Empowering_The_Data_Driven_Marketing_Team

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Empowering_The_Data_Driven_Marketing_Team

  1. 1. MAY 2015
  2. 2. 2 EXECUTIVE SUMMARY Data. As marketers, we can’t live without it and living with it has its own challenges. Data gives marketers the power to make effective and fact-based decisions that can strongly impact business objectives. The challenge many marketers face is the collection, analysis and organization of the data collected. But even though data can come with its challenges, successful marketers understand that it’s a necessary evil, and most will learn to embrace and even love it. This is because data simply makes marketing better. For marketers, learning to be truly data driven can be rewarding and companies can work on empowering their marketers to live and breath data. We’ve put together a guide with 13 tips on how to empower your team of data-driven marketers with the mindset, strategies and tools they need to achieve better marketing results.
  3. 3. 3 THINK BIG PICTURE When managing a data-driven marketing team, focus can often get lost in the granularity of the data that needs to be collected and analyzed. It is important that managers keep their sights set on the big picture while marketers work on achieving their measurement goals. Establishing specific and measurable goals that are tied to bigger picture business objectives ensures that data-driven marketers can stay focused on accomplishing goals that impact the business. Company-level goals for the measurement initiative should be defined. These goals should be small in number (one or two) and may be different than the goals for a particular product brand or geographic region. These goals ultimately help set the context in choosing the right set of marketing KPIs. Setting small and measurable goals help marketing teams define precisely what KPIs matter to larger scale business objectives. Create goals grouped around brand, product, marketing and business objectives to keep data-driven marketers focused on executing campaigns surgically and with purpose. 01 SET GOALS THAT ARE TIED TO BUSINESS OBJECTIVES Example: Acquisition Objective: Acquire 20,000 new online customers in the fiscal year with an average customer acquisition cost of $50.
  4. 4. 4 It is easy to use channel-based KPIs as a measurement framework since they tend to be easy to measure. Using channels as a framework, however, is generally not effective since a company’s business objectives are usually not tied to what happens in particular channels. Campaigns or the customer journey (awareness, intent, education, purchase, etc.) are better measurement frameworks since they tend to map to a company’s objectives more effectively. Measuring KPIs grouped by customer journey give marketers more context into what needs to be achieved and how the goals will impact big picture business objectives. For example, focus on building brand awareness by choosing the KPIs needed to measure a successful campaign and build the strategy around those KPIs. A data-driven marketing team can execute and measure success more efficiently if objectives are based on the customer journey. 02 USE CAMPAIGNS AND THE CUSTOMER JOURNEY AS THE FRAMEWORK, NOT CHANNELS “Analyzing campaign results helps marketers uncover the true cost and impact of their campaigns. Further, Consumer Insights pros can compare multiple campaigns on the same criteria, which lets them accurately measure the true cost and true revenue-generating results of each campaign and helps marketers determine which campaigns are successes and which are duds.” - Tina Moffett, Forrester Source: Forrester 1
  5. 5. 5 It is important for organizations to have a single yardstick company- wide to understand the performance of their marketing activities across the entire enterprise, spanning their different operating markets, brands, divisions, etc. Having a consistent framework enterprise-wide improves accountability, increases effectiveness, and enhances collaboration. With most marketing departments made up of smaller teams, it is important to keep the measurement framework consistent across the entire enterprise. Marketing taxonomies, algorithms, KPIs, categories and reporting should be defined the same way across all marketing sub teams. This will ensure that marketing metrics and performance data is accurate and consistent throughout the company. For example, General Electric’s2 approach to performance measurement is based around the idea that the best metrics companies can develop and use are created to meet a company’s own particular goals. Although many companies will find the certain metrics useful, there is “no “one-size-fits-all” measurement system that exists to deliver the right information for every company in every industry or operating environment.” 03 IMPLEMENT THE MEASUREMENT FRAMEWORK ENTERPRISE-WIDE “There is no “one-size-fits- all” measurement system that exists to deliver the right information for every company in every industry or operating environment.” Source: General Electic 2
  6. 6. 6 STRIVE TO BECOME AGILE To become “data smart,” a marketing organization needs to strive to be agile in its decision making. The complexity and the ever-changing needs of customers demand that marketers deliver relevant messaging in real-time. As most marketers know, the customer’s needs are constantly changing and that means marketing channels, campaigns and strategies need to change with them. A data- driven marketing team needs to utilize the real-time data they collect to make snap decisions on how to adapt marketing campaigns to address the changing needs of customers. Agile Marketing doesn’t only have a beneficial impact on the customer but on cross-department performance as well. HubSpot3 , for example, uses agile marketing to ensure the company goals are aligned and that teams focus on delivering what is needed in a quick and effective way. The transparency of their projects, deadlines, work loads and objectives give insight into how the teams are functioning and enable teams to make better informed decisions, faster.
  7. 7. 7 Historically, the measurement of marketing activities came after a campaign was over. This made sense in the days when all activities had long lead cycles and market feedback was collected via offline mechanisms. It no longer makes sense to continue this practice. Organizations should be striving to tightly integrate the measurement of campaign performance with the execution of activities, and to use a tight feedback loop to make adjustments throughout a campaign. The post-mortem is dead. The modern marketing team operates in real- time and makes active changes to marketing campaigns based on data collected through every channel as it happens. It is inefficient and costly for marketing teams to wait until after a campaign has ended to analyze and provide feedback on what contributed to the success or failure of a campaign. Through real-time data collection and analysis, marketing teams can make decisions as soon as new insights and opportunities are discovered. Having a system in place that allows data-driven marketers to analyze and act on real-time data increase the return on campaigns. Marketers can react accordingly to changes in the market, mistakes in messaging or new insights that can affect campaign success. An example of Visa’s success with real-time optimization can be found in their marketing efforts during the 2014 FIFA World Cup in Brazil. In an article by CMO.com5 , Visa CMO, Kevin Burke explains how Visa focused on real-time metrics, like media impressions, to help identify which channels and content drove purchase behavior during the World Cup. Visa established a marketing task force that met each morning during the World Cup to review their real- time data and discuss how marketing activations were being impacted. 04 TIGHTEN THE FEEDBACK LOOP “When we think about real-time marketing, we think of a few things. One is much sharper, much tighter insights about our consumers. We want to find that intersection between what’s happening in real- time culture—what our consumer interests and desires are—and what our brand purpose and meaning is.” - Shiv Singh Senior Vice President, Global Brand and Marketing Transformation, Visa Source: eMarketer 4
  8. 8. 8 To take advantage of today’s digital marketing technologies – with its short lead cycles and rapid feedback – marketing organizations need to develop a culture of experimentation. In order for this to be effective, a sufficient amount of media spend (5-10% of media budget) must be allocated. Today’s most innovative marketing programs are built on a process of experimentation. Instead of marketing teams spending millions in budget, the experimentation process offers a platform to try things before formally committing to new ideas. When marketing teams compartmentalize big, strategic changes into smaller experiments, marketing leaders can take bigger risks without burning budget. Intuit founder, Scott Cook, described the importance of creating a culture around experimentation and the surprises that occur when companies pay attention to what the market has to say. Experimentation makes it easy for teams to move more quickly in identifying potential successes in much shorter time frames. The experimentation process helps in creating an innovative culture that will ensure that marketing efforts are always moving forward. AirBnB7 , for example, has developed a culture around experimentation that has driven them to develop their own testing framework. AirBnB explains that creating their own testing framework allows them to make more informed decisions around product development and find correlations within their testing data. One example of an AirBnB test is the design of their search pages. 05 EXPERIMENT “You’ve got to change your culture, because it’s natural for bosses to want to decide. Now we teach our leaders that it’s your job to put in the systems that enable your people to run your experiments fast and cheap and to keep making them faster and cheaper. Yield as many of your decisions off to the experiment as possible.” - Scott Cook, Founder of Intuit Source: Fast Company 6
  9. 9. 9 The before and after image below shows the changes that AirBnB made to their search pages. Instead of releasing the new page design to every user at the same time, AirBnB decided to run a controlled test to collect quantitative data on the differences in performance. After running an initial test of the new search pages, AirBnB found that their was a boost of 2% in click-through actions. “A lot of work went into the project, and we all thought it was clearly better; our users agreed in qualitative user studies. Despite this, we wanted to evaluate the new design quantitatively with an experiment.” Source: AirBnB 7 Source: AirBnB 7
  10. 10. 10 INVEST IN A STRONG TECHNOLOGY INFRASTRUCTURE A recent Gartner8 study showed that there is a correlation between the percentage of company revenue that a marketing organization spends on marketing analytics and their effectiveness. This is not a surprise. However, to become a “data smart” marketing organization, it takes more than just throwing money at the problem. As marketing teams become more data-driven, marketing relies more heavily on technology to free up marketers and allow them to focus more on execution. The data collection, measurement, analysis and reporting process is time consuming and often overwhelming for teams that deal with enterprise level data.
  11. 11. 11 It is no longer necessary to rely on manual, error-prone processes in order to bring disparate marketing data together, like many organizations still do with spreadsheets. It is now possible to automate the entire process, from the collection and storage of data from multiple sources to the derivation of key insights that spur action. Automating the process is critical in order to tighten the feedback loop and become agile. When marketers have to focus less on the data collection and organization, they can set their sights on campaign execution and business objectives. The measurement process is a growing complexity for marketing teams as campaigns span multiple channels, budgets, demographics and audiences. Automating this process ensures accuracy, consistency and empowers marketers to take back their time. 06 AUTOMATE THE MEASUREMENT PROCESS
  12. 12. 12 It is important to keep the systems that execute activities separate from the measurement system. Relying on the measurement capabilities of execution systems results in insular perspectives, rather than a holistic perspective that is tied to business objectives. To understand the business impact marketing activities are having, it is not enough to just look at basic metrics like clicks, likes, opens, etc. You need to think of marketing data holistically, from the creative assets and the performance that are tied to activities, to targeting and audience data, to business impact data (spend, revenue, etc.). When marketing data is viewed holistically, marketers can better align their objectives and goals to company goals. This means that marketers can focus on measuring the KPIs that will impact the business as a whole. In a report by Forrester1 , they explain that the ultimate goal of cross-channel measurement is to help marketers understand what’s working and what isn’t — by recalculating key performance indicators (KPIs) in a more accurate, holistic way. Holistic marketing measurement calculates more accurate revenue and cost impact, while providing marketers with a source of truth for their channel and campaign performance. The benefit of a full stack marketing measurement system is that the software isn’t bogged down by additional features that couple measurement and complex execution tools under one platform. A platform that focuses specifically on measurement offers a more powerful solution that can be used in tandem with a solution that focuses on execution. 07 SEPERATE EXECUTION FROM MEASUREMENT 08 THINK OF YOUR DATA HOLISTICALLY The benefits go beyond more precise measurement: it helps marketers realign resources, identify more effective ways of connecting with their customers, and eliminate marketing spend waste.
  13. 13. 13 26% of data that companies hold is thought to be inaccurate. 83% of companies believe their revenue is affected by inaccurate data It is important to make sure that the measurement data that is collected and used is of the highest quality. Decisions are no better than the data on which they are based but the process of collecting and storing high quality data is not an easy one. It involves, among other things, understanding the detailed nuances between all of the different data sources and dealing with inconsistencies in terms of how certain data elements (like time) are handled. According to Experian9 , on average, 26 percent of the data companies hold is thought to be inaccurate. Additionally, 83 percent of marketing professionals believe their revenue is affected by inaccurate and incomplete customer or prospect data – in terms of wasted resources, lost productivity, or wasted marketing spend. With 95 percent of companies driven to turn their data into insight, bad quality data cannot be ignored. Marketers need clean, organized and accurate data in order to make effective decisions. Utilizing a data collection system that can handle the deduplication, augmentation and cleansing of data across channels will give marketers the most accurate and insightful information to work with. 09 DON’T FORGET THAT “GARBAGE IN” MEANS “GARBAGE OUT.” Source: Experian 9
  14. 14. 14 There are different approaches organizations are taking to implement what we at Origami Logic call a Marketing Intelligence solution. Some organizations are trying to use generic BI technologies and some are starting to explore the use of enterprise data hubs. As the marketing environment is often more dynamic than those of traditional business functions, it is important to explore systems and solutions specifically tailored for marketing. As the Harvard Business Review10 explains, “The challenge of effectively managing all this technology is daunting. There are now well over 1,000 marketing software providers worldwide, with offerings ranging from major platforms for CRM, content management, and marketing automation to specialized solutions for social media management, content marketing, and customer- facing apps.” This can be very overwhelming for marketing teams when choosing the right technology offerings. The urge to choose a “one-size-fits-all” solution can be strong but marketers should avoid these and opt for more focused measurement platforms. Data-driven marketing teams have a very specific and focused set of skills that make them great. This is why the technology that they use to do their jobs can spell disaster if it isn’t tailored to the specific needs of a marketer. Most services offer generic reporting and visualization tools that do not provide the granularity in data collection and measurement that sophisticated marketers need. At the end of the day a craftsman is only as good as his or her tools. 10 BEWARE OF “GENERIC” OFFERINGS There are over 1800 different marketing technology solutions.
  15. 15. 15 PARTNER FOR SUCCESS Organizations are more collaborative these days and that is also important when it comes to becoming a “data smart” marketing organization. Marketing teams can not function in isolation from the rest of the organization. In order for marketers to succeed, they need marketing and advertising technology to keep up with the growing complexities of the market. This is where the partnerships between IT and marketing agencies come into play.
  16. 16. 16 A strong partnership with the CIO is critical in today’s technology-driven marketing world. A healthy relationship can be achieved by striking a balance between the systems a marketing organization needs to own in order to make decisions in an agile manner, and the enterprise systems, owned by the CIO, that report on top-level, company KPIs and that require (aggregated) data from various functional areas. The growing relationship between CMOs and CIOs is crucial to empowering marketing teams with the technological advantages they need to function efficiently. Most marketers are not technology experts and often rely on IT to vette and implement the enterprise level software that they use to do their jobs. A strong relationship between marketing and IT will ensure that the needs of both teams can be met. Even the Harvard Business Review10 writes that the modern business environment requires that “the CMO and the CIO must collaborate closely. A company can’t simply split marketing technology down the middle, King Solomon style, and declare that the CMO gets the marketing half and the CIO gets the technology half. Marketing technology must be managed holistically. In a virtuous cycle, what’s possible with technology should inspire what’s desirable for marketing, and vice versa.” A report from Accenture11 on the growing need for collaboration between the CMO and CIO illustrate the increasing realization, from both marketing and IT, that the teams are becoming more reliant on each other. 11 STRIKE A BALANCED PARTNERSHIP WITH THE CIO In 2014 69% of CMOs recognize the need to align with IT Over 50% CMOs rank Marketing IT at, or near, the top of their priorities 45% of CMOs believe ‘more collaboration is needed’ with the CIO Source: Accenture 11
  17. 17. 17 You must have a centralized team that drives the measurement initiative, whether it is a global center of excellence or a marketing analytics group. Organization-wide, it must be clear that this team has a mandate and authority. Yet, it is critical that they partner and work closely with the various business units / divisions during the design and implementation of the framework to make sure that issues unique to a particular product or brand are taken into account. Transparency is key to a successful marketing team. Creating a system that can centralize the collaboration between different teams across the company will greatly increase efficiency and make for a more agile decision making process. Since marketing organizations rely on agencies to execute many of the marketing activities, it is important to partner with them in order to get the performance data related to their areas of responsibility. Without this data, you cannot have a complete picture of what’s happening and how it is impacting the business. Marketing teams often have to execute campaigns much larger than the organization can support alone. Utilizing agencies to help with analysis, execution and creative will free up marketers to focus on the big picture objectives. 12 GIVE AUTHORITY TO A CENTRAL TEAM THAT COLLABORATES WITH PRODUCT AND REGIONAL TEAMS 13 TEAM WITH AGENCIES Learn How Origami Logic Can Help You Empower Your Data-Driven Marketing Team
  18. 18. ABOUT ORIGAMI LOGIC Origami Logic is changing the way businesses measure, analyze, and optimize their marketing efforts. Through the industry’s first search-powered marketing intelligence platform, global brands in a variety of industries, including banking, credit cards, FMCG, media and entertainment, and retail, are deriving greater value from their marketing data and making better decisions, faster. For More Information For questions on this guide, or to find out how Origami Logic can help you drive better marketing performance, please contact us at info@origamilogic.com, or visit our website at www.origamilogic.com. 1. Moffet, T (2015, Feb). Adopt The Right Marketing Metrics To Measure Success 2. General Electric. Measuring Success: Making the Most of Performance Metrics 3. Brinker. S (2013, Nov). 2 important agile marketing insights from HubSpot’s CMO 4. eMarketer (2014, Feb). Visa’s Shiv Singh: This Year, Brands Will Learn How to Measure Real-Time Marketing 5. Abramovich. G (2015, Jun). Inside Visa’s Most Social World Cup 6. Cook. S, Baer. D (2013, Oct). Why Intuit Founder Scott Cook Wants You To Stop Listening To Your Boss 7. Overgoor. J (2014, May). Experiments At AirBnB 8. Kihn, M (2015, May). How Leaders Use Data in Marketing. PowerPoint presentation at the Gartner Digital Marketing Conference 2015, San Diego, CA. 9. Nazar, M (2015, May). Bad data means big problems: Insight from Experian Data Quality’s Benchmark Report 10. Brinker. S, McLellan. L (2014, Jul). The Rise of the Chief Marketing Technologist 11. Accenture (2014). Cutting Across The CMO-CIO Divide REFERENCES

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