. Treat the list as an evolving
document, pivot when necessary.
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12. Get Everyone On The Same Level
• Bring everyone together to set goals for the
project.
• Ask how stakeholders and DMs will use the
information once they have it .
• Agree on how project “success” will be
measured.
• Publically assign roles & responsibilities,
timelines, and milestones.
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13. Nature Provides A Roadmap

14. The Pareto Principle & Lazy Ants
• The Pareto Principle, usually know as the 80/20 rule in marketing, states: “80% of your
sales come from 20% of your clients.”
• Lazy ant study* confirmed this pattern since 80% of ants are freeloaders!
• It’s a pattern repeated everywhere in nature, and can be
used by marketers to segment & optimize the customer journey.
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*Source: http://www.eoht.info/page/Lazy+ant+study

15. Customer Journey Segmentation

16. It’s All About Profit,Not Sales
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• According to the Pareto Principle only 20% of your customers are profitable
for your organization.
• Waste is a terrible thing when you have limited marketing
budgets so focus on the customer journey of the 20%.
Profit = (sales) - (cost of acquisition)

17. Beware the Average Journey!
• Average values about your Customer Journey can be hugely misleading:
• Assume you only have 2 customers, a satisfaction value of 5 (on a scale of 0-10) can be the result of both customers
having an average experience of5, or one customer having a terrible experience (0) and another having an amazing
experience (10).You can’t tell the difference in their experience from the average.
• A better approach is to segment customers into smaller groups
where the customers in any one segment are as similar as
possible while simultaneously different from the other segments.
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18. Ways To Segment Your Customer Journey
• Traditional segmentation is based on demographics or psychographics, which are
rarely the best way to understand predictable customer personas.
• Better metrics to use for segmentation include:
• Behavioral choice & Preferences
• Customer Lifetime Value (CLV)
• Product/Service usage patterns
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19. Product, Price, Message & Channel

20. Four Pillars To Optimized Profits & Efficient Spend
• Once you’ve identified the most profitable segment (persona) you need to optimize your
marketing efforts to their customer journey.
• There are four critical pieces to always be assessing (and testing):
• Product/Service Features
• Product/Service Price
• Marketing Messaging
• Marketing Channel Mix 20

21. Use Agile Research

22. Never Stop Testing
• Customer preferences can change in an instant, which means you need to constantly
test the product/price/message/channel combination that’s attracting your most
profitable customer segment.
• Primary research is an incredible tool for learning the “why”
behind patterns in the data, and it’s never been easier
for you to do, thanks to inexpensive technology.
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23. Why Agile Research Dominates
• Traditional market research is slow, marginally insightful, and expensive.
• Agile Research was inspired by product development methods
and uses two-week sprints tied to small, clear business goals.
• 8x faster than traditional research, has lower costs, and
keeps you from finding answers no one cares about.
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24. Piggyback on Existing Expertise
• You never have to start a research project cold. There are experts willing to talk about
market trends, supply chain vulnerabilities, the state of competition and regulation that
already affects your marketing, as well as what’s on the horizon.
• Talking to experts focuses your research direction
on what really matters, not just what interests you
or what you THINK is important.
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25. It’s as Simple as Having a Conversation
• No amount of data will provide the same foundational context as having conversations
with your actual customers. As marketers you need to get out of the building and talk to
them.
• There are four types of customers you should be constantly conversing with:
your customers, competitors’ customers, prospective customers,
and never-gonna-be customers.
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26. How To Get Your Hands Dirty
• Don’t reinvent anything. Internet searches can uncover a wealth of secondary
information. Use social media to find qualified leads (including competitors’ customers).
• Conduct qualitative research (In-Depth Interviews & Focus Groups)
before doing any quantitative surveys.
• Think broad, mine deep, explain simply. If your findings can’t be
explained to an 8th grader they aren't ready for upper management.
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27. Spera Case Study

28. Spera Welcomes You to the Freedom Economy
• Freelancers are projected to be 50% of the
workforce in the United States by 2020.
• Spera is fintech combining project management,
invoicing, and payments into a single platform so
Freelancers can focus on their skill and the work
they love, not on worrying about getting paid.
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29. Spera - Product Market Fit Research Design
• Emperitas conducted 12 months of research to help identify their product-market fit and
marketing strategy, which included a pivot to focus on freelancers.
• This research included shadowing freelancers as they worked.
• Research showed how to build a product that solved the main pain points of the
freelancer lifestyle, how to message to freelancers, the channel mix to use,
and what type of pricing model to follow.
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30. Spera - Starting With the End in Mind
• We worked with the founder and his team to
create a clear set of research questions,
“hypotheses briefs.”
• These focused on a market snapshot
(competitor analysis, marketing sizing,
regulation, etc.) and allowed us to identify
influencers, experts and customers for the
conversations. 30

31. Spera - Finding Experts & Customers
• We used NUVI to find customers of fintech competitor apps, then tweeted/emailed a
short qualifying survey. This allowed us to filter people out before scheduling interviews
with experts and customers.
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32. Spera - Expert & Customer Conversations
• We used a Google Form for the conversations so the analysts could take notes. We
recorded everything with TapeACall and automatically transcribed it to a spreadsheet.
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33. Spera - Analyzing for Insights
• We exported the data from Google to a csv file and used R/Rstudio (both open-source)
to conduct advanced data analytics, like sentiment analysis of the unstructured data.
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34. Spera - Agile Reporting Schedule
• All of the information from the market snapshot, expert interviews, and customer
conversations was delivered in two-week increments that answered the original
hypotheses briefs. Spera is now executing their MVP (May 2016) with high precision.
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35. Let’s talk…

36. The Conversation Doesn’t Have To End Here…
luciano@emperitas.com / 801-810-5869/ EmperitasSG / 4609 South 2300 East Suite 204, Holladay, UT 84117