Data Driven Marketing
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Transcript of Data Driven Marketing
Data Driven Marketing
What, why and how to
Agenda
What DDM is and isn’t
Why do you need to think about DDM
What are the important components of DDM implementation
New marketing tactics approach
How to implement DDM in your company
© 2016, Alexei Cherenkov -- 2
What DDM is and is not
Definition, components of Data Driven Marketing
Personalized
Customer centric
Transactions to insights
Digital enterprise
Components
Stop the mess
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What is Data Driven Marketing?
Shortly speaking, this is the system of marketing management where key decisions are done based on exact figures.
To achieve this, marketing must collect data about everything, and carefully analyse it so insights could be used for upcoming activities.
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Data Driven Marketing is customer centric
It s all about customer
All interactions of company with customers (clients and prospects) are recorded in the form of transactions - we get (big) data.
Where is customer in these data hills?
Customer response to the company touches is the most important transactional data for business
Customer behaviour is what we need to collect, analyse and predict© 2016, Alexei Cherenkov -- 5
DDM is a part of Data Driven Enterprise
General trend is in digitalization of enterprise
In the future, each department will be data driven
Actually, Finance Department is data driven for dozens of years
Now, we are talking about conversion of very non-digital department - marketing
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What is inside DDM
●Business process automation - Marketing Technology or MarTech ●Changes in marketing business processes●Changes in business processes of peer organisations (legal
department, sales department, procurement, internal audit, vendors, etc.)
●Changes in marketing team ●Analytics and Data Science are a thread included into each
business process
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What DDM is not
Some people and even management of big companies do not understand new marketing well, and therefore mash things.
Email distribution system, even sophisticated with triggers and analytics is not equal to DDM, it’s just a component of MarTech
DDM is not equal to MarTech (Marketing Technology); however MarTech is a major component of DDM
Analytics is not equal to DDM, however it’s important componentDigital marketing is just a channel in marketing mix
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A couple of thoughts about Analytics
In Data Driven Marketing, all decisions are made based on exact figures derived from raw client data.Analytics can be used in one of 3 forms:
Descriptive (what happened in the past) Visualisation of tables summarising behaviour of clients and business
processes in the form of charts. Decisions are still made by marketeers based on their ability to make conclusions.
Predictive (what will happen in the future) Uses Data Science to estimate hidden interactions to help marketers making
non-obvious decisionsPrescriptive (what we must do)
Uses Data Science to generate decisions © 2016, Alexei Cherenkov -- 9
Why do you need in DDM
Historical overview
Why now
What if you skip it
What’s new?
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Why did DDM concept appear now
- Historically, market relations were based on personal 1-to-1 communications
- Mass production required mass marketing therefore manufacturers treat each customer as “average client” to get access to the widest markets
- Later, technology of market research allowed segmentation and more precise targeting
- Now, technology (IT, data collection, machine learning) allows returning to personal communications on the next level
- DDM establishes mass communication so client feels it as a personal treatment © 2016, Alexei
Cherenkov -- 11
What challenges in traditional marketing
Traditional marketing always was “a bad child” in the most of companies.
Marketing department was assumed to be “spender” just because it was difficult to measure ROI. Everyone knows that marketing is required, but it was so easy to cut budget because marketing didn’t operate with exact figures.
Look, what challenges are reported by CMOs:
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What’s new in DDM
DDM is an evolution inspired by recent development of e-commerce. Major difference of traditional marketing:
Each marketing touch and response (tactic) is accumulated in warehouse.
Therefore, analysis of exact data allows controlling money expenses and money revenue.
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Why DDM is better than old-school marketing
Result of every planned marketing campaign is predictableTherefore, company can get slightly more revenue out of smaller set
of clients using less marketing budget - because of deeper segmentation and client behaviour modelling
Quality of service is higher and loyalty is increasing because of personal communication emulation
Management of the company immediately observes ROI
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MarTech What is marketing automation
Market landscape
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What is Marketing Automation (MarTech) 1/2
MarTech isn’t only about triggers in email marketing, or web site design.
Automation of strategic marketing planning. Data driven plans use:
exact numerical analysis of previous wins and fails; current status of all customers and cohorts;budgets and expenses; resources (assets, vendors, people, timings);etc.
Automation of marketing campaign planning (on a tactic level)Campaign mapsBusiness processes define how team executes the plan © 2016, Alexei
Cherenkov -- 17
What is Marketing Automation (MarTech) 1/2
Automation of work with marketing assets Videos, Event presentations and White papers Website and SEOTelemarketing scriptsEmails and direct mails, etc.
Automation of recording of all eventsMoney spent on each tacticMessages sent, to whom, how many opened, etcWhom called to with what offer with what result
Automation of lead nurturingAnalytical dashboards to include exact figures in decision making
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Is there demand
In USA, many companies already use DDM in their work and many plan to implement in the near future
Europe is ready and some worldwide enterprises start building departments, however many smaller companies still not ready (while use elements of DDM such as data science or digital marketing)
Russia & similar countries are far behind the trend; a couple of leaders (telecom, banks) just started this journey
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Core of automation is client database
Database governance is a special discipline within enterprise
Law, permissions, PI, security - absolute must
Do not delete record! Just flag them
Data quality is the most important topic, and you need to develop a special client data quality strategy
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New marketing tactics
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Marketing campaign
Plan. Campaign map and checklist.
Execution and recording
Analysis and insights
Plan based on insights
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Campaign planning
Customer journey understanding
Asset management
Cohort descriptionCohort - the segment of clients passing now the same stage of customer journey
Sequence of tactics - campaign map
Multichannel
Proper tagging and metrics/analytics inclusion © 2016, Alexei Cherenkov -- 29
Digital marketing
SEO, SMM, E-mails, Google Analytics - all are “projection” of Data Driven Marketing to Internet channel of communication
Digital / Mobile Marketing aren’t a standalone disciplines
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Campaign execution
Test it before going live!
Test vendors
Test database (and project counts)
Test campaign map
Test web site
Test automation© 2016, Alexei Cherenkov -- 31
Marketing metrics
Roi is the main
Intermediate KPIs - funnel health, conversions etc
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Data Driven Marketing Department
Enterprise stakeholders
Vendors
Other Departments
Clients and Prospects
MarTech
Client Database (or CRM)
AssetsPlans, Budgets,
Maps
Analytics, Data Science
Marketing team
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How to implement
Prerequisites
Where to start
Changes in team
Procedures
When to stop
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Go to DDM
Data Driven Marketing approach should be implemented step-by-step, over the current marketing.
Change manager - a special dedicated PM for this transitionMajor prerequisite for this transformation:Management of the company must see the necessity
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Investments in DDM
Company stakeholders and Marketing department manager have to understand that they will not get immediate return.
MarTech assumes investments in specialists, software and its implementation
Client Data Base assumes continuous investment in data acquisition, support, cleaning and refreshment. At least 18 months these investments will not bring any profit. Usually Client DB is a further development of CRM
It is necessary to define relations with other teams in the form of business procedures: with sellers, legal, finance, procurement and with external vendors. Many will be unhappy of this formalisation. © 2016, Alexei
Cherenkov -- 36
Investments in DDM - team
It is necessary to reorganise roles in marketing team and new business processes implementation - after that they can be automated
Train marketing team to work in the new environment, with software and figures. Teach them to use analytics
It can happen that some team members can’t adoptNew team roles appear and new team members to be taken
onboard: web developer, campaign analyst, SEO analyst, database governor, etc
Аналитика и data science будут работать в DDM только в случае, если корректно проделаны шаги
- по автоматизации (понятно, иначе не будет данных)- по трансформации бизнес-процессов (иначе результаты
аналитики не могут быть применены к последующим активностям маркетинга, реплицированы)
- по обучению или изменению состава сотрудников и их отношения к аналитическим показателям
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Investments in DDM - analytics
Analytics and data science are very fashion words however they are just decorations if other components aren’t implemented
Without martech no raw data will be collectedWithout business process transformation analytical results couldn’t
be properly used Without changes in team analytical results will be just thrown
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Investment into the future of your business
Your company will be unable to compete with those who already implemented DDM
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DDM strategy
Data Driven Marketing is a part of general Data Driven Enterprise.
There are many components already in place:
Accounting software is well known for decades
ERP and CRM is in use by many companies since end of previous century
DDM is a continuous and long-term transformation. It must have clear strategy of it’s implementation and usage
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Questions?Ask me:[email protected]
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