Background and Examples - Freakalytics · Background and Examples ... bd dt d kti diibroad product...
Transcript of Background and Examples - Freakalytics · Background and Examples ... bd dt d kti diibroad product...
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Background and Examples
A Week In The Life Of An Analyst Rock Star: Using Analytics To Dramatically g y y
Boost Bottom Lines
Stephen McDaniel with Stacey Barr
Co-founder and Principal AnalystFreakalytics, LLChttp://www.Freakalytics.com
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Case study- a niche winery with a strong di t t b idirect-to-consumer business
• Revenue- $4 1mRevenue $4.1m
• Direct businessDirect business– 60% of sales
87% of gross profit– 87% of gross profit
• Data “scrambled” forData scrambled for this demo
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Customer segments are valuable for b d d t d k ti d i ibroad product and marketing decisions
• Segments - customer Enthusiast Casualggroupings based on marketing research
• Guidance for product & marketing decisionsg
• WeaknessesHigh Roller Luxury
– Generalizations– Hard to measure impact
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Make customer segments actionable –i h t t tassign each customer to a segment
• Which marketing gactions are justified for each customer?
• Segment counts and sales-current yearsales current year versus prior year
• Marketing results from changes in investment amount & messagingamount & messaging
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Customer lifetime value- beyond response t t t i t f k tirates to measure true impact of marketing
• Superior to response The single purchase view
rates & recent purchase data
• Can evolve over time to incorporate richer, broader views of LTV ti t th f tbroader views of behavior
• LTV is a strategic
LTV‐ estimate the future
• LTV is a strategic metric- measuring true impact of marketing programsprograms
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Visualize Annual Sales by Average Discount, LTV = Size of Point,
• All customers in top graph• Segments (below) with LTV (size) can inform g ( ) ( )
discount offer decision-making.
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Visual Metrics to Inform: Petro-Wealth I t b R i d C tImportance by Region and Country
• Public debate often focuses on very simplePublic debate often focuses on very simple metrics to explain topics of great importance.
• This demonstrates how careful selection ofThis demonstrates how careful selection of relevant metrics can greatly enhance understanding of important issues.understanding of important issues.
• We hope that you will find this useful in expanding your thinking about businessexpanding your thinking about business metrics in a fresh, new light.
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Maximizing Sustainability by Incorporating Consumer Behavior & Environmental Expert Opinionehavior & nvironmental xpert Opinion
Which “green” activities are consumers performing? Activities that-• Save them money?• Are easy to do?• Are the most beneficial to the environment?
S bi ti f th th ?• Some combination of the three?
Combining survey insights with expert opinion uncovered:A ti iti th t t k th t b fi i l f th• Activities that experts rank as the most beneficial for the environment are not always performed frequently by consumers.
• Economic benefit to the consumer is a stronger predictor of frequently-performed activities than environmental benefit.frequently performed activities than environmental benefit.
• However, convenience to the consumer is the best predictor of green behavior!
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“Newcomer” communities can maximize the i t f l hi th i bimpact of launching their green programs by
• Prioritizing activities that are convenient andPrioritizing activities that are convenient and economical for the consumer.
• Motivating consumers with educationalMotivating consumers with educational programs and incentives.
• Waiting until the environmental program has• Waiting until the environmental program has gotten off the ground before encouraging activities that are low in convenienceactivities that are low in convenience.
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“Veteran” communities can prioritize the ti iti i i t l b fitactivities using environmental benefit
• Activities that are most convenient can beActivities that are most convenient can be financially penalized for non-compliance.
• Less convenient activities can haveLess convenient activities can have incentives for performance.
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Freakalytics- rapid analytics to explore,d t d i t d tunderstand, communicate and act
• Public and on-site training– Tableau partner
• ConsultingD hb d– Dashboards
– Data warehousing– Data mining & forecasting– Analytic strategyAnalytic strategy
• Author– “Rapid Graphs With Tableau
Software”Software – “SAS for Dummies”
• Visit our blogVisit our blog
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