Data Driven Marketing 2013
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Data Driven Marketing 2013 Data Driven Marketing 2013 Presentation Transcript

  • A GUIDE TO THE 2013CONSUMER ELECTRONICS SHOW
  • 28CHAPTER 2DATA-DRIVEN MARKETING
  • CH 2 : DATA-DRIVEN MARKETING 29 BRYAN SCANLON ROB JAYSON DAVE MORGAN MATT SPIELMAN PRESIDENT, SCHWARTZ CHIEF DATA OFFICER, CEO, SIMULMEDIA SVP OF STRATEGY, MOXIE MSL AND NORTH AMERICA ZENITHOPTIMEDIA TECHNOLOGY DIRECTOR, Dave Morgan is the CEO and Matt Spielman is the SVP of MSLGROUP Rob Jayson leads ZenithOptimedia’s founder of Simulmedia. He Strategy for Moxie, a full-service worldwide data strategy, a role he previously founded and ran both digital advertising agency within Based in Silicon Valley, Bryan assumed in 2012. A combination TACODA, Inc., an online advertising the Publicis Groupe. He heads Scanlon is the president of of continual innovation, robust company that pioneered the digital AOR and leads the Schwartz MSL, a global public analytics and tools development behavioral online marketing and strategy and innovation initiatives relations agency specializing in have allowed him to be was acquired by AOL in 2007 for for L’Oreal USA. Prior to joining the technology, health and energy instrumental in finding new and $275 million, and Real Media, Inc., Moxie, Spielman spent six years innovations that transform business, exciting ways to approach one of the world’s first ad serving at MTV Networks where he preserve the planet and save lives. communications planning. As and online ad network companies helped build the network’s Client He also leads the MSLGROUP North Chief Data Officer, Rob oversees and a predecessor to 24/7 Real Solutions Division, working with America Technology Practice, the agency’s Global Analytics Media (TFSM), which was later senior marketing clients to develop helping clients move innovation to Center (GLANCE), collaborating sold to WPP for $649 million. and deploy marketing initiatives the forefront of their brands, and with ZO entities such as Ninah, After the sale of TACODA, Morgan that leveraged the entirety of specializes in information security, Performics and Moxie. He also served as Executive Vice President, MTV Networks properties, brands big data and analytics, and data- manages the implementation of Global Advertising Strategy, at and assets across all media. He driven thought leadership and the ZO Datamart and reporting AOL, a Time Warner Company also served as Vice President marketing programs. Scanlon tools suite, and focuses on brand- (TWX). He serves on the boards of Business Development and has a 20-year track record of specific data strategies, such as of the International Radio and Account Management at IAG building awareness, valuation, ZenithOptimedia’s “Live ROI.” Most Television Society (IRTS) and the Research (acquired by Nielsen). At sales and brand equity for some recently, Rob served as President American Press Institute (API), and IAG, he oversaw a research team of the most successful technology of Strategy for Zenith where he was a long-time member of the that advised senior marketing companies. He’s taken many was responsible for developing executive committee and board executives and their agencies on clients from start-up to market communication planning of directors of the Interactive the effectiveness of their TV and leadership and reinvigorated methods, ensuring planners led Advertising Bureau (IAB). in-theatre marketing efforts and established technology brands. their clients and the industry in made recommendations on how to This includes work with Red Hat, creating unique and powerful improve their results. Netezza, Symantec, ServiceNow, communication strategies. Hortonworks, Blue Coat, webMethods (now Software AG), Imation, LifeLock, ESET and MicroStrategy. You can follow him on Twitter @bkscanlon.
  • CH 2 : DATA-DRIVEN MARKETING 31 PART 1 : INTRODUCTION THE RISE OF BIG DATA The world is awash in data. Every ever before, but we’re still trying Data has always been a centerpiece That’s what consumers and data Data, while exploding, is becoming time a consumer uses a credit to figure out what information of marketing. From decades-old companies are producing and easier to manage, combine and card, a purchase-history is created. is good and what is bad. What techniques such as consumer storing every year. According to evaluate. Martin Hilbert and Loyalty programs grant companies information is truly effective at research surveys, product McKinsey, “The increasing volume Priscila López in Science magazine and retailers access to consumers’ increasing our ROI, and what is purchaser panels and customer and detail of information captured analyzed global storage and purchase patterns and preferences. just more “white noise?” We’re relationship marketing to newer, by enterprises, together with the computing capacity, and found that Every mouse click leaves a trail only now beginning to understand financial-market approaches rise of multimedia, social media, not only is our ability to accumulate to follow. We know more about what works and what doesn’t. But like time-series modeling, chief and the Internet of Things will fuel and store data growing, but storage consumers than ever before, and even as we do, more information marketing officers have always exponential growth in data for the capacity has become almost they know more about us. is presented to us, sometimes looked to data and analytics to foreseeable future.” 2 exclusively digital (as opposed reinforcing our marketing drive their decision-making. to analog). 3 All of this data can be empowering, programs. Sometimes, it requires In the modern age, however, two or it can be daunting. More them to change completely, on a critical changes are transforming information means greater insights, moment’s notice. The need to be the marketing landscape in ways DATA STORAGE HAS GROWN SIGNIFICANTLY, SHIFTING MARKEDLY FROM smarter thinking and better nimble, agile and flexible has never we could not have imagined. First, ANALOG TO DIGITAL AFTER 2000 decisions all around. But with been greater. there has been a huge increase of Global installed, optimally compressed, storage new data coming in every day, we available data to track consumer can become subject to “analysis We have reached a point where attitudes and behaviors in real Overall Detail paralysis,” delaying decisions and the art of marketing and the time. Second, we as marketers Exabytes % : exabytes programs until we get the most science of data are completely have increased our ability to blend 3 10 54 295 information possible, to be sure intertwined, and are ever more and filter that mass of data into 300 100%= Digital 1 3 we’re making the right decisions. inseparable. It’s time to learn how actionable insights that shape The key is for us to recognize that to harness the ever-increasing marketing campaigns at the 250 25 data is not information, nor is streams of information (mobile strategic and the tactical level. 200 information the same as insights. and social alone are creating a Instead, we have to process data large number of data sources) The explosion in consumer data 150 94 to reveal insights on a timely basis and use them to our benefit—just is massive and exponential. Analog 99 97 that can be actionable. as consumers are doing with According to the McKinsey Global 100 75 the information they get. Rather Institute, the volume of consumer Fifteen years into the Information than making our marketing data- information generated in a year 50 Age, we’re just figuring out what dependent, we need to make it has exceeded six exabytes. That 6 it all means. We have access to Data-Driven. number – one that we cannot even 0 more data and information than really define – would fill more than 1986 1993 2000 2007 1986 1993 2000 2007 60,000 U.S. Libraries of Congress. NOTE: Numbers may not sum due to rounding. It’s more than every word spoken SOURCE: Hilbert and López, “The world’s technological capacity to store, communicate, and compute information.” Science, 2011 by humans if they were to be digitized as text. 1 1 McKinsey Global Institute, “ Big data: The next frontier for innovation, competition, and productivity,” June 2011 2 Ibid. 3 Hilbert and Lopez, “The world’s technological capacity to store, communicate, and compute information,” Science, 2011
  • CH 2 : DATA-DRIVEN MARKETING 33 SIDEBAR : ARE YOU PREPARED? We all know the era of Big Data is issues that could be resolved upon us. Yet, many in the industry with the help of Big Data and are still unprepared. A recent IBM prioritize them. The most critical CMO survey showed that – while and beneficial step that any brand CMOs understand in no uncertain leader can take, in order to start This change in capacity and the brands we market to them. terms how critical Big Data is to the process of harnessing the digitization of data storage has We also have the potential to their future success – many admit power and insights of Big Data, is huge implications. We now have manipulate, match and manage they have yet to find the correct to establish a data strategy and a a window into consumers’ lives that mass of data in almost techniques and management set of key performance indicators and almost every aspect of their limitless ways. (See Sidebar: approaches. Forrester, meanwhile, (KPIs) that outline in detail the relationship that they build with Are you prepared?) surveyed business decision- direction of insights that are makers about what they viewed needed from data analysis in order as their most critical challenge to increase marketing ROI. PERCENT OF CMOS REPORTING UNDERPREPAREDNESS in putting Big Data to use effectively. The responses were The systems and data priorities 50% all over the map, and the fact that that are established will clearly Data explosion 71% there was little consensus shows be significantly different if the that each organization needs to organization’s top Big Data priority Social media 68% set its own priorities about how to is about the ability of the internal Growth of channel and device choices 65% tackle Big Data. organization to share data in real time as opposed to a primary Shifting consumer demographics 63% However, no task is more essential challenge of not getting access to Financial constraints 59% than to examine all of the potential real-time data at all. Decreasing brand by loyalty 57% Growth market opportunities 56% TABLE 2 ROI accountability 56% Biggest challenges to use of “big data” for marketing Consumer collaboration and influence 56% We have too little or no Privacy considerations 55% customer/consumer data 29% Global outsourcing 54% Our data is collected too infrequently or is not real-time enough 39% Regulatory considerations 50% Corporate transparency 47% The lack of sharing data across our organization is an obstacle to measuring the ROI of our marketing 51% We are not able to link our data together at the level of individual customers 42% We aren’t using our data to effectively personalize our marketing communications 45% 0 10 20 30 40 50 60
  • CH 2 : DATA-DRIVEN MARKETING 35 PART 2 : THE LIVE DATA STREAM All of this data is being set up TV for a multitude of purposes. for another revolution: the Live Some use them to multitask, SOCIAL NETWORK USERS AND SMARTPHONE OWNERS LEAD THE WAY IN Data Stream. With powerful PENETRATION IN NORTH AMERICA “CONNECTED VIEWING” EXPERIENCES conducting online searches for portable devices and always- millions, % of internet users % in each group who have used their phone in the preceding 30 days to... information. Others post to their on connections, consumers are and % of population social media feeds. Still others constantly feeding a stream of 189.2 SMARTPHONE OTHER CELL use their phones to participate 181.9 data—in real time—about brand 174.7 OWNERS (N=904) OWNERS (N=1050) in promotions they’ve seen 163.9 attitudes, feelings and behaviors. Keep yourself occupied during commercials advertised on television, or 58% 17% or breaks in what you were watching through their secondary online This data, can be harnessed and 65.8% 66.9% 68.0% Check whether something heard 37 6 browsing. Each one of these data 63.6% was true or not turned into actionable insights. points tells us something different 51.4% 52.9% 47.2% 49.8% Visit a website mentioned on TV 35 3 about the effectiveness not only Thanks to smartphones, tablets Exchange text messages with someone 32 13 of the message, but of the channel watching the program and other connections, consumers and attitude of the consumer to have turned to digital channels See what others were saying online about a 20 2 the brand messaging they’re being program you were watching to supplement their knowledge, exposed to at that very moment. 2011 2012 2013 2014 Post your own comments online about a behavior and attitudes to brands. program you were watching 19 2 Social network users This has dramatically increased the Recommendation engines are a % of internet users Vote for a reality show contestant 9 4 volume of real-time or live data % of population perfect example of how brands that brand owners and agencies have structurally adjusted to the can access to illuminate up-to- NOTE: Internet users who use a social benefits of Big Data analytics to the-minute changes in brand network site via any device at least once per great advantage. Amazon (and month; includes Canada and the US metrics. But those metrics aren’t SOURCE: eMarketer, Feb 2012 most other e-retailers) have coming to us in the easily defined developed effective real-time and “traditional” formats of past recommendation engines based consumer behavior. Rather, on analysis of massive amounts of they are coming in the forms will grow to cover more than 50 real-time data to engage shoppers consumers have already embraced, percent of the North American without resorting to traditional like social media. population through 2014.4 Every mass, untargeted pricing and “Like” of a brand on Facebook, discounting. The ability to create Even more is coming. According and every brand-name hashtag personalized, helpful suggestions to an eMarketer forecast, social on Twitter is another piece of for consumers has had a significant network growth, although slowing, data that can be used to inform Facebook and other social a constant companion for impact of customer satisfaction marketing, but each comes with its media are not the only sources consumers, and are used during data, and there is clear evidence own set of rules and parameters. of live data, and they are not their traditional media experiences. that satisfied customers are more the only cause of the explosion. Pew Research shows that 74 likely to purchase, be loyal and to Smartphones have become percent of smartphone owners recommend a brand.5 use their device while watching 4 eMarketer, “Social Network Users and Penetration in North America, 2011-2014,” February 2012 5 Foresee 2010 Retail Satisfaction Index
  • CH 2 : DATA-DRIVEN MARKETING 37 PART 3 : FROM AUTOMATED AND TACTICAL TO PREDICTIVE Learning how to harness and of a Predictive Company (as 2. Big Data accelerates decision- manage this data can yield opposed to a Tactical, Automated making. Customer churn, for SOPHISTICATION LEVEL* OF THEIR CURRENT PERSONALIZATION EFFORTS ACCORDING TO US RETAILERS, Q3 2011 huge returns. Nucleus Research or Reactive one.) example, can be addressed in real % of respondents found organizations can earn an time, rather than only fixing issues incremental ROI of 241 percent Nucleus Research identified four that contribute to churn long by using Big Data capabilities to critical areas of benefit to big data after a customer has left, live-data examine large and complex data analytics that organizations can analytics can uncover and suggest 7-10 13% sets. These returns are the result of realize from the use of Big Data: solutions for better customer improved business processes and retention as they emerge. decisions through optimizing the 1. Big Data solutions that 1-3 increased types of data available encompass vast data sets enable 3. Combining external data with 54% 4-6 solutions that link all aspects of internal data adds significant and the ability to monitor the 33% factors that impact a company the business together. value to internal data. Adding most, such as customer sentiment, Retailers can link insights about geographic, meteorological or by scouring large external data their loyalty program customers other external datasets creates sources such as social media sites. with in-store behavior and much more sensitive analytics. These abilities are the hallmarks social behavior. 4. Big Data analytics is critical NOTE: *on a scale of 1-10 where 10 = “very sophisticated” and 1 = “not at all sophisticated” SOURCE: the e-tailing group, “Prioritizing Personalization For Growth,” Nov 11, 2011 to successful online sentiment monitoring. The ability to define 1400% meaningful results from “noise” is not really possible without new Big The data that would allow brands To manage this ever-increasing, 1200% Data techniques. to personalize the experience in live-stream of Big Data, RETURN OF INVESTMENT real time for consumers is already organizations must set themselves 1000% Yes, these changes are difficult. available, and some brands are up internally to respond to the And it may require years of finding ways to put it to work. insights available. Brands must 800% “unthinking” the practices of the That said, brands are still a long adjust their internal processes past. But marketers who can way from being able to deliver and marketing plans in ways that 600% make the attitudinal and structural on that opportunity. The e-tailing will enable them to immediately modifications to realize the full group surveyed 131 mostly large respond to consumers’ actions as 400% benefits of Big Data will reap Predictive significant rewards. Moving from and mid-sized Web merchants in information is received. Consumers Strategic Q3 2011, and found that more than have embraced social media and 200% a tactical/reporting position to a Tactical half gave themselves poor marks in other live interaction opportunities strategic and predictive approach Automated their personalization efforts. with brands. It is incumbent on 0% will generate a measurable Automated Tactical Strategic Predictive the brands to respond in-kind with increase in marketing ROI, and a immediate, personalized responses. significant lift in business. (See Sidebar: Moneyball)
  • CH 2 : DATA-DRIVEN MARKETING 39 SIDEBAR : MARKETERS MUST PLAY ‘MONEYBALL’ The popular book and film As media become more digital— percent of the target audience, "Moneyball” illustrated how the and, as a result, more targetable, and a full 30 percent of the smart use of data and statistics measurable and accountable— desired target receives none. The transformed a 150-year-old sports these analytics will be crucial. culprit? Audience fragmentation. 1ST pastime and business. The same is 3RD PARTY Even television, which has long Fifteen years ago, that 80 percent DATA happening with advertising. PARTY resisted change is changing fast was spread to more than 60 DATA For years, baseball had been as more of it is delivered through percent of the target, and the managed according to gut instinct digital set-top boxes, over Internet size of the unreached target was and near-mythical truisms. In the PLANNING protocol networks or on the tens very small. Now, data analysis is DATA early 21st century, one outlier, Bille of millions of new smart, Internet- being used to determine the exact Beane, used data, statistics and connected TVs and companion makeup of a shows audience and financial market-like techniques devices that are shipping around to perfectly measure and manage to bring success to a payroll- the world this year. Not only will the reach and frequency of TV challenged team. Beanes use of these new TVs connect directly ad campaigns with online-like sophisticated data analysis to to the Internet, but they will run frequency capping. identify which player statistics Web-based apps, link new cloud- really mattered—a players on-base not just about online messaging based streaming services and Finding elusive audiences. DATABASE percentage rather than batting exposure and real-time response. also produce a treasure-trove of Trying to find young males MANAGEMENT average, for example—gave Now, there is real-time behavioral PLATFORM data and direct consumer-viewing outside of sports content? him a real advantage in finding data on our customers, allowing us measurements, which will open up Hispanic audiences within players who were undervalued to figure out their level of interest TV advertising to Billy Beane-like English-language content? Or by his competition. These days, in our brands, their loyalty and transformation. light TV viewers you cant reach potential for incremental cross- These Database Management efficiently with broadcast-centric the research and insights Beane sales. Matching first-party data Platforms, where we collect and This does not mean that the prime-time campaigns? Data will used have become commonplace from brand customers with third- analyze the Big Data that comes “art” of the media industry will find them. Marketers will discover among his competitors and all of party data from other online and from brand customers as well be forever trumped by “science.” gold using data to aggregate Major League Baseball. offline sources, can give marketers as other online behavior, offer However, decisions about which valuable audiences from and their agencies unprecedented the potential to make strategic media to buy will no longer be unconventional places. Marketers must apply the same insights into the relationship and tactical marketing decisions driven by history, comfort and game-changing insights to the of media and messaging at the based on a mass of statistical relationships. Data and predictive Creative testing. With robust information available to them. For campaign and individual spot data and analysis that has never science will drive more and more cross-channel data, you can now marketers, the data explosion is basis to specific brand customers been available before. To stretch media decisions. And the results know which viewers abandon your and their actions. an analogy, we can draft new will solve many of the problems ads and which viewed them. Not target audiences, never before plaguing our industry. Such as: only will we learn which audiences considered based upon the actually like our ads, but well be behaviors we have seen from Wasted frequency. In most mass- able to test and optimize creative the data analytics on current awareness TV ad campaigns in the customers and potentials. US today, 80 percent of the spots end up being delivered to only 35
  • CH 2 : DATA-DRIVEN MARKETING 41 units in live environments. Think of into ad campaign deals. Imagine Becoming a Predictive Company, the improved efficiency if we can delivering your Gross Ratings however, will require changes ANALYTICS AND DATA SCIENCE JOB GROWTH get audiences to stick around and Points with set-top box data- in the ways many do business, watch ads because the data tells based guarantees of specific both at the macro and day-to- 0.1 ANALYTICS AND DATA SCIENCE JOB STARTERS (AS A PERCENTAGE OF ALL JOB STARTERS) us which ads will stick with them. audience compositions—such as day levels. In a world soon awash frequent moviegoers who like in Big Data and opportunities to 0.09 Secondary measurement and dramas, or Coca-Cola brand fans— use it, one thing is clear: there promises. Nielsen, comScore or guarantees of attributed sales are not enough people in today’s and panel ratings arent going by linking household-level viewing marketing organizations with 0.08 away. Macro audience ratings data with actual purchases. the level of experience in using will be with us for a long time. Big Data to make companies 0.07 However, those measurements We’ve moved into the “Moneyball” successful in the future. And many will be supplemented with micro- era. Are you ready? of these organizations do not measures of exact audience have the right tools and processes 0.06 patterns, which will be baked needed to survive—much less thrive—under the coming tidal 0.05 wave of information. In the Big Data-driven world, 0.04 marketing organizations need to infuse themselves with experts. 0.03 Mathematicians, scientists, statisticians, software and hardware engineers. All will be 0.02 important to companies looking to harvest and harness Big Data 0.01 and turn it into useful, actionable information. It’s a page from 0 the playbook of today’s fastest- growing digital companies. Look 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 at the hiring practices of Google, Amazon, Apple, Microsoft, Facebook and Twitter. Employees TECH-SAVVY LEADERSHIP. HARD SCIENCE. Many marketing- in those companies are different Not only are the most successful related companies, particularly from those hired by traditional digital companies well-stocked in media, still rely on qualitative marketing and media companies. with engineers, scientists and tech- “social” science in much of their They possess: centric product managers, but decision-making, not the kind technology is the primary skill set of quantitative sciences needed of their leaders and their workers. to exploit Big Data. Yet, hard They drive the businesses, the numbers are the new reality of products and the core strategies.
  • CH 2 : DATA-DRIVEN MARKETING 43 the advertising and marketing However, hiring the best is only millions upon millions of dollars. the domain of the research industry. Marketers need part of the equation. (And a In many cases, enterprises department is now available to cognitive scientists, statisticians, very difficult piece at that. There can build or buy analytic data managers at all levels of marketing mathematicians and physicists. is a limited pool of emerging warehouses that are 100 times organizations. (See Side Bar: talent with Big Data skills, and bigger than those available 10 Trust and Security) DIVERSITY. In fast-growing digital, competition for the best is years ago - for 1/100 the cost. data-driven companies, diversity intense—much like the competition Investing in new employees, is a competitive advantage and a we’ve seen for computer scientists This means companies with data technologies and processes to business imperative. over the past 10-15 years. It’s a technologies that are only five better serve Big Data is not an certainty that demand for data years old will find themselves option. Companies looking for IMPATIENCE. Companies like scientists will outstrip supply for at significant disadvantages competitive advantages will target Amazon, Google and Apple years to come.) Companies must in both capabilities and cost these three areas for strategic, have relatively flat organizational also adjust, adapt and improve structures to competitors with competitive and market share cultures, and their employees their internal processes and new technology. Investments in growth. Those that do not will be have no time or patience for the procedures to ensure they’re set new data technology on a regular left behind. kind of long, escalator-like ride up to capitalize on the information basis will be critical for marketing over decades to reach leadership and insights created by these enterprises to remain competitive. The era of Big Data is upon positions that exist in many non- streams of Big Data. Among the us. Thanks to the tools of the digital companies. They know what things they need to keep in mind: DATA ANALYTICS IS BECOMING Connection Engine (smartphones, they want and they want it now. MORE BROADLY ACCESSIBLE tablets and super-fast, always- BIG DATA TECHNOLOGY IS ACROSS ORGANIZATIONS. on connections), consumers are VERSATILITY. In traditional GETTING BIGGER, BETTER, Not only can these new data giving marketers a wealth of marketing organizations, many folks FASTER AND CHEAPER. systems store massive amounts actionable information. It’s up to are “bucketed” into roles and silos Innovation in analytic tools, of data, but they can also manage marketers to turn that information during early stages of their careers systems and platforms has unstructured data, giving users into valuable insights and and find success through focus exploded over the past few far more flexibility in how they programs that reward consumers and unique expertise. Invariably, years, particularly in the open- organize, manage and query the based on their needs, information some of the strongest talents in source community. Open-source data. This is helping companies and realities. The data is coming emerging, digital and data-driven data management technologies make data much more accessible in real time and marketers must companies have degrees that span like Hadoop and pay-as-you- and available across organizations. react with the same spontaneity. both science and arts, work better go cloud-based data services Whether it is trying to understand Information moves at the speed of horizontally than vertically, and take like Amazon Web Services and purchase behaviors of target light; marketing programs will have pride in constantly changing gears Mongo Database are replacing customers or sales attribution to move just as quickly. in their careers. comparable data management to social media, what was once systems from companies like IBM, Oracle and Teradata that cost
  • CH 2 : DATA-DRIVEN MARKETING 45 SIDEBAR : BIG DATA: BIG SECURITY NEEDS Fifty-five percent of CMOs feel social, mobile and financial unprepared for the privacy ecosystems safe from security considerations in the exploding breaches or organized hacks. digital world (Source: 2011 IBM CMO Study). Every state has different levels of breach notification and action. In March of 2012, the Federal Trade With nationwide customer Commission (FTC) published bases, resolution is messy, time- “Protecting Consumer Privacy consuming and expensive for in an Era of Rapid Change,” anyone experiencing a breach. delivering basic principles And according to research done that emphasize awareness, by Imation (see image, right), the transparency and care in dealing strictest states have relatively with customer or community low bars that trigger mandatory information. The report mandates notification of consumers, credit protection at many levels, simple agencies and government entities. customer-driven options and transparency and disclosure. Actual or even perceived violations are a one-way ticket to losing a “In its guidance and actions, the customer, not to mention fines Federal Trade Commission (FTC) and potential costs of remediation. is asking for privacy by design, There is clear expectation that built from the ground up with brands will be careful with consumers getting notice and personal information, and errors choice,” says Gary Kibel, a partner come with a high price. According in the Digital Media & Privacy to ongoing research from Practice Group of Davis & Gilbert. PricewaterhouseCoopers LLP, “If you are a brand, you have to consumers are far more worried look at the whole process of how about security breaches than data flows.” privacy, and 61 percent of those surveyed said they’re “not willing In addition to stricter privacy to continue to use a companys guidelines and increased FTC services or products after it action, another real brand experiences a security [breach].” threat emerges: the increasing (Source: http://www.pwc.com/us/ complexity of keeping data that en/industry/entertainment-media/ resides and moves across complex assets/pwc-consumer-privacy- and-information-sharing.pdf)
  • CH 2 : DATA-DRIVEN MARKETING 47 THINGS TO THINK ABOUT KEY TAKEAWAYS “CONSUMERS FEEL MORE COMFORTABLE ON THE CES FLOOR SHARING INFORMATION IF THEY UNDERSTAND THE BENEFITS TO THEM INDIVIDUALLY OR AS To realize their full potential, The ability to collect and analyze Every new technology will PART OF A LARGER GROUP” – PWC SURVEY. organizations must be set up massive amounts of data and provide you with access to even to respond to Big Data insights the application of predictive more consumer information. in real time. Brands will need science are transforming how How will you access it? How to adjust their marketing plans marketers and agencies manage will you incorporate it into your Big Data requires a trust reset and what brands to even pay attention to immediately respond to media. These insights can help current marketing processes? close, careful management of data to in the increasing barrage consumers’ actions as they learn develop strategies and reach new Are you equipped to harvest and in the new world. But the good of information. about them. Consumers have potential target audiences with harness that data with personnel news is that consumers are eager embraced social and other live- customized messaging, as well as and/or technological systems? to partner on privacy, and the best According to the 2012 “Trust interaction opportunities with aid measurement, optimization, What might you need to add to marketing tackles engagement Factor” study by About.com, 84 brands, and they fully expect attribution and accounting. your internal operations to yield as a partnership with clear and percent of consumers say “being brands to respond in-kind the best information from this agreed-upon benefits for all. trustworthy is a requirement with immediate, personalized Marketing organizations will data? How will it support and/or before interacting with a brand responses. not be able to exploit Big Data work in conjunction with other Consumers seem to have an or info source.” (Source: http:// without investing in new types of data streams? insatiable appetite for monetary www.advertiseonabout.com/ It will take considerable change people, technology and processes. incentives, trend information wp-content/uploads/2012/07/ AboutTheTrustFactor.pdf) for brands to begin to realize the It will be a requirement. and a desire to be part of full benefits of Big Data analytics. something broader. According But if those hurdles can be In the Big Data world, security and to PricewaterhouseCoopers In the era of Big Data, trust and overcome, the benefits are clear trust will become brand currency. LLP surveys, “80 percent of security will become something as and significant. Moving from a Strong security and privacy respondents said they were willing valuable (if not more so) than any tactical/reporting position to a communication can actually to share personal information other brand attribute. Consumers strategic and predictive approach strengthen customer loyalty. Trust if the company lets them know will be on the lookout for brands will generate a measurable is good business, and it is (and upfront how they are going that treat the information they’re increase in marketing ROI. should be) desired by consumers to use it.” sharing with respect, rewarding and the agencies looking to those that value the information in protect them. Meanwhile, brands are becoming trustworthy and secure manners, their own news organizations, and shunning those that do not. pushing out data and advice to Consumer trust and security of their customers and markets. their personal information must But in an age where information get the same attention as every saturates, trust is one of the vital other brand attribute. filters for consumers to decide