Modeling & Scoring A Match Made in Marketing Heaven
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Transcript of Modeling & Scoring A Match Made in Marketing Heaven
Rick ErwinPresident of Data & Analytics, Experian Marketing Services
Charlie Swift Vice President of
Database Strategy & Marketing, Hearst
Magazines
Modeling & Scoring:A Match Made in Marketing Heaven
Modeling & Scoring:A Match Made in Marketing Heaven
Today’s TopicsToday’s Topics
Setting The Stage1
A Proactive Approach2
Under The Hood3
Lessons Learned4
Questions & Answers5
Today’s TopicsToday’s Topics
Setting The Stage1
Averagewebpage
visitless than
1minute
Commitment?
Site ContentLocation
Type of Site
BehavioralPrevious Visitors
Browsing History
Customers
Contextual
How?
Marketers: People:
Delivering
the right offers
at the right time
to the right person
Searching
what they want
when they want it
where ever it may be
Direct Marketing
Digital Marketing
Customers:
Receiving
personalized offers
specific to them
where they will be
Digital Direct Marketing
Today’s TopicsToday’s Topics
A Proactive Approach2
Problem:Internet segment growing but commitment is lower
Lower Pay RateHigher Servicing Cost
Question:How can we lower servicing cost without impacting net pay?
Answer:Proactively change the treatment strategy by
Who and When
But How?
4 Steps1. ID Segments
2. Set Decision Tree
3. Test Offers
4. Make Economics Work
ID Segment:
0%
10%
20%
30%
40%
1 5 10 15 20
Pay R
ate
Score
Segment:Really Bad
Segment:Marginal
Segment:Good
Decision Tree:Upsells
Thank You for your order
Thank You for your order
Name/AddressValidated
No
Yes
Initial Order Placed
NoYes
>80
“Pay Now” for faster delivery
Thank You for your order
eMail Thank You w/ Pay now option
Regular #copies served b/f payment
Process Order to CDS
Regular billing series
Experian “Pay % Score Call
Pay %Score?
Bill Me Order?
Good / BadPay Match?
No
Thank You for your payment
UpsellsProcess Order to
CDS
Thank You for your payment
UpsellsProcess Order to
CDS
“Pay Now” for $x off
vary x by score
60+
20+
Paid Order?
Yes
NoeMail Confirmationw/ Pay Now option
eMail Confirmationw/ must confirm
note
eMail Confirmationw/ must confirm
note
Paid Order?
No
Yes
Yes
Confirmed Order?
Pay %Score?
Process Order to CDS
UpsellsThank You for your payment
Yes>20
Pro
cess
Ord
er
to C
DS
wit
h c
on
dit
ion
s m
et
Trial Copy OnlyShipped
Regular Billing Series60+
20+
60+
20+
>20
No copies shippedb/f payment
eBill Series Only1st email: ship on
pymt
Regular Billing Process
Trial Copy only shipped
Regular Billing Series
Regular #copies served b/f payment
No copies shippedb/f payment
eBill Series Only1st email: ship on
pymt
eBill Series Only1st email: ship on
pymt
No copies shippedb/f payment
No
Paid Order?80+
>20
Executed Simply
Customer
PredictedPayRate
Bill Me OptionAvailable
Credit Card Nowor
Phone ConfirmOption
Experian
PaymentModel Score
RealTime
Good
Hearst Web Site
CustomerSub Order
Pay NowIncentive Offer
Marginal
Bad
AudienceIQ
Decision Tree:
RealOffer
TimePresentment
Key 1:
Proactive
Reactive
Marketing
Market
Key 2:
Test
Change
Offers
Behavior
That
Marginal Payer
Pay now and get $3 off
Pay NowOr Call Us
Test Offers
Likely Non-Pay
Economics:Non Payer Trade off:
Screen All – Save on Bad
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
`
Title 1 Band Distribution
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
`
Title 2 Band Distribution
Results:Impact on Net Pay None
-20to30% on Servicing Costs
Net Profits
+9 to 10%
Today’s TopicsToday’s Topics
Under The Hood3
UnderHood
the
Real-Time
ConversationWorkflow
Identify
EnhanceValidate
ScoreDecision
OFFEROFFER
Sign-up for FREE
Magazine!
Name:Address:
Bill Me Later!
AddressAlgorithmModel Score
Propensity = LOW
Call 1-800 to complete the trial offer
Call 1-800 to complete the trial offer
300 Milliseconds
Technology
DataTechnology =
+
POWER
Today’s TopicsToday’s Topics
Lessons Learned4
LessonsLearned
the Shouldersof
Standing
Giants
On
DigitalExecution
AddressableAudience
Re-think
isYou?
this
Today’s TopicsToday’s Topics
Questions & Answers5
Thank You!
Q&A