DOWNLOADABLE ROMI RESOURCES XIII ACKNOWLEDGMENTS XVII INTRODUCTION XIX PART I Essentials 1 CHAPTER 1 The Marketing Divide: Why 80 Percent of CompaniesDon't Make Data-Driven Marketing Decisions And Those Who DoAre the Leaders 3 The 15 Essential Marketing Metrics 7 Case Examples 9 Marketing Budgets: Key Differences between the Leaders and theLaggards 17 Using Marketing Metrics to Weather Difficult Economic Times20 The First Step: Defining the Data-Driven Marketing Strategy22 Chapter Insights 25 Case Examples: Best Buy, Porsche Turbo Cabriolet Launch, DuPontTyvek NASCAR CHAPTER 2 Where Do You Start? Overcoming the Five Obstaclesto Data-Driven Marketing 26 Overcome Obstacle 1: Getting Started Focus on Collectingthe Right Data and Create Momentum by Scoring an Easy Win 28 Overcome Obstacle 2: Causality Conduct Small Experiments33 Overcome Obstacle 3: Lack of Data Strategies for ObtainingCustomer Data 35 Overcome Obstacle 4: Resources and Tools Build theInfrastructure for Data-Driven Marketing 39 Overcome Obstacle 5: People and Change Create aData-Driven Marketing Culture 44 A Road Map for Implementing Data-Driven Marketing 49 Chapter Insights 51 Case Examples: Royal Bank of Canada, Walgreens, ContinentalAirlines, Harrah s Entertainment CHAPTER 3 The 10 Classical Marketing Metrics 52 Linking Marketing Activities to Metrics 53 A Balanced Scorecard for Marketing 62 Facing the B2B Measurement Challenge 67 Chapter Insights 71 Case Examples: MasterCard FIFA Sponsorship, Microsoft OEMComarketing PART II 15 METRICS TO RADICALLY IMPROVE MARKETING PERFORMANCE73 CHAPTER 4 The Five Essential Nonfinancial Metrics:#1 Brand Awareness, #2 Test-Drive, #3 Churn,#4 Customer Satisfaction (CSAT), and #5 Take Rate75 Shaping Perception: Metric #1 Brand Awareness 75 Comparative Marketing: Metric #2 Test-Drive 87 Loyalty Marketing: Metric #3 Churn 91 Customer Satisfaction: Metric #4 CSAT 96 Campaign Effectiveness: Metric #5 Take Rate 99 Chapter Insights 103 Case Examples: Philips Consumer Lifestyles, Navistar America'sGreenest School, Porsche First Mile, Intel, Ray-Ban, Lexus, DentalCare Partners, DSW Shoe Warehouse Downloadable Excel Templates:Churn, Take Rate CHAPTER 5 Show Me the ROI! The Four Essential FinancialMetrics: #6 Profit, #7 Net Present Value (NPV),#8 Internal Rate of Return (IRR), and #9 Payback104 Metric #6: Profit 105 Finance for Marketing Managers: Metrics #7 NPV,#8 IRR, and #9 Payback Defined 106 Return on Marketing Investment (ROMI) Framework for ManagementDecisions 115 ROMI for Sports Sponsorship 119 ROMI for a New Product Launch 122 Stress-Test the Numbers: Sensitivity Analysis 129 Chapter Insights 133 Case Examples: Sports Sponsorship and Web New Product LaunchROMI (Disguised) Downloadable Excel Templates: NPV, IRR, Payback,Campaign ROI, Sports Sponsorship ROI, New Product Launch ROI, TableFunction Sensitivity Analysis, Monte Carlo Analysis CHAPTER 6 All Customers Are Not Equal: Metric#10 Customer Lifetime Value (CLTV) 134 Metric #10 Customer Value Defined 135 The New Marketing Strategy: Value-Based Marketing 138 Balancing Short- and Long-Term Customer Profitability 146 Customer Life Cycle Management 151 Chapter Insights 154 Case Examples: Sainsbury s, 3M, Continental Airlines,Royal Bank of Canada, Carnival Cruise Lines Downloadable Excel Template: Customer Lifetime Value CHAPTER 7 From Clicks to Value with Internet MarketingMetrics: #11 Cost per Click (CPC), #12 TransactionConversion Rate (TCR), #13 Return on Ad Dollars Spent (ROA),#14 Bounce Rate, and #15 Word of Mouth (WOM)156 CPC versus CPM: Optimizing Metric #11 CPC Is the GoogleInnovation 157 Optimizing Sponsored Search: Metrics #12 TCR and#13 ROA 159 How Good Is Your Web Site? Metric #14 Bounce Rate 168 Changing the Internet Search Marketing Game with AttributionModeling 172 Beyond SEM: Internet Display Advertising Impact 176 Hypertargeting Display Advertising in Social Media 178 Metric #15 Word of Mouth (WOM) Social Media MarketingEngagement 181 Chapter Insights 186 Case Examples: Google, Air France, Opinmind, Meteor Solutions,Palm Centro, Capcom Resident Evil 5 Downloadable Excel Templates:Search Engine Marketing Metrics (CPC, CTR, TCR, Take Rate, ROA),Air France Click Data, Google ROA Impact, Bounce Rate, Word ofMouth (WOM) PART III THE NEXT LEVEL 187 CHAPTER 8 Agile Marketing: Using Near-Time Data to ImprovePerformance by a Factor of Five or More 189 If You Are Going to Fail, Fail Fast 190 Design for Measurement 196 Chapter Insights 200 Case Examples: Microsoft Security Guidance, DuPont PerformanceAlliance CHAPTER 9 Wow, That Product Is Exactly What I Need! The ThreeEssential Approaches to Analytic Marketing 201 The First Essential Approach to Analytic Marketing: PropensityModeling 202 The Second Essential Approach to Analytic Marketing: MarketBasket Analysis 206 The Third Essential Approach to Analytic Marketing: DecisionTrees 207 Timing Is Everything: Event-Driven Marketing Case Examples214 The Business Case for Analytic Marketing 218 Chapter Insights 220 Case Examples: Meredith, EarthLink, DIRECTV, National AustraliaBank, Ping Golf Downloadable Excel Template: Analytic Marketing ROIDownloadable SAS File: EarthLink Retention Marketing CHAPTER 10 What's It Going to Take? Infrastructure forData-Driven Marketing 222 Which Data Do You Really Need? 223 Do You Need to Build a Ranch House or Empire State BuildingInfrastructure? 225 Requirement Complexity 229 Should You Forklift or Rearchitect Data in the Enterprise DataWarehouse? 233 What We Know Can and Will Go Wrong (If You Don t WatchOut!) 234 Harrah's Entertainment: Creating the Data-Driven MarketingInfrastructure Portfolio 237 Chapter Insights 246 Case Example: Harrah s Entertainment CHAPTER 11 Marketing Budgets, Technology, and Core Processes:Key Differences between the Leaders and the Laggards 247 Marketing Campaign Management: The State of the Industry 249 Research: Marketing Processes, Technology, and the Link to FirmPerformance 252 B2B versus B2C Investment Portfolio Mixes: Leaders versusLaggards 256 Overcoming the Four Barriers to Professionalizing MarketingProcesses 260 Upgrading Marketing Campaign Management Processes: AThree-Phased Approach 262 Lessons Learned from the Research: Complexity RequiresGovernance 266 The Creative X-Factor 268 Tying It All Together 271 Chapter Insights 272 Case Examples: Blendtec Viral Marketing, Nissan Qashqai NewProduct Launch APPENDIX FOR INSTRUCTORS How to Use This Book to TeachData-Driven Marketing 275 NOTES 279 INDEX 285
