winterberry group white paper -- marketing data governance
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ACKNOWLEDGEMENTS
This white paper would not have been possible without the significant contributions of more than
130 executive-level thought leadersincluding sponsors, contributors, panelists and reviewersrepresenting all segments of the advertising, marketing, technology and regulatory sectors.
In particular, Winterberry Group is grateful to our research partner, the Direct Marketing
Association, as well as the following sponsors for their generous support of this research initiative
Premier Sponsors:
Supporting Sponsors:
Additionally, we extend our deepest appreciation to the marketers, technology developers,
solution providers and policy experts who contributed their time, insights and enthusiasm
in support of our research. Though their individual names are not mentioned in this paper,
they represent some of the most respected companies in the data-driven marketing world
including Duke Energy, First San Francisco Partners, JCPenney, Lilly, Meredith, Microsoft, TJX,
Turner Broadcasting, Western Union and many others. We are grateful for their contributions.
NOTICE
This report contains brief, selected information and analysis pertaining to data-driven
marketing and has been prepared by Winterberry Group LLC in partnership with the Direct
Marketing Association. It does not purport to be all-inclusive or to contain all of the information
that a prospective manager, investor or lender may require. Projections and opinions in
this report have been prepared based on information provided by third parties. Neither
Winterberry Group, the Direct Marketing Association nor their respective sponsors make any
representations or assurances that this information is complete or completely accurate, as it
relies on self-reported data from industry leadersincluding advertisers, marketing service
providers, publishers, technology developers, agencies and regulators. Neither Winterberry
Group, the Direct Marketing Association nor any of their officers, employees, representatives
or controlling persons make any representation as to the accuracy or completeness of this
report or any of its contents, nor shall any of the forgoing have any liability resulting from the
use of the information contained herein or otherwise supplied.
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Year after year, all across the country, the headlines reinforce a vexing message: Big Data
can be a risky business.
SAN FRANCISCO, Calif., 2007An unnamed contractor is being blamed for a majordata breach that has compromised the names, addresses and social security numbers of
about 800,000 people who applied for jobs with a major apparel retailer. According to the
company, the data had been stored on two unencrypted laptop computers that were stolen
from the vendors office...
BOSTON, Mass., 2010The ringleader of an international band of cyberthieves has been
convicted and sentenced to 20 years in prison for his role in a massive data theft that
revealed the credit and debit card numbers of more than 90 million customers from several
prominent U.S. retailers. The largest among the affected companies estimated the crime
caused $171.5 million in total losses
IRVING, Texas, 2011Risk management experts say that a recent data breach at one of
the worlds largest marketing service providerswhich compromised, via unknown means,
the names and email addresses of the customers of more than 100 client brandscould
lead to aggregate losses of $4 bill ion, not including the diminished faith that marketers may
place in the email marketing channel
With stories like these on the desk of every CEO, its no wonder that companies around the
world have awakened to a new mandate: Big Data brings with it Big Responsibility. Whether
they result from malicious or inadvertent actions, though, enterprise-scale data breaches tell
only part of the story about the power of information. They remind us that data is an intenselyvaluable asset, a symbol of the fundamental trust that undergirds the relationship between
marketer and consumer. But they say little about the power of data to drive transformative
valuefor both of those partiesand even less about how marketers are standing up enterprise
strategies to manage, safeguard and capitalize on their information resources.
As technology plays an increasingly critical role in driving both marketing and transactional
communications, marketers say that such strategiesproviding a means to improve the
customer experience across a range of touchpointsare now a must-have element of their
go-to-market plan. But while many have made great strides in advancing the notion of data
governance (the collective practices, policies and procedures that guide how an organization
collects, manages and uses customer information), few have expanded the scope of that
exercise beyondreactiveapproaches to ensuring the protection of those assets.
Tomorrows savvy marketers, by contrast, will requireproactiveapproaches to using
information in a way that is secure, responsible and aligned with the long-term interests
of all enterprise stakeholders. Most importantly, these holistic strategies must be aimed at
maximizing datas value and contribution across various functionsexpanding the scope of
INTRODUCTION
AND EXECUTIVE
SUMMARY
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what we now call data governance beyond privacy and security to ensure that information
and insightare recognized as the critical business drivers they are.
This white paper, produced in partnership with the Direct Marketing Association, will explorethe current state and likely future evolution of those marketing data governance strategies
that enterprises are deploying to maximize the contribution, value and integrity of their
customer information assets. Based on an intensive primary research effort, it will illustrate the
emergingproactivedata governance imperative and demonstrate that:
Marketers are extremely bullish about the role of data in driving positive value to their
organizations (with 93 percent of panelists expecting that customer information will drive a
significant contribution in the future), and believe the maximization of that value to be the
most considerable benefit of an effective marketing data governance strategy
With overwhelming agreement79 percent of panelists, in factmarketers say thattheir organizations would benefit from more sophisticated, strategic data governance
approaches. But most organizations have been reluctant to back up that need with the
necessary institutional support, as only 32 percent of panelists strongly agree that data
governance is currently a clear priority within their companies; and
Internal process challenges and misaligned organizational structures, more than any other
factors, are conspiring to limit marketers abilities to develop and implement strategic data
governance approaches.
Finally, the paper will outline five key actions that marketers should undertake as they build a
strategic data governance capability. They include:
Maintain an evolving map of your customer information breaking down the taxonomy
of each marketing data asset at a deeply granular level
Develop a unified data strategy that considers (and incorporates, over time) a multitude
of inputs, supporting use cases, deployment technologies, regulatory and best-practice
guidelines and other operating parameters
Build an underlying infrastructure to support marketing data utilization with an eye on
optimizing the roles of people, platforms, processes and partners in unlocking the inherent
value of those assets
Consider the needs of all constituent stakeholders in the development and continuous
refinement of data governance guidelines, leveraging information to optimize the value (and
protect the interests) of customers, employees, shareholders, partners and other parties; and
Develop a data culture grounded in continuous learning and improvement leveraging
information to help drive product and customer innovations (and reinforcing the need to
safeguard those critical corporate assets).
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This white paper will explore the current state and likely future evolution of those marketing
data governance strategies that enterprises are deploying to maximize the contribution, value
and integrity of their customer information assets.
Published in partnership with the Direct Marketing Associationand with the sponsorship of
Equifax, Experian, MediaMath, Harte-Hanks and KBM Groupthe papers findings are based
on the results of an intensive research effort that included phone, online and in-person surveys
of more than 130 marketers, publishers, marketing service providers, technology developers
and policy experts. These interviews were conducted predominately with contacts in the
United States between April and June 2013.
Per their request, the names and companies of individual contributors have been blinded so as
to allow them the freedom to speak with maximum candor.
Panelists: Which of the Following Best Describes YourJob Title/Level of Responsibility?
METHODOLOGY
N=138 Panelists
Vertical Categories Included
Automotive
Business Services
Consumer Packaged Goods
Financial Services
Healthcare
Insurance
Media and Entertainment
Not-for-Profit
Retail (including e-commerce
TechnologyTelecommunications
Travel and Hospitality
Executive
Management /
C-Suite,
20%
Senior Vice
President / VP,
28%
Analyst or Associate, 8% Other, 2%
Director,
23%
Manager,
20%
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How Marketers Are Practicing Data Governance Today
Mention data governance to 100 marketers, and youre likely to get at least that many
interpretations of the practice and opinions on how well their company protects its critical
marketing data resources. Today, though, four essential themes define how marketers are
deploying data governance principles in their business-as-usualand provide a glimpse into
how such strategies are evolving to tackle future challenges.
Data is emerging as the centerpiece of the customer engagement effortand its only
growing in importance.
WHY?
A confluence of factorsincluding widespread buzz around the potential of Big Data,rapid advances in technology and media optimized for targeted advertising, growing
consumer sophistication (leading to new demand for relevant marketing interactions)
and expanding awareness that data-driven insight canand oughtto drive more impactful
business decisionshas focused attention on the power of marketing data
The collection and effective utilization of customer information supports three
fundamental missions: it provides a rich source ofinsightinto consumer audiences
(and their interactions with a given brand), powers more timely, relevant and impactful
marketing executionand provides a continuous, self-perpetuating means ofmeasuring
(and optimizing) the impact of various customer interactionsproviding a platform for
continuous business improvement; and
More marketers, in hoping to apply the same brand of science to their own efforts, are
learning from the successful precedent established by their peers in vertical markets
and functions that have traditionally been considered data-driven. Inspiration is being
drawn from both macroeconomic examples (as in the case of the financial services and
insurance sectors, which have leveraged information to help perpetuate their stability and
growth even in the face of daunting economic headwinds) and more specific case studies
(such as the electoral success of President Obama, whose election and re-election were
powered by the development of a voter analytics capability widely considered to be the
most sophisticated of all time).
WHY DOES IT MATTER?
Elevating the role of marketing dataespecially in organizations that have been driven
by the brand and other factors that were once considered largely independent from
its influencewill substantially affect how enterprises invest in tools, talent, internal
processes and other resources that are core to their customer interaction effort; and
A FOUNDATION TO
BUILD UPON
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A heightened focus on customer insight will ultimately require businesses to evolve their
thinking about data and its responsible, effective utilization. In particular, perspectives
on data as a single, amorphous resource will have to give way to more granular
optimization effort that recognizes the complex variations of information that, collectively,
paint a picture of a given customer audience. Depending on the source and use case, for
example, marketing data can:
Empowertargeted messagingat the individual,
household or segment level
Represent one or more digital sourcesoften
with little or no direct linkage to an individual
consumer identity
Present insights into an audience segment that
are wholly anonymoustypically presenting
a view into a givensegmentof the audience
without disclosing who, specifically and
individually, is a member of that segment
Beinferredthrough the analysis of multiple
corresponding data pointswith the intent of
informing a deeper understanding of an audience
and its habits, needs and purchase propensity
Be derived from one or more unstructured
sourcesthus requiring processing through a
central management taxonomy in order to be
useful for future analysis.
Drive aggregated insights(as in the case of
gross rating points, market research, etc.)
Be derived exclusively from traditional sources
(often with a customers name and postal
address as the centerpiece characteristic)
Reflect one or more personally identifiable
information (PII)elementsproviding direct
insight into an individual consumer and their
background and/or purchase behavior
Be collected through direct expressionfrom
an individual (through direct marketer interaction,
participation in a survey or other means)
Represent a firm collection and management
structure, backed by an underlying data
management taxonomy geared to supporting
marketing use cases.
OR...
Everything we do is rooted in data. I dont know what marketing means if its not data-driven. Its just
fundamental for targeting, measurement, testing and control and optimizing the marketing mix.
VICE PRESIDENT OF CONSUMER MARKETING, LARGE TELECOMMUNICATIONS COMPANY
Data drives most of our business decisions. We use data to determine where my team and budget
should focus. We use it to align resources to the right level of investment in digital tactics. We use it
to run comparisons across the marketing mix and we use it to define our targets in different countries
and markets.
DIRECTOR OF DIGITAL MARKETING AND E-COMMERCE, TECHNOLOGY DEVELOPER
IN THEIR OWN
WORDS
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Everything we do is informed by data and analysis on different segments and populations. We use data
to understand the most we can about our consumers to enable right member, right message, right
channel, right time marketing.
VICE PRESIDENT OF CONSUMER SOLUTIONS, HEALTHCARE PROVIDER
For us, data-driven marketing is about using the data that we get about our consumers and their
behavior to drive more personalized and relevant offers. Following that, we also use data to drive the
measurement and optimization process which helps us see how weve been performing and decide
how to move forward.
DIRECTOR OF DIGITAL STRATEGY, TOP 10 CONSUMER PACKAGED GOODS COMPANY
Data-driven marketing is the centerpiece of our marketing and without it, our business would come to
a screeching halt.
SENIOR VICE PRESIDENT OF CONSUMER MARKETING, INSURANCE PROVIDER
We use data to create the most relevant experience for our customers...Were looking at bringing in
statisticians to help us model and predict customers future behavior to help us better serve them
because when our customers are successful, we are successful.
DIRECTOR OF CUSTOMER MARKETING, TECHNOLOGY DEVELOPER
How dependent on consumer data is your companys marketingefforts and performance?
89%
Not at all
dependent
Not very
dependent
Somewhat
dependent
Very dependent Not sure
4%7%
30%
59%
1%
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To what extent does data-driven marketing drive positive value toyour company today? To what extent is it likely to drive positive value
in the future?
Today In the Future
2% 3%
28%
66%
1% 0%2%
4%
93%
1%
Not at all Not very much Somewhat A great deal Not Sure
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Though theyre bullish about the potential of Big Data, few enterprises are managing
customer information strategically.
WHY?
In many organizations, the use of data has evolved organically from roots that were
considered specialized and/or unique, to roles that depended on that information to
drive product applications and customer marketing. Departments that customarily license
external mailing lists to power direct response campaigns, for example (or, in a more
digital context: those who tap into third-party behavioral data to power display retargeting)
typically own data and the expertise to work with iteven though those functions are
usually managed at a very tactical level in the marketing organization. Not surprisingly,
large enterprises typically struggle to reconcile parallel data storage silos and operating
structures that are not geared to useall available information to inform a uniform
customer viewpoint; and
Though data can reflect many different origins, structures and applicable use cases, it
remains largely misunderstoodand often characterized as a single element, not subject
to significant change. Likewise, only a few companies deploy chief data officers (or other
executives of equivalent seniority) to oversee information investments, innovation and
internal utilization.
WHY DOES IT MATTER?
If information is to ultimately fulfill the promise of Big Data (by growing customer
relationships and improving business practices, for example), then it must be managed
and optimizedas a strategic resource, with the appropriate management oversight,
budgetary allocation and performance targets. In a large consumer organization,
that means marketing data must beprotectedbut it also requires development and
maintenance of an infrastructure geared to leverage the information in the most beneficial
way for all enterprise stakeholders.
We dont really have a proactive data stewardship practice. Unless a problem comes up no one is
really looking at our data strategically, but if we did that, I think we could really get to the next level in
terms of using our information to drive value.
DIRECTOR OF STRATEGIC MARKETING, NATIONAL RETAIL CHAIN
Until this point, weve done a great job managing our own world and resources but were trying to get
to this Big Data environment where we have everything in one place and access and enablement can
be expanded across the organization.
DATA MANAGEMENT DIRECTOR, PAYMENT PROCESSING FIRM
IN THEIR OWN
WORDS
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How much would your organization benefit from developing andimplementing more sophisticated practices and policies with respect
to data governance?
Do you agree or disagree with the following statement?Marketing data governance has been identified as a priorityfor my organization.
79%
Would not
benefit at all
Would not
benefit much
Would benefit
some
Would benefit a
great deal
Not sure
2%
12%
48%
31%
7%
Strongly
disagree
Somewhat
disagree
Somewhat
agree
Strongly agree Not at all sure
7%
14%
41%
32%
7%
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What is inhibiting your ability to implement a holistic marketingdata governance strategy?
55%
46%
45%
41%
39%
36%
33%
12%
10%
5%
18%
Internal process/marketing ops challenges
No clear internal owner to lead efforts
Cost considerations
Lack of appropriate tools/technologies
Lack of executive level support
Not understanding the requirements
Insufficient in-house talent to support efforts
Insufficient support from our supply chain
Lack of addressable data sources
Something else
Nothing
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In most organizations, data governance represents a reactive approach to risk
management, focused primarily on ensuring adherence to privacy and security standards.
WHY?
For good reason, ensuring the security of a large and sensitive customer data resource
and providing the tools to deliver a measure of privacy to individual consumers, however
that may be definedhave traditionally been the most pressing data-oriented concerns
facing the enterprise marketer. Much of that can be attributed to the stark visibility of the
associated costs and benefits; marketers are (and perhaps ought to be) more concerned
aboutavoidingthe substantial costs associated with a data breach than capitalizingon the
opportunities that may be inherent in new, strategic approaches to data utilization (which
may also be difficult and expensive to achieve)
A large and sophisticated industry has emerged around privacy, responsible customer
engagement and the development of best practices to provide consumers with both
transparency and choice in their marketing interactions. Much of this expertise has
evolved from legacy privacy teamsvery often managed by legal professionals, rather
than marketersfirmly establishing that priority as the focal point of the broader effort; and
The external market threats bearing down on the users of customer data right now are
tremendousnecessitating an aggressive industry-wide effort to substantiate the steps
that marketers are taking to safeguard consumer interests. Threats include deeper
regulatory scrutiny of established data aggregation practices (including the recent
Federal Trade Commission inquiry into the practices of data brokers), expanding
global restrictions on the use of anonymous browser cookies to track online behaviors
and the movement of some browser developers to establish do-not-track as a default
settingeffectively barring the collection of data that may be used to enhance consumer
experiences on the Internet.
WHY DOES IT MATTER?
While security, privacy and regulatory compliance are absolutely critical prerequisites for
standing up a viable marketing data infrastructure, an exclusive focus on those concerns
is acting, in some cases, to actuallyinhibitinnovation with respect to marketing data
and its addressable use cases. Some marketers complain that senior management
has become effectively gun shy about testing new data applications, even when a
compelling business case exists to do so, because they fear they may ultimately be
subject to a costly and unavoidable breach that would irreparably harm consumer trust in
their brand. In these cases, data governance can act to actually hinder the work of the
marketers it supportsrather than helping bolster the role information plays in supporting
all enterprise constituencies; and
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Ultimately, that threat stands to negatively impact customers as well as marketers
inhibiting the potential for data to be used as a powerful force for customer good (for
example, by powering relevant content and valuable offers, ensuring that communication
preferences are honored and providing a safeguard against the interference of
bad actors.)
Following our breach were hyper-cautious. In terms of marketing, theres always stuff that we
could be doing better, but the company now feels at what cost? Were not willing to take the chance
or risk the customer data or those relationships. It may be to the extreme, but now were all about
the customer.
CUSTOMER MARKETING MANAGER, MAJOR RETAIL NETWORK
I would say were sophisticated with respect to data privacy and the appropriate use of data now.
But, were totally not sophisticated in using all the data we have to drive marketing and customer
engagement. Right now we choose not to use that. We could be doing a whole lot more, but now were
just very conservative following our previous incident.
MARKETING OPERATIONS ADVISOR, PHARMACEUTICALS MANUFACTURER
Our [goal with data governance] is maintaining the integrity of our customer base and maintaining
privacy and security. It falls into the protection arena of providing the info needed to do our business
and also securing the data that customers provide. We spend a lot of time making sure were following
best practices.
MAJOR RETAIL MARKETER
I dont think [at the corporate level] they think too much about data governance. I think there are
privacy and protection protocols, but I dont think theres a universal approach to data.
MAJOR INSURANCE MARKETER
What keeps me up at night is regulatory interferenceif someone requires you fly blind to things that
actually matter. If you are forced to mail everybody, nobodys program works. Regulation would change
the very fundamental nature of our business and those fears are what we engineer around.
SENIOR VICE PRESIDENT OF CONSUMER MARKETING, INSURANCE PROVIDER
IN THEIR OWN
WORDS
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Over time, the inherent value of data governance can be unlocked only by elevating
its role as a proactive strategic competencywith a focus on optimizing the value and
contribution of information across the enterprise.
WHY?
In order to ensure its long-term viability, any critical strategic asset (like customer data)
must be managed with an eye on maximizing its contribution across various enterprise
functionswith specific focus on optimizing efficient deployment and effectivelong-term
returns to the business; and
The organizations ability to stand up best-in-class capabilities (that are responsive to both
current and future potential market demands) requires a holistic approach to marketing
data and its downstream applications. This requires equal, but coordinated, emphases on:
o Information Security: defensive measures to guard against both malicious and
inadvertent data leakage and/or theft that can hurt the organization by eroding
consumer trust and necessitating costly restorative measures
o Transparency and Choice: ensuring that measures are in place to help consumers
understand how data is used to inform marketing communicationsand providing
them with a say in how personal information is used (even when that information is
wholly inferred and/or anonymized)
o Stewardship: assuring that the organization maintains a constant focus onand
commitment to adhere toevolving regulatory guidelines and industry best practices; and
o Provenance:providing the internal infrastructure that defines how data is collected,
managed, shared, segmented, valued and deployed in support of strategic and
tactical business use cases. Also guarantees that those use cases are developed and
validated with the right level of cross-function institutional guidance.
WHY DOES IT MATTER?
Strategic, multidisciplinary data governancemanaged at an appropriately senior level
in the organizationwill instill an institutional respect for the power of information, and
reinforce the critical importance of bothsafeguarding and optimizingthose resources
over the long term; and
Cross-disciplinary engagementthrough, say, the development of a central steering
committee infrastructurewill ensure that the long-term interests of all potential
stakeholders are protected and nurtured (while driving innovation across functions that
have not traditionally been considered data-driven).
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People think a strategic, enterprise-wide data stewardship plan creates unnecessary overhead, but
thats not true. In reality it creates a valuable data service for the whole organization; it creates a high-
quality asset that others can use.
MANAGING PARTNER, DATA GOVERNANCE CONSULTANCY
We want to be true to the spirit of being responsible with data in a way that protects customers and
aligns with governance requirements. But, we dont want the terms of governance to be so onerous
that it impairs our ability to successfully do what we are paid to doMarketers need to actively
contribute to the dialoguewe need to contribute to that process so we strike the right balance.
CHIEF MARKETING OFFICER, DIGITAL PUBLISHER
IN THEIR OWN
WORDS
Maximize the ability to use data to drive value to our company
Minimize the threat of data leakage
Minimize the threat of a data security breach
Improve the quality of insights generated by addressable data
A more secure /pri vate cust omer experience
Not a benefit A considerable benefit
1 2 3 4
3.47
3.41
3.40
3.36
3.32
To what extent would you say each of the following is a benefit ofimplementing a data governance strategy?
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Maintain a centralized, permanent and continuously evolving catalog of all customer data resources across the
enterprise, referenced according to a master taxonomy that aligns with industry classification practices and provides
internal stakeholders with insight into the background and potential contributions of each asset. Potential classification
categories may include:
Type(i.e. aggregate audience insights vs. targeting data; expressed vs. inferred; etc.)
Source(i.e. first-party/proprietary vs. second-party/partner-provided vs. third-party/externally sourced; etc.)
Use Guidelines(i.e. consumer-facing standards that dictatehowthe information was originally collected and
what restrictions, if any, govern how it may be further applied)
Internal Owner(i.e. which manager or department has ultimate responsibility for the informationand has the
power to approve/disapprove of downstream business use cases that seek to leverage it)
Prevailing Regulations/Best Practices(i.e. external standards that dictate how the information must,
or should, be used)
Sensitivity(i.e. extent to which data asset includes unique, personally-identifiable and/or materially sensitive
informationthus necessitating higher standards with respect to information security and management of
transparency and consumer choice)
To ensure that the organization maintains a continuous awareness of its own assets, allowing for optimization of their
utilization (for proactive business purposes) and management of the strongest data management infrastructure (for
reactive protection/security purposes)
Identify one or more internal process managers to own the data classi fication and mapping effortideally
in concert with a cross-functional team that will be tasked with driving the broader transformation of the data
governance function to support the maximization of datas contribution to the enterprise
Complete a data discovery process focused on identifying, classifying and maintaining an ongoing
understanding of information assets across the enterprise
The Evolving Marketing Data Governance Imperative
As more companies pursue active strategies for unlocking the inherent (but often difficult-to-
tap) power of customer information, data governance is steadily emerging as a need-to-have
discipline at the most senior levels of the marketing organization. But moving from a capability
that is fundamentally reactive to one focused on driving transformative business results isnt easy.
Companies looking to make the move should consider pursuing the following five steps as core
elements of their go-forward approach.
Maintain an evolving map of your customer informationbreaking down the taxonomy of
each marketing data asset at a deeply granular level
WHAT TO DO?
WHY DO IT?
HOW?
BEYOND
PRIVACY AND
SECURITY
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One of the big concerns right now is how to use data governance to help us sort through all of our data. We have
certain data streams that cannot be mixed, for example, and we need to know what data we have and what we can
use on campaigns.
DATABASE CONSULTANT, LARGE CONSUMER BANK
We have a central data warehouse thats comprised of four different customer systems. All of our data is fed into the
central data hub, where we can evaluate it and then export to the appropriate business cube for marketing, or other
business leaders, to use.
DATA MANAGEMENT MANAGER, ENERGY PROVIDER
Data is complicatedit can be at the individual level, the household level, and the account levelso we have a
massive data suite where we can see the big picture for any given individual. But then to use it, we define how we
want to look at the data for different purposes or campaignswe architect these tables and then another team builds
a system for us.
SENIOR VICE PRESIDENT OF DATABASE MARKETING, TOP 5 FINANCIAL SERVICES COMPANY
IN THEIR OWN WORDS:
Somewhat.Though most large companies maintain good documentation on their addressable customer data,
centralized ownership of these records is relatively rareinhibiting the marketers ability to gain a unified view of all the
information assets at her disposal
IS THIS COMMON
TODAY?
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Identify a long-term strategy for how customer information will be sourced, compiled, managed, segmented, deployed
and safeguarded to suit a variety of business needsbeginning with the articulation of concrete use casestied to
available data inputs and known marketing applications
In order to drive maximum value to the enterprise, data must be managed like all other critical raw materialssubject to
the basic economic parameters of supply and demand (as well as internal scrutiny with respect to its cost, performance
and alignment with the needs of the company)
Complete the data discovery process, identifying the background and potential contribution of all enterprise
data assets
Outline, at the most granular level possible, a detailed set of data use cases that dictate how information will be
used to support a variety of customer marketing functions
Create rules for access and use, guiding business use cases and personnel requirements, building in
transparency and flexibility so that the processes are easily understood and can be adjusted quickly as needed
Ensure data for various objectives (and types of data) are managed according to its particular level of sensitivity
and needaggregated audience insights (used, for example, to drive product development-focused analytics)
do not need to adhere to the same strictures as PII data
Enable an attribution process to measure, evaluate and adjust tactics on an ongoing basis
Develop a unified data strategythat considers (and incorporates, over time) a multitude of
inputs, supporting use cases, deployment technologies, regulatory and best-practice guidelines
and other operating parameters
WHAT TO DO?
WHY DO IT?
HOW?
Increasingly, yes.The rising influence of digital data sourcesand the broader move to deploy Big Data strategies
has driven many organizations to begin thinking about the holistic contribution of customer information. Most of these
efforts have been driven by enterprises in verticals (like financial services and publishing) that have been traditionally
reliant on direct marketing and data-focused product development, though other organizationsnamely those in the
retail sectorare beginning to focus on data strategy as a key pillar of their omnichannel customer engagement efforts
IS THIS COMMON
TODAY?
Its been a challenge working off silos. Right now were trying to bring all of our data together and create an
environment that allows everyone to work off a single source of data to drive consistent use, consistent application of
business rules and consistent understanding of the data so that it can be leveraged to drive value across
our organization.
DATA MANAGEMENT DIRECTOR, LARGE PAYMENTS FIRM
For enterprise-level clients, at the very least you have to have a way to rationalize some of the data categories.You need a consolidated environment to begin managing this.
MANAGING PARTNER, DATA GOVERNANCE CONSULTANCY
IN THEIR OWN WORDS:
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Develop a unified cross-functional infrastructure (geared to the responsible, scalable use of customer information)
to support the deployment of the enterprise-wide data strategy. Examine and optimize marketing workflows,
database structure and access requirements (processes), evaluate supply chain and vendor partnerships, identify
optimal toolsets and supporting technologies (platforms) and align professional development, staff allocation and
corresponding performance compensation structures (people) in support of strategic data governance objectives
Despite their beststrategicplanning efforts, many organizations fail to tap into the substantial value of marketing data
because they fail to do the hard work of aligning the downstream pillars of marketing operationsnamely, their talent
and human resource capacity, deployment technologies, supply chain expertise/support and the overarching processes
that define how they all work together. Collectively, these elements constitute the infrastructure that will govern the
deployment of all marketing resourcesand they must be managed as a cohesive unit if the organization is to benefitfrom their application
Define enterprise objectives (including implementing a unified data strategy) and outline a phased implementation
plan with key project managers
Assess existing resources (including technology tools and platforms, third-party partners and current job roles
and existing skills) to determine effectiveness and current need
Engage new vendors for required services and solutions as needed to deliver on identi fied objectives and
use cases
Work to socialize new processes throughout the organization, including through employee training and a system
where regular updates are communicated
Build an underlying infrastructure to support marketing data utilizationwith an eye on
optimizing the roles of people, platforms, processes and partners in unlocking the inherent value
of those assets
WHAT TO DO?
WHY DO IT?
HOW?
No.Though more organizations are moving to elevate the role and contribution of the data governance function in
support of enterprise business needs, few have begun thedownstreamoptimization work necessary to align strategy
and execution (with performance-driven datagovernanceas a defining objective). For many, though, this evolution
may ultimately come down to a question of when, rather thanifotherwise, well-designed strategies will lack the right
supporting execution platforms
IS THIS COMMON
TODAY?
The first step is that we need to focus some people that are truly dedicated to looking at data governance from an
enterprise level. Having someone try to do that while 80 percent of their focus is elsewhere doesnt cut it.
DATA MANAGEMENT DIRECTOR, LARGE PAYMENTS FIRM
I wouldnt say we have a permanent, ongoing steering committee. One was pulled together before we started, but it
hasnt stayed together as an ongoing function. That will be a key step for us, forming an organization like that.
DATA GOVERNANCE MANAGER, MAJOR PUBLISHER
Technology is a huge asset here. If you have a lot of information you should be able to choose what you expose to
who, and when. And the only way to erect those barriers and execute quickly and at scale, is with technology.
SENIOR PRODUCT MANAGER, TECHNOLOGY PROVIDER
IN THEIR OWN WORDS:
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What are important organizational prerequisites to implementing acomprehensive marketing data governance strategy?
Technology platforms that support objectives
Broad organizational education
Unified systems and centralized solutions
Better cooperation across departments
Dedicated personnel working across departments
Specially trained personnel
Coordination of supply-chain partners
Dedicated data governance budgets
Not at all sure
Something else
64%
64%
61%
58%
54%
53%
40%
26%
6%
3%
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Rather than building an infrastructure to support the amorphous needs of the company, engineer the data
governance effort to support the granular needs, interests and long-term engagement of all constituencies who
are affected by the use of consumer data. This includes business and functional units within the organization (who
will benefit from the identification of actionable data use cases), shareholders (who will better understand how the
enterprise is investing in information as a driver of its own growth), business partners (who will better understand they
may collaborate to generate insights that benefit both parties) and customers themselves (who will learn more about
how the organization uses information to improve the relevance of their interactionsand enjoy a heightened measure
of control over the content, cadence and channel of those communications)
A proactive approach to data governance is one that anticipates and responds to the potential needs of all parties.
Engendering the involvement, buy-in and engagement of the same constituentsincluding customers, most notably,whose direct contributions will help bolster the underlying data setandbuild trust in the approach to information capture
and utilizationwill be critical to building a defensible data infrastructure
Explicitly address the needs of each identifiable data governance constituency when considering strategic and
tactical opinions
Consider identifying internal parties to serve as ombudsmenproactively representing the interests of these
various stakeholders on an ongoing basis
Communicate the measures that the organization is taking to deliver transparency and choice (in support of
customers as well as other parties) to all stakeholders
Consider the needs of all constituent stakeholdersin the development and continuous
refinement of data governance guidelines, leveraging information to optimize the value (and
protect the interests) of customers, employees, shareholders, partners and other parties
WHAT TO DO?
WHY DO IT?
HOW?
Somewhat.The broad trend to unlock Big Data business opportunities has been paralleled in fervor by perhaps only
one other development: the desire to build a culture of customer-centrism, with companies working to support the
needs of their most important constituency as an overarching guideline for how business should be done. With respect
to data utilization, this development often drives customer advocacy efforts as part of the tactical consideration process,
though few organizations have expanded the effort to considerother enterprise stakeholders
IS THIS COMMON
TODAY?
Its important to govern data departmentally, but also important to have a broad strategy with various stakeholders
involved. You have to ensure that you dont end up with conflicting strategies by department.
MANAGING PARTNER, DATA GOVERNANCE CONSULTANCY
Its really important to have the users of the data on your side. When we create new policies, we go to them and
make sure everything makes sense for them; the best way to get compliance and engagement is involving everyonein the process, making sure it serves their needs.
DATABASE CONSULTANT, LARGE CONSUMER BANK
We put the consumer at the forefront of our data management systemjust because we have permission to use
certain information, doesnt mean we will. We want the focus to be what is right for the consumerwhat they want
and have expressed to usrather than what is right for the bottom line.
SENIOR PRODUCT MANAGER, TECHNOLOGY PROVIDER
IN THEIR OWN WORDS:
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Develop and reinforce an institutional mindset built around the power of insight, with the goal of imbuing data
applicationsand the responsible, growth-focused management of the information that drives theminto virtually all
customer-centered functions across the enterprise
Because datamanaged in silos or without a foundational strategic approach to generating actionable business
insightswill drive few incremental contributions worthy of enterprise-level investment. Because data is an inherently
perishable resource, and organizations must evolve, grow and adapt their utilization of the same if they are to succeed in
unlocking its inherent value. Because organizations that are responsive to observation-driven insightand are adept at
applying such insight to improve the quality and relevance of their brand, products and customer interactionsare likely
to enjoy defensible competitive advantage
Leverage the cross-function steering committee (as well as a series of tactical data governance sub-committees)
to assess use cases and data management practices, air challenges and exchange ideas which can be elevated,
when necessary, to senior management in an effort to initiate positive organizational change
Educate all employees regarding data use, access and acceptable activitiesand mandate recurrent training for
employees in mission-critical functions
Use regular audits to benchmark your organization against others and con firm compliance with respect to
regulatory norms, best practices and enterprise business objectives.
Develop a data culture grounded in continuous learning and improvement leveraging
information to help drive product and customer innovations (and reinforcing the need to safeguard
those critical corporate assets)
WHAT TO DO?
WHY DO IT?
HOW?
Not yet. More highly regulated industries (such as the life sciences, healthcare and financial services sectors) have
taken assertive steps to maintain an ongoing data governance monitoring capabilitycarried out, often, by armies of
specialists and legal professionals who are charged with relaying new requirements back to particular business units.
Many individual companies, likewise, have successfully built insight cultures as a means of achieving differentiation
in traditional and/or commoditized markets. As a whole, though, most companies see the science of data as a
philosophical foundation mostly distinct from the art of brand management, product development and customer
servicerather than seeing the two as complementary pillars that ought to reinforce the companys commitment to
growth and innovation
IS THIS COMMON
TODAY?
How do you educate your employees and get them to be invested for the long-term? For one, dont call it data
governance. Call it the best way to do business and the best way to protect our information and our customers.
MANAGING PARTNER, DATA GOVERNANCE CONSULTANCY
A lot of data governance is, number one, raising awareness among employees. Socializing the importance of thepractices is critical.
DATABASE CONSULTANT, LARGE CONSUMER BANK
Our legal department definitely keeps us informed, but additionally we have cross-functional groups that get together
on a monthly basis to talk through these issues. If we hear rumblings of new changes or best practices or challenges,
well tell everyone and then do more research to figure it out.
CUSTOMER DATA MANAGER, NATIONAL RETAIL CHAIN
IN THEIR OWN WORDS:
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Once considered a specialty functionmore closely associated with the general counsels
office than that of the CMOthe role of data governance is fundamentally changing within
the enterprise.
Privacy, security and the safeguarding of trustin consumer engagement are still centerpiece
priorities. But as more marketers come to see data as a fundamental driver of real and
lasting business advantage, it is necessarily changing in form and functionmoving to
advance a series ofproactive commercial goals, just as it continues to support a range of
reactive compliance needs.
As information and technology grow to occupy even more critical roles at the center of
marketing execution, this evolution will grow increasingly rapid (and increasingly critical,
especially for those organizations that are slower to embrace the power and potential of
responsible data deployment) in the years ahead. Ultimately, the pace and scale of necessary
transformation will vary across companies, geographies and operating units. But at its
centerpiece, the same fundamental driver: a new imperative to leverage information as a
vehicle for unique insight that may power breakthrough growthand breakthrough value
for the marketer, company and customer alike.
IN CONCLUSION
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WINTERBERRY GROUP is a unique strategic consulting firm that supports the growth of advertising,
marketing, media and information organizations. Our services include:
CORPORATE STRATEGY:The Opportunity Mappingstrategic development process helps clients
prioritize their available customer, channel and capability growth options, informed by a synthesis of
market insights and intensive internal analysis.
MARKET INTELLIGENCE: Comprehensive industry trend, vertical market and value chain research
provides in-depth analysis of customers, market developments and potential opportunities as a
precursor to any growth or transaction strategy.
MARKETING SYSTEM OPTIMIZATION AND ALIGNMENT: Process mapping, marketplace benchmarking and
holistic system engineering efforts are grounded in deep industry insights and real-world understandings
with a focus on helping advertisers, marketers and publishers better leverage their core assets.
MERGERS & ACQUISITIONS DUE DILIGENCE SUPPORT SERVICES: Company assessments
and industry landscape reports provide insight into trends, forecasts and comparative transaction data
needed for reliable financial model inputs, supporting the needs of strategic and financial acquirers to
make informed investment decisions and lay the foundation for value-focused ownership.
Additional ly, Winterberry Group is differentiated through its affiliation with Petsky Prunier LLC, the
leading investment bank serving the technology, media, marketing, e-commerce and healthcare
industries. Together, the two firms provide one of the largest and most experienced sources of strategic
and transactional services in their addressable markets.
For more information, please visit www.winterberrygroup.com.
The DIRECT MARKETING ASSOCIATIONis the worlds largest trade association dedicated to advancing and
protecting responsible data-driven marketing. Founded in 1917, DMA represents thousands of companies
and nonprofit organizations that use and support data-driven marketing practices and techniques.
In 2012, marketerscommercial and nonprofitspent $168.5 billion on direct marketing, which accounts
for 52.7 percent of all ad expenditures in the United States. Measured against total US sales, these
advertising expenditures generated approximately $2.05 trillion in incremental sales. In 2012, direct
marketing accounted for 8.7 percent of total US gross domestic product and supported 1.3 million direct
marketing employees in the US. Their collective sales efforts directly support 7.9 million other jobs,
accounting for a total of 9.2 million US jobs.
For more information, please visit www.the-dma.org.
IN PARTNERSHIP
WITH:
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EQUIFAXis a global leader in consumer, commercial and workforce information solutions, that provides businesses of all
sizes and consumers with insight and information they can trust. Equifax organizes and assimilates data on more than 500million consumers and 81 million businesses worldwide, and uses advanced analytics and proprietary technology to create
and deliver customized insights that enrich both the performance of businesses and the lives of consumers.
Headquartered in Atlanta, Equifax operates or has investments in 18 countries and is a member of Standard & Poors (S&P)
500 Index. Its common stock is traded on the New York Stock Exchange (NYSE) under the symbol EFX.
For more information, please visit www.equifax.com.
EXPERIANis the leading global information services company, providing data and analytical tools to clients around the world.
The Group helps businesses to manage credit risk, prevent fraud, target marketing offers and automate decision making.
Experian also helps individuals to check their credit report and credit score, and protect against identity theft. Experian plc is
listed on the London Stock Exchange and is a constituent of the FTSE 100 index. Total revenue for the year ended March 31,
2013, was US$4.7 billion. Experian employs approximately 17,000 people in 40 countries and has its corporate headquarters
in Dublin, Ireland, with operational headquarters in Nottingham, UK; California, US; and So Paulo, Brazil.
For more information, please visit www.experianplc.com.
MEDIAMATHprovides an industry leading marketing operating system, TerminalOne, which connects global brands with
their customers individually and at scale. Built as an open platform, TerminalOne integrates with leading technology, data
and services companies to provide a seamless media planning, data management, and performance optimization solution.
TerminalOne powers the marketing operations of more than 3,500 brands, including 55% of the Fortune 500, enabling them
to drive transformative business results across display, video, mobile, and social channels.
For more information, please visit www.mediamath.com.
PREMIER
SPONSORS:
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HARTE-HANKS, INC.is a worldwide, direct and targeted marketing company that provides direct marketing services and
shopper advertising opportunities to local, regional, national and international consumer and business-to-business marketers.
For more information, please visit www.harte-hanks.com.
KBM GROUPhelps companies create meaningful and mutually beneficial engagements with their customers through
data-driven insights. We combine data, sophisticated analytics, actionable insights, and marketing technology to optimizemulti-channel engagement throughout the customer lifecycle. KBM Groups world-class marketing services include strategic
marketing consulting, data integration and database management, analytics, digital services, outsourcing, creative services,
and response services. Our parent company, Wunderman, is part of the Young & Rubicam Group and a member
of WPP.
For more information, please visit www.kbmg.com.
SUPPORTING
SPONSORS: