We profit from the customer loyalty process, not the tactics or the technology
How owning up to mistakes leads to better loyalty

Using Customer Data to Find New Profit Streams at Fox Networks and American Apparel

When I started my marketing career as an account executive at Ogilvy, we focused on advertising campaigns, but I was quickly drawn to direct marketing, starting with the mailings which Compaq was sending their customers. I enjoyed analyzing the data we gathered. When I left Ogilvy for Service Corporation International, I was thrilled to discover we could create entire new lines of business based on customer data analytics. Tq150824gdFor customers who had purchased funeral prearrangements, we offered estate planning, prepaid legal services, and senior fitness programs. They began to see SCI as a resource for their immediate future, not just their family's support after their passing. Marketing departments are often seen as 'overhead expense,' but this profit-seeking practice is one of the most tangible ways we can contribute to the success of our enterprises. 

ClickZ: How American Apparel is Moving to Value-Driven Data Analytics, 2015-Aug-12 by Susan Kuchinskas

According to [Chief Digital Officer Thoryn] Stephens, the lifetime value of a customer is an important metric, but it's not necessarily the most revealing. A former executive at Fox Networks, Tillster and Beachbody, he recounted how Fox used Adobe analytics to understand how to drive video ad starts and views of long-form video. It came up with four segments: "Foxaholics," casual watchers, international viewers and passive users.

Here's where the data versus insights story got interesting. While passive users seemed to be the least valuable because they didn't watch video or see ads, further analysis showed that these people used Fox's schedules to find out what to watch. That data helped justify billions of dollars' worth of agreements with Fox's distribution partners.

"This was a major epiphany for the business," Stephens said. Fox then segmented these users and showed them a home page with a more prominent schedule.

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