3rd Pick in the 2013 Marketing Cloud Acquisition Draft Is …

Tick-tock. Tick-tock. Gosh, it is almost getting boring around here waiting to see where the next selection will go. Salesforce grabbing up ExactTarget with the first selection was the first big surprise. Not so much the ExactTarget side, because there had been rumors for some time that ET was on the market.

Tick-tock. Tick-tock. Gosh, it is almost getting boring around here waiting to see where the next selection will go.

Salesforce grabbing up ExactTarget with the first selection was the first big surprise. Not so much the ExactTarget side, because there had been rumors for some time that ET was on the market. The surprise was more about Salesforce jumping into the fray. Oh, they definitely needed this acquisition or one like it. For all the great tools that Salesforce has for gathering, organizing, prioritizing and listening to your contacts and gathering data, what they have never had is a robust and efficient way to segment and actually reach those valuable contacts. ExactTarget gives them that one big missing capability through the ET campaign management platform, along with many fresh concepts and ideas in social opportunities.

The other gem in what Salesforce picked up in this acquisition, and what likely drove the total price of ExactTarget so high, is ET’s recent purchase of Pardot to strengthen their own marketing automation growth plans. Even the Salesforce CEO gushed about the inclusion of Pardot in his Twitter post around the purchase, thrilled that the transaction included: “The fastest-growing marketing automation and lead nurturing company for Salesforce users.”

But that price. Wow—$2.5 billion. Worth it? Yes, most likely, in the long term. But in the short term, it is a real drain on the cash flow for Salesforce; probably severely limiting other expansion plans or possibilities. It seems painful enough that now, just a month later, they have had to take out a $300 million loan to carry the cost. I have to believe that Salesforce is certain that the long-term cross-sell and integration possibilities for both companies will make it all worthwhile.

Then a few weeks later, an even bigger shock when Adobe slips in to scoop up Neolane. Another big matchup that fits the overall strategy needs of both organizations. While I hadn’t heard of any open shopping of Neolane, it makes sense that they would be eventually in the crosshairs of a larger enterprise. A strong set of campaign management tools, a top-line roster of satisfied clients, a steady string of industry honors and awards during the last four or five years, and continuous innovation of the product line toward achieving “visionary” ranking across three separate areas in Gartner’s “Magic Quadrant” reports and named a “leader” in Forrester’s “Wave” report. There was a whole lot of upside potential waiting there for the right suitor. Like Salesforce just a little earlier and Oracle in 2012, before the Eloqua acquisition, Adobe was the big man on campus in its primary business, but has stumbled about in efforts to build a suite of contact management and execution tools that would translate to the market segments outside of its solid base of agency clients drawn in by its creative leadership. Neolane will certainly be able do that and bring powerful new strategic offerings to the Adobe table.

So the 2013 first- and second-round picks have been completed. Where do the prognosticators think the next two or three picks will fall? Silverpop, which had also flirted with Salesforce in the past, seems primed. But who trades up to get them? SAS maybe? Or are they completely satisfied with their own marketing automation tool? They might jump in to keep up with the Joneses in finding a way to up the game on their existing marketing automation capabilities. Or maybe SAS goes for top-gun Marketo, which is always talked about in merger potential conversations, but never seems to work out the final details of a deal. How about Microsoft? Do they take their time, because they had the last move in 2012 when they picked up Marketing Pilot, or do they decide to make the bigger splash with one of the big dog free agents—either before SAS moves, or will they wait for one of the other choices? There are plenty of potentially available independents out there ready and willing to be courted. And there is never a shortage of companies looking to add a ready-to-serve subsidiary to their arsenal.

So who do you think will be the next CRM/Marketing Automation data darlings to join forces toward World Marketing Domination? Take a guess, email it to me, and I will dig up a special prize for the first one—or ones—to get it right.

5 Reasons for ‘Why Now?’

With the lingering, precarious feelings about the state of the economy, along with plenty of concerns about the business climate in general, I find that there is always a great deal of hesitation around beginning any kind of large- or even medium-complexity project focused on data. In many instances, the general consensus from senior management and even ancillary groups outside of the marketing and data management groups is the company has been doing fine with everything just the way it is, with plenty of “If it ain’t broken we don’t need to fix it” or “Let’s focus on increasing revenue this quarter first” pushback to proposed projects.

With the lingering, precarious feelings about the state of the economy, along with plenty of concerns about the business climate in general, I find that there is always a great deal of hesitation around beginning any kind of large- or even medium-complexity project focused on data. In many instances, the general consensus from senior management and even ancillary groups outside of the marketing and data management groups is the company has been doing fine with everything just the way it is, with plenty of “If it ain’t broken we don’t need to fix it” or “Let’s focus on increasing revenue this quarter first” pushback to proposed projects.

The problem with the first is, quite simply, if corporate data has been ignored, or even just on the back burner for any length of time, it is most assuredly broken. Perhaps it is not critically broken yet, but losing clarity, focus and relevancy in keeping up with the evolving goals of the organization. Bloated with obsolete or irrelevant information and systems fragmented; lagging behind on improvements and upgrades, databases become slow, unreliable and frustrating for both the front-line users and for their management teams who are looking for answers that are surely there but, unfortunately, cannot be mined with the speed and efficiency expected. Of course, when this occurs the frustrations grow and we begin to see various business groups take what pieces of data fit their responsibilities and start building and updating the silos which eventually hamper, rather than contribute to, enterprise-wide success. There is no feedback of newer and more relevant information to the main repository; there is no coordination of contact strategy or organized tempo or voice to communication. What evolves is chaos in overlapping or possibly opposing communication from different areas of the same company. It is a sure way to spur the erosion of customer respect for your products and services, along with a vision of incompetence from prospective customers confused by who you are and where you are trying to lead them.

The problem with this is most organizations will not recognize it as a problem. The groups creating the silos and working from there are perfectly happy to have their own source of whatever data they need. No hassles with requests or production queues. They are able to report the results of their efforts in isolation so management only has to see the rosiest picture. Unfortunately—and exactly because of the isolation factor—little if any sales, lead generation, updates or contact changes ever make it back to the primary data warehouse and the remainder of the organization is not able to share in the refreshed information that will help their efforts, as well.

The cure for that, and the answer to the “Let’s wait” feedback, is for the marketing and IT leaders to jointly be prepared with a roadmap of “Why now” proposals for the value of organizational refresh and consolidation that can resonate across the enterprise.

1. Cost containment: With a single platform view of customers and prospects, with vigorous updates and enhancements from every touchpoint, campaigns are able to be streamlined, based on full knowledge of RFM. Consolidation of duplicated software and vendor charges that are being utilized across multiple silos will allow every department to free up much-needed budget space.

2. Increased Productivity: With budget room made available, allocations can be shifted to incorporate the speed and upgrade solutions within the existing resources. Increasing both throughput and volume while optimizing manpower performance and efficiency.

3. Reducing Risk: Utilizing a centralized team to oversee data operations ultimately reduces the risk and exposure caused by violations of corporate policies, governmental regulations and industry best practices. Contact preferences are able to be maintained and shared across all corporate business units on every channel.

4. Customer Journey: No responsible marketer deliberately sets out to overwhelm, annoy or even spam existing customers and prospects. Without centralized deployment and tracking, however, you will be doing exactly that, oblivious to the damage you are doing to your reputation.

5. Increased Revenue: Removing all of the risks, poor decisions and duplication of effort alone will create a much more streamlined approach to providing all of the proper and most effective strategies for finding, developing, nurturing and hopefully establishing long-lasting client relationships. Consumers, regardless if in a B-to-C or B-to-B environment, buy from companies they respect and trust. Revenue grows and is sustained just as steadily by the quality of your relationship with customers as it is by the quality of your products and services.

Healthy, professional relationships and contact strategy are the value-added-benefits you can quantify and demonstrate to even the most ardent rebels across the company. Use the data you have readily available in your system to show every business unit leader the facts. Prove to them the upside potential that a solid, professional and, most of all, highly reliable marketing automation or CRM solution can provide in boosting revenue year over year. Stealthily, but honestly turn the naysayers into advocates with clean and simple facts.

Do that, and the conversation shifts from “Why Now?” to “How Soon?”

The Data Czar and His Ministers

I live in a relatively small, rural town of 50,000 residents spread over 61 square miles. My specific neighborhood still has a good number of original owners of the development that was built in the early 1960s, attracting those young families looking to escape from the cities and using their GI benefits from WWII and Korea for life in the country. Those early Baby Boomers are aging now, leading to a fair share of emergency calls for assistance. During the last five or six years, I have watched something develop in response to these events which puzzles, amuses and often annoys me.

I live in a relatively small, rural town of 50,000 residents spread over 61 square miles. My specific neighborhood still has a good number of original owners of the development that was built in the early 1960s, attracting those young families looking to escape from the cities and using their GI benefits from WWII and Korea for life in the country. Those early Baby Boomers are aging now, leading to a fair share of emergency calls for assistance. During the last five or six years, I have watched something develop in response to these events which puzzles, amuses and often annoys me. There was a time not long ago when a 911 medical call would bring the local First Aid squad to triage, treat or transport the patient to the ER. Now, however, that same 911 call will bring an ambulance from the neighborhood First Aid squad, the local volunteer fire department and the town police department for the initial evaluation. And then, very often in more serious cases, the Regional Trauma Ambulance will be brought in for transport and treatment. Aside from the fact that every one of them will look to bill an insurance company, the overkill of five response teams converging on a single location is wasted time and effort.

That, my friends, is a perfect real world analogy to the cursed data silos that are always lamented by marketers and database analysts. Every team and business unit wants more than their piece of the communal data pie, but hold on tightly to their own secret stash of hot leads and information.

In larger towns and cities, especially those looking to implement shared services, you now see more appointments of a single public safety director covering and coordinating all police, fire and emergency service departments rather than having individual chiefs for each.

For those of us in the business of marketing, retention, loyalty, acquisition and other roles within a larger organization, it is becoming more and more beneficial to utilize a Data Czar for the coordination, application and rules enforcement across all available resources. This position filters through all the noise, all the excuses, all the naysaying to ensure that the resources are utilized for the bottom-line greater good of the entire company.

As in the example of the community Public Safety Director, the Data Czar cannot function as a middle-level management position trying to coordinate well-established and usually powerful teams. This role has to have the authority and autonomy to demand the cooperation and involvement of the team leaders across all business entities as a direct report to the most senior corporate leaders. In a larger organization, it would be a C-Level individual with the support and direction of the CEO or president. Whether the Data Czar is a team of one, or heads up a Data Forensics and Business Intelligence group focused on the discovery and integration of every data resource is entirely up to the focus of senior management in their goals and direction for the company.

The initial task to getting started is a deep dive of discovery with every department or business unit to create a full and accurate inventory of data sources, which includes methods of acquiring and updating; where and how it is stored and secured; available formats and content; any limitations of use; and an understanding of how this data is used in the performance of business functions.

As the initial data dive phase is moving along, a secondary discovery would begin across all of the teams and departments, determining who needs what data, why it is important to their team, how often they use it and where it is utilized. Along with the critical needs of currently available data here is a good opportunity to find wishlist items for other known or potential data resources that might provide lift to response or even incremental revenue opportunities if additional data were readily available.

Then, gathering up all of the collected information, the Data Czar brings it all back to the office and dumps it all into the giant magic funnel that spits out a complete and accurate business model document which gets distributed, never to be seen again.

Or … maybe … not quite so fast.

In reality, the real project begins at this point. As I quoted in last month’s post on integrating the vision of Big Data, “A commitment to a desired business outcome is the critical success factor,” and there will most likely be a phased approach based on immediate short-term goals vs. the long-term direction for the profitability of the company. Working with the company direction in mind, the Data Czar will turn to the various business analysts, data strategists, research, intelligence and security team members, as well as business unit leaders to develop the final plan.

This plan will include the policies and procedures for measuring ongoing success and adjustments. It will address the consolidation and inclusion of all data determined to be relevant to success, the appropriate segmentation, cadence, tempo and channel of contact with existing customers vs. prospects and leads. The plan will determine attribution of revenue to the data source, ownership and time limits of hot, medium and cool leads vs. the general marketing pool. It will determine adherence to corporate, industry, governmental security and best practice policies.

In all, it will establish the initial framework for all things data. Never will it be final, but the Data Czar role is not a short-term project. The position will set the standard for the organization’s data strategy and direction for years to come and will settle a lot of interdepartmental bickering over usage before it happens—and especially before petty feuds escalate up toward the boardrooms.

How Big Is Your Vision?

Way back in the Internet dark ages of January 1996, Bill Gates wrote about and coined the phrase “Content Is King.” He was talking of course, about Web content and the need for people and organizations hoping to monetize the Internet to consistently produce fresh and relevant topics in order to gain the interest and loyalty of viewers, just as television had been doing, radio before that and print media the longest of all. His assertion that “over time, someone will figure out how to get revenue” from Internet advertising is frighteningly similar to today’s gurus predicting much the same in regard to social media marketing. Just as back then—when companies and marketers struggled with deciding whether a Web presence was needed—today there are still major corporations only testing the social media waters, even if only half-heartedly, to keep pace with competitors.

Way back in the Internet dark ages of January 1996, Bill Gates wrote about and coined the phrase “Content Is King.” He was talking of course, about Web content and the need for people and organizations hoping to monetize the Internet to consistently produce fresh and relevant topics in order to gain the interest and loyalty of viewers, just as television had been doing, radio before that and print media the longest of all. His assertion that “over time, someone will figure out how to get revenue” from Internet advertising is frighteningly similar to today’s gurus predicting much the same in regard to social media marketing. Just as back then—when companies and marketers struggled with deciding whether a Web presence was needed—today there are still major corporations only testing the social media waters, even if only half-heartedly, to keep pace with competitors.

For me, however, two lines in the Gates vision statement take on a slightly different connotation than his thoughts on content: “The definition of ‘content’ becomes very wide” and “Over time, the breadth of information on the Internet will be enormous, which will make it compelling.”

I read those two lines and what immediately strikes me is the overwhelming amount of data being generated during these last 17 years and how it is being captured, nurtured and put to work in areas such as Lead Generation, Brand, Affinity, Cross-Channel and Retention marketing. If at all.

IBM has an infographic regarding the flood of Big Data they use in demonstrating how their Netezza device handles integration for several major marketing organizations. This shows how, with connectivity, speed and bandwidth issues having become nearly eradicated during just the last two to three years, the amount of collectible, actionable data has exploded.

Unfortunately, the amount of irrelevant and useless data being collected is even greater than the actionable data, and being able to simply store that much data, let alone begin to organize and digest it all, is a major concern for most organizations. Before even thinking about the incorporation of Big Data initiatives, there should be an organizational review of quality for the existing information held in the collective datamarts that feed the central repository used for decision-making. Long before Big Data, the issue of Bad Data must be addressed.

Whether you are a B-to-B or B-to-C marketing entity, the creep of inaccurate data is constant across every customer and prospect contact you currently maintain. Experian-QAS has a stark reality “Cost of Bad Data” infographic showing the millions of dollars lost each year as a direct result of inaccurate and incomplete contact information. Complacency and budgetary shortcuts speed the process even more. Whether it is via an in-house effort or using third-party tools and vendors to perform ongoing hygiene, the vitality of your contact strategy is not sustainable without regular maintenance.

Once secure in the clarity and accuracy of your core data, you can move on to the integration plan for all of the additional goodies sprouting up from the Big Data seeds being sewn across every outbound and inbound marketing channel being utilized. But again, more planning and decision-making is critical before just jumping in and trying to grab every nugget. Perhaps the Fortune 50- to 500-level corporations might have the resources to take this on in one massive project, but I doubt that many small, mid or even larger brands can just dump everything into a pot and begin using the information gleaned into a successful series of campaigns. In a SAS/Harvard Business Review whitepaper I read recently; “What Executives Don’t Understand About Big Data,” this quote stood out to me:

“What works best is not a C-suite commitment to ‘bigger data,’ ambitious algorithms or sophisticated analytics. A commitment to a desired business outcome is the critical success factor. The reason my London executives evinced little enthusiasm for 100 times more customer data was that they couldn’t envision or align it with a desirable business outcome. Would offering 1,000 times or 10,000 times more data be more persuasive? Hardly.”

Having the foresight to develop phased approaches for data incorporation based on both short- and long-term ROI is the most realistic approach. Using results from the interim stages provides the ability to thoroughly test and analyze and measure value, keeping the project moving forward steadily while minimizing roadblocks to the longer-term goals.

My initial recommendation for the process would be along the lines of:

  1. C-Suite leadership establish the long-term goals for organizational success and with other Senior Management develop the phases to follow based on data, budget and resource availability to be assigned through each phase.
  2. Set the expectations and build the benefits case of the project across the entire company, communicating these goals in order to coordinate the gathering and availability of resources needed from whatever silo in which they reside.
  3. Design the KPIs that will be required in determining accuracy of marketing integration of the insights being introduced during each phase.
  4. Test and Measure every step of each phase for completeness and success before moving on to the next.
  5. Build simple and multivariate test panels into marketing campaign segmentation to analyze what new data elements truly provide sustainable lift in response.

I would love to hear your thoughts.

But Your Data Is Fine, Trust Me …

Data … that great big, hairy gorilla in marketing departments all across the globe. We have Legacy Data, Subscriber Data, Third-Party Data, Business Data, Personal Data, Master Data, Sales Data, Reference Data, Privacy Data, etc., etc., ad nauseum. Now, during the last few years, the latest and greatest—Big Data and its cousin SoMoBi (SocialMobileBig) data have entered the fray enough to make everyone’s head spin.

Data … that great big, hairy gorilla in marketing departments all across the globe. We have Legacy Data, Subscriber Data, Third-Party Data, Business Data, Personal Data, Master Data, Sales Data, Reference Data, Privacy Data, etc., etc., ad nauseum. Now, during the last few years, the latest and greatest—Big Data and its cousin SoMoBi (SocialMobileBig) data have entered the fray enough to make everyone’s head spin.

No matter what you want to call it though, it just boils down to simple information. Information all you marketers crave. Information about your customer, your prospects, your products, your competitors and the trends that will steer you to hitting those numbers in the next and future fiscal quarters.

There is just so much of it, you say? No one here knows what to do with it, I hear? Every department controls a piece of it and refuses to share, is the excuse?

Maybe true. But, with a little time, effort and—of course—some of those ever-scarce budget dollars, you can create an environment where the grain can be separated from the chaff to build a healthy and robust universal silo of data which will benefit and streamline the efforts of every area of your organization efficiently and profitably.

There is no cookie-cutter data model for the business needs of every organization, despite the host of plug-and-play database tools and marketing automation processes available today. The information that makes your business research and marketing program successful is likely to be much different from what works for even your closest competitor.

At the core, your primary contact data for customers and prospects needs to be acquired and maintained as strictly as possible. My good friend, Bernice Grossman, along with fellow direct marketing legend Ruth Stevens, have a whitepaper I always refer to when providing guidance to anyone striving to establish or reorganize the variety of information that quickly begins to accumulate from different sources, in multiple disparate formats. Written as a guide for B-to-B organizations, the reasons and methodologies hold true for B-to-C. Even with the changes in data availability and the explosive growth of social data availability in the industry during the last few years, the white paper addresses the core data requirements for contact and communication.

Outside of the core basics of data needed to contact, track and segment your data pool, determining exactly what it is that gives you the edge is Priority One in deciding what else you must have available to make decisions. In every conversation or discovery session around data and database design within a CRM, the persistent desire that comes up is wanting a “full 360-degree view of my customers.” While that is possible with simply the basic contact information you have as the core of your data, along with whatever historical transactions available to provide RFM, most users expect a much deeper dive. At the more extreme illustration of designing your data around the optimal user experience, you have this infographic from Visual.ly that has been making the social media rounds. While extensive, the many comments on the sites where it has been posted point to even more data sources being needed to be all-encompassing.

If you, and your business goals, are like most, your time and budget is more likely going to place your need somewhere between the most basic and the most extravagant of these two extremes.

Discovering your own sweet spot is where the best value proposition is to create and maintain profitability for your business. That is where I hope to focus in the posts that will follow on a regular basis. I will be sharing points of interest, ideas, solutions and strategies for identifying the most accurate and efficient steps to take in planning the housing and process flow of all the data you need for success … with a dose of irreverence sprinkled in liberally along the way.