Case Study Preview: Adopt Marketing Mix Modeling to Guide Future Investments

Tina Moffett

Consumers interact with brands across various mediums — their smartphones, computers, call center, in-store — just to name a few. Their interactions with brands — from viewing a TV ad to re-tweeting a promotion — are creating such a rich trove of data that marketers are left wondering: How do I glean relevant insights to optimize my marketing and media? Which channels should I optimize? How can I meet my growth goals while expanding into new, unfamiliar markets and channels? These questions keep marketers up at night; they are looking for best-in-class examples of measurement and analytics success. Well, look no further.

Our latest report, “Extract Business Value From Your Mix Model,” co-authored by Jim Nail, showcases USAA’s successful approach in leveraging marketing mix modeling to measure channel performance with greater precision and to identify and optimize future strategic investments, including marketing investments, product development, pricing structures, and organizational support. The report highlights USAA’s measurement and optimization challenges, how it used marketing mix to help refine metrics and identify the right levers to optimize business strategy and investments, and how it used the results to guide significant customer-driven changes at USAA. The case study is a good blueprint for firms that want to create a marketing mix model — and how to do it successfully!

We are thoroughly impressed by the analytics and marketing team at USAA; every decision made at the organization is driven by data and insights. Further, USAA is committed to using insights — including insights from its marketing mix model — to improve the overall customer experience.

Read more

Amazon Silk Is Amazon's Secret CI Agent

Rob Brosnan

The new Amazon Silk promises to speed tablet web browsing. It also provides Amazon's core business with a secret weapon against other retailers. Amazon Silk is essentially a browser that, by default, routes all traffic through a proxy server. Amazon's back end consolidates multiple calls for images, libraries, and cookies into a single request. The proxy can even pre-fetch future page requests by users (think of search results pages).

Is Kindle Silk Amazon's 007?How does Amazon Silk provide a competitive advantage to Amazon? Each Kindle Fire device is registered with an individual who is known to and maintains an extensive purchase history with Amazon. Amazon Silk allows Amazon to collect the users' browse behavior beyond Amazon-owned web properties. Regardless of where customers make purchases and whether those products are digital or material, Amazon can use the data collected to its advantage.

Amazon's new layer of Customer Intelligence permits it to:

  • Improve customer recognition. Amazon can maintain customer identity without facing the problems of cookie deletion or Flash LSOs. Should users access Twitter or Facebook through the browser, Amazon will have access to social identity as well.
Read more

The Lone Cry for Growth In Insurance?

Ellen Carney

Yee Hah! The worst recession since the Great Depression was declared officially over in June of 2009. We should be feeling great, since all things considered, the insurance industry fared pretty well when it came to how it emerged from that dark tunnel. But except for one notable role voice, insurers, unlike their banking peers, are still holding back from growing the business. How do we know? We took a look at nearly 5,000 inquiries that Forrester answered for insurers, bankers, and securities firms in the wake of failure of Lehman Brothers to just after this May’s Flash Crash.

What was on the minds of insurers during these six quarters? For starters, insurers:

  • Asked more questions than their financial services peers. Of the three segments we looked at, insurers asked half of the inquiries we fielded—2,500 versus nearly 1,600 and 600 for banks and securities firms, respectively.
  • Framed more than half of those questions around risk. Insurers didn’t veer away from what got them through the recession intact (indeed, from the very nature of their business)—managing risk. Even questions about application development strategies were framed as a risk question, with most insurers seeking validation that they were following in the well-worn grooves of others in insurance (and other industries) before them.
  • Posed too few questions about growing the business. Unlike their banking and securities siblings who asked questions about growing the business through new product launches, up-selling and cross-selling, or luring new customers away from competitors, insurers, with one big role-based exception, did notreflect that Q2 2009 economic inflection point.
Read more