using analytics & customer data to build great customer experiences
DESCRIPTION
From the CMSWire and Adobe webinar on May 2nd, 2012. Learn: Why faster feedback loops win — from Amazon's transparency, to Target's stealthy predictive marketing Why smarter visual experiences make brands like Path, Pinterest and Instagram so addicting How to identify the skills and disciplines you're missing, and move towards integrated, mature teams and tools Based partly on data from the Digital Marketing 2.0 Study - a collaborative research effort between the Society for New Communications Research (SNCR), Human 1.0 and DataXu. The study incorporated an online survey conducted in October 2011-January 2012, as well as opt-in interviews of survey takers. The 300 survey respondents included those in the management, marketing, digital, IT, and social media functions of their respective organizations. Enjoy - and feel free to ask questions here, or via my contact details on the last slide.TRANSCRIPT
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“Half my advertising
doesn't work ... I just don't know
which half!”
John Wanamaker (1838-1922)
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“Advertising exists only to sell
something. It should be measurable and justify the results that it produced.”
Claude Hopkins (1866-1932)
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"Because the purpose of business is to create a customer, the business
enterprise has two--and only two--basic
functions: marketing and innovation. Marketing and
innovation produce results; all the rest are
costs.”
Peter Drucker (1909-2005) 3
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Digital Marketing 2.0• Data presented comes from The Digital Marketing 2.0
Study - a collaborative research effort between the Society for New Communications Research (SNCR), Human 1.0 and DataXu.
• The study incorporates an online survey conducted in October 2011-January 2012, as well as opt-in interviews of survey takers.
• The 300 survey respondents included those in the management, marketing, digital, IT, and social media functions of their respective organizations.
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78% of recently surveyed marketers
report struggling to make good use of their available analytics and customer data.
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Most marketers are unfortunately living
in…
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The Digital Stone Age
Source: http://www.flickr.com/photos/elka_cz/126813739/ (Under Creative Commons)
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Bad news for businesses
• Don’t have the right skills (individually or in combination)• Don’t have the right teams• Don’t have the right tools• Don’t have the right data (or it’s fractured into pieces)• Marketing, design, user experience and analytics are
rolled up into Customer eXperience Management (CXM) and mastery of each discipline (or all of it) is not going to happen overnight
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The real challenge is in manipulating huge amounts of data
in real-time
To make decisions that may affect thenext prospect/customer in a
different way than the last person
Source: The Great Wave off Kanagawa, "Under a Wave off Kanagawa” by Japanese artist Hokusai
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And yet…
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30% lack the software/technology
to perform analytics ondigital marketing data
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Why? Analytics, like most administrative
functions... suck.
They are often the last interfaces built in commercial solutions, let alone “homegrown” systems
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55%of respondents
say
their organization “struggles to analyze”the digital marketing data that is generated
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Due to poor tools, fragmented systems,
skill shortages
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Results = Bad news for customers
• Businesses aren’t hearing your complaints (or praise)• They are bombarding you with messages you don’t want
(because analytics don’t exist, are out of date, or measuring the wrong data)
• Digital experience is marginal on “the normal web” and poor to non-existent on the mobile web – the biggest computing movement of our lives (the UX side of customer experience)
• Bottom line: We CAN and SHOULD do better for our customers, and our own businesses
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NETFLIX Misreading the tea leaves
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It’s the speed
That separate the winners from the losers in the 21st century
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(and accuracy)
of yourmarketing loops
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OODA Loops
Source: www.thefabricator.com (graphic)Col. John "40 second" Boyd, USAF (model)
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How Target is using Big Data to Predict Behavior
Source: http://www.nytimes.com/2012/02/19/magazine/shopping-habits.html
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Amazon is US...
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The key is…
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Customer Lifecycle Loop
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Sadly, 70% ofmarketers say
They don’t have or don’t know ifthey have a 360 degree view of their customers
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It’s not just postcards and keycodes anymore…
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Only 28%have the
information to confidently
tell their leadership
what delivers the highest marketing ROI
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What skills and disciplines are
missing?
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Only 25% say that analysis of
marketing data from IT
permits real-time business decisions
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IT doesn’t typically focus on real-time,
and aren’t marketers
Batch mode and siloed apps are the norm
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On the flip side
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62% rely on their marketing team
(CMOs, VPs, Digital Teams, etc.)
to make technology suggestions
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But Classic marketers are focused on design, branding, messaging & demand creation
While depth of technology skills and understanding complex IT systems, are not strong suits
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And 58% believe they lack the analytical
skills
and technology to perform analytics on marketing data
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Because “quants” haven’t been sexy in
business…(outside of financial services)
Until now...
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From the UX side of Customer Experience
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Smarter visual experiences?
Examine the screenshot collection of UX/Flow I’ve been building at:www.flickr.com/photos/dankeldsen/
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Addictive Interfaces• John Medina’s “Brain Rules”• 12 Rules• We should care about:
• #4 Attention: we don’t pay attention to boring things
• #9 Sensory integration: stimulate more of the senses
• #10 Vision: trumps all other senses
• #12 Exploration: we are powerful and natural explorers
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Speed Matters for Instagram
• Knowing how users use the app, they can anticipate the next action, and work behind the scenes
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Source: http://speakerdeck.com/u/mikeyk/p/secrets-to-lightning-fast-mobile-design?slide=82
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Smart context & Details on the small screen
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Visuals, Discovery, Infinite Scroll
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“It’s like digital crack for 25-44 year old
women...”
Not uncommon for people to spend 2 hours at a time on pinterest - THAT is seriously sticky content
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Why should you care?
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83% of senior brand marketers state that “Customer
experience is among the most critical determinants of brand strength and business growth.”
CMO Council Research
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Recommendations
To move forward
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Where are your gaps? Where are you strong?
• People?• Skills?• Applications?• Systems?• Analytics?• Quants?• Digital Marketers?• Marketing-Savvy IT?• User eXperience?• Print?• Digital?• Social?• Mobile?
• What are the questions you can’t answer?
• Source of customers• Best customers• Most loyal customers• Most painful customers• Most likely progression as a
customer• Customer Lifetime Value• Predicted next actions• Best “intervention” times• Most effective channel• Best marketing spend in real-
time
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Because if you can’t get traction and
results now
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You’ll miss the benefits respondents stated as EPIC WINs
Increased Measurability and AccountabilityIncreased Customer Engagement
Lower Cost of Customer AcquisitionBetter Customer Insights
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Which would be a massive #FAIL
It will take work - but THAT is doable - and you better get started48
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Get in touch:twitter.com/dankeldsenlinkedin.com/in/[email protected]
For free 30-minute debrief/consultationon where you are with
CXM, UX, social and more
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