Duxton Consulting presented a paper with a communications focus and went on to win Best Paper in our post-event survey.
Laurenz Koehler, a partner at Duxton Consulting, argued that there has been a fundamental change in their corporate culture with respect to marketing communications.
Chief Marketing Officers (CMOs) are now accountable for both sales and return on investment (ROI), stated Laurenz. Thinking has become short term, such that the corporate mindset is shifting from taking the time to get things right, to acting now and seeing if it works, and evaluating real market impact, not theorising and planning.
This change of mindset, with its focus on evaluating real market impact, has resulted in a greater focus on data analytics at the expense of market research.
Companies can now analyse their own first-party data: it’s free, it’s real time, it delivers factual behavioural information, it keeps growing, and it’s predictive. And most importantly it is hard data, as opposed to information from market research, which is soft data.
Laurenz stated that the main problem with first-party ‘hard data’ is that you are fishing in the same pond, constantly retargeting the same pool of people. But this is where market research can combine with data analytics to deliver revenue growth from new prospects.
Duxton Consulting is combining market research and big data analysis to make marketing expenditures more effective, accurate, and cost efficient. They call this ‘3D profiling’, and it combines real-life choice modelling with classic market research and data analytics.
Duxton Consulting presented a case study on how they developed a choice modelling tool ‘conjoint analysis’ that allowed them to quickly and inexpensively generate a detailed profile of which people want which products/services, which specific product features most appeal to them, and at what price. This ultimately delivers a clear prospect profile for a specific brand, and an understanding of what features, promotional offers, and pricing attract them.
In addition, and with their agreement, Duxton can tag respondents and track their online activity.
This final online tracking element enables Duxton to deliver a ‘3D customer profile’, including 1D socio-demographics and psychographics, 2D product and feature preferences, and 3D online behaviour.
3D profiling has three very tangible marketing benefits: 1) a product can be optimised to deliver the attributes that attract a specific consumer profile; 2) the messaging can be tailored to the known preferences of the prospect profile; and most importantly 3) it can create a ‘lookalike’ profile to precisely target those people who are most likely to buy that product and have that website behaviour.
Laurenz claimed that the CMO is now more satisfied because marketing expenditure is a lot more targeted and cost efficient, and the response rates are a lot better for an improved ROI.