Download data driven and customer centric

DATA DRIVEN AND
CUSTOMER CENTRIC:
MARKETERS TURNING INSIGHTS INTO IMPACT
IN ASSOCIATION WITH:
CONTENTS
Foreword . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Current State: Where brands stand on data and where they’re heading . . . . . . . . . . . . . . . . . . . . . . . .4
Impact: Data as a catalyst for the modern-day marketing organization . . . . . . . . . . . . . . . . . . . . . . . . 5
Strategies: Transforming chaos into clarity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Future: Where do we go from here? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Methodology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Acknowledgments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
FOREWORD
As organizations and their customers move beyond traditional channels of
engagement, new challenges are arising.
Brands need to learn how to initiate meaningful
conversations with consumers—tailored communication that caters to unique interests and
behaviors. With an increasing number of brands
realizing the relevance of data-driven marketing,
new tools and skills are becoming a necessity to
deliver brand consistency and results.
Turn delivers real-time insights that
transform the way leading advertising
But questions remain: Now that marketers are
supported by data, how are they getting better
at building customer loyalty and driving sales?
Do data-driven marketers have an advantage
over traditional ones? Has access to more insights
and information created more opportunities or
complexities? Are brands equipped with the right
tools to address these new challenges?
agencies and enterprises make marketing
This survey and report will answer these questions
and explore how marketers are both leveraging
data for customer-centric marketing activities and
addressing the impact of this new paradigm on
business processes and marketing strategy.
products and services worldwide. For
PAUL ALFIERI
SVP, Marketing, Turn
2 | DATA DRIVEN AND CUSTOMER CENTRIC: MARKETERS TURNING INSIGHTS INTO IMPACT
decisions. Our integrated cloud platform
enables data management, cross-channel
advertising, and advanced analytics from
a single login, along with point- and-click
access to more than 150 integrated
technology partners. Turn is headquartered in Silicon Valley and provides its
more information, visit turn.com or follow
@turnplatform.
CURRENT STATE:
WHERE BRANDS STAND ON DATA
AND WHERE THEY’RE HEADING
Marketers have been collecting and analyzing data to better identify their audiences
for some time. The growing number of devices used by consumers, and the popularity
of social media channels, have only added to the treasure troves of consumer transaction data being gathered and parsed for actionable insights.
The good news is that modern marketers are embracing
data-centric tools to make the most of this information.
In fact, a whopping 64% of survey respondents “strongly agree” that data-driven marketing is crucial to success
in a hyper-competitive global economy (Figure 1).
of media and guest engagement at Target. “Because
we’re very clear on how guest-centric we want to be
as an organization, we spend a lot of time really understanding who our guests are, who our best guests are
and where the next best guest opportunities lie.”
Yet a siloed marketing mentality can stand in the way
of success. Data stemming from disparate providers,
disconnected systems, varying internal teams, incongruous accountabilities—they can all prevent marketers
from reaching the right consumers, at the right time,
with a relevant and consistent message.
Driving this greater appreciation for data-driven marketing is the value many brands are beginning to glean
from their initiatives. Nearly half—47%—of respondents
strongly agree that there are a number of tangible
benefits being realized as a result of data-driven
marketing. And 53% say there is an enterprise-wide
vision for data analytics within their organization. That’s
a significant departure from the past, when datadriven campaigns were largely spearheaded by a single
marketing executive and a supportive data scientist.
Rather, a growing number of departments, from the
C-suite to human resources, are recognizing data’s
ability to grow a customer base.
Fortunately, a growing number of marketing leaders are
rethinking the way they interact with their customers
and build data-driven marketing campaigns. Retail giant
Target is one such company.
“Data is impacting almost everything that we do in marketing today,” says Kristi Argyilan, senior vice president
Figure 1. On a scale of 1 to 5 with 1 being “strongly disagree” and 5 being “strongly agree,” please rate the following:
1 – Strongly
Disagree
2
3
4
5- Strongly
Agree
Data-driven marketing is crucial to success within a hypercompetitive global economy
3%
1%
5%
27%
64%
There are a number of tangible benefits being realized as a
result of data-driven marketing
2%
2%
9%
41%
47%
Senior leaders within my organization support, and advocate
for, data initiatives
1%
1%
12%
34%
51%
There is an enterprise-wide vision for data analytics within
our organization
2%
2%
10%
32%
53%
There is an urgency within my organization to conduct datadriven marketing campaigns
2%
2%
10%
44%
41%
Data from marketing campaigns is actively shared across
my organization
2%
2%
12%
45%
39%
Programmatic ad buying is a key component of our
marketing strategy
2%
2%
13%
37%
46%
COPYRIGHT © 2015 FORBES INSIGHTS | 3
The tools brands are using to engage target audiences are also reaching new levels of sophistication, enabling marketers to gain more intelligence in order to
make customers a top priority. Brand intelligence solutions, customer relationship management systems,
consumer intelligence technologies, data management platforms—they are all enabling organizations
to better manage their volumes of data and better
understand customers through their behaviors. As a
result, brands are better able to reach customers at a
precise point in the customer journey with timely and
relevant messaging.
As data-centric tools become more sophisticated and
brands become more appreciative of data’s value, a
number of key changes are taking place. For years, the
initial promise of data-driven marketing was to drive
higher levels of customer engagement and achieve
market growth. While those objectives are still important, marketers are looking to take these capabilities
to new heights by becoming more audience-centric
with personalized and real-time messaging.
Dunkin’ Brands is a perfect example. The quick-service restaurant franchisor has embraced innovative
technology and data to better connect with customers when it matters most. “With our DD Card, Dunkin’
Mobile App and DD Perks program, we are able to
gain better insights into when our guests are visiting and which products they are purchasing,” says
Scott Hudler, vice president of global consumer engagement at Dunkin’ Brands. “We have built a system
where we can deliver targeted one-to-one offers to
our DD Perks loyalty program members in an effort to
drive increased spending and visitation. We are constantly learning and evolving our activities in this platform so that we can deliver the right offer at the right
time to our key customers.”
Figure 2. How are you most likely to act on your data-driven
audience insights?
Tailor creative development to build messages that resonate with
niche audience segments
67%
Deliver more messages and content to customers in real time
67%
Evangelize data discoveries to modify business and strategic
objectives
48%
Adjust creative, messaging and content for in-flight campaigns
44%
Overhaul marketing spend
7%
4 | DATA DRIVEN AND CUSTOMER CENTRIC: MARKETERS TURNING INSIGHTS INTO IMPACT
In fact, 67% of respondents plan to act on their audience insights by tailoring creative development to
build messages that resonate with niche audience
segments (Figure 2). And the same percentage of respondents plan to leverage these insights to deliver
more messages and content to customers in real time.
Take Nationwide, for example. According to Brad
Lemons, senior vice president of customer insights
and analytics at Nationwide, the U.S. insurance and financial services company “tailors its marketing efforts
to the individual level, based on what we know about
our customers, to make their buying decision easier.”
For instance, Lemons says Nationwide can piece together data, from purchasing information to demographic details, that may reveal a potential customer
is about to have a baby. Based on this audience composite, Lemons says Nationwide can then determine
the type of marketing campaign and content that is
most likely to convert that prospect into a customer,
be it a pop-up ad highlighting a life insurance product
or a targeted email promoting a family rate for auto
policies.
But data-savvy brands like Nationwide aren’t just leveraging data to target customers with personalized
messaging and content. They’re also using data to
determine which customers are—and aren’t—worth
targeting at all. For instance, a 35-year-old male may
appear to be the perfect candidate for an automobile insurance policy. However, by using predictive
analytics, Nationwide can determine how likely the
customer is to switch insurance providers in six to 12
months. As a result, Lemons says the company “considers a variety of factors when prioritizing marketing
investments, seeking to balance member needs with
bottom-line performance.”
All of which points to the many new ways brands are
gathering insight from their data. Whereas companies
once counted on business leaders to dictate the use
of data, data is now helping to dictate critical business
practices. The importance of aligning data analytics
with key business objectives is evident in the responses of survey participants. When asked how they are
most likely to act on data-driven audience insights,
nearly half—48%—of respondents answered that they
plan to evangelize data discoveries to modify business
and strategic objectives.
IMPACT: DATA AS A CATALYST FOR
THE MODERN-DAY MARKETING
ORGANIZATION
Today’s consumers are more informed and connected than ever before. This
immediately raises the stakes for marketers. No longer can they rely on the straightand-narrow customer journey to reach their target audience. Rather, successful brands
connect with consumers at the precise moment they’re about to make a purchasing
decision.
But there are plenty of challenges brands must overcome in order to effectively communicate with their
customers. For starters, these are the early days of
data analytics for many companies. In fact, when
asked how well prepared they are to take a datadriven approach to marketing, 33% of respondents
say they’re grappling with a mix of technologies with
little coordination (Figure 3). And only 29% recognize a common set of tools emerging to support data
gathering, analytics, insights, programmatic advertising and planning. More worrisome, a mere 14% of re-
spondents have a portfolio of tools for analysis and
planning that are established and fully supported by a
single platform and best practices.
Figure 3. Which best describes how well prepared your
organization is to take a data-driven approach to marketing?
Figure 4. How far along is your organization in leveraging data
for marketing purposes? What about in two years from now?
Another hindrance to deriving demonstrable results
from data-driven marketing: 72% of respondents are
still focused primarily on knowledge gathering rather than making real and actionable use of their data
(Figure 4).
So what’s standing in the way of using data to engage
target audiences? Two of the top three reasons cited
Still focused primarily on knowledge gathering
72%
14%
18%
33%
24%
29%
A mix of technologies is available to various lines of business, with
little coordination
A common set of tools is emerging to support data gathering,
analytics, insights, programmatic advertising and planning
In addition to tools, a single platform is emerging to support datadriven marketing initiatives
A portfolio of tools that enable analysis and planning is well
established and fully supported by a single platform
and best practices
Developing strategies and a roadmap based on business needs
and challenges
62%
39%
Most marketing initiatives are data driven, seeing some
business outcomes
61%
40%
Piloting data initiatives to determine value and requirements
58%
40%
Deployed two or more data-driven marketing initiatives, and
continuing to apply advanced analytics
54%
52%
Marketing is fully data driven, achieving significant
business outcomes
44%
49%
Now
2 years from now
COPYRIGHT © 2015 FORBES INSIGHTS | 5
by respondents have to do with complex technologies.
Sixty-one percent of respondents cite breaking down
the silos of data between internal departments to ensure the successful flow of information as the biggest
challenge of developing data-driven marketing initiatives. And over half—54%—point to complex technical
solutions as an obstacle. Data siloed among disparate
vendors, scattered systems, inconsistent messaging
to consumers and time-consuming aggregate metrics
are also considerable challenges.
The good news is there are plenty of opportunities to
be had by facing these challenges head on. Breaking
down data and technology silos, creating a customer-centric approach for a better experience, ensuring consistency across the buying journey, preparing
teams for success, establishing a clear roadmap—they
are all ways companies are creating more audiencecentric marketing initiatives (Figure 5).
infrastructure, the processing power, the skilled data
scientists and strong third-party relationships really
allow us to sift through that data rapidly and develop
actionable insights.”
The first step to tapping into the opportunities of
data-driven marketing involves minimizing technical
complexities. In the case of Nationwide, creating an
environment that supports greater data integration
has helped the company derive greater value from its
data-driven marketing initiatives.
Just ask Pam Moy, vice president of marketing analytics, research and administration for insurance company Allstate. “The biggest challenge of data-driven
marketing is sifting through the data and determining
what is valuable and relevant information for customers and what is valuable and predictive information for
Allstate. That’s a tough thing to do with the plethora
of data out there,” she says. “Having the technology
“It takes financial and cultural commitment to eliminate data silos. That’s why we’ve made significant
investments to integrate, centralize and democratize
our customer data across the enterprise. And it’s why
we’ve seen increased collaboration and higher-quality
analytics,” says Lemons of Nationwide. By centralizing
data from a wide range of online and offline sources,
companies can classify this information in ways that
make sense for their marketing needs. This includes
importing first-party data and integrating it with thirdparty data for a more comprehensive view of customers. It’s also critical that marketers connect both
known and unknown sources of data, pinpoint their
audiences, put a plan into action effectively across all
channels and leverage insights to continuously improve results.
Figure 5. What are the biggest challenges of developing datadriven marketing initiatives?
Figure 6. Which of the following is most likely to have a positive
impact on your marketing programs?
Breaking down the silos of data between departments
to ensure the successful flow of information
61%
Reinventing processes and data workflows
Gathering and parsing data
56%
Defining audience and customer segments
56%
Focusing on complex technical solutions
54%
Telling the story of your brand and products
51%
Creating a single view of the customer
38%
48%
Finding the right skills and talent
44%
Integrating data silos
41%
Minimizing IT complexities
39%
Allocating more budget
36%
Greater collaboration among departments
36%
Changing organizational behavior
35%
Setting a data-driven marketing strategy or roadmap
33%
Accessible technology
33%
Improving leadership
30%
6 | DATA DRIVEN AND CUSTOMER CENTRIC: MARKETERS TURNING INSIGHTS INTO IMPACT
In fact, 41% of respondents believe that integrating
data silos is most likely to have a positive impact on
marketing programs, while 39% cite minimizing IT
complexities as a positive game changer (Figure 6).
Next, companies must create a roadmap that will help
them make better use of data for marketing purposes.
Currently, 62% of respondents are developing strategies and a roadmap for leveraging data based on their
business needs and challenges. In other words, they’re
still in the early stages of making use of marketing
data. In fact, a significantly smaller segment—44%—
can actually claim that their marketing is fully data
driven and achieving significant business outcomes.
Yet there’s plenty of reason to be optimistic: 39% of
respondents expect to make significant gains in
creating a roadmap in the next two years. More
than half (52%) plan to deploy two or more datadriven marketing initiatives in the same time frame.
And a third—33%—believe that setting a data-driven
marketing strategy or roadmap is most likely to have a
positive impact on marketing programs.
creative content, better understand where certain
prospects are within the buying process and target
them accordingly.
In fact, 49% of respondents describe their day-today access to real-time data as “very good,” with 43%
describing it as “excellent”—a distinct opportunity for
brands to close the gap between customer behavior
and how they react and craft campaigns accordingly
(Figure 7).
But the greatest opportunity afforded by data-driven
marketing is the ability to discover demonstrably
greater returns. More than half—57%—of respondents
report measurably increased ROI of their data-driven
marketing campaigns, which means there’s plenty of
financial incentive for brands to invest more heavily in
data collection and analytics (Figure 8).
With data fully integrated, and a roadmap in place,
brands are reaping never-before-seen benefits from
their marketing initiatives. Armed with actionable
insights into customer behavior, marketers can refine
how they communicate with audiences, tweak their
Figure 7. How would you describe your day-to-day access to
real-time data?
Figure 8. What has been the impact of data-driven marketing
on your organization?
Excellent
Changed our organizational structure
60%
43%
Has freed up strategic employees from administrative tasks
Very good
60%
49%
Satisfactory
8%
Has resulted in new hires to bring in new skills
Unsatisfactory
0%
Has measurably increased the ROI of our marketing campaigns
57%
Highly unsatisfactory
0%
Has automated ability to collect insights
59%
50%
No measurable impact at this time
1%
COPYRIGHT © 2015 FORBES INSIGHTS | 7
STRATEGIES: TRANSFORMING
CHAOS INTO CLARITY
Best practices: Embracing the newfound power of data takes more than innovative
technologies. Rather, advanced organizations establish best practices to glean greater
value from their data. While approaches may vary, there are a number of key strategies
that are emerging among today’s most successful marketers.
Take Target, for example. Today’s customer journey
traverses multiple touchpoints, from a consumer’s
smartphone to a company’s corporate website. Because Target knows that its customers connect with
the company across multiple platforms, Target focuses on creating “sessions” around each touchpoint—
targeted campaigns that use consistent and relevant
messaging that reflects a customer’s buying journey.
“We’re able to track customers as they move from one
device to another, which is helping us create these
marketing sessions instead of relying on a buckshot
approach of scheduling ads on a bunch of disparate
channels,” says Argyilan.
By knowing which products a customer is viewing on
a smartphone, and aggregating this information with
a customer’s favorite TV show or preferred mobile
phone app, Target can deliver personalized messages
that promote the right products, on the right channel.
In fact, 48% of survey respondents consider moretargeted campaigns and personalized messaging a
significant source of value derived from data-driven
marketing activities (Figure 9).
Savvy data-driven marketers are also leveraging data
earlier in the customer journey. Buying behavior and
demographic details can significantly influence a campaign’s messaging and content. However, more mature marketers like Nationwide are realizing the power
of consumer intelligence to actually shape an entire
campaign, from pre-launch to post-performance.
For example, Nationwide collected and analyzed vast
amounts of data on customers that were abandoning the process of receiving a competitive quote on
its automobile and home insurance policies. Next,
the company built a data analytic model that, when
populated with a variety of data such as demographic
details and purchasing history, could identify customers that were most—and least—likely to complete the
quote approval process.
As a result, Lemons says, Nationwide was able to
focus on a smaller group of customers that have a
8 | DATA DRIVEN AND CUSTOMER CENTRIC: MARKETERS TURNING INSIGHTS INTO IMPACT
higher likelihood of buying the company’s products.
The result: greater marketing efficiencies and cost
savings.
In fact, when asked where consumer intelligence/
data has the greatest impact on data-driven marketing initiatives, 64% of respondents selected the initial
deployment of a marketing campaign; 56% responded persona development; and 54% cited the planning
and strategizing phase of a marketing campaign—all
early stages in the digital campaign life cycle.
Figure 9. Which of the following are significant sources of value
derived from your data-driven marketing activities? Datadriven marketing…
Drives profitability
60%
Drives sales
54%
Enhances brand awareness
49%
Serves as a competitive differentiator
48%
Allows more time/focus on creative
48%
Creates more targeted campaigns and
personalized messaging
48%
Raises the profile of marketing
44%
Integrates marketing within the organization
44%
Improves employee satisfaction
43%
Improves customer experience and loyalty
40%
Increases efficiency and speed of decision
making/executing
35%
Business outcomes: For all the work that goes into crafting a data-driven, customercentric campaign, marketers are split on how best to gauge success. The good news is
many marketers are looking beyond dollars and cents to determine whether or not a
campaign is effective. When they were asked which best describes how you measure
the impact of data-driven marketing initiatives, the top three responses involved
customer experience: 56% responded customer loyalty; 55% answered customer
satisfaction; and 54% cited customer retention (Figure 10).
Allstate is another company that’s leveraging data
sooner rather than later. “It’s important for us to understand where you are in the buying journey,” says Moy.
“Are you someone who is not shopping but is likely
to this year? Or are you shopping right now? We’re
developing these segments even before the marketing messages to understand what these groups are
and what messages are most relevant to them.”
That’s not to suggest, however, that brands aren’t interested in the bottom line. Fifty-one percent of respondents measure the impact of data-driven marketing
initiatives in terms of profitability. In fact, Allstate measures both customer loyalty and bottom-line benefits
when gauging campaign success. “Our success metrics relate to generating quotes and sales, but we also
have to look at customer loyalty and satisfaction with
our existing customers,” says Moy. “So those are strong
and important metrics for us as well.”
Either way, Lemons of Nationwide says the key to
properly measuring campaign performance is remaining flexible. For example, when determining campaign
success, the insurer examines cost per buy—how much
Nationwide needs to allocate in marketing spend to
convince a single customer to sign on the dotted line.
Next, Nationwide relies on marketing mix modeling to
estimate the impact of its various marketing strategies
on sales.
“We’ve invested heavily over the last few years to
build up our marketing mix modeling capabilities, to
optimize the media mix and maximize return on investment,” says Lemons. “We’ll adjust our marketing
spend based on the feedback we receive each month.”
In addition to “rebalancing its portfolio of investments,” Nationwide also uses data to support initiatives on how best to time marketing initiatives and
where it’s worth funneling the most energy and resources into customers with greater profit potential.
“We had a lot of of hypotheses, but we didn’t have the
facts to back them up,” says Lemons. “The ultimate
skill is being able to take what you’ve learned through
data analytics and communicate it in a logical manner that is understandable by people who are not data
scientists. That’s how you can drive the appropriate
business results and actions from data.”
Figure 10. Which best describes how you measure the impact of
data-driven marketing initiatives?
Customer loyalty
56%
Customer satisfaction
55%
Customer retention
54%
Revenue increase
54%
Profitability
51%
New customer acquisition
51%
Revenue per customer
47%
Brand recognition
45%
Customer acquisition costs
44%
Website visits
43%
Lifetime value of customer
38%
Social media mentions/brand ambassadors
38%
Conversion rates
36%
Customer churn
31%
No visibility into the value created from analytics initiatives
0%
COPYRIGHT © 2015 FORBES INSIGHTS | 9
Team transformation/People principles: Savvy marketers are finding that it’s talent—
not tools—that is converting data into actionable insights. After all, a human touch can
produce the insights needed to help marketers better understand their customers and
make them a top priority. In fact, 44% of respondents cited finding the right skills and
talent as one of the factors most likely to have a positive impact on their marketing
programs (Figure 6). But there’s more than one way for organizations to bolster brain
trusts around their data-driven marketing strategies.
Concerned that “there just is not enough talent to
go around,” Argyilan says Target prefers to scour the
world for seasoned data specialists than to train internally. “We’re willing to recruit from anywhere,” she
says. “We leverage our talent in Minneapolis and also
have large groups of people sitting in Silicon Valley
and India. We are very intentional about understanding where the talent sits and building centers there so
that we tap into the pools of talent that are out there.”
For others, a more obvious answer is investing internally in employee training. After all, providing decision
makers at all levels the proper training and support
can help them master the power of data to better
reach their markets. For this reason, 47% of respondents believe hiring advanced analytics talent has
been an extremely important data analytics–related
investment, while 45% cite employee training as a
worthwhile investment (Figure 11). In fact, 61% of respondents use internal training as a way to encourage
data-driven marketing approaches.
However, not all data-analytics skills can be taught via
coursework, argues Lemons. “The ultimate skill is being able to take what you have learned [through data
analytics] and communicate it in a logical manner that
is understandable by people who are not data scientists,” he says. “That’s how you can drive the appropriate business results and actions from data.”
Yet nearly half—46%—of respondents cite finding the
right talent as an obstacle to translating data insights
into business opportunities. That’s because many
data scientists are unable to turn their sophisticated
“The ultimate skill is being able to take
what you’ve learned through data analytics
and communicate it [to] people who are
not data scientists. That’s how you can drive
the appropriate business results from data.”
—BRAD LEMONS
SVP of Customer Insights
and Analytics, Nationwide
10 | DATA DRIVEN AND CUSTOMER CENTRIC: MARKETERS TURNING INSIGHTS INTO IMPACT
Figure 11. On a scale of 1 to 5, with 1 being “Not Important” to 5 being “Extremely Important,” what have been your most important
data analytics-related investments to date?
1 – Not
Important
2
3
4
5- Extremely
Important
Employee training
3%
2%
12%
37%
45%
Hiring advanced analytics talent
1%
2%
7%
43%
47%
Deploying new marketing technologies
1%
1%
9%
34%
55%
IT infrastructure
1%
2%
10%
53%
33%
Consulting/professional services
2%
7%
27%
30%
35%
Data workflow and processes redesign
1%
4%
7%
52%
36%
Third-party data
3%
4%
16%
33%
44%
algorithms into compelling stories about a company’s customers. Conversely, many marketers are painfully illequipped to understand the data that’s shaping their
campaigns.
To address this issue, some marketers are overhauling their organizational structure. In fact, over a
third—35%—of respondents believe changing organizational behavior is most likely to have a positive impact on marketing programs.
The retail behemoth Target recently established a
center of excellence in data and analytics. This governing body ensures that data is managed securely
and consistently across the organization and focuses
on strengthening the company’s data, analytics and
business intelligence capabilities.
Nationwide is another example of a company that has
designed a unique organizational structure around
data-driven marketing. On the one hand, a data analytics group builds cloud computing environments
and data warehouses in order to properly centralize
data. On the other, a customer analytics group, which
sits within the marketing department, works on creating new models, managing marketing spend and
optimizing data processes. Despite these disparate
duties, Lemons says, “the two groups have to work
closely together because their needs overlap one
another.” In fact, he adds, “at Nationwide, IT and
marketing are joined at the hip to decide where
we’re going to invest in marketing technologies.
Every day is new when it comes to data and customer
expectations, so having the ability to manage that
together is important.”
And then there’s Allstate. The insurance company
boasts a center of excellence that ensures the right
data infrastructure and data-sharing policies are
in place. On top of this, a data and analytics lead is
assigned to every department across the organization, from marketing to product development, to
focus on more tactical issues that arise on a day-today basis when working with data.
Another way marketing leaders are fostering a datacentric culture is by encouraging greater collaboration
among key decision makers. At Nationwide, IT and
marketing “are joined at the hip to decide where we’re
going to invest in marketing technologies,” says Lemons. “Every day is a new day with data and customer
expectations. So having the ability to manage that together is important.”
Fifty-three percent of respondents describe the level
of collaboration between marketing and IT as “extensive,” and 51% rate the importance of collaboration
between marketing and IT as “extremely important.”
Similarly, 62% of respondents view collaboration between marketing and business analytics as “extremely
important.”
For Allstate, the key to encouraging greater collaboration is making sure that everyone’s needs are being met through data-driven marketing endeavors.
“Aligning our goals across the organization has been
COPYRIGHT © 2015 FORBES INSIGHTS | 11
Figure 12. On a scale of 1 to 5, with 1 being “little collaboration,” and 5 being “extensive collaboration,” how would you describe the
level of collaboration among the following departments/functions around data-driven marketing initiatives?
1 –Little
collaboration
2
3
4
5 - Extensive
collaboration
Marketing and IT
3%
4%
9%
31%
53%
Marketing and Operations
1%
4%
15%
52%
28%
Marketing and Business Analytics
1%
1%
14%
46%
37%
Marketing and HR
2%
5%
20%
43%
30%
Marketing and Finance
1%
4%
15%
31%
49%
Marketing and Product Development
1%
1%
14%
38%
46%
Marketing and the C-suite
1%
4%
15%
43%
36%
Functions/departments within marketing
1%
2%
27%
38%
31%
critical in encouraging cross-functional collaboration,” says Moy. “Whereas we used to be about driving the quote, our new focus now is on making sure
marketing is driving a quote in areas where we are
most profitable and most able to get the sales, so
that everybody benefits. It’s the right thing to do for
the company.”
Despite working hand in hand, more can be done to
encourage data sharing across an organization. Less
than half—39%—of respondents “strongly agree,” and
45% “agree,” that data from marketing campaigns is
actively shared across the organization—a missed opportunity to pool resources and data expertise.
12 | DATA DRIVEN AND CUSTOMER CENTRIC: MARKETERS TURNING INSIGHTS INTO IMPACT
If there’s one thing organizations share, it’s an opinion on who should spearhead data-driven marketing initiatives. Seventy-two percent of respondents
describe the role of CEO as a key driver or decision
maker in the development of a data-driven marketing strategy. Thirty percent of respondents cite a chief
marketer, and 48% of respondents consider the role of
chief analytics officer to be that of a key driver/decision maker.
FUTURE:
WHERE DO WE GO FROM HERE?
As organizations increasingly recognize the relevance of data-driven marketing, they
are investing more heavily in the necessary tools, talent and technologies. Consider
this: 25% of respondents invested between $25 million and $50 million in data
analytics over the past two years (Figure 13). However, nearly the same number—23%—
expect to invest between $50 million and $100 million over the next two years.
So where are these additional dollars most likely to be funneled? More than half—56%—of respondents say that deploying new marketing
technologies is most likely to be important in
the next two years. One of these important technologies is programmatic ad buying. In fact,
46% of respondents strongly agree that programmatic ad buying is a key component of a marketing
strategy (Figure 14). Nearly half—49%—of respondents are currently in the process of implementing
a programmatic approach to data-driven marketing.
And 67% of respondents report that programmatic has helped improve segmentation and targeting
of customers.
Thirty-one percent of respondents believe that technology should be an organization’s top priority to
become world-class at data-driven marketing in the
next two years (Figure 15). But a whopping 69% believe
that people-driven factors—organizational structure,
talent, or culture—should be the key priorities.
Figure 13. What is the total investment (people, technology, processes, etc.) that your organization has made over the past two years,
and expects to make over the next two years, in data analytics?
Now
2%
18%
10%
19%
Less than $1 million
25%
15%
11%
Between $1 million and $5 million
Between $5 million and $10 million
Between $10 million and $25 million
In Two Years
2%
20%
Between $25 million and $50 million
Between $50 million and $100 million
12%
10%
23%
Over $100 million
19%
14%
COPYRIGHT © 2015 FORBES INSIGHTS | 13
That’s a far cry from the past, when the majority of
organizations did not offer training and education to
develop their employees’ data-driven marketing skills.
Moving forward, investing in employee training will be
a critical game changer.
Another way savvy companies are preparing their
teams for the growing complexities of data-driven
marketing: change management. After all, not all marketers are eager to embrace the chaos of introducing
data-driven marketing strategies and technologies.
“Being willing to change is critical for marketing people,” says Lemons of Nationwide. “It’s always going to
be a challenge to change your way of thinking based
on data and analytics because it’s still new.” The secret, he says, is striking a balance between questioning the data you collect and trusting in its accuracy.
Personalization will also play a greater role in helping
marketers reach customers as the chaos grows. By
being able to anticipate a customer’s query via analytics, Lemons says, a company can respond faster to
queries and with greater consideration for who they
are as an individual and what channels they’ve already
been through. “We view every customer interaction
as an opportunity to get smarter and better at meeting needs,” says Lemon. Better yet, he says that by
creating predictive models, a company can “enter the
mode of knowing what people are likely to call about.
That way, it’s possible to be ready to provide them
with the right information in an efficient manner, the
first time they call.”
Figure 14. How has programmatic impacted your organization?
For every customer query Nationwide would like to
intercept, there’s a personalized message Target is
hoping to send to its preferred audience. “There is an
expectation from our guests that our messaging will
be personal,” says Argyilan. “That stems from what
they’re experiencing through some of their favorite
channels like Facebook, Google and others. Customers want digital marketers to really understand their
behavior and interests so that we personalize the experience for them.” All of which is a promise that only
data-driven marketing can deliver.
Moy of Allstate agrees. “Data is driving a fundamental
change in marketing, from a traditional mass-market
approach to a much more targeted, one-to-one approach, which we think is good for consumers,” she
says. “We’re using data to find the most attractive targets, and then to connect with them with information
that’s specific to their individual needs.”
For example, Moy says, Allstate’s agents used to rely
on “a Rolodex of people” to identify and acquire new
customers. However, Allstate is currently piloting a
program that provides agents with access to more
detailed information on “the people in their neighborhood who are most likely to become customers—insights through the use of consumer data—that make
these conversations more productive for both the
agent and the prospect.”
Figure 15. What should be your organization’s top priority
to become world-class at data-driven marketing in the next
two years?
Improved segmentation/targeting
67%
Increased efficiencies
19%
52%
Increased the need for third-party data providers
52%
20%
Needed more training
31%
30%
Needed new talent/capabilities
29%
Needed to restructure the department
28%
Has not had a significant effect
2%
Technology
Organizational structure
Culture
Talent
14 | DATA DRIVEN AND CUSTOMER CENTRIC: MARKETERS TURNING INSIGHTS INTO IMPACT
31%
RECOMMENDATIONS
The customer journey is dramatically changing. No longer do consumers move
along a straight and simple continuum. Rather, multiple device use and new channels
such as social media are making it harder than ever for marketers to pinpoint where
customers are in their journey.
Luckily, there are a number of steps savvy marketers can take to stay one step ahead:
1.
REACH CUSTOMERS WITH MESSAGES THAT MATTER.
By delivering content that is contextually relevant and at the precise moment a customer
is about to make a buying decision, brands can ensure they make the greatest impact
possible on consumers.
2. BE AUDIENCE-CENTRIC IN YOUR MARKETING INITIATIVES.
To accomplish this, brands must eliminate data and technology silos, ensure
consistency across the entire buying journey, prepare their teams for success and
establish a clear roadmap.
3. MASTER YOUR DIGITAL MARKETING WORLD
WITH LIGHTNING-FAST RESPONSES TO YOUR DATA.
By acting on insights in real time, marketers can effectively build creative and effective
conversion strategies.
4. REMEMBER IT’S TALENT—NOT TOOLS—THAT HAS THE GREATEST IMPACT
ON DATA-DRIVEN MARKETING.
The latest and greatest marketing technologies are always impressive, but humanity
plays an even bigger role when it comes to reaping value from your data. Make sure
C-level executives are on board with marketing initiatives, the right organizational
structure is in place (i.e., a center of excellence) and that teams comprise both skilled
marketers and experienced data scientists.
In the end, data-driven marketing campaigns aren’t just supposed to engage
customers and drive sales. If executed properly, they can change important business
practices so that data insights will have lasting results.
COPYRIGHT © 2015 FORBES INSIGHTS | 15
METHODOLOGY
The data in this report is derived from a survey of 162 U.S.-based
senior executives conducted by Forbes Insights in September 2015.
Respondents represented a range of industries, including retail,
telecommunications, technology, consumer packaged goods,
automotive, banking, advertising/marketing, energy, travel, media
and insurance. All companies had at least $250 million in annual
revenues; 25% had at least $1 billion in revenues.
ACKNOWLEDGMENTS
Forbes Insights and Turn would like to thank the following individuals
for their time and expertise:
Kristi Argyilan, Senior Vice President of Media and Guest Engagement, Target
Scott Hudler, Senior Vice President of Global Consumer Engagement, Dunkin’ Brands
Brad Lemons, Senior Vice President of Customer Insights and Analytics, Nationwide
Pam Moy, Vice President of Marketing Analytics, Research and Administration, Allstate
16 | DATA DRIVEN AND CUSTOMER CENTRIC: MARKETERS TURNING INSIGHTS INTO IMPACT
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