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Marketing
• Satisfaction with decision related to perceptions of confidence in the processes for making the decision
• The ways information was acquired
• The amount of information obtained
• Strategy used to evaluate the information
How to Facilitate a Customer’s Search and Evaluation
processes?• Online –
• search costs are reduced
• Significant increase in number of resources
• May lead to higher evaluation costs
• Many vendors with different forms
• Increased complexity
Content Resource
• Airline reservations
• Enter a sweepstakes
• Look up medical information
• Buy a birthday gift
• Scan the news headlines
• Play a game
• Buy stock
• Check your bank account
Importance of Content
• Driven by –
• the amount of information
• the rate of access
Sources of Site ContentCompany Customer Competitor Other
Product information
Testimonials Site links for comparisons
Press
Promotional information
Articles Product information
Links to databases
Databases Product reviews
Links to lists (partners, related sites)
Articles Content submission
Chat rooms
Bulletin boards
External Sources & the 3 “I’s”Model Sample Link Type Desired Effect
Image Prestigious partners Halo effect – recategorization of product as higher level or quality
Incentive Competitors who are inferior on a key feature
Underscore product function or need
Public sites/databases (health related)
Improvement Sites with related products Position product as central; simplify acquisition of other complementary products
Sites with product use-related information (camping grounds)
Stimulate product involvement; increase perceived benefits
Types of Content
• Multimedia
• Downloadable audio/video
• Benefit – can be replayed
• Disadvantage – time to download, use of memory
• Streaming audio/video
• May require plug-ins
• Three-dimensional animation
Types of Content (con’t)
• Interactive content
• Online games
• Stay on site longer
• Increased brand awareness
• Incentive to return
• Register-acquire data
Types of Content (con’t)
• Interactive content
• Online contests
• Registration
• Provide site content (photo contest)
Types of Content (con’t)
• Interactive content
• Online customer support
• Moderated discussion groups
• Mailing lists
• Real time help
Marketing and the Internet – Eloise Coupey
Mission
Optimize e-businesses by applying data mining analytics and pay-for-performance personalization services that increase sales immediately
WebMiner 3.0: How it Works
Outsourced, Online, Expert Salesforce
Website sales database
Catalog sales database
EmailCampaign database
Phone sales database
Store sales
Survey and sweepstake
database
Integrated view of the customer across channels
Enriched with 3rd party
demographics
Integrated view of the customer across channels with appended demographic
data
Expert Data Mining
Data Mining Analytic Report
• Highly customized report developed over 2-3 weeks by an experienced data miner.
• Reveals Patterns, correlations and causal links in the data that are “invisible to the human eye” but , if acted upon, can make a dramatic difference in profitability.
• Quantified estimates of the value of each opportunity.
• Actionable plan for each opportunity
• Hundreds of rules directly derived from the data insight
• Can power website to deliver profits within weeks using WebMiner ASP (see next slide)
• Can also be imported to power personalization tools (Broadvision, etc.)
Insight-driven rules to power your website(predictive model)
The Initial Data Mining Process
Is located in Portland orDallas
Is referred by a Search Engine
Made 2-4 recent visits
Last visited Men’s polo & t-shirt section
AND AND ANDIF VISITOR
THEN feature rugby shirt sale
is in group who spends > $700/year in men’s apparel
Impulsive buying style
Is economy-minded
Uses money-off couponsAND AND ANDIF VISITOR
THEN feature water shorts 10% off coupon
ANDEnjoys swimming AND
Owns swimming pool
Some rules are based on a few clickstream parametersThese rules are designed to target anonymous visitors who haven’t yet volunteered any information about themselves
Some rules also bring lifestyle and demographic info into the equationThese rules are designed to target anonymous visitors who have volunteered an address or just a zip code
Others even add purchase history to clickstream and demographicsThese rules are designed to target repeat customers
is in group who spends > $700/year in men’s apparel
Impulsive buying style
Is economy-minded
Uses money-off couponsAND AND ANDIF VISITOR
THEN feature special 20% off loyalty coupon on chinos
ANDplaced > 3 orders in last 3 months
AND
Majority of items bought are business casual
ANDAs been a customer for over 1 year
What do data mining issued rules look like?
These rules (and hundreds of others)are uploaded into the WebMiner ASP
Is located in Portland orDallas
Is referred by a Search Engine
Made 2-4 recent visits
AND AND ANDIF VISITOR
THEN feature rugby shirt sale
is in group who spends > $700/year in men’s apparel
Impulsive buying style
Is economy-mindedAND AND ANDIF VISITOR
THEN feature water shorts 10% off coupon
is in group who spends > $700/year in men’s apparel
Impulsive buying style
Is economy-mindedAND AND ANDIF VISITOR
THEN feature special 20% off loyalty coupon on chinos
WebMiner ASP
1.Serving Scripts will call our server to select and display targeted offers
2.Collection Scripts will send our server user data such as ZIP code to inform our predictions
3.Sales Reporting Scripts will inform our server of your sales so that we can provide you with detailed online reports
WebMiner Scripts are pasted into a few pages of your site
… and you’re ready to start targeting all your visitors with unmatched precision
x
Casual OnlineCasual Online View cartOrder CatalogHelp
MEN WOMEN
www.casualonline.com
Here’s how WebMiner targets anonymous visitors
Real-time anonymous visitor profiling
Past visits:
3rd recent visit
Last section visited:
Men’s shorts
info passed by the browser
WebMiner cookie on visitor’s PC
WebMiner clickstream
database
New York City
visiting from:
x
Casual OnlineCasual Online
View cart Order Catalog Help
MEN WOMEN
www.casualonline.com
Referring site:
WebMiner geolocation server
IP = 216.128.23.5
Manhattan, NY
THEN feature men’s Plain-Front Stretch Chinos
Is located in New York or Boston
Was referred by banner ad
Made <2 recent visits
Last visited men’s pants
AND AND ANDIF VISITORIs located in Portland orDallas
Was referred by a Search Engine
Made 2-4 recent visits
Last visited men’s polo & t-shirt sectionAND AND ANDIF VISITOR
THEN feature men’s rugby shirt saleTHEN feature shorts with free shipping
Is located in New York,Atlanta or Chicago
Was referred by a Search Engine
Made >2 recent visits
Last visited men’s shorts & swimwearAND AND ANDIF VISITOR
Real-time profile - rules matching
The anonymous visitor profile gathered by WebMiner
Hundreds of marketing rules obtained from Data Mining
is matched against…
FREE SHIPPINGon shorts
Go to Shorts
Check out our large selection of shorts. Many colors and fabrics available. Shipping is on us!
template-based 100% dynamic content in real-time!
to serve…
Past visits:
3rd recent visit
Last section visited:
Men’s shorts
New York City
visiting from: Referring site:
Casual OnlineCasual OnlineView cartOrder CatalogHelp
Top SellersPantsShorts and SwimwearPolos & T-shitsShirtsSweatersBusiness CasualOuterwearShoesAccessoriesUnderwear
FREE SHIPPINGon shorts
Go to Shorts
Check out our large selection of shorts. Many colors and fabrics available. Shipping is on us!
Casual OnlineCasual OnlineView cartOrder CatalogHelp
Top SellersPantsShorts and SwimwearPolos & T-shitsShirtsSweatersBusiness CasualOuterwearShoesAccessoriesUnderwear
To see the regionally specific products that are available for delivery in your area, please enter the ZIP code where you want your order delivered:
Delivery ZIP code: Browse now!10027
What WebMiner already knew…
Past visits:
3rd recent visit
Last section visited:
Men’s shorts
New York City
visiting from: Referring site:
Yes Yes1,230
yearly spending on men’s apparel
Impulsive buyer
Economy minded
Use money-off coupons
Enjoys swimming Owns swimming pool
Yes Yes No
x
Casual OnlineCasual Online
View cart Order Catalog Help
MEN WOMEN
www.casualonline.com
Top SellersPantsShorts and SwimwearPolos & T-shitsShirtsSweatersBusiness CasualOuterwearShoesAccessoriesUnderwear
Buy products from the comfort of your home or office and have them conveniently delivered to your door in a few days by UPS.
To see the regionally specific products that are available for delivery in your area, please enter the ZIP code where you want your order delivered: Delivery ZIP code: 10027
Lookup lifestyle & demographic infoOver 320 up-to-date demographic variables
10027
ZIP code yearly spending on men’s apparel
Impulsive buyer
Economy minded
Use money-off coupons
… Age
10001 $450 Yes Yes Yes … 34
10002 $1,578 Yes No No … 42
10003 $742 No Yes Yes … 38
… … … … … …
10027
$1,230 Yes Yes Yes … 37
… … … … … … …
95604 $823 Yes No No … 49
Additional relevant info extrapolated from the zip code
Demographic and lifestyle lookup at zip code level
What WebMiner already knew…
Past visits:
3rd recent visit
Last section visited:
Men’s shorts
New York City
visiting from: Referring site:
Yes Yes1,230
yearly spending on men’s apparel
Impulsive buyer
Economy minded
Use money-off coupons
Enjoys swimming Owns swimming pool
Yes Yes No
info extrapolated from the geocode
This means targeting at the…This means targeting at the…
Block level!Block level!
…and at “geocode” level
Note that WebMiner ASP 3.0 can also do the same lookup at the “geocode” level if the full address is entered (sweepstake, returning customer, etc.)
Past visits:
3rd recent visit
Last section visited:
Men’s shorts
New York City
visiting from: Referring site:
Yes Yes1,230
yearly spending on men’s apparel
Impulsive buyer
Economy minded
Use money-off coupons
Enjoys swimming Owns swimming pool
Yes Yes Yes
is in group who spends > $700/year in men’s apparel
Impulsive buying style
Is economy-minded
Uses money-off couponsAND AND AND
IF VISITOR
THEN feature water shorts 10% off coupon
ANDEnjoys swimming AND
Owns swimming pool
Once again, the anonymous visitor profile gathered by WebMiner…
the marketing rules obtained from Data Mining
is matched against…
template-based 100% dynamic content in real-time!
to serve…
•Fast-drying Supplex® nylon shorts
•Adjustable elastic/drawstring waistband
•Removable stretch belt with plastic snap closure
•Two front zip pockets with self-fastening closures
•Front key loop
10% OFF WATER SHORTS
Real-time enriched profile - rules matching
Casual OnlineCasual OnlineView cartOrder CatalogHelp
Top SellersPantsShorts and SwimwearPolos & T-shitsShirtsSweatersBusiness CasualOuterwearShoesAccessoriesUnderwear
•Fast-drying Supplex® nylon shorts
•Adjustable elastic/drawstring waistband
•Removable stretch belt with plastic snap closure
•Two front zip pockets with self-fastening closures
•Front key loop
10% OFF WATER SHORTS
If the visitor doesn’t buy right away but comes back later…
Casual OnlineCasual OnlineView cartOrder CatalogHelp
Top SellersPantsShorts and SwimwearPolos & T-shitsShirtsSweatersBusiness CasualOuterwearShoesAccessoriesUnderwear
BUY 2 SHIRTS
GET ONE FREE
Browse shirts
When you buy 2 short sleeve shits, the 3rd shirt of equal or lesser value is on us.
View all my offers
Your OffersCasual OnlineCasual Online
BUY 2 SHIRTS
GET ONE FREEBrowse shirts
10% OFF WATER SHORTS View item
FREE SHIPPING on shorts
Browse shorts
WebMiner moves on to the next best
offer for this visitor…
WebMiner moves on to the next best
offer for this visitor…
…while still letting the visitor access all their previous
offers
…while still letting the visitor access all their previous
offers
WebMiner tracks your visitor’s interactions and provides you with real-time reports
The following reports are just a few examples…
ASP 3.0 Key Features
Advanced Visitor Profiling Locates first-time visitors down to the city level – as soon as
they hit home page – using real-time geolocation technology
Makes use of clickstream information to predict behavior (products viewed, repeat visits, etc.)
Identifies visitor demographics and lifestyle in real-time down to the city-block level based on additional information entered in forms such as ZIP code or full address
Dynamic Content Delivery Proprietary content/offer management system that allows
subscribers to create dynamic templates containing text, links, images and other conversion tools (banners, pop-ups, etc.)
ASP 3.0 Key Features
Real-time Performance Reporting
Graphical charting of key performance indicators such as sales lift, increase in order size, and revenue per visitor
High Availability Infrastructure
WebMiner partnered with Digex ASP services to provide a fast and highly reliable service to its customers
Proprietary “suicide pill” technology ensures that site visitors will NEVER perceive a delay due to WebMiner
WebMiner Software Architecture
client area(password protected)
client area(password protected)
Data Collection ScriptsData Collection Scripts
Geolocation module
(Locates IP addresses in real-time)
Data Collection ScriptsData Collection Scripts
Rules upload engine
Oracle databaseOracle database
Online reporting module
Data Collection ScriptsData Collection Scripts
Data Mining tools suite
Predictive models
Predictive models
Dynamic visitor profiles
Dynamic visitor profiles
Visitor Interaction +
sales logs
Visitor Interaction +
sales logsDemographic and lifestyle
data
Demographic and lifestyle
data
Campaign admin
interface
Content selection and
serving
Template based offer/content management
Geolocation database
Geolocation database
Geocoding database
Geocoding database
Campaign Offers / Content
Campaign Offers / Content
Advanced rules matching
engine
3rd party data:•Demographics•Lifestyle•IP geolocation•Address geocoding
Geocoding module
(converts full addresses into geocodes)
LEGENDLEGEND
Batch updateBatch update
Real-timeReal-time
Data Collection ScriptsData Collection ScriptsData Collection ScriptsData Collection Scripts
Serving ScriptsServing Scripts Sales Reporting ScriptSales Reporting ScriptClientWebsite
ClientWebsite
Carrier Case StudyProblem
•Low online sales of air conditioners at its roomair.com site
•Could not justify an eCRM
Why WebMiner•Convert data into customer understanding
•Apply understanding to increase online revenue
• Immediate results and performance pricing
RESULTS•25% conversion rate: 9-times higher than control group
• Increased revenue per visitor from $1.94 to $37.98
The WebMiner ASP: Converting Insight into Revenue in Real TimeThe WebMiner ASP: Converting Insight into Revenue in Real Time
WebMiner
targeted offer
WebMiner
targeted offer
Sales lift of 160%
$5,432$45,118
$664.634
$255,091
roomair.com results after 2 months:– Sales conversion
rate up by 9x– Online sales lift
160%
Pfaltzgraff Case Study Problem
•Masses of underutilized multichannel data
•Rapid growth online but no customer understanding
Why WebMiner•360-degree customer understanding
•Multichannel implementation plan
SIMULATED RESULTS
•2,780 distinct demographic customer groups with distinct product preferences
•71% increase in online conversion rate
•14% increase in total sales
Jos. A. Bank Case StudyProblem
•Booming traffic but low conversion rates
Why WebMiner
• Immediate results
•No integration hassle
SIMULATED RESULTS
•600 distinct demographic customer groups with distinct product preferences
•2.7-times increase in online conversion rate
•33% increase in total sales in 60 days
Liz Claiborne Case StudyProblem
•Low conversion rates
•Existing BroadVision and MicroStrategy platforms ineffective
Why WebMiner•Optimize existing infrastructure
• Immediate impact
•No distraction of internal IT personnel
SIMULATED RESULTS•117 customer clusters with distinct category preferences
•87% increase in conversion rate impact (> 30% revenue lift)
Priceline.com: Data Mining Project
Problem•Minimal understanding of core customer segments
Why WebMiner•Comprehensive profile of “Frequent Binders”•Easy implementation•No risk of site performance degradation
RESULTS•Confidential
American Airlines: Data Mining Project
Problem•Minimal understanding of online customers•Historic personalization efforts were disappointing
(BroadVision, E.piphany, etc.)
Why WebMiner•Comprehensive understanding of AAdvantage
program’s 40M members• Immediate revenue impact
RESULTS•Confidential
Staples, Inc.: Data Mining Project
Problem•Need intelligence to power E.piphany platform•Acquire customers with high-value profile
Why WebMiner•360-degree customer understanding•Multichannel application• Immediate results
RESULTS•Confidential
WebMiner 3.0 ASP Pricing
•Data Mining Analytics and Insight Report•Revenue Increase Simulation Model•Data Mining Analytics and Insight Report•Revenue Increase Simulation Model
•ASP Deployment (one time)•ASP Deployment (one time)
•Monthly Optimization•Online Reporting •Quarterly Model Update
•Monthly Optimization•Online Reporting •Quarterly Model Update
•Pay-for-performance Commission•Pay-for-performance Commission
$25,000 - $50,000$25,000 - $50,000
$5,000 - $15,000$5,000 - $15,000
$4,000 - $10,000$4,000 - $10,000
8% of incremental sales8% of incremental sales