Deciphering Big Data Is Key to Understanding Buyer’s Journey

Long before a sale is won or lost, customers and prospects embark on what can be called the “buyer’s journey.” This journey is a complex evolution spanning the entire lifecycle of the customer-vendor relationship, beginning with identification of the underlying business issue or need, and culminating in vendor selection.

Long before a sale is won or lost, customers and prospects embark on what can be called the “buyer’s journey.” This journey is a complex evolution spanning the entire lifecycle of the customer-vendor relationship, beginning with identification of the underlying business issue or need, and culminating in vendor selection.

Along the way, the prospect engages in a wide breadth of activities. Some are internal, such as winning over key stakeholders, building internal consensus and acquiring the necessary budget; while others are externally facing. For example, market research, engaging with colleagues in similar firms to share experiences, and of course contacting salespeople for product demos and pricing negotiation.

I do not claim to have coined the term ‘buyer’s journey.’ For more information on it, you can check out a great article by Christine Crandell that appeared on Forbes.com earlier this month. Among other things, Crandell does a great job explaining how social media can be leveraged to better connect with and understand the buyer’s journey, particularly during times when prospects are not engaged with your sales team. What’s especially interesting about the concept of the buyer’s journey is that prospects are actually unengaged with your firm during the vast majority of this process. Engagement only begins when prospects start their market research and contact a salesperson—usually not before.

Now how does this relate to database marketing? Well, it does in two huge ways. On a strategic basis, any marketer worth his or her own salt knows that effective marketing depends getting your message in front of qualified prospects as inexpensively as possible. In order to do this effectively, identifying how prospects are researching the marketplace is key. Why? Because this is where your prospects are spending much of their time, this is where you need to have your brand appearing front and center. So, from a marketing spend point of view, without a doubt this is where you’re going to get the most bang for your buck.

Now, of course, this is far easier said than done. It’s going to take a ton of market research, including customer interviews, focus groups, industry insight and general analysis to identify how your customers researched the marketplace prior to making a purchase. Did they attend key industry trade shows or events? Do they belong to specific peer or networking groups? What publications do they subscribe to? Whatever the answers to these questions are … well this is where you need to be.

Another key to deciphering the buyer’s journey is understanding how the prospect is engaging with your firm across all Key Performance Indicators (KPIs). This understanding can only be arrived at through a deep analysis of every touchpoint between you are your customers. The best way to achieve this is to identify and extract customer and prospect data wherever it may reside. There are no shortcuts here. For large organizations, it can be located in an email broadcast tool, CRM, ERP, Marketing Automation Solution or purpose-built Master Data Management (MDM) Hub, among other places.

Now, of course, this means extracting and sifting through tons and tons of data—everything ranging from garden variety campaign analytics to purchasing history, from personal attributes to company insight, from demographic data to psychographic profile. Tracking, archiving and sorting out all this information is big business. In fact, many in the industry are now referring to this reality as ‘Big Data,’ as companies track and store vast troves of information that they need to make sense out of. In addition to the physical IT infrastructure required to capture and store the information, making sense out of it often requires technical expertise. Without wanting to veer off topic, if this sounds interesting then I suggest turning to NPR, where an interesting and in-depth story on Big Data aired on November 29, 2011.

As I was saying, once the data is extracted, you need to make sense out of it. Paramount to this task is the process of creating robust user profiles replete with detailed demographic, psychographic and, of course, (for B2B) firmographic information—in effect, multi-dimensional user profiles—and mapping it back to KPIs that help identify engagement patterns and behavior central to the buyer’s journey.

Once user profiles have been established, this is where the fun parts comes in, as marketers leverage this information to create compelling offers that speak to the various customer segments. The good news is that recent technological innovations have made this job much easier and more effective. Using marketing automation tools, it’s now possible to broadcast varying sophisticated drip marketing campaigns to various segments of your database—segments that can now easily be created using complex rules based on both list attributes and user engagement. What’s more, the marketing message itself—email creative, direct mail piece, landing page, and so on—can now be highly personalized based on profile data, resulting in higher response rates, reduced media costs and, of course, improved customer satisfaction.

I hope this all makes sense. Any comments or feedback are welcome.

The Database Marketer Superhero: Expanded Role, Big Impact

Riddle me this, Batman: What sort of marketing strategies today require deeper, strategic database insight? Not so puzzling, is it? Pretty much everything a marketing team does today is driven by data — e.g., digital outreach, content, media, attribution, return on investment analysis, lead nurturing, PR and social community participation. In fact, the list would be shorter if we tallied up those marketing functions that don’t benefit from data-driven decisions.

Riddle me this, Batman: What sort of marketing strategies today require deeper, strategic database insight?

Not so puzzling, is it? Pretty much everything a marketing team does today is driven by data — e.g., digital outreach, content, media, attribution, return on investment analysis, lead nurturing, PR and social community participation. In fact, the list would be shorter if we tallied up those marketing functions that don’t benefit from data-driven decisions.

Database marketers were traditionally the geeks of the marketing department. They kept to themselves, ran queries to answer questions posed by other strategists, and worked hard to keep data clean and updated. Today’s database marketers are part of an emerging and essential marketing operations team that’s driving a lot of brands’ strategies. One marketer said to me recently, “Whomever knows the customers best gets to make the call.” Who knows your customers better than the people working with the data every day? All of a sudden, database marketers are superheroes — or at least have the opportunity to wear capes if they choose to accept the challenge.

There are two factors driving this trend, one being consumer habit. Given the ability and choice to interact with brands in many ways and across many channels, consumers are taking full advantage. It’s a me-centered consumption world where customer preference and whim create habits. At the same time, marketing automation technology is advancing and data integration is possible. Marketers can track and, more importantly, react to customer behavior in order to meet needs across channels.

Consider these five initiatives that have become imperatives for many chief marketing officers today:

1. Obtain a 360-degree view of the customer. One B-to-C marketer told me that there are more than 25 ways customers can interact with her brand, from a kiosk to a store counter to email to mobile commerce to branded website to call center to social communities. Most consumers participate in three or more of those channels. Communications can only be optimized if those habits and experiences are captured — and actionable — in your database.

2. Respond to customer behavior in the channel where the interaction occurred. This also has to be aligned with self-selected preferences.

3. Select the optimal channel for your next offer. A hotel owner uses past booking behavior to send last-minute alerts via SMS to those who have opted in and accessed the brand’s mobile commerce site. All others get the information via email. Response has boosted overall 8 percent.

4. Outline personas representing key customer segments. Do this in order to profile audience types and improve communication messaging and cadence.

5. Test and optimize your mix of channels for lead nurturing campaigns. For a live seminar event, one B-to-B marketer emailed reminders and offers based on interaction with previous email campaigns. Those who didn’t respond got simple reminders on date, location and keynote speakers. Those who did respond got more robust offers. Revenue from the offers increased 50 percent over the previous year and spam complaints dropped 25 percent. This is surely because those who demonstrated a willingness to engage prior to the event were nurtured with offers that made sense to their actions, and the others were left alone.

I’m sure there are infinite variations of these opportunities. Perhaps you’re testing some of them now. It will also be great to see how database marketers react to this new level of attention and interest from the C-suite. Will you embrace it and join the strategists, or will you run back to the corner and take orders?

How are you and your team embracing the need for a data-driven marketing approach? Please tell us by posting a comment below.

Olympics Advertisers Fail to Go for the Gold

During the 2008 Olympics, advertisers in both the U.S. and U.K. largely failed to use paid search marketing to promote themselves online after their national teams’ won gold medals.

This bold statement came to me from Steak, a digital marketing and search agency headquartered in New York and London.

Between them, the U.S. and U.K. won 55 gold medals at the 2008 Olympic Games, finishing second and fourth, respectively, in that category behind leader China.

During the 2008 Olympics, advertisers in both the U.S. and U.K. largely failed to use paid search marketing to promote themselves online after their national teams’ won gold medals.

This bold statement came to me from Steak, a digital marketing and search agency headquartered in New York and London.

Between them, the U.S. and U.K. won 55 gold medals at the 2008 Olympic Games, finishing second and fourth, respectively, in that category behind leader China.

In the release, Steak said “analysis of search traffic showed significant spikes in interest in athletes following their gold medal win, signaling an opportunity for sponsors, news organizations and other advertisers to connect with interested consumers.

But Steak’s research shows that few seized the opportunity to use paid search to capitalize on a positive association with the Olympic stars. Search ads showed up against just 35 percent of the U.S. and U.K. gold medal winners’ names. Among others, advertisers who sponsor medalists in particular missed out on some of the highest-profile moments, Steak said.

Steak noted that search interest in U.S. swimmer Michael Phelps, who won a record eight gold medals, skyrocketed between Aug. 10 and Aug. 17, according to its analysis of Google Trends data.

Steak’s research also shows that Phelps’ corporate sponsors, such as Speedo and PureSport performance drinks, started running paid search ads against the swimmer after well after he gained his eight medal.

Similarly, Kerri Walsh and Misty May-Treanor, the popular winners of the women’s beach volleyball gold medal, failed to generate much interest from advertisers. Neither their sponsors nor the AVP or FIVB beach volleyball tours, in which both athletes compete, capitalized on their respective Olympic successes, according to Steak.
Food for thought…