Data Driven Marketing (DDM) involves making marketing decisions based on analysis of customer data. It is customer-centric and focuses on collecting data about customer transactions, behavior, and interactions to gain insights. DDM requires implementing marketing technology to automate processes, collecting and analyzing large amounts of customer data, and changing marketing teams and processes to be more data-driven. Fully implementing DDM is a long-term transformation that requires investments in systems, databases, teams, and new processes.

1. Data Driven Marketing
What, why and how to

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
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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
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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.
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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
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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
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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
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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
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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
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10. Why do you
need in DDM
Historical overview
Why now
What if you skip it
What’s new?
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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
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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:
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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.
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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
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16. MarTech What is marketing automation
Market landscape
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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
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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
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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
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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
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27. New marketing
tactics
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28. Marketing campaign
Plan. Campaign map and checklist.
Execution and recording
Analysis and insights
Plan based on insights
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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
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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
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31. Campaign execution
Test it before going live!
Test vendors
Test database (and project counts)
Test campaign map
Test web site
Test automation
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32. Marketing metrics
Roi is the main
Intermediate KPIs - funnel health, conversions etc
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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
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34. How to
implement
Prerequisites
Where to start
Changes in team
Procedures
When to stop
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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
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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.
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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)
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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
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40. Investment into the future of your business
Your company will be unable to compete with those who already implemented
DDM
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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
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44. Questions?
Ask me:
alexei@marketresearch.ru
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