Data-Driven Marketing: How to Engage Your...

Data-Driven Marketing: How to Engage Your Customers

Featuring Thomas C. Redman, President of Navesink Consulting Group and author of the HBR article, “Data’s Credibility Problem,” and the book, Data Driven: Profiting from Your Most Important Business Asset

JANUARY 8, 2015

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JANUARY 8, 2015

Today’s Speaker

Thomas C. RedmanPresident of Navesink Consulting Group Author of the HBR article, “Data’s Credibility Problem” and the book, Data Driven: Profiting from Your Most Important Business Asset

Data-Driven Marketing: How to Engage Your Customers

JANUARY 8, 2015

@HBRExchange | #HBRwebinar Tom Redman @thedatadoc1

Data Driven Marketing: How to Engage Your Customers

Thomas C. Redman, Ph.D.“the Data Doc,”

Navesink Consulting Group www.navesinkconsultinggroup.com

HBR webinar, January, 2015

/Data Driven Marketing-Jan2015 T.C. Redman, © Navesink Consulting Group LLC, 2000-2015

Two Senses of “Data-Driven”

Broad: “Manage your data as aggressively and professionally as you do other assets.”

More Narrow: “Bring more data to the decision-making table and so make better decisions.”

/Data Driven Marketing-Jan2015 © Navesink Consulting Group LLC, 2000-2015 T. C. Redman,

The Data-Driven Combine Their Intuitions and the Data


Key Insight for Marketers: Use your intuition to test the data and the data to train your intuition.

Consider the big questions:

Who is the real customer? What do they really want? What do they think of us? What do they think of our stuff? What are they willing to pay? Who do they see as the

competitors?

The answers are “unknown and probably unknowable” Your intuition can only take you

so far, and There are inherent limitations in

the data.

The Data-Driven Marketers Cast a Wide Net


Key insight for Marketers: Assemble the most complete overall picture that you can.

Sources of Data Purchase histories Demographic data Others in your company Social media Focus groups And on and on.

All have strengths and weaknesses

Example: Email surveys

+ Easy/relatively cheap to conduct- Very difficult to interpret

The Data-Driven are Good Experimenters

The more you learn, the more you find out what you don’t know.

A well-run experiment can “fill the gap,” relatively quickly and easily.

Best scientific tradition. Facebook conducts 1000 experiments per day. Cautions aplenty:


Key Insights for Marketers: For this to work, it has to be okay to say “I don’t know.”

The Data-Driven Invest in Quality

Nothing gets in the way of a customer engagement like bad data. “If you can’t get the basic facts about our relationship (say the invoice) right, then what makes me think you can deliver a product?”

Nothing compromises planning efforts more than data that can’t be trusted.


Key Insight for Marketers: Data-driven marketing begins and ends with high-quality, trustworthy data.

The Anti-Datas,…

Engage in second guessing when a decision proves wrong.

Let themselves be consumed by analysis paralysis.

Engage in like-minded “group think.”


Companies naturally give special attention to things they view as assetsThey: Take care of them. For data, this means ensuring you

have the high-quality data you need and keeping them secure.

Put them to work. Many ways to put data to work.

Advance their management systems. Data have numerous properties unlike other assets—we’re beginning to understand some implications.


InformationalizationBasic idea: Make existing products and services more valuable by building in more dataUbiquity: Any product can be informationalizedAvailable to all: Doesn’t require massive quantities of data, people with advanced degrees, or capital investment. Cautions aplenty:


Key Insight for Marketers: Think through how you can make your

product, and every customer engagement, more valuable.


InfomediationBasic Idea: Help people find the data and information they

needCustomer Need Fulfilled: Waste less time.Industrial Age example: Travel agents Information Age examples: Google, Uber

Key Insights for Marketers: 1. Could my business be “infomediated?” (Note: At least when it comes to price, you almost certainly are).

2. Are there other implications for my business?

The Promise of Big Data/Analytics I prefer “bigger” to “big.” Even more, I prefer newer, novel,

or higher quality. “Same-same, but different:” Analytics allows you both to

group customers AND recognize how they are different. Longer-term, big data/analytics offer the best hopes for:

“exactly the right ad, at exactly the right time, in exactly the right place, etc”

A sequence of little discoveries and the occasional “this changes everything discovery.”


Key Insight for Marketers: You almost certainly must get better at bigger, newer, higher-quality data and analytics.

© Navesink Consulting Group LLC, 2000-2015 T. C. Redman,

It helps to have something no one else does

Highly significant that doctors call their customers “patients;” lawyers, “clients,” and department stores “shoppers.”

From Carr: Proprietary (vs. Infrastructure) technologies offer opportunity for sustained advantage.

Data may be the ultimate proprietary technology. Think about “customers” differently, capture unique data,

combine data in novel ways.

/Data Driven Marketing-Jan2015

Key Insight for Marketers: You compete based on how you are different. Data offer many ways to do so.

It’s a thin line between the “coolest thing ever” and “just plain creepy”


Key Insight for Marketers: Just because you can do

something doesn’t mean you should. You have to decide how you think about privacy

Start with the basics Use what you have. Know the customer’s name. Continually improve your products and services. Respect the customer. Protect his/her identity. Listen

to the customer. Worry when you don’t hear from him/her.

Recognize that the customer has access to data about you and your competitors.


Key Insight for Marketers: Data-driven marketing is all about execution.

Build Organizational Capability


Key Insight for Marketers: Over the long-haul, “data-driven” is about organization and culture.

Today’s Organizations are “unfit for data”

Lack talent. Quality unmanaged. Responsibility for data in IT. Silos impede data sharing.

Brutal politics. Not thought through how to

compete with data, nor gained experience.

Data at risk.

What to do about itGet more.

Get in front.Get it out.

Reach out/ Build bridges/Process managementExperiment, experiment,

experiment.

Secure it.

Longer-Term: An Ongoing RethinkThe world is changing quickly Product: More data in

products, new data-based products.

Price: Greater transparency. Place: On-line and mobile. Promotion: On-line, mobile,

social, and targeted.

The world is changing slowlyBiggest changes in my life, today vs. 20 years ago:

Timer on the coffee pot. GPS: when we get lost we

blame it.


Sooner or later, data will change every market, company, product, and relationship. Almost certainly implies the need to think long-term, more or less continuously.

Key Insight for Marketers: Becoming “data-driven” is a journey, not a destination.

vs.

This is Really, Really Hard

Everyone: Don’t lose sight of the big questions, gather and synthesize as much data as you can, recognize the strengths and limits in the data, and combine the data with your intuition.

Those interacting with customers: Think through the data going back and forth in each exchange AND the sequence of exchanges.

Senior Leaders/Managers: Get on with it. If you’re not making a few mistakes, you’re not pushing hard enough.

COURAGE, COURAGE, COURAGE/Data Driven Marketing-Jan2015 © Navesink Consulting Group LLC, 2000-2015 T. C. Redman,

© Navesink Consulting Group LLC, 2000-2015 T. C. Redman,

Questions?

Thomas C. Redman, Ph.D.“the Data Doc”

+1 [email protected]

www.navesinkconsultinggroup.com

/Data Driven Marketing-Jan2015

/Data Driven Marketing-Jan2015 © Navesink Consulting Group LLC, 2000-2015 NCG,

Thomas C. Redman, “the Data Doc” Ph.D., Statistics, Florida State, 1980.

Conceived and led the Data Quality Lab at AT&T Bell Labs.

Formed Navesink Consulting Group in 1996.

Helped dozens of companies think through, define, and advance their data and data quality programs.

Led development of most of today’s best-practice data quality management methods & techniques.

Latest and greatest: “Data’s Credibility Problem,” Harvard Business Review, December, 2013.

Data Driven: Profiting from Your Most Important Business Asset, Harvard Business School Press, 2008.

Known bias: “Data are quite obviously the key asset of the Information Age. Yet today’s organizations are singularly ill-designed for data. This leads me to conclude that learning to compete with and organizing for data is THE management challenge of the 21st century.”

Questions?

OCTOBER 17, 2012

To ask a question … click on the “question icon” in the lower-right corner of your screen.

@HBRExchange | #HBRwebinar

Thank you for joining us!

This presentation was made possible by the generous support of Teradata.

Learn more at marketing.teradata.com.

Sponsored by

JANUARY 8, 2015

http://marketing.teradata.com/

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