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DATA EMPOWERMENT
DEVELOPING DATA STRATEGIES AND TACTICS FOR PROFITABILITY
By Steven Schnoll
ABOUT THIS WHITE PAPER
In a world where content travels at the speed of the internet, mobile devices, and social media,
one can shape thoughts and decision making in minutes. Effective delivery of subject matter
is essential to every type of enterprise no matter how big or small.
WE LIVE in a DEMOCRATICALLY DRIVEN CONTENT REVOLUTION
There is no technology more pervasive to orchestrated content marketing in the digital age
than data management. The digital business universe is growing at a phenomenal rate and
the driving force is data. The amount of data collected is expected to grow to 44 zettabytes
(a zettabyte is 1,000,000,000,000 gigabytes). The challenge facing most content communication
companies is not only being overwhelmed by the massive amounts of data but effectively
managing it for the benefit of customers. So, what does this all mean to a typical Print Service
Provider (PSP) attempting to survive in this dynamic data-driven omnichannel world?
Very simply, a strategic data plan must be put into place. This white paper will highlight some
of the key points in developing a growth strategy surrounding the smart use of data.
KEY TAKEAWAYS
1. Defining data
Data is everywhere. The vast range of data points
collected on people and entities is what makes data
management so essential. Defining these data points
is the first step in the process.
2. Capturing the right data and then leveraging it with
personalized direct campaign marketing
With the world swirling around with big data it can often
be a daunting task to collect the most meaningful and
relevant data for a marketing campaign. Many small to
medium sized organizations have either no or outdated
data/content management software. Assist them to
achieve meaningful results and a better data experience
and you have a winning formula. Remember, the eyeballs
can be found in print, online, and mobile. Where and how
to capture is critical.
3. Empowering your company in driving
customer engagment
The tools to leverage data can be very confusing and
complicated. Effectively managing the process defines
success or failure.
4. T
he Five Rights Paradigm
Marketers are learning. The target audiences they want
to reach are made up of millions of data points. Marketers
want to ensure they are reaching the audience correctly,
and the only way to achieve that is following the
“Five Rights”.
5. Security issues
The issues to maintain a secure environment for hosting
data can be costly but are essential.
6. Analytics
The key to data management is proving results.
Doing a personalized marketing campaign has no value
without proving ROI.
KEY PAIN POINTS CONCERNING DATA
• Determining methods for collecting data.
• Integrating multi-channel media, often termed
“the omnichannel”, into current business models.
• Understanding that you really don’t have a choice;
you must provide data management services.
• Identifying the right suppliers or internal people to
get a data program operational.
• Learning the data strategies and tactics that
will stimulate sales, control costs, and improve
processes to drive profitability.
DEFINING DATA
Data is everywhere, and one of the best opportunities
for profitable growth lies in mastering it for print and
omnichannel communications. The question is: how does
one easily define data?
Very basically, data comes in two flavors: Big Data and Little
Data. Big Data, according to sas.com, encompasses large
volumes of data — structured and unstructured — that
inundate a business on a day-to-day basis. For example big
data is every transaction at a bank, airline, or brokerage
house. Little data, according to technopedia.com, describes
data that relies on targeted data acquisition and data mining,
such as what individual customers purchased at a local
retailer. Whatever the flavor of the data, though, it’s not the
amount of it that’s important, but what organizations do with
it that matters. And between print and other omnichannel
uses, there is a lot that a print provider can do.
An important term that relates to defining data is
“patternicity”. This word refers to the human tendency to find
meaning in random events. Gathering Big Data or Little Data
into useable forms is the corner stone of “patternicity”. This
sounds logical, and all marketing programs today hinge on
knowing the vital information obtained on marketing targets
and then leveraging it successfully. Good marketers look
for partners who can assist in determining buying patterns,
event patterns, and things that can be used as a predictive
model for future actions. The poster child for this type
of marketing is Amazon, with their astute predictive
modeling software. This is where Big Data and Little Data
comes into play, because if you don’t know anything about a
customer’s past habits, you are wasting marketing dollars.
For example, those direct mail pieces addressed to Dear
Neighbor, Occupant or Friend are destined for the trash bin
because they lack any kind of targeting. And, with the price
of postage skyrocketing, that generic direct mail piece just
wasted valuable dollars with little or no return. So, if the
printer can acquire basic data management skills, great value
can be achieved for a customer. Printers who master data
management are destined for success.
CAPTURING, GATHERING, AND LEVERAGING DATA
BIG DATA, LITTLE DATA, SMART DATA—THE RIGHT DATA
Every good marketing plan today begins with collecting
relevant data. The problem is most small to medium
organizations find this a challenge they can’t handle. There
is no one real location for the customer to find all their data.
Most often data is siloed in many different locations. It can
be found in human resources, sales and marketing, finance,
production, and shipping. Data may also be obtained from
3rd party sources to either complement existing files or
as a virgin source. There is no one right structure, and as a
consequence, this is the perfect opportunity for a printer to
offer a simple solution: become the one unifying entity for
data capture. The PSP must offer database management as
another viable service offering.
DATA SOURCES
There are several methods for pursuing the capture of data.
1. I n the case of many business-to-consumer (B2C) retailers
the answer may lie in credit card data or sales receipts.
A customer makes a purchase and the items purchased are
detailed. This type of information is critical for leveraging
predictive analytics, one of the key success tools that has
propelled companies like Amazon and Vistaprint.
2. For business-to-business (B2B) organizations most often
it can be found in accounts receivable information. When a
company makes a sale, the invoice describes all the details
of the work performed.
3. Acquiring information from 3rd party vendors is yet
another avenue. There are many excellent data list
companies who can provide excellent lists based on
certain criteria i.e. ZIP codes, income levels, age, marital
status and family information, etc. Remember these
lists are only rented for a specific set of uses. One never
actually purchases a list.
OUTSOURCING VS. INTERNAL
Once data files are obtained, the next issue that surfaces
is: how do I handle data internally? There are two potential
answers. One, hire an outside company who specializes in
data management services, or two, train people internally
or hire tech savvy new employees.
Starting out with the latter approach can often lead to
complications. One of the best routes is to start with an
outside service and then start a migration path to training
people internally to eventually make the switch. Management
often claims there is no one currently in place to handle this
type of work. That probably is not accurate. Today millennials
live on digital devices. There is a strong likelihood a young
current employee is a tech savvy gamer and would be eager
to take on this new corporate challenge.
For a printer to truly manage data properly one must
establish a secure data infrastructure. For a small to
medium sized printer just starting out, this may be costly
and challenging. Quite often the answer lies in finding an
independent data management company who can optimize
data capture and provide the proper security in a safe and
compliant environment.
SOFTWARE
A critical aspect of gathering data is the software
mechanisms used to collect, cleanse, merge, purge, and
mine. There are many excellent software packages in the
marketplace. One must understand that spreadsheets like
Excel or any other CSV type of file are flat files that don’t
permit value searches or manipulation. While these types
of files may provide a good source for basic data collection,
relational software packages are essential.
The software list below, while not all inclusive, is a beginning
as to what is available in the marketplace. The total number
of companies providing relational data software is much
too extensive to detail in this white paper. The list
provided herewith starts with the basics and works to
the more complex.
Non-Relational
• Excel
Relational
• FileMakerPro
• MS Access
• SQL
• Oracle
• Amazon RDS
Big Data Software
• Hadoop
• ContractRoom
• Capterra
• Apache
STORING CUSTOMER DATA: INTERNAL SERVER VS.
EXTERNAL CLOUD
There has been a great deal of controversy over the best
means to store a customer’s data. The two best options are:
The Internal Server: The internal methodology is building a
sophisticated dedicated server farm infrastructure internal
to the PSP business. Extensive research must be done to
ensure the proper hardware and software are purchased.
To deploy new servers and keep up to date with expanding
customer demands can be costly and physically challenging
to meet space requirements. The internal server farm,
however, often increases peace of mind for companies,
yet it also creates the need for more comprehensive
management tools and rules.
The External Cloud: Most businesses have already started
to use this model; it is becoming quite pervasive in business.
The SaaS model, Software as a Service, is the humble
beginning of cloud technology. This is the model that allows
companies to rent software and have it delivered securely
over the web, integrated to one’s backend systems.
This helps users reduce and eliminate more of their IT
assets. The cloud initially was thought to have security
issues, but that fear has basically disappeared with the entry
of Amazon, Microsoft, Oracle, etc. into the market. These
models align with current CIO strategies of reducing IT
capital, consolidation, and reducing IT operational costs
so they can drive business innovation.
EMPOWERING WITH DATA
Patternicity illuminates probabilistic behavioral patterns
that will identify consumers or other potential customers
who are “in market” at a given time. If one has deterministic
data points that show a definitive pattern and can provide a
timely communication to that individual or organization, then
there is a high likelihood of achieving a positive result from a
marketing campaign. Having the ability to collect data points
that are meaningful and then provide a relevant message
to a subset of consumers with that data with a personalized
message brings data to a realistic level. The PSPs that
provide this kind of service to marketers are truly making
waves and profits. Making a difference with focused
data-driven marketing requires an arsenal of many different
mediums and techniques.
Understanding your customer needs so they may meet their
respective customer needs is what data empowering is
all about.
When printers are often asked about how they use data,
quite often a confused answer is provided. If data is used
properly, clients who employ an omnichannel approach
to targeting customers generally will achieve measurable
results. The days of “spray and pray” are gone. So where
does a printer start to harness the power of data and
fuel the growth of their respective customer’s business?
It all begins with a strong omnichannel plan of managing
orchestrated content, with data being the core. PSPs who
provide data management services seem to be showing
a healthier financial picture. By adding multiple, ancillary
digital services to their service portfolio, these companies
can now offer total campaign project management. As
a result many have rebranded themselves as Marketing
Service Providers (MSP) or Content Service Providers (CSP).
ROLE OF DATA
• Monitor buying patterns
• Demographics
A core component of dealing with data is data mining, which
entails sorting through huge data sets using sophisticated
software to identify undiscovered patterns and establish
hidden relationships.
• Psychographics
• Lifestyles
• Behavior patterns
• Existing customer analysis
• Predictive modeling
1
ATTITUDES
9
2
VALUES
BEHAVIOR
8
PATTERNS
ROLE OF
DATA
7
3
HABITS
4
HISTORY
INCLINATIONS
6
NEEDS
5
PREFERENCES
Some of the methods of successfully enabling the role of
data are:
VARIABLE DATA PRINTING
The middle word in VDP is data. As discussed earlier, most
printers fear data, a fear that can result in an inability (or
unwillingness) to do personalization. One of the great profit
opportunities of digital print is personalized direct mail
pieces. It behooves the printer to find sources of expertise
that can teach them the proper methods to execute
personalized direct mail programs.
There are many personalized marketing software programs
available for the PSP to use. These software packages
integrate data along with graphics into targeted direct mail
or email communications.
EMAIL BLASTS
Email is a pervasive marketing technique that has become
a norm for communication. Email campaigns, when run in
conjunction with personalized direct mail, can boost the
results. The challenge is to get past the targets’ spam filters.
Generally, the best way to achieve that is leveraging the
printed piece with, personalized URLs (pURLs).
PERSONALIZED MICROSITES (pURLs)
A pURL is a unique and personalized Landing Page created
especially for each recipient of a direct mail or email
marketing campaign. When an individual goes to the internet
and types in their unique pURL address, they are taken to a
personalized Landing Page. Each time they visit the site, all
activity is tracked on a dashboard. The owner of the site is
instantly notified of the visit and any information submitted
through the landing page form is recorded for follow-up.
Typically, pURLs are used in conjunction with a direct mail
campaign, or with email marketing.
Typical results from using pURLs are:
• T
he ability to track responses in real time,
and receive email alerts to instantly follow up
with interested prospects.
• Engage customers at a deeper level by collecting
valuable information from your prospects, and using
that information to make subsequent campaigns even
more relevant.
DIGITAL ASSET MANAGEMENT
Part of any successful personalized marketing campaign
is inserting relevant graphics in the direct mail piece or
microsite. Digital photographs, animations, videos and music
exemplify some of the typical media assets inserted. To do
this requires Digital Asset Management (DAM) software.
The term “digital asset management” also refers to the
protocol for downloading, renaming, backing up, rating,
grouping, archiving, optimizing, maintaining, thinning, and
exporting files.
MOBILE APPS
According to the New York Times there are over 5.5 million
mobile apps. Mobile apps are software applications designed
to run on mobile devices such as smartphones and tablet
computers. These apps are becoming a very important part
of any personalized marketing campaign. Apps allow for
many actions to happen easier and faster, which seems to
be the growing desire of basically everyone. They can easily
connect a target who has downloaded an app to the cloud
for tracking customer data by using point-and-click tools
in minutes. Developing the capability to build mobile apps
for customers is very aligned with the whole topic of data
management. They work in combination.
FIVE RIGHTS PARADIGM
Marketing Automation is a proliferating phrase.
Data technology has significantly enhanced the methods
organizations employ to reach a target audience while
using automated marketing techniques. Data technology
has paved the way to improved marketing efficiency and
then measuring defined results with the capability to offer
predictive add-ons. However, when business professionals
discuss personalized marketing they must also consider
the Five Rights concept. If each of the Five Rights is not
executed properly, then achieving the desired results of
any marketing campaign may be in question.
insight into contact preferences and history to help shape
the best relevant message. When a PSP can work with a
customer to successfully execute a program with analytics
to support the ROI, one has gained a trusted position in the
eyes of the customer.
Some the benefits of using the Five Rights within
marketing campaigns:
When the Five Rights are employed, marketers realize more
fruitful outcomes with potential and existing contacts.
When one can track personalized behavior patterns “patternicity” - it makes interactions far more relevant.
Current data marketing software has the tools to gain
• Improved lead generation
• Relevant touches with target audience
• Acquisition of better market intelligence
• User friendly outcomes
• Measurable results
FIVE RIGHTS
RIGHT
MESSAGE
* Schnoll Media Consulting
RIGHT
PERSON
RIGHT
TIME
RIGHT
MEDIUM
RIGHT
REASON
SECURITY
When analyzing security for a data center there are many
considerations. The PSP MUST create a documented best
practices plan. Some points to consider:
1. Physical Security Checklist
a. Fire Protection
b. Key/Code/Card Issuance policy
c. Physical location in a low crime area
d. Door, Window & Lock construction
e. Flood protection, 2nd floor data center
f. Disaster recovery /Business continuation plan
g. Remote backup site
h. Cabling areas locked/protected
i. Data Center areas have limited access
j. Access logs kept on Data Center (or card access)
k. Customer data on restricted number of machines
l. Power/UPS and Air Conditioning redundancy
m. Access & Destruction of old media, paper, scrap,
proofs, spoilage
n. Employees have badges & limited access to
customer data
o. Document/Media marking, handling & storage of
customer-sensitive data
p. PCs and portable equipment secured and signed out
q. Restricted use of USB drives
r.
Laptops, mobile devices and PCs have biometric entry
s. L
aptops, mobile devices and certain PCs have
encrypted drives
2. Firewalls
The firewall is the core of a well-defined network security
policy. The goal of any firewall protection software is to
create rules that only allow the specified connections to
enter and prevent hacking from unknown outsiders.
3. Virus Protection
Antivirus software is a must for every computer data
system. Without it, a company risks losing critical
information, files, and any other stored information.
4. Network mapping
A company can’t protect what it doesn’t understand.
Network mapping provides a picture of the network (servers,
routers, etc.) and its connections. Furthermore, network
mapping can capture applications and associated data.
A robust mapping capability will map the dependencies
between applications, data, and network layers.
5. Human element
Employees must be trained to implement security policies
that they will accept and use. Effective security awareness
must be cultivated, watered, and grown. Automation can
curb, but not fix the human threat exposure. Security must
blend transparently into the workflow wherever possible. It
should flow into every department, not just the front office.
6. Customer documentation
Creating a document that clearly delineates the procedures
in place to protect the data files entrusted to the PSP.
7. HIPAA
The Health Information Portability & Accountability Act
(HIPAA) covers the handling and storage of personal
medical information and transactions. Personal information
regarding an individual healthcare plan or any health-related
information is subject to HIPAA compliance and restricted
access. Understanding HIPAA requirements is a must if doing
healthcare work.
ANALYTICS
The key to any marketing campaign is to clearly demonstrate
profitable/intended results that can be defended.
Data analytics (DA) is the science of examining raw data with
the purpose of drawing conclusions about that information.
Data analytics is used in many industries to allow companies
and organizations to make better business decisions and
achieve sales results.
Analytics help entities determine the success of a
marketing campaign. If a PSP can play a pivotal role in the
analytics, they ensure that they will continue to be a part
of the customer engagement process. Analytics help an
organization understand the position of the target audience.
Knowing which
customers are
WORTH MORE
to the
bottom line!
Most
Loyal
Competitor
Risk
PREDICTIVE ANALYTICS
Several years ago, a new online retailer, Amazon, developed
a whole new digital business model. One of its core
components was predictive analytics. Now many other
companies, including Vistaprint, have brought that same
customer engagement strategy to a whole new level. Brands
historically always attempted to create an emotional
attachment to their products and services through loyalty
programs and outstanding service that attempted to build
more profitable customers that were less sensitive to price.
Predictive analytics navigation process provided a new
methodology to review purchasing habits or patterns to
produce personalized suggestions of related products that
a target may like. This takes the whole analytical experience
to new levels. When a printer can provide this type of service
to its customer they have the potential to better secure
customer loyalty.
Old
Leads
KEY ANALYTIC PSP POINTS
• W
hat metrics to use to determine your marketing
programs accountability.
• Proving your customer investment is not a waste
of money.
• Evaluating the price of success.
• How to understand the relative economics between
customer acquisition, retention, and CRM.
• How to measure process improvements that will
have the most impact.
CONCLUSION
The future of personalized omnichannel campaign marketing is based on the
simple slogan “knowledge is power”. Never lose site that no matter what or
who the market is, people are filled with emotions that trigger decision
making. Collecting relevant data on those emotions is simply one tool in
the marketing arsenal to hit the “five rights” relevancy button.
If the PSP understands the database concept, that creates a very
valuable value added service. Keeping up with the world of data
management can provide some essential best data practices
to help their customers achieve successful personalized
marketing campaigns and in turn a profitable business
model for themselves.
DATA + RELEVANT CONTENT +
ANALYTICS + MULTI-MEDIA =
RESULTS
ABOUT THE AUTHOR
Steven Schnoll
Steven Schnoll is the managing director
in the consulting firm of SCHNOLL
MEDIA CONSULTING. He has had
leadership and ownership interests
spanning several decades in five content
media organizations and one software
company. He has built a reputation as
a practical innovator for companies
attempting to enter new markets or
revitalizing existing markets. Steven
was inducted into the prestigious Ben
Franklin Honor Society of the Printing
Industries of America in 2008.
This analysis was commissioned
by Canon Solutions America and
NAPCO Media to help printers better
understand how today’s technology can
optimize their production and how they
can benefit by adopting these solutions.
Canon Solutions America, Inc., a
Canon U.S.A. Company, provides
enterprise, production print and
large format solutions, supported
by exceptional professional service
offerings. www.csa.canon.com.
For more information, call or visit
1-800-815-4000 CSA.CANON.COM
Canon is a registered trademark of Canon Inc. in the United States and elsewhere. All other referenced product names and marks are trademarks
of their respective owners and are hereby acknowledged. ©2017 Canon Solutions America, Inc. All rights reserved.
3/17-066-1144