Intelligent Data-Driven Marketing: When Physicists Start Thinking About Marketing: From Mad-Man to Math-Man Marketing

by Mathias Elsässer

Overview

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.

Product Details

ISBN-13:	9783838216515
Publisher:	ibidem Press
Publication date:	04/26/2022
Pages:	220
Product dimensions:	5.83(w) x 8.27(h) x (d)

About the Author

Mathias Elsässer is Partner for “CMO Advisory” and member of the customer-centric-transformation leadership team at PricewaterhouseCoopers Germany. He has over 23 years of professional and managerial experience in Consulting. Elsässer worked for global organizations across the Retail, Consumer Goods, Entertainment, Automotive, and Banking/Insurance industries and managed strategy, business, and IT consulting projects for major European companies across the world. He is known for his innovative way of using physics within marketing and has been invited as a speaker to OMR, dmexco, dreamforce, CEBIT, etc. He also supports lectures at various universities (HSG, HFU, FAU, ISM). Mathias Elsässer earned an executive MBA in 2005 and a Physics Diploma in 1997.

Table of Contents

Introduction - #intelligentmarketing 11

Applying physics to marketing 12

Applying business engineering to marketing 14

The imaginary marketing lab, playing with data and thoughts 19

Gedankenexperiment 1.0 20

The Marketing Universe - our inertial system of reference 20

Starting with Audiences and Campaigns 23

Plan the activations via different impressions 23

Gaming a return on marketing invest 24

Be more precise - take advantage of segmentation 24

Close the loop - the advantage of data analysts 24

From measures to KPIs 26

Data-Driven Marketing: Measures, KPIs, and Dimensions 26

Share of 27

Marketing Pressure 27

Cost per 28

Conversion rate 28

Trends 29

Aggregated KPIs of unique 30

Audience centric KPI systems 31

Integrated Reach - a bit of both 34

Smart KPI - Reporting, Dashboarding and Data Science 35

Pillar 1 Standard Reporting 35

Pillar 2 Explorative Data Analytics 36

Pillar 3 Data Science 36

Gedankenexperiment 2.0 37

A house is not enough - strategic marketing planning 39

Different Balls - creative management & optimization 42

Smaller Segments - hyper-accurate targeting and look-a-likes 46

Multiple Players - paid, owned, earned 52

Throwing tactics - the media mix and attribution models 56

Multiple actions - goals, funnels and customer journeys 60

Mat Robo - trigger-based campaign automation 65

My bag is full - frequency caps and campaign maintenance 67

The Perpetuum mobile - sharing, communities, and influencing 72

Summary - Gedankenexperiment 2.0 76

Using more physics on marketing 79

Fluid dynamics - "reaching the perfect, flow" 80

Harmonic oscillation - "everything is in motion" 82

The law of thermodynamics - "flow of change" 85

Solid State Physics - "building out complex systems" 88

Einstein's Theory of Relativity - "There is one last thing" 91

The ma.tomics - Intelligent Data-Driven Marketing Framework 97

GW1 From counting actions to guiding audiences 98

GW2 Real-time and zero latency 99

GW3 Closed-Loop - Harmonic Oscillation 100

GW4 Mastering the Tech-Stack-Orchestration 100

GW5 Run Agile - Start Fast and Fail Fast 101

GW6 Enable the organization 103

M1 The Marketing Universe 105

M1.1 Get Your Fundamentals Right: Strategy, Process, and Systems 105

M1.2 Understand and Engage with your Customer: Audience and Content Management 106

M1.3 Take the right budget choices: Strategic Investment Management 108

M2 Marketing Taxonomy 110

M2.1 Align on a corporate taxonomy: Hidden Data Asset 110

M2.2 Embrace Change: Master Data Governance "Customer, Campaigns, Content, Asset, Price & Finance" 111

M3 Strategic Portfolio & Program Management 113

M3.1 Program, Audience. Content, and Time Management 113

M3.2 Marketing Budget Management 114

M3.3 Plan Alignment, Innovation, and Collaboration 116

M4 Creative Management 118

M4.1 Creative Ideation - Design Thinking 119

M4.2 Creative Development and Delivery 120

M4.3 Creative Optimization 122

M5 Agile Campaigns Management 124

M5.1 Be Fast and Flexible: Campaign Preparation 124

M5.2 Run Fast, Fail Fast. Campaign Execution 126

M5.3 Manage Trigger-Based Campaigns: Campaign Automation 128

M6 Profiling - Known & Unknown Audiences 130

M6.1 The golden record of your customers 130

M6.2 The "Known- Unknown" Asset of Audience Data 132

M6.3 Fundamental base work - Content Tagging 133

M6.4 Consent Management - Customer Buy-In 134

M6.5 Data Protection - Legal and Legitimate 136

M7 Hyper Accurate Targeting and Look-A-Like 139

M7.1 Plan & Design - Strategic Audiences 139

M7.2 Build & Activate - Tactical Segments 141

M7.3 Reach is King - Accurate Targets and Higher Reach 143

M8 Innovative & Optimized Peo Activation Mix 145

M8.1 Paid (Media) Activations 145

M8.2 Earned (Media) Attention 147

M8.3 Owned Touchpoint orchestration 148

M8.4 Social and Voice - two special capabilities 151

M8.5 Planning Pricing & Trade Promotions 152

M8.6 Media Mix Planning and Optimization 154

M9 Get Viral - Sharing Economy of Scales 156

M9.1 Tweets, Likes, and Shares 156

M9.2 AI Image Processing and Sentiment Analysis 158

M10 The Most Effective Flow of Actions 160

M10.1 Multi-Touch Attribution Models 160

M10.2 Large Scale A/B testing & 1:1 journeys 162

M10.3 Machine Learning - Al-Driven Optimizations 163

M10.4 Goal and Funnel management 165

M10.5 The Law of Action and Reaction - High Performing Machines 167

M11 Customer Intimacy - Demand Windows and Pricing 169

M11.1 Find the Right Moment in Time - Demand Windows 169

M11.2 Find the best context - Demand Windows 170

M11.3 Find the Best Price - Data-Driven Pricing Windows 172

M12 Cross Device And Platforms 174

M12.1 Cross-Device Identification - ID Strategies 174

MI2.2 Crass-Platform Profiles 176

M13 Measure Reach, Success & Awareness 179

M13.1 Integrated Reach 180

M13.2 Brand Awareness 181

M13.3 eCom - Direct to customer models 182

M13.4 Offline - Retail - Brick and Mortar Models 184

M13.5 General - Market Intelligence and Surveys 186

M14 Connect Sales 188

M14.1 Marketing Mix Modelling - Incremental Sales Uplifts 188

M14.2 Trade Promotion Effects and Pricing 190

M15 Stay Lean and Share - Smart KPIs 192

M15.1 Stay Lean: Measures, KPIs, and Dimensions 192

M15.2 Share Your Data Assets: The New Imperative 194

M16 Explorative Reporting and Data Science 196

M16.1 Get the Basics: Standard Reporting 196

M16.2 Explorative Insights 198

M16.3 Working Data Science 199

M17 Predict the Future 201

M17.1 Programmatic Program and Campaign Planning 201

M17.2 Next Best Action 202

M17.3 Text, Image, and Voice Recognition 204

M18 There Is One Last Thing - Creativity 205

M18.1 Engage With Your Audience - Creativity is King 205

M18.2 Create Emotions - Storytelling and Purposeful Marketing 207

From Mad-Men to Math-Men Marketing 209

Works Cited 219

Editorial Reviews

A fresh view and fun to read, this book provides useful levers for the digital transformation of marketing activities. The author shares plenty of valuable insights and illustrative examples which enable the successful implementation of data-driven marketing in an organization.

Nicole Koschate-Fischer

In this fresh and exciting take, Mathias Elsässer manages to reduce the complexity of modern data management, defining a marketing ecosystem from a physicist’s perspective. Intriguing thought experiments show us how and why a customer data platform (CDP) is becoming increasingly indispensable for every CMO. Elsässer’s novel framework furnishes a useful blueprint for customer-centric marketing that aims to help marketers on the path from mad men to “math-men"—recommended.

Chris O'Hara

When my good old friend Mathias unpacks his physicist mind it is always exciting and entertaining. How can “thought experiments” help to understand the complex world of customer-centric marketing and why do 56 small ma.tomics help to master a marketing transformation?
All this can be found in this new amazing book. For me a very inspiring and must-read for every CMO and CIO interested in state-of-the-art intelligent data-driven marketing.

Chief Marketing Officer (CMO) at Clas Ohlson Tim Heldmann