Survey
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
MIND THE GAP Bridging the gap between strategy & execution with data-driven marketing. ® 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. ® “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) 3 | Mind the Gap ® 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 4 | Mind the Gap ® 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 ® 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. 6 | Mind the Gap ® 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. 7 | Mind the Gap 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) ® 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 ® 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 9 | Mind the Gap ® 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. 10 | Mind the Gap ® 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. 11 | Mind the Gap 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. ® 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 ® “In 2016, 89% of companies expect to compete mostly on the basis of customer experience, versus 36% four years ago.” (Gartner17) 13 | Mind the Gap ® 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 ® 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 15 | Mind the Gap ®