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MIND
THE
GAP
Bridging the gap between strategy & execution with data-driven marketing.
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MIND THE GAP;
MIND YOUR DATA
You consider yourself a sophisticated marketer. You’ve invested in a litany of
marketing tools – web analytics, marketing automation, email marketing, social
relationship management, WCM, digital optimization, CRM, e-commerce, a data
management platform (DMP), etc. You capture and store a mind numbing amount of
data on customers across online and offline channels.
Overall, you do the best you can to meet
or exceed customer expectations and you
accept that there are always opportunities to
be smarter, leaner, and more effective. And
yet, after all these investments in marketing
technology, skilled resources, and customer
data management, something doesn’t quite
feel right. It feels like you could be better,
a lot better, at translating your customer
engagement strategy into tactical execution
that engages customers in meaningful and
robust ways. You’re not alone. There remain
significant opportunities to improve datadriven marketing.
The growing divide between customer strategy
and execution is a byproduct of customer data
that is difficult to analyze, action, and rely
on. According to Google1, the amount of data
produced every two days in 2015 matched the
amount of data produced in all of history prior
to 2003. It’s estimated that less than 1% of this
data is being analyzed and used.
Gartner2 predicts that by 2020 the customer
will manage 85% of its relationship with an
enterprise without interaction with a human.
Data will continue to play a pivotal role in
2 | Mind the Gap
delivering contextually relevant experiences
to customers who are always on and readily
addressable. But as of today, enterprises are
struggling to use available data appropriately.
A recent survey from The CMO Council3 revealed
that executives view the flood of incoming data
as part obstacle and part opportunity, with “61%
of CMOs admitting they have a long way to go
still in using big data properly.” This mirrors
findings from Acxiom4 that paint a dismal reality
for marketers:
• 70% of marketers have suboptimal or no
ability to integrate customer data between
online and offline sources
• 80% don’t apply customer value scores
• 74% can’t recognize customers in real time
Fortunately, there are a variety of new and
emerging tactics and techniques that can help
marketers immediately “mind the gap” and
improve the use of data in cost effective and
practical ways.
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“86% of buyers
will p
ay more for
a better customer
experience, but only
1% of customers
feel that brands
consistently meet
their expectations.”
(Customer Experience Impact Report5)
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Missed Expectations =
Missed Opportunity
At any given moment in the customer journey, most
companies are either over-delivering or underdelivering against customer expectation. Overdelivering might mean you are using data in ways
the customer doesn’t value or communicating too
frequently. If you are under-delivering you may not
be personalizing effectively or aren’t using data at
all. This volatility leads to real costs to brand and
the bottom line. A survey from American Express6
suggested that 78% of consumers have bailed on a
transaction because of a poor customer experience.
But over-delivering on a customer experience can
be just as detrimental, particularly when juxtaposed
against previous under-delivery in the customer
journey.
Success is about striking a balance between what
customers need and what the business hopes to
achieve. Your data affects strategy and engagement –
which together form moments of engagement. Poor
data quality and disconnected marketing technologies
lead to unpredictable customer experiences and a
false sense of security that we consistently make datadriven decisions. Garbage in, garbage out.
DATA
• Recognition
• Behavior
• Preferences
• History
• Attitudes
• Demographics
CUSTOMER
STRATEGY
CUSTOMER
ENGAGEMENT
Our understanding
of the customer
How we actually
engage
MOMENTS OF ENGAGEMENT
MOMENT 1:
OVER-DELIVERY GAP
CUSTOMER EXPECTATIONS IN MOMENTS OF ENGAGEMENT
MOMENT 2:
UNDER-DELIVERY GAP
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Customer
Engagement
Optimization
Customer engagement optimization represents a holistic focus
on incremental improvement in all aspects of the customer
journey. This requires organizations to pivot away from product
or brand centric engagement (which hinges on what you want
to tell your customers or how the brand “historically” engages
with customers) to customer centric data-driven interactions
and decisioning.
Engagement optimization is the most efficient way to cultivate
new customers and retain existing customers. But it requires a
robust focus on data. According to Dun and Bradstreet7, six out
of ten marketers noted that improving the depth and accuracy
of their database was a top priority for 2015.
OPERATIONAL
EXECUTION
• Orchestrated Engagement
• Advertising & Promotion
• Content & Creative
CUSTOMER
STRATEGY
CUSTOMER
DATA
• Contact Strategy
• Brand Strategy
• Engagement Design
• Planning & Budgeting
• Prospect Data
• Segmentation Strategy
• Campaign Delivery
• Customer Data
• Journey Mapping
• Third-Party Data
• Personas
• Analytics & Modeling
ACTION
5 | Mind the Gap
DATA
INSIGHT
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6 Ways to
Be a Better
Data-Driven
Marketer
Advances in computer processing, database infrastructure,
cloud storage, and machine learning have completely changed
the landscape of tools and techniques available to marketers.
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DATA QUALITY
Improve data quality
with lights out
automation.
Poor data quality leads to analytics and insights that do
not accurately reflect customers, misaligned moments of
engagement, and negative brand experiences. Fix data
quality issues by exposing the root cause of the issue.
Common culprits include:
• Data Entry – data entered into a system by customers
or internal stakeholders
• Data Transformation – issues with data integrity
after processing
• Data Integration – discrepancies in similar data
provided by different systems
• Data Matching – erroneous matches resulting in lost data
• Data Aging – data that frequently changes over time
• Data Structure – limitations in fields or formatting,
duplicates, missing info, matching, and keying
• Data Source – the ability to link data to a unique customer
record: Prospect Data (known/unknown), Customer Data,
Third-Party Data (appends & DMP cookie data)
CUSTOMER ENGAGEMENT
CUSTOMER
DATA
PLATFORM
PROSPECT DATA
CUSTOMER DATA
THIRD-PARTY DATA
Any Source Data / Golden Record
How to solve data quality issues?
• Fix the data in the source system
• Fix the source system to correct data issues
• Accept bad data in source systems and fix issues in
an extract transform and load into a database (physical
or federated)
• Apply precision identity/entity resolution to identify a
customer/household in all of its variations
Marketers are used to relying on IT to solve for customer data
issues in the enterprise. The newest generation of marketing
technology offers a data layer to aggregate, augment, scrub,
and transform customer data for use in operational execution.
It’s the fastest and easiest way to solve for data quality issues
and use available data for communications.
Mind the gap: look for tools that have lights
out automation for data integration and
transformation across all of your marketing
tools.
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FAST FACTS
• More than half (54%) of companies say their
biggest challenge to data-driven marketing
success is the lack of data quality and
completeness.8
• Over half of all records analyzed (223M) did not
include a phone number. (Dun & Bradstreet9)
• Companies that regularly maintain their
database can see 66% higher conversion rates
than those that don’t. (Dun & Bradstreet10)
• 71% of company files lack industry information
like company size by employee and revenue.
(Dun & Bradstreet11)
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OPEN
Tap into an open
and connected
ecosystem.
The ability to ingest data across an array of systems is a basic requirement for marketers, but
something that has historically been very difficult to accomplish with disparate tools. There’s demonstrable value in
open and connected marketing technology. The ability to leverage the best tools for your brand, align the data from
these tools, and facilitate communications across all of these systems is critical to meeting customer expectations.
Three trends feed the demand for openness and connectivity in marketing execution:
1
LEGACY MARKETING TECHNOLOGIES HAVE STRATEGIC VALUE. It’s unrealistic to assume
brands will divest of legacy tools in favor of suite-based platforms. There are real cost
implications to replacing tools that work.
2
BEST-OF-BREED CHANNELS & ENABLING TECHNOLOGIES DIFFERENTIATE THE
CUSTOMER EXPERIENCE. There may not be tools on the market that are capable of
replacing these in the near future, so it’s conceivable that niche solutions will have to play a
role in the holistic customer experience.
3
CUSTOMER ENGAGEMENT IS A MOVING TARGET. Every year there are new and emerging
ways to engage customers. For example, we haven’t even begun to scratch the surface
on the “internet of everything” and augmented reality. Over the next 5-7 years there will
be new tools and data you will have to incorporate into your customer experience. Open
infrastructure gives marketers flexibility in the unpredictable future customer experience.
These are facts marketers must embrace to remain competitive. The 2016 Scott Brinker Marketing Technology
Landscape Supergraphic12 includes more than 4,000 marketing technologies. You can enable similar brand experiences
across hundreds of combinations of these marketing tools. Marketers need flexibility and agility to optimize the
customer experience and meet customer expectations.
Mind the gap: data will be sourced and reside in disparate tools, and marketers can continue to use
these tools with open hub architectures and intelligently orchestrate interactions across various
technologies and channels.
CASE IN POINT
The internet of everything (IoE) adds a new dimension to customer engagement. Smart appliances
for the home are already on the market. IoE will usher in new demands for data management,
analysis, and automation. IoE data will eventually become a foundational aspect of triggerbased personalized engagement. Marketers will need flexible open architecture to integrate IoE
data and orchestrate cross-channel customer experiences – mobile phone reminders about low
product inventory, cross-sell or up-sell offers, service alerts, and more. IoE data could profoundly
transform product development, customer segmentation, and service/support. One thing is for
sure: marketing will continue to change in the foreseeable future, so customer engagement tools
will need to adapt accordingly.
8 | Mind the Gap
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GOLDEN RECORD
Understand customers
across anonymous and
known interactions.
The concept of a “golden customer record” refers to a single source of truth for any and all
customer interactions. Obviously it’s valuable to have full visibility into every trackable interaction a customer has
with your brand. Insights into the frequency of engagement, device use, household, purchase cycles, media mix, and
conversion activity can inform all facets of customer engagement optimization. These data points can be translated
into listening activities, new segments, trigger-based campaigns, and paid media investments that micro target
customers with relevant messages.
Most brands attempt to solve the golden customer record challenge by creating a customer data warehouse or
federated database to consolidate customer interactions from source systems. But connecting disparate data to a
unique customer record (a CID, email, or fuzzy logic) only solves for half the equation – you have to use this data to
improve the customer experience.
The next generation of customer engagement platforms can ingest data from any source system and then action the
data via automated triggers, business logic, advanced modeling, and real-time personalization. Today, legacy tools and
lack of integration force marketers to personalize messaging with basic customer profile data. You can learn a great
deal about individual customers during anonymous interactions if you have mechanisms to connect the activity to a
known customer later.
Mind the gap: connect anonymous and
known customer data.
Audience Targeting DATA
• DMP
• Industry
cookie-based data
• Behavior
• Demographics • Search history
Customer Data
• Personally
identifiable
information
IDENTIFYING
EVENT
ANONYMOUS PROSPECT
• Marketing data
• Behavior
• First-party data
KNOWN CUSTOMER
CUSTOMER ENGAGEMENT OPTIMIZATION: DATA | ACTION | INSIGHT
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PERSONALIZATION
Implement
REAL-TIME
personalization.
Most personalized efforts involve manual intervention from marketers; contact lists have to be
downloaded and uploaded from multiple systems, paid media campaigns have to be configured for display/search/
social, and channel specific copy and creative must be created from scratch.
Data-driven personalization is real-time, contextual, timely, and relevant. That means marketing technology must be
capable of using first, second, and third party data to inform the right messaging at the right time in the right channels.
The new generation of engagement platforms use advanced computing, business intelligence, and marketing friendly
user interfaces to make data-driven personalization easily for marketers to manage and implement.
What does it actually
take to make real-time
personalization a
reality?
Large contact lists pose unique challenges for legacy
marketing tools. Customer lists with >10M contact
records can take days, weeks, and months to process
for segmentation, analysis, and scoring. In order to
effectively take advantage of real-time personalization
your customer engagement stack must rapidly analyze
data and act within the optimal window of opportunity
– most likely in seconds, minutes, or hours.
Next gen customer engagement tools offer:
• 3-10x faster processing over traditional
campaign tools.
• Triggered & transactional messages–
send real-time communications based on
prospect behavior.
• Dynamic segments/lists – automatically
add customers or prospects to personalized
campaigns.
• Suppression rules – automatically opt customers
out of special offer promotion on all channels after
redemption by a customer.
“Over half of all customer
interactions happen
during a multi-event,
multi-channel journey.”
(McKinsey13)
Mind the gap: use data to automate
real-time personalized communications.
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ROLE-BASED INSIGHTS
Explore
role-based
insights.
Back office marketing execution involves a complex
tapestry of roles and responsibilities – from strategy
to execution. But while there’s certainly no shortage
of figures and reporting from marketing tools,
reporting capabilities in most marketing technologies
leave much to be desired. In fact, many of the reports
and figures that exist in marketing go unused by
marketers.
Dashboards and reporting are only valuable if
they provide context that can inform a decision or
action. Different marketing stakeholders will have
very different needs with respect to reporting.
The CMO needs holistic visibility across back office
operational execution, spend allocation, performance,
and alignment with marketing targets. A campaign
manager needs very detailed insights about the
performance of in-flight campaigns and real-time
insights about improving performance.
In the same way customers expect relevant and timely
communications, so too should marketers expect
relevant and timely insights. Call it “me marketing”
for lack of a better term. The next generation of
customer engagement platforms have invested
heavily in intelligent reporting so marketers can easily
translate relevant insights into actions that benefit
engagement optimization.
Mind the gap: deliver role-based
insights to support the nuances of
different decision makers.
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FAST FACTS
• 50% of C-suite respondents said their organization
uses no consistent measure of their customers’
experience. (Beal Mighty14)
• Only 23% of marketers claim to have a customercentric – versus a channel- or product centricorganizational structure. (Forrester15)
• CX executive dashboards and customer journey
mapping are the two customer experience
activities that had the greatest increase in focus
in 2014. (Temkin Group16)
Weather Alert:
Send Campaign
to Zip Code
Context comes in many forms – not just operational
reporting and insights on internal data. Dashboards
should be capable of pulling in any relevant
information. Imagine a dashboard widget that allows
campaign marketers to monitor weather conditions or
RSS feeds in geographic segments. Alert thresholds
could inform a campaign manager to send a special
offer for down jackets over email during a blizzard.
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MODELING & ANALYTICS
Embrace
adaptive
learning.
Big data defines volumes of data so large they can’t be managed by a single database.
Marketers are responsible for exponentially growing volumes of data via web analytics, social media monitoring,
email, mobile, display, search, and third-party data. Over the past decade, the focus on extracting value from
large volumes of customer data led to new roles and responsibilities such as “data scientists,” machine learning,
and advanced predictive analytics. The goal was to apply statistics and science to extracting insights from large
and ever changing volumes of customer data. How’s that working out? Not well, for most marketers. In order to
deliver real-time personalization at scale, you need analytics technologes that enables marketers to foster 1:1
relationships.
Today, advances in business intelligence and cloud
computing have dramatically simplified data modeling
for marketers. The next generation of customer
engagement platforms allow marketers to dragand-drop a library of analytic modeling on top of
massive volumes of customer data. You no longer
have to offload analysis to business intelligence
tools and then manually translate results back into
campaign management tools to improve the customer
experience. Modeling and operational execution
happen from a single platform where marketers can
apply models and real-time trigger-based optimization
to optimize offers, targeting, media mix investments,
and messaging at the point of execution.
Mind the gap: embrace technology to unlock the hidden insights in your customer data.
LIBRARY
CUSTOMER
DATA PLATFORM
Propensity
to Buy
Scorecard
Self-Learning
Models
Cluster
Analysis
Collaborative
Filtering
Regression
Analysis
Single View
of Customer
12 | Mind the Gap
PERSONALIZED
ENGAGEMENT
CUSTOMERS
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“In 2016, 89% of
companies expect to
compete mostly on
the basis of customer
experience, versus
36% four years ago.”
(Gartner17)
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YOUR JOURNEY
TO BECOMING
A BETTER
DATA-DRIVEN
MARKETER
MIND THE GAP
The customer’s appetite for relevant customer
experiences has no bounds. The most innovative and
successful brands are investing heavily in customer
centric experiences – experiences that are informed
by data.
Automate
Data
Quality
The Value of
Open &
Connected
Technology
Connect
Anonymous
& Known
Interactions
Being “data-driven” is about more than relying on
data to inform customer strategy or operational
execution. Poor quality data, legacy marketing tactics,
and misguided understanding of customer desires will
only accelerate mediocre results. Marketers continue
to have a false sense of security that relying on any
form of data-driven decision making is sufficient.
Data is the foundational element that informs our
understanding of customers and how we engage in
meaningful ways. But if the future is about real-time
marketing, personalization, customer preference, and
continuous optimization, data is the means to this end.
What’s exciting for marketers is that the data
challenges we have all faced for decades are being
addressed in next generation engagement platforms.
These systems allow marketers to:
Data-Driven
Personalization
• connect and interact with existing marketing tools
• ingest and align any form of data for a single view of
the customer
• deliver real-time personalization
• apply models at the click of a button
• personalize dashboards by role
• and unlock the potential of big data for operational
execution.
Role-Based
Insights
It’s up to you to determine how wide the gap (or
chasm) is between your strategy and operational
execution. Mind the gap: mind the future of
your brand.
Explore
Adaptive
Learning
14 | Mind the Gap
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About RedPoint Global Inc.
RedPoint Global optimizes customer engagement by providing a platform for intelligent and timely orchestration
of data, insights, and action. RedPoint’s customer engagement platform provides a unified view of your customers,
determines the best decision on next actions to take, and orchestrates customer interaction across all channels.
RedPoint’s customer engagement platform drives more revenue while optimizing the spend on interactions. For more
information please visit www.redpoint.net or email [email protected]
References:
1. https://techcrunch.com/2010/08/04/schmidt-data/ Sadf
2. https://www.gartner.com/imagesrv/summits/docs/na/customer-360/C360_2011_brochure_FINAL.pdf Df
3. http://www.cmocouncil.org/download-center.php?id=259#
4. http://www.acxiom.com/resources/customer-centricity-paradox/
5. http://www.forbes.com/sites/christinecrandell/2013/01/21/customer-experience-is-it-the-chicken-or-egg/#6cd98fa95d83
6. American Express Survey, 2011
7. http://www.dnb.com/content/dam/english/business-trends/netProspex_2015_state_of_marketing_data.pdf
8. http://www.dnb.com/content/dam/english/dnb-solutions/risk-management/whitepaper-data-quality-interview.pdf
9. http://pages.netprospexinc.com/2015-benchmark-report.html
10. http://pages.netprospexinc.com/2015-benchmark-report.html
11. http://pages.netprospexinc.com/2015-benchmark-report.html
12. The 2016 Scott Brinker Marketing Technology Landscape Supergraphic
13. http://www.slideshare.net/McK_CMSOForum/customer-experience-journey-webinar-v10-091713
14. http://www.bealmighty.com/hearts-then-charts/
15. https://www.forrester.com/Scale+Your+B2B+Customer+Obsession+With+A+GoToCustomer+Strategy/fulltext/-/E-res118070
16. https://experiencematters.wordpress.com/2014/01/31/data-snapshot-cx-expectations-and-plans-for-2014/
17. http://blogs.gartner.com/jake-sorofman/gartner-surveys-confirm-customer-experience-new-battlefield/
REDPOINT GLOBAL INC.
36 WASHINGTON ST., SUITE 120, WELLESLEY HILLS, MA 02481 USA
+1 781 725 0250 | www.redpoint.net
© 2016 RedPoint Global Inc. All rights reserved. RedPoint, Convergent Marketing Platform, and the RedPoint logo are trademarks of RedPoint Global
Inc. All other trademarks are the property of their respective owners.
EB-MINDUS0916-02
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