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When you have well over half a million customers, it's almost
impossible to understand the likes and dislikes of each or what
motivates them to buy your products. But as the manager of Dow Jones
Interactive's Wall Street Journal Online knows, if you can
understand how customers behave, you can get much closer to
delivering what they want.
When you have as many different types of subscribers as WSJ
Online does, that's no small feat. Some go directly to the site to
sign up; some receive the print version but also want the online
version, which they get for a discount. Some are corporate
subscribers, and some pick up subscription information at Barnes
& Noble. "The incredible thing is, that's not even all of the
ways people can subscribe," says Todd Larsen, general manager of
consumer electronic publishing for WSJ Online. "Trying to understand
how all these groups behave on the site and why is a major
challenge."
The trick, he says, is to correlate the log and clickstream
information generated by the Web site with the customer files.
Though the online staff has been able to grab that information for
some time, it wasn't easy. Doing so required manually matching
files, which was time-consuming and prone to errors.
That's why in 2001, the online team started evaluating more
automated approaches, such as data mining and analytics (or business
intelligence). After considering outsourcing the project and
building its own data warehouse, WSJ Online signed up with
data-mining and analytics provider digiMine in December of last
year. The goal was to have a data infrastructure ready for WSJ
Online's relaunch on January 28, 2002.
digiMine delivered on time, and the company's services are now
helping Larsen and his team better understand how the site is
performing and devise improvements. WSJ Online's department heads
and marketers now have access to analysis that helps them identify
which customer groups are worth spending marketing dollars on. They
can also determine the best pricing models. The point, of course, is
to boost the bottom line.
"When we started this process, we were looking at the
return-on-investment factor," says Larsen. "Making better
marketing-spend and pricing decisions definitely justifies the
investment here." |