Easy as Pie: Database Analysis

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Easy as Pie Database Analysis

• Presented by
• Tom Noone
• Scholastic Inc.
• February 21, 2008

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Database Analysis

• What can you learn from your data?
• How can you learn?
• Identifying useful segments in your customer
  database.

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Marketing Database

• For Marketing purposes with the analytical tools
  that Marketing needs
• Focused on customers and their behavior
• Similar data to CRM, but different purpose
• Organized around customers, not order processing,
  finance, etc.

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Marketing Database

• Owned and controlled by Marketing
• Compatible with other databases or repositories
• Bring your data closer to the marketing
  decision-makers

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Key Issues

• How do you make marketing/sales decisions?
• How do you communicate with customers/prospects?
• What level of detail to capture and maintain?
• Do you have the personnel resources to analyze
  the data?

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The Centerpiece

• Who is your customer?
• What is the primary decision point for purchases
  of your products/services?
• Where should you focus?
• Districts
• Schools
• Individual Educators

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The Base in database

• The lowest level of detail that you can handle
  and will use
• Customers Build the relationships to make one
  level relate to another (educator to school,
  school to district)
• Transactions
• Product summaries or item details
• Links to appropriate level in customer file

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Building your database

• Create a core customer record, one record per
  customer
• Save the details of transactions with customer
  IDs.
• Compile and/or purchase demographic data at the
  appropriate level of detail

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Build it

• Internally, but make sure you can import data
  from outside sources
• Find a vendor to build and/or house your database
• Update it as frequently as suits your business

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Differentiating customers

• By behavior
• Transactions
• Orders (Revenue, frequency, recency)
• Other responses (e.g. click through data)
• Inquiries

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Differentiating customers

• By Demographics
• Purchasing power
• School size
• Grade levels
• Public, private
• Geography

• District Characteristics
• Community characteristics
• Title 1 data
• Ethnic data

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Ad hoc/exploratory analysis

• Wallow in the data
• Distribute data by demographic characteristics
• Universe of schools
• Purchasing schools
• Orders, revenue, etc.
• Crosstabs

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Formal analysis

• Regular, periodic reports
• Campaign results
• Test/Control analysis
• Geographic, territorial reports
• Customer segment reports

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Formal analysis

• Statistical data mining
• Use trained people
• Customer profiling
• Predictive modeling
• Customer valuation
• Score individuals, schools, districts

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Prepare to analyze

• Prior to a campaign or other activity, decide how
  you will analyze it later on
• Focus on what you will do with the outcome of
  analysis
• Can you use the analysis in practical terms?
• How will you implement what you learn?

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Defining Segments

• Differentiation and correlation
• What factors show larger differences between
  better and lesser customers?
• What factors correlate with the customer behavior
  you prefer to see?
• Measure revenue and profit per customer, per
  segment

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Defining Segments

• What is the potential from existing customers?
  Which ones have room to grow?
• Define good customers in ways to help identify
  good prospects
• In your house file
• Outside lists

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Use Segments to

• Provide a focus for marketing plans
• New or revised products
• Position products for specific segments
• Guide pricing decisions

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Use Segments to

• Allocate the use of resources
• Sales reps
• Direct marketing campaigns
• Customer service

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• Appendix

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Return on Promotion
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