Telstra's four Ps of marketing analytics

Telco discusses how its marketing analytics teams are working to improve ROMI and customer centricity across the organisation's engagement through new modelling and analytics practices

Organisations looking to employ marketing analytics should secure stakeholder buy-in upfront and strive for a standardised approach to Return on Marketing Investment (ROMI) if they wish to be truly effective.

That’s the view of Telstra general manager of products and marketing analytics, Rowan Drummond, who shared his unique insights into how the telco giant is employing analytics at the SAS Impact Seminar Series in Sydney on 21 November.

Drummond claimed the telco giant’s own analytics journey over the past two years has taken it from a “brand and ad tracking” business, to utilising data and analytics to optimise future marketing activities and improve customer advocacy. To do this, Telstra’s marketing analytics team has devised what it calls the four new ‘Ps’ of analytics: Precision, process, people and presentation.

“It’s important to get these things right if you want to go from having a metric that smart analyst have developed, to a metric that the business can action,” he told attendees. “There has to be the will to action that.”

The first P, precision, is about having the right and accurate data, along with buy-in from the business around using that data, Drummond explained. The way Telstra’s analytics team has ensured this is by getting teams to sign-off on accuracy of information derived from various sources before it starts providing insights back into the business units.

“A lot of the things you might do will be quite new to the organisation. We present first on how accurate the model was before we present the analytics. We also use data to look back first, to show how accurate we might be moving forward,” he said.

The second step, process, is about informing the business process, Drummond said. “We have tried to roll out a ROMI metric before and the modelling was pretty good, but overall it failed because we didn’t have the buy-in and weren’t able to embed it into the business process,” he said.

“We already have processes in place for allocating marketing budgets, and for reassigning campaign spend. What we’ve done is layered on an extra piece of information. It’s important to make that point clearly upfront. You will get better buy-in, plus less pushback as well.”

People is about having the right team in place to provide insights, as well as getting the rest of the business on-side. To do this, Telstra centralised its analytics function in 2011 into one unit under the office of the CMO, Mark Buckman. The team includes analytics, customer modelling, research, competitive intelligence and data and technology team underpinning it.

“We own this process and the metric that comes out as part of the CMO function,” Drummond said. “Because we are in the CMO, it’s also easier to engage with our partners – all those marketing managers that we need to get across the line. You need to get them on-board early on.”

Big data analytics: the new black magic of marketing?
Why predictive analytics matter
How to navigate the data analytics path

Drummond’s fourth P, presentation, is about translating complex analytics processes into a story that’s easily digestible for business stakeholders, Drummond said. To do this, Telstra has rolled out a dashboard tool, based on Accenture’s Agile Marketing Analytics Platform (AMAP), to marketing managers as well as media buying partners so they can run their marketing analysis and optimisations on activities the fly. All analytics is fed into the tool, which also features the current marketing plans.

“A lot of our marketing is quite cyclical… if we can look at how that went in a particular area and particular medium channel last year, we can predict quite well what will happen this year,” Drummond said. “The marketers can then use this tool to tweak spend to get the best return.”

While ROMI is a key priority for Telstra’s analytics team, the other area of focus is helping to deliver the customer-centric approach espoused by Telstra’s CMO. This saw the telco adopt the net promoter system (NPS) as the basis for all of its marketing efforts two years ago.

Drummond revealed his team is working on evolving customer segmentation from channel-specific modelling, to an ‘uplift’ modelling approach which will better tackle customer lifetime value and profitability.

Unlike traditional response modelling, uplift modelling is about predicting the behaviour both of a treated group as well as a controlled group of customers to an action. This is based on four groupings – the persuadables (those who only respond when they’re targeted); sure things (customer that respond whether they’re targeted or not); lost causes (those who won’t respond irrespective of your activity); and sleeping dogs (customers less likely to respond to a direct marketing action).

One area Telstra is adopting this approach is around customer churn. Drummond said it is also looking to roll this out across all of its customer modelling.

“This model helps us to split out the sure things from the persuadables, which in traditional response modelling is easy to confuse,” he said. “It means you end up contacting customers that you do need to contact, and we can get a lot more targeted with what we’re doing.

“It also makes it clearer what customer we shouldn’t be targeting.”

Follow CMO on Twitter: @CMOAustralia, take part in the CMO Australia conversation on LinkedIn: CMO Australia, or join us on Facebook: https://www.facebook.com/CMOAustralia

Signup to CMO’s new email newsletter to receive your weekly dose of targeted content for the modern marketing chief.

Join the CMO newsletter!

Error: Please check your email address.
Show Comments

Supporting Association

Blog Posts

Tapping behavioural science for consumer influence

We know full well the business we’re in as marketers is really the business of choice. But recent discoveries from behavioural science are leading to a psychological revolution that challenges many of the accepted models of how communication, creativity and advertising influence a consumer’s preferences.

Kyle Ross

Account director, TRP

10 ways of changing your culture through self-awareness

Did you hear about the manager who always shot the messenger whenever they brought bad news? He eventually stopped hearing bad news. Unfortunately for him, this wasn’t because there was none to report.

Steve Glaveski

Co-founder, Collective Campus

How to create a compelling customer experience vision

Organisations are seeking new ways to engage customers, drive new sales and increase customer satisfaction by providing engaging customer experiences. A customer experience initiative that lacks a strong, clear vision often fails to achieve its intended result.

Olive Huang

Research director, Gartner

There are lots of feature of microsoft dynamics crm by using these features you can grow your businesses. Some of them is lead management...

Dynamics Square

How Port Container Services is finetuning lead management with CRM

Read more

Agreed. I see the opposite problem quite often where people are tasked in an organisation just with "be creative" - thus offering no boun...

Dr Fiona Kerr

The great debate: Is data killing creativity?

Read more

By far, this is the best article I've come across so far that has a relevant information regarding the future of marketing. Although the ...

Jayden Chu

​Six ways to prepare for the future of digital marketing

Read more

These are some good ideas. You didn't touch on the overarching goals and results of brand loyalty. This article does a good job at provid...

hgsupport

Four ways to use social media to boost customer loyalty

Read more

This read like a PR PLUG for the agency. Very flowery language for the agency and very little details about the deal or the project.

Digital_Marketer

Why Tourism Victoria decided to go agile

Read more

Latest Podcast

More podcasts

Sign in