Welcome to the New Marketing Analytics.
In the New Marketing Analytics the authors articulate a process “Roadmap” for the development of a data analytics strategy. The Roadmap can be used as the starting point for designing an implementation plan for your data-marketing pilot. Understanding this process is critical for senior management as they begin making decisions on the budget and personnel resources required, as well as, the potential payoffs of the program.
Each step of the Roadmap is a functional part of your data-marketing platform. How you address each is dependent on your build/buy business philosophy, strategic plan, budget and available personnel resources. This can also be a useful checklist when talking to and evaluating potential vendors to support your project.
The process template is a closed loop that functions by taking customer data from the database to design and implement marketing campaigns. At the end of each campaign all the activity generated (data) is put into the database. This helps improve our understanding of customer behaviors; and makes us smarter with each campaign.
Within the Roadmap there are eight “core” elements of your strategy that are critical for success. We break them down into two categories: “organizational” and “mechanical” success factors. Organizational factors are those that deal with challenges from your organization/culture and mechanical are those factors involving process and technology.
Organizational Success Factors:
Designating a project lead. Projects are successful when they have an advocate within the leadership team. A team leader who understands the technology, process, marketing and company politics of your new program is a definitely a critical success factor.
A culture that supports data-driven decision making. There are many organizations where the conventional wisdom comes from the antidotal experiences of individuals on the leadership team. Introducing data that identifies “best” customer segments and their preferences for marketing and service delivery will begin to challenge a lot of this previous “wisdom.” This can cause tension within the team. A culture that embraces these new insights will help smooth out this potential conflict.
Dedicate adequate resources. Many smaller financial institutions do not have a full time marketing department. They traditionally have responsibilities that are more tactical like collateral materials, managing events and branch signage. A project of this scope requires additional dedicated resources. Staffing this project with associates who already have a “day job” will not work.
Establishing realistic goals. Many institutions that have successfully implemented data-driven marketing have done so over a period of time. Typically the project starts with an outsourced pilot program. The pilot is low cost/low risk and validates the concept for management; providing the confidence to proceed. Growing your data analytics functionality over time so that your organization can catch-up and internalize the changes at each milestone helps create a long-term, custom built solution for your institution.
Mechanical/Process Success Factors:
Data governance and administration. It is important to have a process and individual accountability for the security of your customer data. A component part of this success factor is the implementation of processes to ensure the prudent use of your database. This means standards have to be set (and enforced) on the number of times customers can be contacted, the types/sequence of offers and offering the opportunity for members to “opt-out.”
Data Management. This success factor includes the collection, warehousing and analysis of your data. For this to be successful, the IT and Marketing departments need to work well together. IT has the expertise to implement the technology; Marketing has responsibility for the output and to define the end user requirements.
Data Discovery. This involves the analytics process to derive insights from your customer data. These insights will drive new marketing, sales and service programs. The process needs to be consistent with your business plan and marketing objectives; although sometimes it is fruitful just go fishing and see what happens. The primary deliverable of this process is the identification and evaluation of potential marketing opportunities.
Campaign Development/implementation. This process translates customer insights into effective marketing. The marketing opportunities identified in your data discovery are now becoming marketing campaigns. A common mistake in this process is to propose creative that is appealing to you…or the boss. As we begin to use data, the big shift happens, moving your marketing orientation from selling products to selling members (needs based selling).
It is important to remember that introducing a data-driven marketing program is not intended to change your brand or the way your customers perceive your organization. In fact, it is just the opposite. In a marketplace where many of your customers will only be in a branch one or two times a year it helps to reinforce the positive aspects of your brand and help them make informed banking decisions.
We offer formal education programs; so your team not only understands the processes for using data-driven marketing but how it will evolve your organization structure and culture and how they can be drivers of this positive change.