Toward DataDriven Decision Making: Actionable Intelligence Aldrin Rafael Bonilla CUNY in the Heights

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Toward Data-Driven Decision MakingActionable
IntelligenceAldrin Rafael BonillaCUNY in the
Heights, Hostos Community College

• Successful data-driven organizations find ways to
  help people feel empowered by data, not hampered
  by it.

Collecting data and analyzing data
More work

A data-driven Culture Up Front
More Accountability
Scary!!!


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Toward Data-Driven Decision MakingActionable
Intelligence

• Some Essentials for Building a Data-Driven
  Culture
• Leadership Commitment to Fostering a Climate of
  Learning
• Visible Success Indicators and milestones
  Resulting From Staff Input
• Regular Questioning, Hypothesizing and
  Reflection- at all levels
• Specific Job Expectations regarding Use of Data
• Internal Driver and Support Team
• Patience with an Incremental Process and
  Willingness to Start Small

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Toward Data-Driven Decision MakingActionable
Intelligence

• Data Driven Decisions
• must have high AND low level buy-in this is
  critical.
• the data is there and already collected, analyze
  it, use it.
• advanced modeling tools exist, but simple
  concepts, ratios, percentage can assist in making
  better decisions.
• front-line buy-in and metric understanding are
  critical.
• Reasons for high-level resistance
• Lack of familiarity with the databases, reports
  and analyses.
• Gut decisions are comfortable decisions.
• Concern that data will replace judgment.
• Bad experiences with data collection efforts that
  went nowhere.

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21st Century Job Descriptions Actionable
Intelligence Components

• Staff Accountability
• Programming
• Income Generated
• Programs Offered
• Operating Margin
• New Programs
• Student Evaluations
• Instructor Evaluations

• On-Time Percentages
• Average Participants
• Cancellation Rate
• New Directions/ Initiatives
• Staff Evaluation
• Updating Website /Templates
• Productivity Tools

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21st Century Job Descriptions Actionable
Intelligence Components

• Staff Accountability
• Sales
• Leads Generated
• Contracts Awarded
• Lead Contract Ratio
• Income Generated
• Average Contract
• Sales Cost per Contract

• Operating Margin
• Client Evaluations
• Repeat/Referral/New Contract Percentages
• Response Time
• Staff Evaluation
• Updating Website/ Database / Templates
• Profit / Loss Statements

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21st Century Job Descriptions Actionable
Intelligence Components

• Staff Accountability
• Marketing
• Promotion Registration Rate
• Promotion Unit Cost
• Promotion Percentages
• One-Year Market Plan Preparation

• Promotion On-Time
• Lead-Time Strategies
• Staff Evaluation
• Updating Database / Templates
• Website Statistics
• Market Segmentation Analysis

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21st Century Job Descriptions Actionable
Intelligence Components

• Staff Accountability
• Operations
• Refund Rate
• Refund Turnaround
• Students Refunds per course
• Student Registration Portfolio
• Response Time/ New Info.
• Inquiry Follow-up
• Registration Correlations
• Program Packaging

• Instructor Payment (Time)
• Invoice Payment (Time)
• Promotion Method/Email
• Demographics Tracking
• Customer Complaint Report
• Staff Reports
• Staff Evaluations
• Update Website / Share Drive/ Templates

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21st Century Job Descriptions Actionable
Intelligence Components

• Data Collection/ Actionable Intelligence Nexus
• Finance
• Programs
• Promotions
• Sales
• Evaluations Internal/ External

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Actionable IntelligenceThe Language We Should Be
Speaking

• Repeat Customer Rate
• Operating Margins
• 80/20 Profile
• Go/No Point
• Breakeven Analysis
• Lifetime Value
• Cancellation Rate
• Profit Margin
• Return on Investment
• Refund Rate

• Completion Rates
• Pre Post Test Results
• Market Segmentation
• Promotional Mix
• 7 Market Segments
• Conversion Rate
• Brochure Participant Ratio
• Development Costs
• Enrollment Analysis
• Survey Results

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Optimization Market Segmentation

• 80/20 Profile
• You serve some, but not all, demographic groups.
  There is no average participant.
• Roughly 20 of your customers give you 80 of
  your operating margin (income).
• To know the 20 is beautiful and liberating.
• To focus adequate resources on the 20 benefits,
  programs, staff, marketing is smarter.
• Make sure you serve your weight customers extra
  carefully to generate referrals repeat
  customers.

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Optimization Market Segmentation 80/20

• There is no average participant. Averages lump
  your customers. They do not differentiate your
  segments. Need to dig deeper to individual data.
• Market Segmentation
• A process by which you
• Distinguish or differentiate your top customer
  groups.
• Build a separate demographic profile.
• Deliver different products.
• Possibly with different promotional mix to
  different customer groups.
• Ideal number of market segments is 7.

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Optimization Market Segmentation Turbo

• Total sales by market segment
• What is my top market segment by sales?
• What are my four top market segments by sales?
• My four top market segments are what percent of
  total sales?
• My next three top market segments are what?
• What market segments are growing faster than
  others?
• Are any market segments stable or declining in
  sales? Do I keep them?
• Average sales per customer
• What is my top market segment by average sales
  per person?

• Top Customers
• Who, by name, are my top 1,000 customers for this
  year, by dollars sales?
• Who, by name, are my top 100 customers this year,
  by dollar sales?
• Who, by name, are my top 100 repeat customers
  this year, by number of registrations?
• Is there anything I want to write, say or do for
  my top customers?
• By Product
• Are there new courses/programs or product lines I
  need to develop for a particular market segment?

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Optimization Retention Marketing

• New Customers Are More Expensive
• Six Times More Expensive to Get a New Customer

Assuming the cost of each promotion is .35, the
following is the cost to get a new customer
versus retaining a past participant .35 x
6,000 2,100/360 5.83 .35 x 30,000
10,500/300 35
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Optimization Retention Marketing

• Repeat customers also generate customer
  referrals, which generates additional income.
• Repeat business provides exponential dollar value
  through LifeTime Value.
• A customers real worth (LifeTime Value) is far
  more than a single registration or purchase.

LTV Formula 1 (1 repeat rate) X
average activity fee
An increase in your programs retention rate or
repeat rate means an even bigger increase in your
programs income and profitability.
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Optimization Retention Marketing

• LifeTime Value Example
• If your repeat rate is 66 and your average fee
  is 100, the average LifeTime Value of each of
  your customers is 294.
• If you increase the average fee by 50 the
  average LifeTime Value increases to 441. This
  is a 50 increase.
• If you increase the repeat rate to 75, the
  average LifeTime Value for each of your customers
  increase to 400. Thus, a 14 increase in
  retention yields a 36 increase in revenue.

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Optimization Retention Marketing Turbo

• Try these follow-up courses or create
  packaged programs
• There are two courses, X and Y.
• Then there are exactly four types of people.

Took both
Took Y, not X
Took neither
Took X, not Y
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Optimization Pricing to Improve Profits
A price break is the point at which a
significant number of people say the price is too
high.
Price Breaks for Adult Continuing Education and
Professional Studies. 25 125 400 900 50 1
50 500 1,000 65 200 600 1,500 75 250 700
2,000 100 300 800

• Rules for Listing Prices
• Stay close to a price break.
• Do not put decimals and zeros after the price.
• Avoid round numbers.
• Use 5s and 9s.
• Dont hide the price (highlight strategically).

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Optimization Pricing to Improve Profits

• Market Price Advantages
• Each course is priced individually.
• The cost (production promotion) of course is
  calculated with breakeven and profit margin
  considerations.
• Consider what the audience is used to paying.
• Examine the competitions pricing.
• Know your brand and customer demographic.

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Optimization Pricing to Improve Profits

• Creating a Market Price
• An instructor costs 600 for a 15 hour course
  which is the total production cost. The
  production cost is 50 of your income. You
  project 20 participants for the course. What are
  the price options?
• 1. Income (production cost / production )
  1200
• 2. Formula Price (income / projected
  attendance) 60
• 3. Nearest price break 65
• 4. Pricing Options 65, 69
• Build In a Low Break-Even Point
• 1. Production Cost / 4 Student Registrations
  150
• 2. Pricing Options 155 159

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Price Strategies Dynamics

• Value Up Strategies
• Promote Quality of Instructors/ Speakers
• Include and promote valuable, practical materials
  usable after the program.
• Include pre-program study material curriculum.
• Include follow-up services.

• Pricing Strategies
• Your Price vs. Competition Price
• Price just under the competition and stress your
  cheaper prices in promotion and in your
  marketing.
• Price higher than your competition and stress the
  quality of your programming in your promotion and
  marketing.
• Price at the same level as the competition, and
  rely on your brand, location, schedule, repeat
  customers, marketing content and so forth.

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Optimization Profit Margin and Return on
Investment

• Financial Format
• 50 Operating Margin

• Formula
• Operating/ Profit Margin
• Profit X 100
• Revenue
• Formula
• Return on Investment
• Profit X 100
• Investment

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Optimization Scheduling Effect

• Scenario Food Protection Certificate
• Courses 12 Students 130 Mean 10.83
• Revenue 21,450 Costs 9,000 12,450
• Profit Margin 58 ROI 138

• Scenario Food Protection Certificate
• Courses 6 Students 130 Mean 21.66
• Revenue 21,450 Costs 4,500 16,950
• Profit Margin 79 ROI 376

Length of Time Between Offerings
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Optimization Explore Hypotheses