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Marketing Information Lost in Translation: How to Save yourself & Rise above the Competition

A recent report I came across this week shows that 76% of marketers do not use behavioral information in either segmentation analysis or targeting. They have the data, they’re just not taking advantage of it to better identify and then satisfy their consumers. This shocked me, so I went looking for more information to clarify the situation. 

The study was conducted in late 2013 by Razorfish and Adobe amongst marketing and technology executives in the US, Canada, Germany, France and the UK. According to Pete Stein, CEO of Razorfish, the two main reasons for this lack of usage are firstly that today’s marketers are driving consumer segmentation with outdated technology, processes and tools, and secondly that there is an exponential growth in the availability of behavioral data.

In another study called “From Stretched to Strengthened” IBM reports that 71% of CMOs feel unprepared to h andle today’s “data explosion”. A third study, Domo‘s “2013 Data-driven marketing survey” found that two-thirds of marketers feel unable to h andle the volume of marketing data that’s available for analysis without feeling overwhelmed, and  concluded that there were five reasons why this is the case:

  • 69% don’t have the time to analyse it
  • 66% can’t see it integrated
  • 44% don’t have the time to collect it
  • 40% don’t have access across devices
  • 40% can’t see it in real time

These statistics suggest some interesting, no vital, changes that business intelligence / planning / market research / insight (BI) departments should make to address these needs of marketers. Once made, they would increase their perceived value and recognition, as well as that of the marketing department as well. Now that can’t be bad can it?

Here are my thoughts on each of them:

No time to analyse the data

I personally believe that if the support function (BI) was doing its job properly, marketing wouldn’t have to analyse the data. In fact I don’t think it is, nor should it be, their responsibility. Of course, this does mean that BI should be attributed with the appropriate levels of resources in both time and personnel to run the analyses and generate actionable insights.

Studies conducted every couple of years by the market research arm of the Corporate Executive Board (MREB), consistently show that world-class businesses have BI departments that have progressed from methodological experts to insight consultants, and then to knowledge synthesizers. Therefore unless you allow your team to develop in this direction, the onus for analysis will remain a challenge.

Can’t see the data integrated

Even before Big Data became a buzz word, companies have struggled to break down the internal silos of information ownership. The ever-increasing flow of data into organisations has just made the matter worse, so that it can no longer be ignored. Information integration may dem and a significant investment in both time and money, but the rewards are huge.

For example, from my own experience with clients, I have witnessed a grocery retailer increase sales by 15% whilst decreasing its promotional & discount allowances by 13%. This was achieved by simply making better use of the information they already had, and enabled them to make more relevant suggestions and offers to their customers. Airlines too are realising increased buy-in of their vacation and flight promotions, through more timely and relevant mailings to precisely segmented customer groups. That was only possible because they integrated the information from their different departments.

Don’t have time to collect the data

For me the problem is actually no longer simply not having the time to collect the data, but a rather subtle adaptation of our expectations to near real-time data availability today. We have all become less patient and this as true for the CEO, as it is for the CMO and on downwards.

Marketing must become more agile and flexible to be able to react to the latest data and adjust their actions and communications accordingly. Why continue to reward retailers with promotional pricing for items that are not flying off their shelves? The money could be better spent elsewhere, whether at a different retailer more aligned to the targeted segment, or even to another type of action.

Don’t have access across devices

Tablets set to outsell PCs in 2015It amazes me that so many people are still struggling to acknowledge that the PC is rapidly losing out to tablets. In fact, according to the International Data Corp. tablets will outsell PCs within the next year or so. IDC also says that while global smartphone sales in 2013 were up by 39% over 2012, they’re expected to grow by only around 19% this year.

However, as more smartphones get connected to cars as presented at the recent Geneva Car Show, marketers will be expecting to review their latest audience data or sales during their drive into work. It therefore makes sense to enable cross-device accessibility.

As an aside, I hope marketers also underst and what this trend means to their communication plans and how they connect with and engage their consumers.

Can’t see data in real time

With the never-ending flow of information into organisations it makes sense that marketers dem and to be able to look at the latest data in real time. Retail or audience data that is a month or even a few weeks out of date is of little use in this fast-paced world in which we live. Marketers will also expect market research to provide direct access to consumers and become less and less patient of studies that take weeks if not months to complete.

My conclusion from all of this is that the C-Suite needs to invest even more in data management for marketers and not only for the financial results to which they have become accustomed. They should not dem and the ROI of marketing without empowering marketers to be able to analyse the data available to them. What do you think?

C³Centricity used images from Microsoft and Mashable in this post.

The shocking truth about managing data: it’s simple!

There is so much talk about information and Big Data these days, every organisation is feeling swamped by the belief that they should be doing more with their data.

From gathering more, to analysing more, and developing more insights about their customers, they are also afraid that their competition is doing more. If this is your situation, then this post will provide the answers you need.

Organisations have always collected information about their customers; it’s nothing new. Whether this is through conducting market research studies, or simply from obtaining details when customers buy something, there is already a lot you can do today to manage your data. However, there is an even bigger opportunity to get a better underst anding of your customers and their needs and desires, when you integrate all the information sources you already have at your disposal. This is why there is so much news about Big Data these days. For all of you that have been shocked into inaction by all this talk, here are some simple ideas that you can use to start your own journey to managing your data, whether Big or Small:

 

#1. Make your information more visible

You are certainly already collecting a lot of data, both internal and external, but it is probably only the former that is shared today; sales, distribution, targets, budgets, plans and forecasts are the most common examples of this. How are all these numbers shared across your organisation? Why not develop a simple dashboard showing the most important numbers?

Using comparisons to competitors, indices and trends are generally the most useful way to provide a quick overview of business, into which viewers can then dig deeper, depending upon their area of interest. You don’t need to show it all on the dashboard, and you shouldn’t try, just keep the summary to the KPI’s that are most relevant for everyone to know.

For more on how to choose your KPI’s see here.

 

#2 Make your information more available

You already have many sources of information, but who has access to it? If you are like most companies, it is the department that collects the data that analyses and uses it, and other departments rarely know of its existence, let alone get to see it. Why not develop a library in which you can store all the information and insights that are gathered and developed, and then give everyone access to it?

This library can be as simple as a folder in a shared file, an Excel folder, an Access database, or a more sophisticated system that can manage budgets, projects and suppliers, as well as the storage of the processes and reports. Some organisations are afraid of doing this for fear of information getting into the h ands of their competitors, but access rights today are easy to manage so that you can significantly reduce such a risk.

You can find more information on knowledge sharing here.

 

#3. Make your information more actionable

Much of the information that companies gather is backward looking, coming from sales and distribution that have already happened or your customers’ consumption and usage habits of last week, last month or last year. Whenever you gather any sort of information, it is a good idea to review the description of your target audience for each br and, in order to ensure it is as complete and as deep as possible. This should not be a once a year exercise, at the time of plan writing, but a continuous process to stay in close contact with your customers’ desires and changing opinions and behavior.

You will almost certainly find that in today’s fast paced world, they have changed quite significantly in some areas. However, even if the current descriptions have not changed substantially, the review of your information should enable you to enrich it further for an even better underst anding. Additionally, in order to build insight and foresight the information you gather needs to be complemented by forward looking metrics such as trends and future scenarios. By looking at how your customers are adapting today, and hypothesizing on their future changes, your organisation will be better prepared for future opportunities and challenges, providing a real competitive advantage.

To learn more about developing your Vision & strategy check here.

 

#4. Make your information more readable

If you have gotten beyond the amount of data that is humanly possible to analyse, you need to consider building a database that can be analysed and modelled with the help of complex analytics. This is when information starts to become BigData and can result in a step-change in the insights an organisation can gain from it.

The sophisticated algorithms that can now be developed can make your information “speak” more clearly about your customer and become usable for many different purposes. You can try hypothesizing about your customers future behaviours, the likely success of your promotions or innovations by region or country, and then get near real-time answers to your questions about them. In some cases, you can even simulate market response to new ideas before they are even launched, in order to identify the best roll-out plan, or even to decide whether or not to launch in the first place.

If you yourself are at this tipping point, as descibed in Malcolm Gladwell’s book of the same name, and need support in developing your integrated marketing database, please contact us so we can share with you some of the successes our clients – your competitors? – have already had.

These are just a few ideas on how to make more and better use of the information you are already gathering. What made the biggest change for your own organisation in the use of the information and knowledge it gathers? Have you reached the tipping point to BigData yet? If you are proud of what you’ve done, why not share it with everyone here?

For more information on developing processes for the integration of information, the development of insights and the internal sharing of  knowledge, please check out our website: https://www.c3centricity.com/home/underst and/

C3Centricity.com uses images from Dreamstime.com and Kozzi.com

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