Occam - Building Your Own Data-driven Marketing Strategy
Post on 09-Jan-2017
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B U I L D I N G Y O U R O W N
D ATA - D R I V E N M A R K E T I N G
S T R AT E G YAN EASY-TO-IMPLEMENT BUSINESS
GUIDE IN FIVE SIMPLE STAGES
INTRODUCTION OVERVIEW FIVE STEPS
1. HOW TO MAKE DATA A HABIT2. DO YOU HAVE THE DATA TO ANSWER THAT QUESTION?3. MIND THE GAPS!4. COMMIT TO DATA QUALITY5. MARKETING TECHNOLOGY MASTERING THE COMPLEXITY
CONCLUSION CONTACT US
C O N T E N T S
I N T R O D U C T I O N
If youre reading this, you already know that building a data-driven marketing strategy is an essential business priority. You know that being able to find, analyse, organise and use the wealth of information available to you in competitive markets is a vital component of driving commercial success. You know it can give you a distinctive edge.
The good news is that, now more than ever, the ability to build your own data driven marketing strategy is within the reach of most companies. But there are pitfalls. Without truly understanding the data you have, the data you need, the technology you use and the other issues considered in these pages, your data is likely to remain a source of unfulfilled potential.
In this e-book, Occam outlines five essential stages that will set you on the right path to implementing your own, effective data driven marketing strategy.
Each easy to follow section explores and explains the key steps that will enable you to make the most of your marketing potential. Think of it as a helping hand in avoiding what, in our long experience, are the common pitfalls, to arrive at a strategy that delivers what every business really needs from its data: actionable insight.
Finally, a caveat. Data is a fast-changing industry. So for the latest insights and current thinking, stay up to date and subscribe to our bi-weekly insights. Visit www.occam-dm.com/about-us/contact-us.
N O W I S T H E R I G H T T I M E
At Occam, we believe that now is the time for businesses to create their own powerful insights by embracing data-driven marketing principles. This is fuelled by the need to meet consumer expectations of relevant and engaging customer experiences, the advancement of marketing technology which
is making it simpler to embrace and more accessible from an investment perspective, and the proof that those organisations that can grasp the opportunities offered by data will outperform laggards in terms of customer retention, acquisitions and stronger engagement.
O V E R V I E W
Data is the basis of knowledge and actionable intelligence. It can be leveraged to reveal important insights that support better decision-making and through an iterative cycle of test and learn, help build awareness that make future actions more effective.
In a generation, the world has moved on from selling virtually everyone the same products and services to fulfilling individual needs and tasks through customised offerings. Part of the reason for this quantum shift is data and the insights it enables.
There are many reasons why data-driven marketing is much more than just another buzzword.
D ATA E X PA N S I O N V E R S U S Q UA L I T Y
Despite these driving forces a number of barriers can impede organisations in their pursuit of data-driven marketing, not least the explosion in the volume and variety of data that is now accessible. In 2013, the worlds data could have been held on a stack of iPads stretching two-thirds of the way to the Moon. By 2020, it is predicted that hypothetical stack could make the trip 6.5 times over. This expansion creates problems as it is estimated that only 37% of that data will actually help business processes, let alone marketing.
This leads on to the quality of data and its usefulness. One recent survey found that 60% of consumers deliberately provide inaccurate information when registering online.
Average figures show that companies lost 12% of their revenues as a result. Clearly, consumers lack trust in handing over their data to businesses.
YO U R O W N S T R AT E G Y I N F I V E E A S Y S T E P S
Against these challenges, Occam is pleased to offer a detailed five stage strategy for effective data-driven marketing.
To get up and running, we suggest you consider the following points carefully:
Make data your habit: setting business goals by starting with the question do we have the data to answer that?
Look at your data landscape: audit your data landscape for content, quality and usefulness. Then analyse the gap between the data landscape you have and the insight you need
Fill your data gaps: develop strategies to gather and generate the data you need for informed decision making - and bear in mind that todays savvy customers will expect something valuable in exchange
Commit to quality: invest in the people, processes and technology that can deal with the issues and turn your data into a valuable asset
Turn to technology: finally, leverage technology to help you master the beast and turn raw data into valuable insight
F I V E S T E P S
H O W TO M A K E D ATA A H A B I T
Turning data into a habit is the essential first step on any data-driven marketing journey.
This step requires you to decide the driving factors for all data-led decisions by asking yourself what are the Key Performance Indicators? Are you looking solely at sales figures? Is acquisition your focus above all others? Or is it just as important to address attrition and execute better cross and up-sell strategies? What about customer engagement and delivering exceptional customer experiences that impact brand perception? Answering these questions is fundamental.
D E F I N E W H AT I S I M P O R TA N T
In effect we are looking at clearly defining the outcomes expected from any investment in marketing activity so that a framework for evaluating Return on Investment (ROI) can be developed. The age old clich of What gets measured gets done is largely true, however you must also ensure that you set the correct KPIs aligned to business goals in order to respect the maxim of William Bruce Cameron: Not everything that can be counted counts, and not everything that counts can be counted.
One of the techniques we use in Occam to help with this process is the KPI Tree. In effect this involves identifying the top level goal and identifying the underlying factors that influence this. A simple example of this is shown below. In this example the goal is to increase the number of active Independent Financial Advisors (IFA) that an organisation has on its books:
Given that the market of IFAs is mostly out of the control of the organisation, the size of the target market is therefore a metric the business should track but not one it can actually influence. The % Conversion on the other hand is to some degree in the control of the business, where through its marketing, recruitment and sales efforts, it can improve its conversion of leads to partners.
Following this process across all of the nodes (data points) of the Tree, the process identifies all of the core metrics and influencers that affect the KPIs and objectives the business is aiming to deliver. Identifying these measures and acknowledging the need to track and monitor them is a key part of becoming more data-driven in your marketing, because you are beginning to use data to help benchmark progress and validate the activities being undertaken.
In this case, there are only two ways to get more IFAs:1. The business either increases its sales and
marketing efforts to find and win new partners; 2. Or it boosts its efforts to retain and keep
existing IFAs active.
For new IFAs, there are only two ways to increase the number the business recruits in a given term:1. Increase the size of the target audience;2. Or increase conversion rates.
KPINumber of NEW
IFAs recruited in term
METRICSize of the TARGET IFA
M A K E D ATA A C C E S S I B L E A N D V I S I B L E
Outside of KPIs and tracking progress against ROI, for data to truly become a habit it needs to be readily accessible. This can be in the form of raw underlying data to help inform a decision, or the outcome of data insights published in dashboards and tracking reports. Data integration is a key enabler for this to be successful and also one of the biggest challenges for many businesses today, along with technology interoperability issues. A survey run by Winterberry Group cited data integration as being key to helping with the move to more data-driven marketing activity.
In addition, making data visible throughoutthe business is essential. This raises its profile and through good visualisation, approaches can make data readily understandable and useful.
Whilst technology is of course important here, ensuring the right people and processes are geared up to support a data integration and visibility agenda for any organisation is also critical.
D E V E L O P YO U R D ATA S T R AT E G Y
When you start to surface data across your business, it is essential that it is trusted, well managed and understood. Taking steps to implement an organisation-wide data strategy is vital to ensure that aspects such as quality, consistency, governance and availability are considered, managed and executed across the organisation. The key to managing this is to start on the areas of the business that are directly related to the objectives you are trying to achieve; start small, get buy-in and then build out from there.
There are strong reasons for creating cross-fun