Intelligent data-driven marketing : when physicists start thinking about marketing : from mad-man to math-man marketing

Following Einstein’s sentence: “Everything should be made as simple as possible, but not simpler. If you can’t explain it simply, you don’t understand it well enough,” this book puts a spotlight on the complex marketing ecosystem from a physicist’s point of view. Today’s marketing world is overcomplex; CMOs face the challenge to transform their current target operating models towards a 100% customer-centric and data-driven way of working. A journey from good old mad-men toward math-men marketing. This book consists of three parts: The first part strips down the complexity of the marketing universe to the leanest frame of reference and then brings back the complexity, step by step, in single dimensions. Part two and three just follow these thoughts and provide a detailed description of 56 small atoms that can be used in a maturity assessment of your marketing. How to use them in a broader transformation concludes the book. In summary: An end-2-end guideline how to pursue and master the transformation from mad-men towards a math-men marketing operating model. Introduction — #intelligentmarketing 12 Applying physics to marketing 13 Applying business engineering to marketing 15 The imaginary marketing lab, playing with dataand thoughts 20 Gedankenexperiment 1.0 21 The Marketing Universe — our inertial system of reference 21 Starting with Audiences and Campaigns 24 Plan the activations via different impressions 24 Be more precise — take advantage of segmentation 25 Close the loop — the advantage of data analysts 25 From measures to KPIs 27 Data-Driven Marketing: Measures, KPIs, andDimensions 27 Share of ... 28 Marketing Pressure 28 Cost per ... 29 Conversion rate 29 Trends 30 Aggregated KPIs of unique 31 Audience centric KPI systems 32 Integrated Reach — a bit of both 35 Smart KPI — Reporting, Dashboarding and Data Science 36 Pillar 1: Standard Reporting 36 Pillar 2: Explorative Data Analytics 37 Pillar 3: Data Science 37 Gedankenexperiment 2.0 38 A house is not enough — strategic marketing planning 40 Different Balls — creative management & optimization 43 Smaller Segments — hyper-accurate targeting and look-a-likes 47 Multiple Players — paid, owned, earned 53 Throwing tactics — the media mix and attribution models 57 Multiple actions — goals, funnels and customer journeys 61 Mat Robo — trigger-based campaign automation 66 My bag is full — frequency caps and campaign maintenance 68 The Perpetuum mobile — sharing, communities, and influencing 73 Summary — Gedankenexperiment 2.0 77 Using more physics on marketing 80 Fluid dynamics — “reaching the perfect flow” 81 Harmonic oscillation — “everything is in motion” 83 The law of thermodynamics — “flow of change” 86 Solid State Physics — “building out complex systems” 89 Einstein’s Theory of Relativity — “There is one last thing” 92 The ma.tomics — Intelligent Data-Driven Marketing Framework 98 GW1 From counting actions to guiding audiences 99 GW2 Real-time and zero latency 100 GW3 Closed-Loop — Harmonic Oscillation 101 GW4 Mastering the Tech-Stack-Orchestration 101 GW5 Run Agile — Start Fast and Fail Fast 102 GW6 Enable the organization 104 M1 THE MARKETING UNIVERSE 106 M1.1 Get Your Fundamentals Right: Strategy, Process, andSystems 106 M1.2 Understand and Engage with your Customer: Audience andContent Management 107 M1.3 Take the right budget choices: Strategic InvestmentManagement 109 M2 MARKETING TAXONOMY 111 M2.1 Align on a corporate taxonomy: Hidden Data Asset 111 M2.2 Embrace Change: Master Data Governance “Customer,Campaigns, Content, Asset, Price & Finance” 112 M3 STRATEGIC PORTFOLIO & PROGRAMMANAGEMENT 114 M3.1 Program, Audience, Content, and Time Management 114 M3.2 Marketing Budget Management 115 M3.3 Plan Alignment, Innovation, and Collaboration 117 M4 CREATIVE MANAGEMENT 119 M4.1 Creative Ideation — Design Thinking 120 M4.2 Creative Development and Delivery 121 M4.3 Creative Optimization 123 M5 AGILE CAMPAIGNS MANAGEMENT 125 M5.1 Be Fast and Flexible: Campaign Preparation 125 M5.2 Run Fast, Fail Fast: Campaign Execution 127 M5.3 Manage Trigger-Based Campaigns: Campaign Automation 129 M6 PROFILING — KNOWN & UNKNOWN AUDIENCES 131 M6.1 The golden record of your customers 131 M6.2 The “Known-Unknown” Asset of Audience Data 133 M6.3 Fundamental base work — Content Tagging 134 M6.4 Consent Management — Customer Buy-In 135 M6.5 Data Protection — Legal and Legitimate 137 M7 HYPER ACCURATE TARGETING and LOOK-A-LIKE 140 M7.1 Plan & Design — Strategic Audiences 140 M7.2 Build & Activate — Tactical Segments 142 M7.3 Reach is King — Accurate Targets and Higher Reach 144 M8 INNOVATIVE & OPTIMIZED PEO ACTIVATION MIX 146 M8.1 Paid (Media) Activations 146 M8.2 Earned (Media) Attention 148 M8.3 Owned Touchpoint orchestration 149 M8.4 Social and Voice — two special capabilities 152 M8.5 Planning Pricing & Trade Promotions 153 M8.6 Media Mix Planning and Optimization 155 M9 GET VIRAL — SHARING ECONOMY OF SCALES 157 M9.1 Tweets, Likes, and Shares 157 M9.2 AI Image Processing and Sentiment Analysis 159 M10 THE MOST EFFECTIVE FLOW OF ACTIONS 161 M10.1 Multi-Touch Attribution Models 161 M10.2 Large Scale A/B testing & 1:1 journeys 163 M10.3 Machine Learning — AI-Driven Optimizations 164 M10.4 Goal and Funnel management 166 M10.5 The Law of Action and Reaction — High Performing Machines 168 M11 CUSTOMER INTIMACY — DEMAND WINDOWS ANDPRICING 170 M11.1 Find the Right Moment in Time — Demand Windows 170 M11.2 Find the best context — Demand Windows 171 M11.3 Find the Best Price — Data-Driven Pricing Windows 173 M12 CROSS DEVICE AND PLATFORMS 175 M12.1 Cross-Device Identification — ID Strategies 175 M12.2 Cross-Platform Profiles 177 M13 MEASURE REACH, SUCCESS & AWARENESS 180 M13.1 Integrated Reach 181 M13.2 Brand Awareness 182 M13.3 eCom — Direct to customer models 183 M13.4 Offline — Retail — Brick and Mortar Models 185 M13.5 General — Market Intelligence and Surveys 187 M14 CONNECT SALES 189 M14.1 Marketing Mix Modelling — Incremental Sales Uplifts 189 M14.2 Trade Promotion Effects and Pricing 191 M15 STAY LEAN AND SHARE — SMART KPIs 193 M15.1 Stay Lean: Measures, KPIs, and Dimensions 193 M15.2 Share Your Data Assets: The New Imperative 195 M16 EXPLORATIVE REPORTING AND DATA SCIENCE 197 M16.1 Get the Basics: Standard Reporting 197 M16.2 Explorative Insights 199 M16.3 Working Data Science 200 M17 PREDICT THE FUTURE 202 M17.1 Programmatic Program and Campaign Planning 202 M17.2 Next Best Action 203 M17.3 Text, Image, and Voice Recognition 205 M18 THERE IS ONE LAST THING — CREATIVITY 206 M18.1 Engage With Your Audience — Creativity is King 206 M18.2 Create Emotions — Storytelling and Purposeful Marketing 208 From Mad-Men to Math-Men Marketing 210 Works Cited 220