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Data Driven Marketing

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Overview of Data Driven Marketing. What is DDM? How to implement it?

Published in: Marketing

Data Driven Marketing

  1. 1. Data Driven Marketing What, why and how to
  2. 2. Agenda What DDM is and isn’t Why do you need to think about DDM What are the important components of DDM implementation New marketing tactics approach How to implement DDM in your company © 2016, Alexei Cherenkov -- 2
  3. 3. What DDM is and is not Definition, components of Data Driven Marketing Personalized Customer centric Transactions to insights Digital enterprise Components Stop the mess 3
  4. 4. What is Data Driven Marketing? Shortly speaking, this is the system of marketing management where key decisions are done based on exact figures. To achieve this, marketing must collect data about everything, and carefully analyse it so insights could be used for upcoming activities. © 2016, Alexei Cherenkov -- 4
  5. 5. Data Driven Marketing is customer centric It s all about customer All interactions of company with customers (clients and prospects) are recorded in the form of transactions - we get (big) data. Where is customer in these data hills? Customer response to the company touches is the most important transactional data for business Customer behaviour is what we need to collect, analyse and predict © 2016, Alexei Cherenkov -- 5
  6. 6. DDM is a part of Data Driven Enterprise General trend is in digitalization of enterprise In the future, each department will be data driven Actually, Finance Department is data driven for dozens of years Now, we are talking about conversion of very non-digital department - marketing © 2016, Alexei Cherenkov -- 6
  7. 7. What is inside DDM ● Business process automation - Marketing Technology or MarTech ● Changes in marketing business processes ● Changes in business processes of peer organisations (legal department, sales department, procurement, internal audit, vendors, etc.) ● Changes in marketing team ● Analytics and Data Science are a thread included into each business process © 2016, Alexei Cherenkov -- 7
  8. 8. What DDM is not Some people and even management of big companies do not understand new marketing well, and therefore mash things. Email distribution system, even sophisticated with triggers and analytics is not equal to DDM, it’s just a component of MarTech DDM is not equal to MarTech (Marketing Technology); however MarTech is a major component of DDM Analytics is not equal to DDM, however it’s important component Digital marketing is just a channel in marketing mix © 2016, Alexei Cherenkov -- 8
  9. 9. A couple of thoughts about Analytics In Data Driven Marketing, all decisions are made based on exact figures derived from raw client data. Analytics can be used in one of 3 forms: Descriptive (what happened in the past) Visualisation of tables summarising behaviour of clients and business processes in the form of charts. Decisions are still made by marketeers based on their ability to make conclusions. Predictive (what will happen in the future) Uses Data Science to estimate hidden interactions to help marketers making non- obvious decisions Prescriptive (what we must do) Uses Data Science to generate decisions © 2016, Alexei Cherenkov -- 9
  10. 10. Why do you need in DDM Historical overview Why now What if you skip it What’s new? 10
  11. 11. Why did DDM concept appear now - Historically, market relations were based on personal 1-to-1 communications - Mass production required mass marketing therefore manufacturers treat each customer as “average client” to get access to the widest markets - Later, technology of market research allowed segmentation and more precise targeting - Now, technology (IT, data collection, machine learning) allows returning to personal communications on the next level - DDM establishes mass communication so client feels it as a personal treatment © 2016, Alexei Cherenkov -- 11
  12. 12. What challenges in traditional marketing Traditional marketing always was “a bad child” in the most of companies. Marketing department was assumed to be “spender” just because it was difficult to measure ROI. Everyone knows that marketing is required, but it was so easy to cut budget because marketing didn’t operate with exact figures. Look, what challenges are reported by CMOs: © 2016, Alexei Cherenkov -- 12
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  14. 14. What’s new in DDM DDM is an evolution inspired by recent development of e-commerce. Major difference of traditional marketing: Each marketing touch and response (tactic) is accumulated in warehouse. Therefore, analysis of exact data allows controlling money expenses and money revenue. © 2016, Alexei Cherenkov -- 14
  15. 15. Why DDM is better than old-school marketing Result of every planned marketing campaign is predictable Therefore, company can get slightly more revenue out of smaller set of clients using less marketing budget - because of deeper segmentation and client behaviour modelling Quality of service is higher and loyalty is increasing because of personal communication emulation Management of the company immediately observes ROI © 2016, Alexei Cherenkov -- 15
  16. 16. MarTech What is marketing automation Market landscape 16
  17. 17. What is Marketing Automation (MarTech) 1/2 MarTech isn’t only about triggers in email marketing, or web site design. Automation of strategic marketing planning. Data driven plans use: exact numerical analysis of previous wins and fails; current status of all customers and cohorts; budgets and expenses; resources (assets, vendors, people, timings); etc. Automation of marketing campaign planning (on a tactic level) Campaign maps Business processes define how team executes the plan © 2016, Alexei Cherenkov -- 17
  18. 18. What is Marketing Automation (MarTech) 1/2 Automation of work with marketing assets Videos, Event presentations and White papers Website and SEO Telemarketing scripts Emails and direct mails, etc. Automation of recording of all events Money spent on each tactic Messages sent, to whom, how many opened, etc Whom called to with what offer with what result Automation of lead nurturing Analytical dashboards to include exact figures in decision making © 2016, Alexei Cherenkov -- 18
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  22. 22. Is there demand In USA, many companies already use DDM in their work and many plan to implement in the near future Europe is ready and some worldwide enterprises start building departments, however many smaller companies still not ready (while use elements of DDM such as data science or digital marketing) Russia & similar countries are far behind the trend; a couple of leaders (telecom, banks) just started this journey © 2016, Alexei Cherenkov -- 22
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  24. 24. Core of automation is client database Database governance is a special discipline within enterprise Law, permissions, PI, security - absolute must Do not delete record! Just flag them Data quality is the most important topic, and you need to develop a special client data quality strategy © 2016, Alexei Cherenkov -- 24
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  27. 27. New marketing tactics 27
  28. 28. Marketing campaign Plan. Campaign map and checklist. Execution and recording Analysis and insights Plan based on insights © 2016, Alexei Cherenkov -- 28
  29. 29. Campaign planning Customer journey understanding Asset management Cohort description Cohort - the segment of clients passing now the same stage of customer journey Sequence of tactics - campaign map Multichannel Proper tagging and metrics/analytics inclusion © 2016, Alexei Cherenkov -- 29
  30. 30. Digital marketing SEO, SMM, E-mails, Google Analytics - all are “projection” of Data Driven Marketing to Internet channel of communication Digital / Mobile Marketing aren’t a standalone disciplines © 2016, Alexei Cherenkov -- 30
  31. 31. Campaign execution Test it before going live! Test vendors Test database (and project counts) Test campaign map Test web site Test automation © 2016, Alexei Cherenkov -- 31
  32. 32. Marketing metrics Roi is the main Intermediate KPIs - funnel health, conversions etc © 2016, Alexei Cherenkov -- 32
  33. 33. Data Driven Marketing Department Enterprise stakeholders Vendors Other Departments Clients and Prospects MarTech Client Database (or CRM) AssetsPlans, Budgets, Maps Analytics, Data Science Marketing team 33
  34. 34. How to implement Prerequisites Where to start Changes in team Procedures When to stop 34
  35. 35. Go to DDM Data Driven Marketing approach should be implemented step-by-step, over the current marketing. Change manager - a special dedicated PM for this transition Major prerequisite for this transformation: Management of the company must see the necessity © 2016, Alexei Cherenkov -- 35
  36. 36. Investments in DDM Company stakeholders and Marketing department manager have to understand that they will not get immediate return. MarTech assumes investments in specialists, software and its implementation Client Data Base assumes continuous investment in data acquisition, support, cleaning and refreshment. At least 18 months these investments will not bring any profit. Usually Client DB is a further development of CRM It is necessary to define relations with other teams in the form of business procedures: with sellers, legal, finance, procurement and with external vendors. Many will be unhappy of this formalisation. © 2016, Alexei Cherenkov -- 36
  37. 37. Investments in DDM - team It is necessary to reorganise roles in marketing team and new business processes implementation - after that they can be automated Train marketing team to work in the new environment, with software and figures. Teach them to use analytics It can happen that some team members can’t adopt New team roles appear and new team members to be taken onboard: web developer, campaign analyst, SEO analyst, database governor, etc Аналитика и data science будут работать в DDM только в случае, если корректно проделаны шаги - по автоматизации (понятно, иначе не будет данных) © 2016, Alexei Cherenkov -- 37
  38. 38. Investments in DDM - analytics Analytics and data science are very fashion words however they are just decorations if other components aren’t implemented Without martech no raw data will be collected Without business process transformation analytical results couldn’t be properly used Without changes in team analytical results will be just thrown © 2016, Alexei Cherenkov -- 38
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  40. 40. Investment into the future of your business Your company will be unable to compete with those who already implemented DDM © 2016, Alexei Cherenkov -- 40
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  42. 42. DDM strategy Data Driven Marketing is a part of general Data Driven Enterprise. There are many components already in place: Accounting software is well known for decades ERP and CRM is in use by many companies since end of previous century DDM is a continuous and long-term transformation. It must have clear strategy of it’s implementation and usage © 2016, Alexei Cherenkov -- 42
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  44. 44. Questions? Ask me: alexei@marketresearch.ru 44

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