Engaging Customers Using Big Data: How Marketing Analytics are Transforming Business

220 Pages·2014·1.87 MB·English

by  Arvind Sathi (auth.)

E NGAGING CUSTOMERS
USING BIG DATA
E NGAGING CUSTOMERS
USING BIG DATA
H OW MARKETING ANALYTICS ARE
TRANSFORMING BUSINESS
A RVIND S ATHI
E NGAGING CUSTOMERS USING BIG DATA
C opyright © Arvind Sathi, 2014.
A ll rights reserved.
F irst published in 2014 by
P ALGRAVE MACMILLAN®
i n the United States—a division of St. Martin’s Press LLC,
1 75 Fifth Avenue, New York, NY 10010.
W here this book is distributed in the UK, Europe and the rest of the world,
this is by Palgrave Macmillan, a division of Macmillan Publishers Limited,
registered in England, company number 785998, of Houndmills,
Basingstoke, Hampshire RG21 6XS.
P algrave Macmillan is the global academic imprint of the above companies
and has companies and representatives throughout the world.
P algrave® and Macmillan® are registered trademarks in the United States,
the United Kingdom, Europe and other countries.
ISBN 978-1-137-38618-2 ISBN 978-1-137-38619-9 (eBook)
DOI 10.1057/9781137386199
L ibrary of Congress Cataloging-in-Publication Data
S athi, Arvind.
Engaging customers using big data : how marketing analytics are
transforming business / Arvind Sathi.
pages cm
ISBN 978–1–137–38618–2 (hardback)
1. Marketing—Management. 2. Marketing—Data processing.
3. Internet marketing. 4. Consumer behavior. 5. Marketing research.
6. Big data. I. Title.
H F5415.13.S273 2014
6 58.8⬘3—dc23 20140959
A catalogue record of the book is available from the British Library.
D esign by Newgen Knowledge Works (P) Ltd., Chennai, India.
F irst edition: July 2014
1 0 9 8 7 6 5 4 3 2 1
To my social media friends who liked, poked, friended, and
shared stories with me all these years.
C ONTENTS
L ist of Illustrations x i
A cknowledgments x iii
C hapter 1 I ntroduction 1
W hy T is Book? 1
P ropositions 8
D ata Sources 1 2
A udience 1 3
B ook Overview 1 4
C hapter 2 C hanging Winds 1 9
I ntroduction 1 9
R ise of Digital Society 2 1
C onnected Cars 2 2
U biquitous Use of Mobile Platform 2 4
S avvy Customers Discover Social Networking 2 6
C rowdsourced Analytics Tools 3 0
M onetization 3 2
P rivate and Public Cloud 3 6
C ustomer Preferences and Privacy Concerns 3 8
S o How Does It Impact Marketing? 4 2
C hapter 3 F rom Sample to Population 4 5
I ntroduction 4 5
C ensus Data 4 6
S ocial Media Data 4 8
viii CONTENTS
L ocation Data 5 0
P roduct Usage Data 5 7
S hopping Data 6 3
C onversation Data 6 5
P urchase Data 6 6
P roposition 7 0
C hapter 4 F rom Broadcast to Collaboration 7 3
I ntroduction 7 3
P ersonalized Customer / Product Research 7 6
O nline Advertising 8 5
M ultichannel Shopping 9 1
I ntelligent Campaigns 9 2
B ig-ticket Items and Auction / Negotiation Markets 9 5
G ames, Videos, Smartphones, and Tablets 9 8
C rowdsourcing and Jams 1 00
E ndorsements and Viral Buzz 1 01
P roposition 1 03
C hapter 5 F rom Silo’ed to Orchestrated Marketing 1 07
I ntroduction 1 07
C ustomer Prof le 1 09
E ntity Analytics 1 13
P ersonal Privacy Preference Management 1 17
D ynamic Pricing 1 19
O rchestration for Context-based Advertising and Promotion 1 20
C ross-channel Coordination 1 24
M arket Tests 1 26
P roposition 1 27
C hapter 6 T echnological Enablers 1 31
I ntroduction 1 31
V elocity, Volume, Variety, and Veracity of Data 1 32
S tream Computing to Address Velocity 1 36
A nalytics and Storage Engines on Massively Parallel
Platforms for High-volume Processing 1 40
H igh-variety Data Analysis 1 43
CONTENTS ix
P attern Discovery 1 47
E xperiment Design and Adaptive Intelligence 1 48
C ustomer Veracity and Identity Resolution 1 51
H ybrid Solution Architectures 1 52
S ummary 1 57
C hapter 7 C hanges to Marketing Ecosystem and Organization 1 59
I ntroduction 1 59
H ow Does Big Data Change Media Planning and Marketing
Research? 1 61
P ersonalized Marketing Actions and the Changing Ecosystem for
Advertising 1 65
M arketing Orchestration and the Impact on Product Management 1 67
D ata Scientists—Where Do T ey Belong? 1 69
I nfrastructure, Data, or Analytics as a Service 1 73
A New Role for Marketing Communications Departments 1 75
E volution versus Revolution 1 76
S ummary 1 81
C hapter 8 C onsumer versus Corporate Marketing—
Convergence or Divergence? 1 83
I ntroduction 1 83
H ow Is Corporate Marketing Dif erent from Consumer Marketing? 1 85
P roposition 1: Big Data and Ability to Observe the Population 1 91
P roposition 2: New Ways to Inf uence the Customer 1 94
P roposition 3: Orchestration for Corporate Marketers 1 96
C onclusions 1 99
A bout the Author 2 01
N otes 2 03
I ndex 2 13
I LLUSTRATIONS
F IGURES
1 .1 H ow was your f rst marketing exposure to the
Social Media? 3
3 .1 Leaders in a communications network 6 1
3 .2 Slice and dice of my purchase data 6 8
4 .1 Mapping of Customers and Products 8 0
4 .2 Daytime Work at Home Micro-segment 8 1
4 .3 Direct Negotiations in the Broadcast Era 8 6
4 .4 M assive Audience Fragmentation and Auction Markets 8 6
4 .5 Digital Advertising Marketplace 8 8
4 .6 A Not-so-intelligent Campaign 9 3
5 .1 Big Data Customer Prof le 1 12
6 .1 What is big data? 1 33
6 .2 A Wordle diagram of the text used in this book 1 45
6 .3 T ime plot of customer blog keywords in Indian market 1 46
T ABLE
3 .1 Geohash accuracy level 5 2
A CKNOWLEDGMENTS
F irst and foremost, I would like to acknowledge the hard work on the
CMO study conducted by IBM, as well as the related case studies and
related solutions carried out by the IBM Sof ware Group Big Data mar-
keting teams. I have used publicly referenced material, including the
use cases, the Solution Architecture framework, and a number of case
studies, and have provided additional references for the audience to
explore further. IBM senior management has paved the way with an
inspiring vision of analytics-driven CMO of the future, especially Ginni
Rometty’s talk at the CMO+CIO conference. Jef Jonas provided me
with inspiration for experimenting with the ideas and continues to be
my source of inspiration. T e algorithms and architectures for market-
ing analytics were created with help from Barry Rosen, Bob Johnston,
Daryl BC Peh, Eberhard Hechler, Elizabeth Dial, Hamid Pirahesh, Heng
Cao, Ken Babb, Mandy Chessel, Manav Gupta, Nagui Halim, Noman
Mohammed, Paul Christensen, Paul Colgan, Peter Harrison, Rich
Harken, Sambit Sahu, Sandy Tucker, Tapasi Sengupta, Tommy Eunice,
and Yoel Arditi. T e Dallas Global Solutions Center team—Christian
Loza, Mathews T omas, and Janki Vora—provided valuable experi-
mentation on the ideas. Anthony Behan, Audrey Laird, Bob Weiss,
Christine Twiford, Craig Ginsberg, Dirk Michelsen, Emeline Tjan, Ken
Kralick, Laura Lederer, Livio Ventura, Mehul Shah, Neil Isford, Norbert
Herman, Oliver Birch, Perry McDonald, Raquel Katigbak, Richard
Lanahan, Richard Maraschi, Rick Flamand, Robert Segat, Sara Philpott,