Take Command of Marketing Data Governance—Because We Have To

The emergence of “big data” as an enterprise concern for many businesses and organizations is, as with most trends, both an opportunity and a concern. I recently was involved in reviewing new and recent Aberdeen Research on “Big Data”—how it is defined, how it is changing information volume (astounding in quantity), variety (both structured and unstructured, with tremendous pressure to integrate and make sense of it), and velocity (pushing the insight, analytics and business rules that flow from such data to lines of business that can best profit from it).

The emergence of “big data” as an enterprise concern for many businesses and organizations is, as with most trends, both an opportunity and a concern.

I recently was involved in reviewing new and recent Aberdeen Research on “Big Data”—how it is defined, how it is changing information volume (astounding in quantity), variety (both structured and unstructured, with tremendous pressure to integrate and make sense of it), and velocity (pushing the insight, analytics and business rules that flow from such data to lines of business that can best profit from it). An infographic that captures some of this research is now posted at Mason Zimbler, a Harte-Hanks Company, which created the visual presentation.

Alongside this current fascination and business trend, perhaps it’s not surprising that members of Congress, both Democrats and Republicans, also are posing questions at the marketing business as to how we collect, buy/sell, rent and exchange data about consumers online and offline, and if there is adequate notice and choice in the process. In the rush to capitalize on Big Data, we need to ensure that we’re collecting and using marketing data for marketing purposes only, and doing so in a manner that is respectful of fair information practices principles and ultimately serves the end-customer, be it consumer or business individual or enterprise. [See Rep. Ed Markey, D-MA: http://markey.house.gov/content/letters-major-data-brokers.]

All too often, privacy adherence is considered a legal matter, or an information technology matter—but I maintain that while these two business areas are important in respecting consumer privacy, it is marketers who have the most to gain (and lose) by smart (or insensitive) information practices. Data is our currency, and we must treat data (our customers as data subjects) as our primary asset to protect. Our method of marketing is in the balance. One or two major privacy mishaps can spoil it for everyone.

Of course, marketing data governance is far more than privacy compliance. Data quality, data integrity, data security, data integration, data validation and data flows within an enterprise all, too, are part of marketing data’s customer intelligence equation. It is in this spirit that the Direct Marketing Association recently introduced its newest certification program for professionals: “The Institute for Marketing Data Governance and Certification,” taught by marketing veteran Peg Kuman, who is vice chair at Relevate Group. The three-day course, which has launched on a two-year, multiple-city tour, is indispensable in understanding how multiple channels, multiple data sources and platforms, customer expectations and business objectives combine to command better understanding, tools and processes for data handling for smart integrated marketing. Forthcoming course dates and registrations are available here: http://www.dmaeducation.org/dm-essentials/marketing_data_governance.php

For three days last month in New York, approximately two dozen professionals from large and small enterprises, both commercial and nonprofit, attended the first seminar. I, too, attended. There were representatives from marketing, public relations, analytics, legal, IT and fundraising, representing brands, agencies and service providers. This group was engaged—providing examples, asking questions and reporting experiences as the curriculum moved along. (For those who don’t know Peg—a former client of mine—she is quite the facilitator.)

Alongside a workbook, I took home some great handouts, too:

  • A sample security policy; a sample information security vulnerability assessment;
  • A security due diligence questionnaire;
  • A sample vendor risk management program vendor questionnaire;
  • The latest copy of the DMA Guidelines for Ethical Business Practice (recently updated with new email append guidelines, by the way) and a bevy of news articles that captures the media’s and public policymakers’ current attention on consumer data in America.

The meat of the course tackled, among other topics:

  • Categorizing data and assigning priority and sensitivity (personally identifiable information, sensitive data and other categories);
  • Mapping data flows and interactions with customers; enhancing data with appended information, and ensuring its use for marketing only;
  • Having a data quality strategy as part of a data strategy;
  • Calculating return on data investment;
  • The emergence of digital, mobile and social data platforms, and how these present both structured and unstructured data collection and insight analysis challenges;
  • Assigning data “ownership”;
  • Calculating and assigning risk regarding security;
  • Monitoring security, investigating potential incidents of a breach, and handling a response to a breach were it to occur (using recent breach response examples of LinkedIn and Epsilon); as well as
  • Laws, ethics and best practices for all of these areas.

One of my concerns is the importation of European-style privacy protection in America, and current fascination with such protections by U.S. regulators and elected officials. That is worth another blog post in itself, but I can assure you that we need to educate politicians about the superiority of self and peer regulation where no consumer harm exists.

Thank you, DMA. Marketing data does not harm. It only creates consumer choice, commerce, jobs and (tax) revenue—and pays for the Internet and other media, too—and it is ridiculous to even entertain government-knows-better regulation of such information through a potential omnibus law in America, or other notions such as a government-mandated “privacy by design” requirement in marketing innovations. (On the other hand, I’m more than happy to see laws pass that protect Americans from potential government abuse of private sector marketing data—Big Brother should not be getting access to marketing data for non-marketing purposes, unless there is a demonstrable greater public good, where subpoenas are served and heard.) Privacy by design is smart business, but only when left to the innovators, not the policymakers.

Which brings me to close—and if you’re still reading this, I congratulate myself for not chasing you away. Big Data (which can incorporate far more than marketing data) goes hand-in-hand with marketing data governance. Whether a Big Data user or not, we all use marketing data everyday as our currency. Protect it. Respect it. Serve it. Govern it. So we can use it.

Turning Email and Social Synergy Into Opportunity

In marketing — as in candy bowls — chasing too much opportunity can produce nothing more than paralysis or, at best, a dilution of the effort when it’s spread too thinly.

Too much candy isn’t good for you. As appealing as that big bowl of M&Ms looks right now, you know that if you get even get close to it, you’re going to regret it.

The same can be true in marketing. Working with a marketer who is merging three email programs into one campaign management application, I realized very early that there was huge opportunity for synergy of content as well as cross-selling and promotion between the three brands. The marketer was very excited about the possibility of managing the programs in a true CRM-driven fashion. That was only possible once the programs were generated off the same database and integrated at the subscriber level. Until now, the best this marketer could do was run separate promotions with similar offers, then try to compare the impact on revenue and unsubscribes after the fact. There were never very promising results.

With everything managed in one solution, the field is open for new approaches. A quick diagram of the combined customer base by brand showed a very slim overlap between them. At first glance, that feels like all upside — what a great opportunity to expose each brand to new, known audiences. It’s a big bowl of untouched delicious chocolate!

Synergy situations like this do create opportunity. That can be very exciting. But before you get too swept up in dreaming big, consider how important it is to prioritize those opportunities. In marketing — as in candy bowls — chasing too much opportunity can produce nothing more than paralysis or, at best, a dilution of the effort when it’s spread too thinly.

Consider these factors to help prioritize the opportunities before you:

1. Permission. Never assume permission. Period. First, it may be illegal depending on the countries where you market. Second, it’s bad marketing. There’s plenty of cross-sellling opportunities along the existing permission grants that you own today. At the same time, encourage subscribers to sign up for more types of messages from other brands in your preference center.

Lest you falter in your steadfastness, take this tale to heart: We had one marketer recently suffer a big drop in sender reputation and inbox placement. We traced the high complaints to a few campaigns promoting retail partners. Even though it was the marketer’s brand, template and “from” line, subscribers thought the messages were actually from the partners. Complaints were very high, even though the partners were trusted brands themselves. Subscribers knew they didn’t sign up for email from those brands and didn’t stop to check to see if it was a cross-promotion. They just clicked the spam button. Even if you own the partner brands, don’t assume your subscribers know that. I can’t emphasize enough how important it is to gain permission and earn it with every message you send.

2. Audience profile. You don’t have the time or resources to tackle every possible cross-promotion opportunity, so focus on the two to three that have the right criteria — reach, revenue and strategic importance. The latter is sometimes hard to gauge, but it usually involves business drivers, high-value customers or high-visibility projects. Balance those factors out in a spreadsheet so that you have real science behind your discussions. Make sure that every test has an actionable learning so that you can continue to improve and optimize.

3. Brand affinity. Just like in social marketing, customers who already trust you are the ones most likely to take your advice on cross-promotional purchases. Therefore, segment not just by permission status but also by the likelihood of brand affinity that will encourage cross-pollinization of the brands. For example, free online members may have a very low brand affinity and thus are least likely to welcome cross-promotions. Paid members who have purchased recently or have more than one product will be more likely to welcome upsell offers (and not complain).

4. Sales channel preference. A factor that became more important than we initially considered is sales channel — e.g., those who purchase in-store versus online. Not only are there demographic differences between the two, but there are also differences in the way email is used. For example, in this case email wasn’t very successful at encouraging in-store customers to purchase online, but it was effective in generating store traffic. Seems obvious now that we see the results, but of course the magic is in the discovery.

5. Customer life cycle. This is perhaps the most important factor. I’ve found time and again that marketers are way too confident in their assumptions about how interested consumers are in their offers. In fact, you have to start way back in the life cycle for cross-promotions, just as you would with new prospects (which, of course, many of these people are). Nurturing has to start with discovery and exploration. Too many times marketers hit prospects with offers well before they’ve established credibility with them or before they even acknowledge their own needs.

What have you learned from your efforts to create new revenue and customer satisfaction opportunities through data integration? Please share your thoughts and ideas in the comments section below.

Getting Started With Email Segmentation

Creating effective email connections that drive response and revenue requires segmentation. That sounds fine in concept, as many marketers know they need to do more segmentation in order to engage subscribers and break through the clutter. However, many marketers struggle with getting access to data and developing creative approaches that match the customer lifecycle. I urge you to not be intimidated. Demand greater data integration and access from your vendors. Start testing new content and creative approaches so that you can be automated and fully functioning immediately.

Creating effective email connections that drive response and revenue requires segmentation. That sounds fine in concept, as many marketers know they need to do more segmentation in order to engage subscribers and break through the clutter. However, many marketers struggle with getting access to data and developing creative approaches that match the customer lifecycle. I urge you to not be intimidated. Demand greater data integration and access from your vendors. Start testing new content and creative approaches so that you can be automated and fully functioning immediately.

Ease into segmentation to avoid overtaxing your precious resources. Use early tests to learn about subscriber interests and understand key success metrics. Doing so will build your confidence and help you make a case for automation, data integration and creative services — all of which are essential for advanced segmentation and better results.

There are two ways to get your arms around your segmentation opportunity, both with the goal of “right message, right person, right time.”

  1. Segment by customer profile and craft messages around customer demographics, firmagraphics and behavior.
  2. Segment by customer life stage and speak to customers who are in specific life stages.

Customer profile segmentation: With profile approaches, even simple segmentation can make a big difference. Separate your file into large segments that distinguish subscribers by a factor that has significance to your business. Clickers are a good place to start. Those subscribers who have clicked on something in the past month are more likely to be engaged than those who haven’t.

You can do less storytelling with clickers. For example, a retailer may simply alert clickers that a sale continues until Friday or put in specific sale prices for pants, sweaters and scarves. A business software marketer may send clickers three of their most popular whitepapers or an invitation to participate in a LinkedIn community. In both cases, clickers need less background info and more options to get them to act, whereas nonclickers may need more guidance and education prior to taking action.

Why burden clickers with info they don’t need and that gets in the way of their actions? At the same time, don’t skimp on critical storytelling information for nonclickers, as they clearly don’t have a strong connection with your offer yet.

Other starter segments worth testing include new subscribers versus long-time subscribers, buyers, geography (e.g., north versus south) and gender.

Draw segment lines around key drivers for your business — i.e., differentiators that give you a clear path to a custom message that will make an impact. For many B-to-B marketers, the most important driver of customization is job title. For B-to-C retailers, the key data point is most recent purchase. Don’t choose geography if location has no bearing on purchase behavior. Your business is unique, but good marketers understand the key customer attributes that lead to increased sales and satisfaction. Focus there for your segmentation and you’ll be rewarded with the biggest lift.

Life stage segmentation: To effectively segment by life stage, first abandon the notion that every email program has to be a long-term affair. Short-term email conversations can be even more powerful, particularly because they address a specific need at the time when that need is most acute. A four-message reminder series that disrupts the messaging flow around renewal time can be much more powerful than a generic newsletter which comes like clockwork every two weeks. Why not replace the newsletter with custom messaging for all customers who are up for renewal in a particular quarter? Similarly, create custom series of two messages to 20 messages that cluster around that particular life stage.

Remember to think through the dialog of the conversation if the message series is longer than three messages so that you can intensify, cease or adapt the message stream to accommodate response. For example, stop pitching the purchase midstream if someone has already upgraded from a free trial.

Not every email program has to be long term. The goal of “right message, right person, right time” can be achieved through segmentation that focuses on a specific life stage as well as customer profile.

What are your biggest challenges when it comes to nurturing engagement via segmentation strategies? Perhaps I can address them in a future blog or learn from others handling of them.