tag:www.econsultancy.com,2008:/topics/business-intelligence Latest Business Intelligence content from Econsultancy 2017-02-10T11:36:23+00:00 tag:www.econsultancy.com,2008:BlogPost/68782 2017-02-10T11:36:23+00:00 2017-02-10T11:36:23+00:00 Three ways brands are using emotional analytics to connect with customers Tamara Littleton <p>But now it’s time for the next step.</p> <p>Emotional analytics allows brands to connect with people on a deeper, more personal, level. Unlike sentiment analytics, which simply allocates responses into broad positive, neutral or negative categories, emotional analytics tells brands what people are feeling and why. This, I think, makes all the difference.</p> <p>I might take to Twitter after a bad experience with customer service, and while the post could be defined as negative in a sentiment analysis report, how useful is that “negative” tag to the brand? My post will be lumped in with tons of other “negative” posts, depleted of all context which could make it actionable for the brand.</p> <p>Without deeper context, the brand can’t solve any problems. It can’t see that certain business practices make me frustrated, or that many other customers are experiencing a similar frustration for the same reason.</p> <p>Brands that don’t know why a customer feels the way they do can’t tailor their products and services to meet specific needs and wants.</p> <h3>How emotional analytics delivers results</h3> <p>By using emotional analytics, brands can see if there’s a disconnect between the emotions that we want the brand to create, and those that real customers are experiencing.</p> <p>A brand’s marketing team may want to promote the brand as inspirational and exciting, but how can it tell if it’s really delivering on this? Emotional analytics looks at how people are feeling, examines what topics they are having feelings about, and allows marketers the chance to change the narrative. </p> <h3>Three ways brands use emotional analytics</h3> <h4>1. Personalisation </h4> <p>As part of its 20th anniversary celebrations, <a title="campaignlive.co.uk" href="http://www.campaignlive.co.uk/article/easyjet-transformed-customer-data-emotional-anniversary-stories/1414488">EasyJet</a> used emotional analytics to discover what its customers felt about previous journeys they had taken.</p> <p><img src="https://assets.econsultancy.com/images/0008/3819/easyjet_20_years.jpg" alt="" width="800" height="450"></p> <p>It then used these insights to send customers personalised emails featuring their own history with the airline.</p> <p>These emails were opened 100% more than regular email campaigns, with the word “love” being the most common word used by recipients to describe how they felt about it.</p> <h4>2. Compliance</h4> <p>Bloomberg allows its clients to track the emotion in text and voice communications, helping them <a title="informationweek.com" href="http://www.informationweek.com/big-data/big-data-analytics/businesses-harness-emotional-analytics-for-gains/d/d-id/1324970">prevent market abuse</a> and remain compliant.</p> <p>Think of all the times that we don’t say what we mean. When we say we’re fine, when really were angry. By analysing our emotional responses, brands have a better chance of spotting any hidden meaning behind our messages.</p> <p>Businesses can apply this technology to their own internal communications and identify irregularities before they become problems.</p> <h4>3. Improved experience </h4> <p>We’re starting to see more <a title="insider-trends.com" href="http://www.insider-trends.com/is-emotion-tracking-the-next-big-retail-trend/">wearables</a> that track our emotional responses. For retailers, these offer a way to improve and tailor their in-store customer service – from sending assistance to frustrated shoppers to knowing which customers would be more open to special offers.</p> <p><img src="https://assets.econsultancy.com/images/0008/3820/feel_wristband.png" alt="" width="700" height="349"></p> <p>When <a title="wgsn.com" href="https://www.wgsn.com/blogs/ebays-pop-up-tracks-shoppers-emotions/">eBay</a> launched its pop-up store in late 2016, it wanted to track how people felt when they shopped for Christmas gifts. The answer? Stressed. 88% saw their heart rate jump by 32% during their shopping experience.</p> <p>Ebay wanted to use this data to take the stress out of shopping, and use the emotional insights to show shoppers what products they had connected with. The ecommerce giant tracked this data using wearables and in-store experiences, but it could gather the same sort of data online using emotional analytics.</p> <h3>Emotional analytics: using humans to turn emotion into action</h3> <p>From managing a crisis to refining a customer’s retail experience - if you understand the emotion that your brand elicits from a customer, you can take positive action.</p> <p>Using human insight to get under the skin of the data means you can turn analytics into action, transforming your marketing, customer service and experience to resonate with customers. You can win not just their heads, but their hearts. </p> tag:www.econsultancy.com,2008:BlogPost/68532 2016-11-22T13:30:00+00:00 2016-11-22T13:30:00+00:00 The case for chatbots being the new apps - notes from #WebSummit2016 Seán Donnelly <p>I counted 23 bot related companies exhibiting at the early stage (Alpha) area at Web Summit last week.</p> <p>These included bots for different kinds of services as well as bot building platforms. A year ago, this area might have been taken up by start-ups working on mobile apps.</p> <p>Is this a clear sign that bots are about to move beyond the nascent stage? Perhaps.  </p> <p><img src="https://assets.econsultancy.com/images/resized/0008/1501/web_summit_bot_start_ups-blog-flyer.png" alt="Start Ups exhibiting at Web Summit 2016" width="470" height="364"></p> <h3>What is a bot?</h3> <p>We’re actually a lot more familiar with bots than we might realise. Think of Apple’s Siri or Microsoft Cortana. They’ve been around for a while but until recently, haven’t really gained traction for various reasons.</p> <p>Search engines may be considered as a type of bot. A user types in a command or request in the form of a search query and the search engine returns a number of results based on that query. </p> <p>Or let’s go even further, remember Microsoft’s paper clip virtual assistant? That was discontinued years ago but bots have been taking off again recently as advances in machine learning and artificial intelligence make them more accessible and versatile than before.</p> <p>In terms of the more recent bot experiences, brands are starting to use them for more personal, proactive and streamlined interactions with people. In this sense, a bot is just a new type of user interface.</p> <p>According to Ted Livingston, CEO and founder of messaging app Kik, speaking on the digital marketing stage at Web Summit, "people think bots are about chatting. They're just a better way to deliver software. It's just a user interface.”</p> <p>Chatbots are just automated computer programs that can simulate conversation with people to perform tasks or answer questions. </p> <h3>How sophisticated are bots?</h3> <p>There is a scale of complexity when it comes to bots. At the most sophisticated level, a bot is an artificially intelligent creation capable of understanding complex interactions.</p> <p>At the lower end of the spectrum, a bot is just a simple interface that can respond to a limited number of pre-programmed commands.</p> <p>For an idea of how basic bots can be, there is a plethora of basic bot-building platforms online. I created Seanbot at robots.me. It’s not going to do my work for me anytime soon. </p> <p>As basic as some bots may seem, Kik’s Livingston says “calling bots basic today is a bit like calling websites basic 20 years ago”. We’re going to see bot sophistication increase far more quickly than we did for website functionality. </p> <h3>Why are bots getting popular so quickly?</h3> <p>According to Ted Livingston, one answer might be the growth and use of messaging platforms which is providing some of the infrastructure for delivering bot interfaces.</p> <p>Back in April 2016, <a href="https://econsultancy.com/blog/67799-facebook-s-f8-updates-mark-shift-from-screens-to-experiences/">Facebook opened up its Messenger platform</a> to developers at its F8 developer conference. That means that brands that want to reach people on mobile can build bots to share weather updates, order pizza, confirm flight reservations or send receipts after a purchase. </p> <p>For example, Mark Zuckerberg presented the use case of ordering flowers by chatting with the 1-800-Flowers.com bot, ironically bypassing dialling the telephone. As of July 2016, there were more than 11,000 bots on the Facebook Messenger platform. </p> <p>Also in April, Kik launched its own bot store, which according to Livingston, has already attracted more than 20,000 bots.</p> <p>He told users at Web Summit that in China there are more bots launched on TenCent’s WeChat every day than websites added to the Internet. In other words, according to Livingston, “WeChat is the Internet” in China. </p> <p><em>Kik bot store</em></p> <p><img src="https://assets.econsultancy.com/images/resized/0008/1502/kik_bot_store-blog-flyer.png" alt="Kik Bot Shop Interface" width="470" height="193"></p> <p>Google revealed its chatbot strategy in May. Unlike M, the virtual assistant in Facebook’s Messenger, the Google Assistant will respond to voice queries and not just text input.</p> <p>Microsoft also has its own open source bot builder. Unlike Messenger and Kik bots, these bots can be deployed on other platforms.</p> <p>Amazon has also opened up its bot building platform, Echo, to developers since 2015.</p> <h3>What do bots mean for the future of apps?</h3> <p>Chatbots can be delivered via website interfaces for managing basic customer service queries.</p> <p>There could be a time though when instead of visiting an ecommerce site, we simply message the relevant stores bot on Facebook Messenger which would ask us what we are looking for and we simply tell it. </p> <p>If we think about mobile apps, there are a number of reasons why bots may in fact be the new app.</p> <h3>Why might bots succeed apps?</h3> <p><strong>1. Difficulty getting cut through on mobile app stores</strong></p> <p>If we examine mobile, according to Livingston, three quarters of American smartphone users download zero apps per month. Also, research suggests that users only use 3–4 apps on a regular basis. </p> <p>Getting cut through in the app store and then retaining users is also incredibly difficult. Bots on the other hand are available via some of the most popular messaging apps and so can provide a new way to manage frictionless interactions with consumers. </p> <p>Livingston says that if you can create a great bot experience, that experience can spread virally.</p> <p>"The problem with the app store is that they (apps) can't go viral. The top 50 apps take up the majority of downloads. Bots make it easy for experiences to go viral via mentions which allow bots to be put into conversations”.</p> <p>He gave the example of a fun chatbot Kik built called Roll that went from 0 to half a million users in 30 days.</p> <p>95% of the user base came by being shared peer to peer. It now has 1 million users.</p> <p><strong>2. Ubiquity of messaging apps</strong></p> <p>Considering the incredible growth in the number of bots available via Messenger, Kik, WeChat and other platforms, then according to Livingston "if you are a developer at this point and you are still building an app, you are crazy”. </p> <ul> <li>WhatsApp, owned by Facebook, is the most popular messenger app in the world with 1bn monthly active users (Source: Statista).  </li> <li>Facebook Messenger takes second place with over 900m monthly active users (MAUs). This number has been consistently growing since 2014 when it had 200m MAUs.</li> <li>Chinese company Tencent’s instant messenger QQ isn’t far behind with about 880 MAUs (ChinaInternetWatch).</li> <li>Tencent’s WeChat is also on the list with 806 million monthly active users as of October 2016 (Statista). </li> </ul> <p>Further, the number of mobile messaging app users is forecast to nearly double between 2014 and 2019 (Statista). That means a projected total of 2.19bn people using mobile messaging apps by 2019.</p> <p><img src="https://assets.econsultancy.com/images/resized/0008/1503/900_million_people_using_facebook_messenger-blog-flyer.png" alt="" width="470" height="260"></p> <p><strong>3. There is less friction using a bot than installing an app</strong></p> <p>To make user of a bot, a user just needs to search for the bot within their preferred messaging app and start “chatting”. Because you are interacting via your installed messaging app, the bot will have access to your identity.</p> <p>This contrasts with searching for an app, installing and creating an account. This may be problematic if you are outside a wifi zone and don’t want to use data to download the app.</p> <p>I tried using 1800 Flowers this morning. While I didn’t actually order anything, connecting with the bot and starting the interaction was quite easy.  </p> <p><img src="https://assets.econsultancy.com/images/resized/0008/1505/1800_flowers-blog-flyer.png" alt="" width="470" height="275"></p> <p><strong>4. Bots may be better options for businesses that don’t have an immediate business case for an app</strong></p> <p>Users can add a bot to their contact list rather than downloading an app.</p> <p>What this means is that small businesses or companies that don’t have a clear use case for downloading and keeping an app on your phone may benefit from a bot instead.  </p> <p>Think of hotels or your local hairdresser / barber. To spend the time, effort and money to build an app for these services wouldn’t be worth it but there may be a long tail in having them in your contact list to make bookings etc. </p> <p><strong>5. Bots don't use up valuable memory on users smartphones.</strong></p> <p>Enough said.</p> <h3>Use case - how KLM is starting to use bots for customer service</h3> <p>At Econsultancy’s Festival of Marketing 2016, KLM’s Social Media Manager Karlijn Vogel-Meijer discussed the airline’s approach to customer service via social media. </p> <p>KLM has been a poster child for using social media as a customer service tool. Karlijn told FoM attendees that KLM has 235 agents dealing with social mentions around the world, 24/7.  </p> <p>To put it into context, the KLM team responds to 15,000 social mentions per week in 12 different languages.</p> <p>They used to have a 60 minute promised response time but in reality, most customer don’t want to wait that long. These interactions are managed manually but the volume of interactions is increasing year on year. </p> <p>For this reason, KLM is exploring AI and bots to help reduce the strain, whilst working to maintain a human feel.</p> <p>KLM added in a Facebook Messenger chatbot in March. Since its launch, it is receiving 5 questions per hour via Messenger. This number can increase to 13 in a peak hour.</p> <p><img src="https://assets.econsultancy.com/images/resized/0008/1504/klm_social_mentions-blog-flyer.jpg" alt="KLM’s Social Media Manager Karlijn Vogel-Meijer speaking at FoM 2016" width="470" height="368"> </p> <p>The brand is using Messenger for automated updates around checking in, potential delays and sending boarding passes. However Karlijn was clear that if a customer has a more complex question, a KLM agent will still get involved. </p> <p>Bots right now may not be in a position to interact in a personal way she says. In that sense, KLM’s social customer service strategy hasn’t changed. They’ve just added a layer of technology to support common requests.</p> <p>KLM is exploring adding more functions to Facebook Messenger and expanding its chatbot to other platforms like WhatsApp and WeChat. These are expected to roll out within the next year.</p> <h3>Learn more about bots </h3> <p>Econsultancy has published a number of posts and reports about bots and artificial intelligence in the last year. In particular, readers may find the following helpful: </p> <ul> <li><a href="https://econsultancy.com/blog/68388-how-klm-uses-bots-and-ai-in-human-social-customer-service/">How KLM uses bots and AI in ‘human’ social customer service</a></li> <li><a href="https://econsultancy.com/reports/marketing-in-the-age-of-artificial-intelligence/">Marketing in the Age of Artificial Intelligence</a></li> </ul> tag:www.econsultancy.com,2008:BlogPost/67850 2016-05-16T14:29:08+01:00 2016-05-16T14:29:08+01:00 Quantitative marketing: You have enough data to improve performance. I promise. Evan Dunn <p>The thing is: <strong>there is always enough data to improve marketing performance</strong>. </p> <p>Allow me to explain. There are many ways to improve marketing's ability to accomplish its objectives.</p> <p>Each of these analytical methods is at its best with first-party (internal) data, like the juicy stuff found in campaign measurement, but each can also benefit heavily from the application of third-party (external) data.</p> <p>Even without consistent campaign data, however, there is always a wealth of insight to be garnered from analyzing first-party data, both digital and otherwise.</p> <p><a href="https://econsultancy.com/blog/66415-three-key-trends-from-our-data-driven-marketing-briefing-digital-cream-2015/">Data-driven decision-making</a> was the most critical method for driving growth for 83% of enterprise marketing executives in 2015, according to an <a href="https://www.ana.net/content/show/id/37128">Association of National Advertisers study</a>.</p> <p>Each of the following types of data are almost certainly somewhere in your organization.</p> <p>The trick is, of course, extracting them at a speed that enables marketing rather than hinders it. But that's less difficult that one might think these days.</p> <p>Once extracted, the data must be "harmonized" (taught how to play nicely with other data) in order to enable cross-channel, cross-regional and cross-departmental insights.</p> <p>We call this "quantitative marketing" - the idea that marketing can be as much science as it is art. </p> <h3>Sales (or Conversions or Transactions or Orders)</h3> <p>If you don't have this data, you're not in business. Okay, okay - you, marketing executive, may not have this data, especially not in any way that is valuable to your marketing decision-making.</p> <p>But some silo somewhere in your organization holds this treasured data set. And it can inform marketing a great deal.</p> <p><em>Obligatory stock photo of some silos</em></p> <p><em><img src="https://assets.econsultancy.com/images/0007/4946/silo.jpg" alt="" width="700"></em></p> <p>The more "digital" your business category, the more likely it is that this data is easy to access.</p> <p>For example, ecommerce tends to lend itself quite readily to the spread of sales data, since it is inherently collected in digital databases. But brick-and-mortar categories are a few degrees more complex.</p> <p>Even more complex are CPG and some B2B2C businesses, whose sales data is consumed outside of their organizations and (hopefully) reported back accurately and with ready utility. </p> <p>So, <strong>how to use sales and conversion data to improve marketing:</strong></p> <ul> <li>Analyze the data itself. Do certain products sell more than others? Have you run any campaigns for those products, or are the products you're marketing not selling well?</li> <li>Overlay the sales or conversion data onto your trendlines for spend and KPI breakdowns for different segments (territories, channels, tools, agencies, etc.). "Correlation does not imply causation" is relevant here - but that doesn't mean correlations aren't sometimes meaningful.</li> <li>Contract (or better yet, hire) <a href="https://econsultancy.com/blog/67203-data-analysts-vs-data-scientists-what-s-the-difference/">a data scientist</a> to run cluster analyses (and other fancy names of fancy mathematical techniques) on the data. Performance by geography, product category, product color and other attributes inform a variety of business operations. Marketing can use the insights to grease the engines of campaigns.</li> </ul> <h3>Spend</h3> <p>It feels counterintuitive to reference marketing expenses as an opportunity for improving marketing performance, but hear me out.</p> <p>There are three primary types of marketing spend data:</p> <ol> <li>Media buys.</li> <li>Agency vendors.</li> <li>Marketing technology vendors.</li> </ol> <p>Typically, agency vendors includes some media buy and some marketing technology, but it's difficult to truly parse the percentage of each with many vendors.</p> <p>Some vendors combine two or three of these spends into one bundled cost, like conversion shops you pay a cost-per-lead fee, or aggregators, or programmatic media. </p> <p>It seems a lot of the marketing world gets caught up in the parsing of these costs, when what really matters is that all costs must be accounted for.</p> <p>Media-mix modeling/optimization is one way of analyzing the spend (media buy) vs. the return (sales) using statistics.</p> <p>But the same theoretical models can be applied to martech and agency vendors - using data science to predict which vendors will deliver what results.</p> <p>Even if you don't go that deep, however, a lot can be gained from the quantification of spend data, and the visualization of spend alongside sales, with all available breakdowns.</p> <h3>Third-party data</h3> <p>Ingesting and analyzing third-party data gives quick wins to large marketing organizations. Here are some examples:</p> <p><strong>1.</strong> Ever wondered if your offline campaigns are connecting with the right audience? ComScore just acquired Rentrak - and the two together provide fascinating levels of detail into offline audiences.</p> <p><strong>2.</strong> Ever thought about what's working and what's not working on your website? <a href="https://econsultancy.com/blog/66230-a-beginner-s-dictionary-of-google-analytics/">Google Analytics</a> is free. Use it - and hire someone who knows how to dig up truly meaningful insights.</p> <p><img src="https://assets.econsultancy.com/images/0007/4947/Google_Analytics.png" alt="" width="800" height="505"></p> <p><strong>3.</strong> Ever wondered if your campaigns are successful driving awareness? If you're consumer-focused, use <a href="https://econsultancy.com/blog/67137-social-monitoring-listening-what-is-it-and-do-you-need-it/">social listening technology</a> to analyze what people say about your category vs. your competitors vs. your brand/product.</p> <p><strong>4.</strong> Looking to see how well you know your target audience, online opportunity and customers? </p> <p>Dig into Facebook Audience Insights (for free in its advertising portal), run your emails through TowerData, analyze deep mobile demographics/psychographics with PushSpring or Analyze Corp's Clientell tool.</p> <p><strong>5.</strong> Considering launching <a href="https://econsultancy.com/reports/paid-search-marketing-ppc-best-practice-guide/">paid search campaigns</a>? Use tools like SEMRush to approximate competitor investment in paid search.</p> <p><strong>6.</strong> Considering launching a new social presence or new social accounts? Use <a href="https://econsultancy.com/blog/65560-what-s-the-difference-between-paid-owned-and-earned-media/">owned social analytics tools</a>, coupled with social listening technology, to derive what your competitors are doing, and which of their activity seems successful.</p> <p><strong>7.</strong> Considering launching display advertising campaigns? Use Moat.com to analyze how your competitors are using online display.</p> <h4>The list keeps going...</h4> <p>...and this is just the tip of the iceberg of the applications of data to marketing activity - but you get the two big ideas:</p> <ul> <li>Useful data is out there.</li> <li>Useful data is in your organization.</li> </ul> <p>These types of quantitative analyses are foundational to marketing success. As Mike Schmoker said...</p> <blockquote> <p>What gets measured (and clearly defined) gets done.</p> </blockquote> tag:www.econsultancy.com,2008:BlogPost/67828 2016-05-10T14:58:27+01:00 2016-05-10T14:58:27+01:00 Palantir's woes bring Big Data challenges into focus Patricio Robles <p>That's <a href="https://www.buzzfeed.com/williamalden/inside-palantir-silicon-valleys-most-secretive-company">according to</a> BuzzFeed's William Alden, who obtained internal documents detailing how Palantir has struggled with some of its blue chip clients, some of which pay more than $1m per month for the company's services.</p> <p>According to Alden three of those clients, Coca-Cola, American Express, and Nasdaq, "have walked away" in the past 13 months, and Palantir's effort to create a data sharing consortium for CPG companies "has stumbled."</p> <p>The documents also reveal that not all of Palantir's current clients are convinced that their collaborations are paying off yet.</p> <p>For example, Alden points to Michele Buck, the North American president for The Hershey Company, who indicated that the company "did not see value from Palantir in 2015."</p> <p>A Hershey Company spokesperson told BuzzFeed that it considers Palantir "a valued partner" and stated "we have now identified areas for commercial and operational value and are targeting our efforts there," but Alden's story highlights a number of challenges that companies are facing as they seek to take advantage of Big Data.</p> <h3>Big data requires people</h3> <p>Companies have more data than ever, but data on its own only becomes truly valuable when it's translated into actionable insight.</p> <p>One of Palantir's selling points is that it has the brilliant people required to do just that. But even with more than $2bn in funding and access to the Silicon Valley labor pool, the company has apparently struggled to retain employees.</p> <p>According to Alden:</p> <blockquote> <p>A chart from Palantir’s internal wiki said the departures through mid-April amounted to 5.8% of all staff, or an annualized rate of 20%. That compares to a departure rate of 13.6% in 2015, 12.2% in 2014, and 9.2% in 2013. </p> </blockquote> <h3>Domain expertise is often important</h3> <p>But delivering actionable insight isn't just about having butts in seats. It's about having the right butts in seats.<br></p> <p>Coca-Cola conducted a pilot with Palantir in 2014 that was designed, in part, "to help revive sales of Diet Coke in North America through analysis of customer data."</p> <p>But the beverage behemonth ultimately decided not to sign a five-year agreement with the big data analytics firm.</p> <p>An internal email from a Palantir executive revealed that Coca-Cola "wanted deeper industry expertise in a partner" and that the brand's staff often found it hard to work with Palantir's team which, like many companies in Silicon Valley, skews young.</p> <h3>Data is cheap but Big Data analytics is expensive</h3> <p>Then there's the issue of cost. While generating and storing data is increasingly cheap, hiring a company like Palantir to make sense of it isn't.</p> <p>Coca-Cola "balked" at the contract Palantir presented, which called for $18m in fees in the fifth year of the deal.</p> <p>And Kimberly-Clark, when presented with an agreement that also called for $18m per year in fees, also got cold feet. According to an email from a Palantir executive, the CPG giant "wanted to see if they could do it cheaper themselves."</p> <p>That makes sense. After all, if Big Data analytics can really move the needle in a big way, wouldn't companies like Coca-Cola and Kimberly-Clark want it to become a core competency?</p> <p>Paying a third-party, one which may not have industry expertise and also faces staff turnover risk, might be easy, but it seems like a short-sighted strategy.</p> <h3>The Palantir response</h3> <p>Palantir has taken steps to address staff turnover issues and suggests that its turnover is expected given that its "really strong culture" isn't for everyone.</p> <p>It can also point to seemingly successful relationships like those it has with oil company BP, bank Credit Suisse, credit card processor First Data and insurer Axa.</p> <p>Palantir's 10-year deal with BP could be worth more than $1.2bn.</p> <p>One Palantir business development rep felt that executives at American Express were "low-vision," a reminder that shared vision and values, not just technology and smarts, can make or break relationships for firms like Palantir and their clients.</p> <p>Finally, <a href="https://www.quora.com/What-does-Joe-Lonsdale-think-of-BuzzFeeds-Inside-Palantir-article">according to</a> Palantir co-founder Joe Lonsdale, who is no longer involved in the company's day-to-day operations:</p> <blockquote> <p>[Palantir] had been expansive in who it worked with and then scaled with the areas that made sense and were aligned with its ethos and goals. Of course a few of its client relationships might not have worked out - if that wasn't the case it would have meant they weren't exploring new industries properly.</p> </blockquote> <p>That is perhaps the key take-away for brands exploring their Big Data opportunities.</p> <p>As the number of third parties offering products and services that promise to turn Big Data into big bucks grows, brands should remember that many of these firms are themselves trying to figure out their own markets and will experiment accordingly.</p> <p>The obvious risks this creates doesn't necessarily mean that brands should bring their Big Data efforts completely in-house.</p> <p>But the realistic, forward-thinking ones probably won't put all their eggs in one basket either.</p> tag:www.econsultancy.com,2008:BlogPost/67707 2016-04-11T00:01:00+01:00 2016-04-11T00:01:00+01:00 Digital marketing in Asia: Spotlight on Malaysia Jeff Rajeck <p>Through investigating a number of South-East Asia countries, we are revealing which might be of interest to marketers globally. Here, we cover Malaysia.</p> <p>But, first off, <strong>why would a global brand want to be in Malaysia?</strong></p> <p><img src="https://assets.econsultancy.com/images/resized/0007/3620/women_walking-blog-flyer.jpg" alt="" width="470" height="313"></p> <h3>Malaysia is a big, English-speaking market</h3> <p>Malaysia's population is around 30m, according to most recent estimates.</p> <p>And though the country's official lnguage is Malay, <strong>Malaysia's English proficiency is on par with Singapore</strong>, according to the <a href="http://www.ef.sg/epi/.">EF English Proficiency Index</a>.</p> <p>In practice, English is spoken by most people in the country every day so for Western brands with English-speaking marketers, language should not be a problem. </p> <p><img src="https://assets.econsultancy.com/images/resized/0007/3621/kl-blog-flyer.jpg" alt="" width="470" height="264"></p> <h3>Malaysians are well-educated</h3> <p>According to the Malaysian government's <a href="https://www.statistics.gov.my">Labour Force Survey Report</a>, out of 13.5m working Malaysians about one quarter (3.5m) has tertiary education and another 55% has secondary education.</p> <p>This distribution is roughly in-line with European nations <a href="https://data.oecd.org/eduatt/population-with-tertiary-education.htm">according to OECD statistics</a>, so marketers will not be in completely unfamiliar territory.</p> <h3>The country is relatively affluent</h3> <p>Malaysia's GDP per capita on a purchasing power parity (PPP) basis, a rough measure of the spending power of a country's citizens, was US$26,600 in 2014.</p> <p>This is about half of the figure for the US ($56,300) and two-thirds for the UK ($41,200), all according to the <a href="https://www.cia.gov/library/publications/the-world-factbook/fields/2004.html">CIA World Factbook</a>.</p> <p>Though this means they have less disposable income than Westerners, on the whole <strong>Malaysians have much more spending power than other countries in the region</strong> such as Indonesia ($11,300) and Vietnam ($6,300). </p> <p><img src="https://assets.econsultancy.com/images/resized/0007/3622/cosmo-blog-flyer.jpg" alt="" width="470" height="314"></p> <h3>And Malaysians are very digital</h3> <p>Twenty million Malaysians are on the internet, about two-thirds of the population, according to Internet World Stats.</p> <p>But according to a <a href="https://www.itu.int/en/ITU-D/Statistics/Documents/publications/mis2013/MIS2013_without_Annex_4.pdf">2013 report,</a> commissioned by the United Nations’ International Telecommunication Union (ITU), <strong>Malaysia ranked fourth-highest globally for the size of its 'digital native' population</strong>, which is defined as the percentage of youths aged 15 to 24 with at least five years of active internet use.</p> <p><img src="https://assets.econsultancy.com/images/resized/0007/3623/youth-blog-flyer.jpg" alt="" width="470" height="312"></p> <p>This means that <strong>Malaysia's internet users are more likely to be young</strong> than those in the UK (25th), neighboring Singapore (12th), or even the USA (6th). </p> <h3>And how would one reach a Malaysian consumer?</h3> <h4>Through Google</h4> <p>Fortunately for most marketers globally, <strong>Malaysian consumers use the same search engine as most do elsewhere, Google.</strong></p> <p>Google's market share in Malaysia is, by most estimates, over 90%. And according to Wordstream, the cost-per-click is 75% less than it is in the USA.</p> <h4>Or Facebook, LinkedIn, and Twitter</h4> <p><strong>Facebook is, by far, the most popular social media network in Malaysia</strong> and the third most popular site, below Google and YouTube.</p> <p>According to estimates from Facebook's own Audience Tool, there are around 17.5m Malaysians on the platform, which us 85% of the Malaysian Internet population.</p> <p><strong>There are 3m Malaysian LinkedIn users</strong> as well, over 20% of its working population.</p> <p>And, according to the Twitter Ad Tool,<strong> there are between 1.3m and 1.9m Malaysian Twitter users</strong> in the country.</p> <h4>And little need to change branding</h4> <p>One interesting thing that many notice when they go to Malaysia is that <strong>Malaysian advertising freely uses both Malay and English</strong>.</p> <p>Many of the brands are the same, and some have added Malay to their messaging...</p> <p><img src="https://assets.econsultancy.com/images/resized/0007/3624/mini-blog-flyer.jpg" alt="" width="470" height="314"></p> <p>...others have just use English...</p> <p><img src="https://assets.econsultancy.com/images/resized/0007/3625/petronas-blog-flyer.jpg" alt="" width="470" height="313"></p> <p>...and some become even more adventurous than they might be in 100% English speaking countries!</p> <p><img src="https://assets.econsultancy.com/images/resized/0007/3626/phuket-blog-flyer.jpg" alt="" width="470" height="353"></p> <h3>So, is there anything else to know?</h3> <h4>Malaysia is ethnically diverse</h4> <p>Malaysia is an ethnically diverse country. According to Malaysian government figures, around two-thirds of the population is Malay, one-quarter Chinese, and 7% of Indian heritage.</p> <p><img src="https://assets.econsultancy.com/images/resized/0007/3628/holi-blog-flyer.jpg" alt="" width="470" height="353"></p> <p>Because of this, <strong>Malaysia is also religiously diverse as well</strong>. The country is officially Islamic, but there are also a significant number of Buddhists, Hindus, and Christians as well.</p> <p>With so many strong religious groups, it can be quite easy for brands to miss the mark or downright fail due to a lack of understanding of the local culture.</p> <p>For example, many Western hair products advertise by showing, well, hair. But, <strong>showing hair in an advert goes against the Malay cultural sensitivities.</strong> Many Malaysian women who cover their hair with a headdress (Hijab).</p> <p>Being aware of these issues, however, can benefit brands.</p> <p>Sunsilk, a Unilever shampoo brand, was able to advertise its products while respecting that sensitivity.  </p> <p>Models who represented the spirit of the brand were shown in their Hijab, without any hair showing at all. The campaign is credited with helping Sunsilk grow its market share by 9% in 2013, after a decline in 5% in 2012, as a result.</p> <p><img src="https://assets.econsultancy.com/images/0007/3629/sunsilk.jpg" alt="" width="553" height="205"></p> <h4>Ecommerce is still a small part of the economy, though</h4> <p>Payvision, a global payments solution, reported <strong>in 2014 that less than 1% of purchases in Malaysia were conducted online</strong>. They also projected that this number will only reach 1.4% in 2016.</p> <p>In the same report, however, Payvision also pointed out that <strong>40% of all ecommerce sales in Malaysia are cross-border</strong>, more than almost any other country.  </p> <p>It goes on to say that Malaysians typically buy from American sites such as Amazon, Apple, and eBay, but they do also buy from European and Chinese sites as well.</p> <h4>And there is already competition</h4> <p>Despite the relatively small digital market, there are already some significant digital players in the region.</p> <p>Lazada, the 'Amazon of South-East Asia' is popular in the country as is Zalora, an online fashion retailer.</p> <p><img src="https://assets.econsultancy.com/images/resized/0007/3630/lazada-blog-flyer.png" alt="" width="470" height="183"></p> <p>And, according to research carried out by EcommerceMILO, 16 out of 36 of the largest brick-and-morter retail stores in the country have an online presence.</p> <p>So before launching, be sure to check out the competition through EcommerceMilo's <a href="http://www.ecommercemilo.com/2015/03/are-malaysia-top-retailers-doing-ecommerce.html">useful guides to the country's ecommerce landscape</a>.</p> <p><img src="https://assets.econsultancy.com/images/resized/0007/3631/top_ecommerce_sites_malaysia-blog-flyer.png" alt="" width="470" height="358"></p> <h3>So...</h3> <p>Malaysia offers a big, well-educated, relatively affluent, and educated market for Western brands wanting to sell more in Asia. </p> <p>Fortunately they also speak English and use a lot of the same online services that people do in the West, so existing digital marketing programs for Western markets should translate quite naturally.</p> <p>But it's important to note that ecommerce is still a very small part of the economy and there are some significant players who are already quite active.</p> <p>Then again, digital allows companies to try a few small experiments before entering a new market and, overall, Malaysia seems to be a relative sensible territory for that.</p> tag:www.econsultancy.com,2008:BlogPost/67681 2016-03-30T14:56:00+01:00 2016-03-30T14:56:00+01:00 Can cross-channel marketing save the Next catalogue? Matthew Kelleher <h3>Catalogues on the wane?</h3> <p>It’s not the shift from offline to digital that is the stand out issue here, which remains a constant now as it has done for many years (although the shift in buying patterns detailed by Next in their annual review, from offline to online to mobile, is very significant).</p> <p>What is momentus is that the Next catalogue, one of the pillars of Next’s long term success along with Directory and its credit services, as well as being one of the icons of the catalogue market, is on the wane.</p> <p>Of course it is not just Next who are questioning the role of the catalogue in the digital era, many retailers I speak to are struggling to understand both the strategic role of a catalogue in the evolving marketing mix and its value in a multi-channel world.</p> <p><img src="https://assets.econsultancy.com/images/0007/3440/Screen_Shot_2016-03-30_at_14.45.07.png" alt="next catalogue" width="615"></p> <h3>Is the catalogue's value to other channels truly known?</h3> <p>Customer behaviour continues to change and, critically, traditional measurement of channel performance no longer provides accurate understanding of channel performance.</p> <p><a href="https://econsultancy.com/blog/66440-three-key-trends-from-our-marketing-attribution-briefing-digital-cream-2015/">Attribution modelling</a>, if it is being applied, is stymied by the inability to accurately view customers across the great divide between off and online marketing.</p> <p>The convergence of traditional and digital marketing and the rise of cross-channel marketing have been well predicted, for instance <a href="https://econsultancy.com/blog/65990-three-digital-marketing-mega-trends-for-2015/">by Ashley Friedlein</a> here on Econsultancy. The travails of the Next catalogue are a salient reminder of this trend.</p> <p>Retailers operating without cross-channel tracking and genuinely-<a href="https://econsultancy.com/blog/66316-how-are-organisations-integrating-the-single-customer-view">single customer views </a>cannot see what role the catalogue plays in generating, for instances, footfall in store or browsing activity online.</p> <p>The catalogue is therefore operating marooned in its own silo, judged only by its direct response results which, we all know, are declining across the board.</p> <h3>Enhancing attribution models</h3> <p>The solution for retailers facing these issues is to move onto the next generation of cross-channel single customer view database that use cross-channel tracking and customer identification software.</p> <p>Retailers need to know when they send a catalogue who browses, who is driven in store and who is price checking on a mobile device.</p> <p>In this fashion attribution models are enhanced, customer journeys effectively tracked and channel value properly understood. There is also the added benefit, probably the most valuable, of integrating the catalogue into the digital channels.</p> <p>Retailers practising cross-channel marketing in this fashion can serve relevant content to individuals launched on their journey by the catalogue as they arrive at the next stage on their journey, for instance when they arrive at the website or when they interact with an email, delivering an ‘omnichannel’ message and guiding them along the path to conversion.</p> <p><em>A mid-'90s Next Directory (<a href="http://www.ebay.co.uk/itm/Next-Directory-Catalogue-No-10-Autumn-Winter-1992-/281975932968">via eBay</a>)</em></p> <p><img src="https://assets.econsultancy.com/images/0007/3441/Screen_Shot_2016-03-30_at_14.53.28.png" alt="early next directory" width="615"></p> <h3>Confidence in catalogues can only come from a single customer view</h3> <p>I’m also intrigued by the phraseology used by The Telegraph – “for customers who don’t want them”. This refers to the Next press release's ‘Catalogues and Marketing’ review.</p> <p>Next has been a leader in using segmentation and analytics to drive their catalogue and direct mail for many years, but reading between the lines, as the Telegraph is doing, the Next hierarchy is losing confidence and switching spend.</p> <p>Any retailer facing a similar challenge needs a cross-channel single customer view to open the door to a wealth of online generated data that would bolster a shift to Predictive Analytical approaches. The days of offline marketers dismissing and ignoring multi-channel behavioural data as ‘clickstream’ have to be nearing an end.</p> <p>The development of cross-channel tracking software and single customer views will lead retailers not only to greater understanding of the role of the catalogue but will also create additional customer value.</p> <p>Not only will retailers be able to more accurately tie online customers together with offline, showing the true value of a single customer, but it will drive increased value through better decision making at a customer level.</p> <p>That means more accurate personalisation and a greater probability to retain a customer in a world where brand loyalty is an increasingly rare commodity.</p> tag:www.econsultancy.com,2008:BlogPost/67583 2016-03-04T15:05:00+00:00 2016-03-04T15:05:00+00:00 What does the future hold for Data Management Platforms? Chloe Young <h3 dir="ltr">Key challenges</h3> <p dir="ltr">Data analytics can be sophisticated, but they can also be embarrassingly crude occasionally.</p> <p dir="ltr">It’s not as bad as when ecommerce first started, when there were cases of supermarkets offering people items they’d bought before even if these happened to be Christmas trees and it was February.</p> <p dir="ltr">However, basing a pitch on someone’s decision to investigate an item online when for all you know they’ve bought it elsewhere is counterproductive.</p> <p dir="ltr">Likewise, wouldn’t it be useful to know whether a particular user or class of user habitually looks at, say, new phones – but never buys?</p> <p dir="ltr"><em><strong>When did you first start using a DMP?</strong></em></p> <p dir="ltr"><img src="https://assets.econsultancy.com/images/0007/2654/Screen_Shot_2016-03-04_at_15.02.34.png" alt="" width="679" height="460"></p> <p dir="ltr">Personalisation is also a frequently-used means of targeting according to the report, but people’s use of devices is changing. In the presence of multiple users per device you can’t be sure an advertisement is going to the right one.</p> <p dir="ltr">This is before you get as far as ad fraud, which is a sophisticated crime.</p> <p dir="ltr">Analysts quoted in the Oracle paper suggest that some of the ways of making this work will involve overhauling business processes.</p> <p dir="ltr">“I would hope this brings the CRM and audience teams together,” says Ben Salmon of Attributely. “Merge CRM and audience to build the ultimate profile.”</p> <p dir="ltr">Chris Humphrey of Lloyds Banking Group sees a great opportunity.</p> <blockquote> <p dir="ltr">We’re very fortunate in that the very nature of what we do can garner a lot of insight on customers and so we can provide a much better customer experience.</p> <p dir="ltr">That will drive new product and engender loyalty. The challenge to us is the pace of change but also the end-to-end journey. It’s not a small task.</p> </blockquote> <p dir="ltr">And then there’s the mobile problem.</p> <h3 dir="ltr">No calories in these cookies </h3> <p dir="ltr">Mobile behaves differently than other technologies in many ways. For the marketer, however, there is one major manner in which it is completely distinct from other media.</p> <p dir="ltr">There are no cookies on one in six mobile devices. In other words the passive means of picking up data almost by default won’t work on a sixth of the fastest growing platforms in the world.</p> <p dir="ltr">“As a result, to be truly effective, DMPs have to function beyond the cookie,” says the report.</p> <p dir="ltr">It’s possible to do now, and 60% of people use their DMP for more than their display advertising.  </p> <p dir="ltr">According to Andrew Hood of Lynchpin, “If companies have got together the data they need for segmentation and targeting then DMPs do let them push data between platforms.”</p> <p>So it’s started to go beyond cookies, and it’s going to catch up with the obstacles discussed in the first half of this article. </p> <p>This is a good time to start using a DMP: we’re past the early-adopter stage and onto the serious business benefits. Just don’t think the technology is ever going to stand still.</p> <h3>Takeaways</h3> <ul> <li>The role of DMPs is moving beyond display advertising. </li> <li>The information available through DMPs is leading to an overhaul of the business processes.</li> <li>The role of DMPs will continue to evolve and the business evolve with in.</li> </ul> tag:www.econsultancy.com,2008:BlogPost/67396 2016-01-14T02:11:00+00:00 2016-01-14T02:11:00+00:00 Four incredibly useful sources of global marketing statistics Jeff Rajeck <p>In order to do that, we need to be able to talk sensibly about the platforms and channels we want to use for our campaigns.  </p> <p>Our own internal analytics can help, but sometimes<strong> we need external statistics to make a case for entering a new market</strong>.</p> <p>In this post I'll highlight a few useful resources for global marketing data, but obviously don't forget to check out Econsultancy's <a href="https://econsultancy.com/reports/internet-statistics-compendium/">Internet Statistics Compendium</a>.</p> <h3>Global stats resources</h3> <p>So, for example, we may want to advertise on new social platforms, but in order to justify the spend we need to show its relative popularity. </p> <p>And to this, we might see a great stat for the relative growth of Pinterest and Instagram - both of which are outperforming LinkedIn, Twitter, and even Facebook.</p> <p><img src="https://assets.econsultancy.com/images/resized/0007/0629/picture1-blog-flyer.png" alt="" width="550"> </p> <p>But depending on where you are, you may find out that the data is not based on the countries that you target.</p> <p><img src="https://assets.econsultancy.com/images/resized/0007/0630/capture-blog-flyer.png" alt="" width="550"></p> <p>That's right - the data showing the rise of Pinterest and LinkedIn is based on a US telephone survey.  </p> <p>Now it's not totally useless as US trends can be indicative of what is going to happen globally. And it's not too far-fetched, in some cases, to say so.</p> <p>But should someone in our audience take a closer look, they may think that we were either being sloppy with our data collection or, even worse, using US stats to be deliberately misleading.</p> <p>So a source of global stats is rather useful when trying to explain to people what's happening in markets outside of the US.</p> <p>In order to help you find the info you need to build your case, we have found four sites which provide useful data about digital, web, social, and mobile usage for the Asia-Pacific region and other non-US locations.</p> <h3>1. We Are Social</h3> <p>Some of the most recognizable charts of global internet information are from the Singapore social media agency, <a href="http://wearesocial.sg/">We Are Social</a>.  </p> <p>The company's visual style - black backgrounds with colourful bars - grace the PowerPoint presentations of many digital marketers.</p> <p>WAS regularly publishes guides to Social, Digital, and Mobile and collects stats from many different sources and presents them in a bright, easy-to-read fashion.  </p> <p>Even the most senior of business people will get your message with information presented so clearly.</p> <p><img src="https://assets.econsultancy.com/images/resized/0007/0633/was_1-blog-flyer.jpg" alt="" width="470" height="328"></p> <p> WAS also break down many of the figures into regional and country statistics, so you can be quite precise about the market you are addressing.</p> <p><img src="https://assets.econsultancy.com/images/resized/0007/0634/was_2-blog-flyer.jpg" alt="" width="470" height="348"></p> <p>WAS charts are available in a Slideshare that is <a href="http://wearesocial.net/blog/2015/01/digital-social-mobile-worldwide-2015/">on the site</a> here, and you can use the charts as long as you reference We Are Social as the chart source.</p> <h3>2. Statista</h3> <p>Another source of data, graphs, and charts which many global marketers will find useful is <a href="http://www.statista.com/">Statista</a>.</p> <p>Statista integrates data on 80,000 topics from 18,000 sources, but for marketers the most important thing is that Statista assembles the data and makes it useful.</p> <p>What this means is that Statista offers both marketing data and other, business-related data making it easier to build marketing cases which involve more complicated statistics.</p> <p>Here's one graph which shows the penetration of various social networks in Australia using data from WAS, IAB Singapore, as well as GWI, covered below.</p> <p> <img src="https://assets.econsultancy.com/images/resized/0007/0635/picture3-blog-flyer.png" alt="" width="470" height="353"></p> <p>Where Statista really shines is when you have to go cross-discipline and find something quite unusual to spice up a presentation.</p> <p><img src="https://assets.econsultancy.com/images/resized/0007/0636/statista2-blog-flyer.jpg" alt="" width="470" height="335"></p> <h3>3. GlobalwebIndex</h3> <p><a href="http://www.globalwebindex.net/">Globalwebindex</a> (GWI) is a UK-based agency which collects social media, website, and device usage in 34 countries, including most in Asia, which helps marketers identify audiences globally.</p> <p>Using the data, GWI offer reports and insight, but it also offers subscribers the ability to construct queries on the data to make custom reports.</p> <p>Here's one I put together very quickly about social media usage in Singapore vs. Australia.</p> <p> <img src="https://assets.econsultancy.com/images/resized/0007/0637/picture4-blog-flyer.png" alt="" width="470" height="332"></p> <p>Because of this capability, many other agencies use GWI as the source of their data, so you will see them referred to quite often.</p> <p>Another interesting aspect of its data is that GWI profiles individuals and how they use media so it can report on actual usage, not just users.  </p> <p>Here's an example from the GWI Trends 2016 report.</p> <p><img src="https://assets.econsultancy.com/images/resized/0007/0638/gwi-blog-flyer.png" alt="" width="470" height="366"></p> <p>Definitely a good source if you are looking for a lot of detail about a particular network or country.</p> <h3>4. Socialbakers</h3> <p>And finally we have <a href="http://www.socialbakers.com/">Socialbakers</a>, which tracks, analyzes, and benchmarks social media usage across all major social platforms.</p> <p>What this means is that Socialbakers can show you much more than just the current fan count.  </p> <p>It tracks usage over time, so it can tell you who is growing in social media prominence across countries, industries, and different timeframes.</p> <p>Here is an example of which airlines have had the most growth on Facebook in the past week.</p> <p><img src="https://assets.econsultancy.com/images/resized/0007/0639/socialbakers-blog-flyer.png" alt="" width="470" height="172"></p> <p>In addition to stats, Socialbakers also provides reporting and workflow which allows you to customize and schedule report about your social performance, as well as the competition's.</p> <p><img src="https://assets.econsultancy.com/images/resized/0007/0640/capture-blog-flyer.png" alt="" width="470" height="182"></p> <p>They offer quite a lot of data for free, so definitely check them out the next time you're preparing company-based social media statistics.</p> <h3>So...</h3> <p>Hopefully this list of resources will help you compile better marketing reports, wherever you are. </p> <p>Too often, we tend to use the same set of statistics and our presentations can become repetitive.</p> <p>Using one of these sites will certainly liven up your data and help you make a more interesting and compelling case when you are presenting to your colleagues or business sponsors.</p> tag:www.econsultancy.com,2008:BlogPost/67296 2015-12-08T15:07:10+00:00 2015-12-08T15:07:10+00:00 How to create a clear data strategy for your business Mark Patron <p>This blog gives a quick summary of those discussions. And for more on this topic, download these Econsultancy reports:</p> <ul> <li> <a href="https://econsultancy.com/reports/cross-channel-marketing-report/">Cross-Channel Marketing Report 2015</a>.</li> <li> <a href="https://econsultancy.com/reports/measurement-and-analytics-report/">Measurement and Analytics Report 2015</a>.</li> </ul> <h3>Benefits of having a clear data strategy</h3> <p>To begin with, here's a run through of some benefits of having a clear data strategy:</p> <ul> <li> <p><strong>Personalisation and targeting.</strong> If you know your customers, you can service them better.</p> </li> <li> <p><strong>Scalability.</strong> A good data strategy means you will hit fewer data related roadblocks. Buying new technology rarely fixes a lack of an underlying data strategy.</p> </li> <li> <p><strong>Multichannel co-ordination.</strong> Consumers expect a seamless user experience. Data underpins the ability to service customers via the channels they may choose to use.</p> </li> <li> <p><strong>Media attribution.</strong> More channels make customer journeys more complex. Deciding which channels then deserve the credit for a sale requires an understanding of buying behaviour across those channels.</p> </li> <li> <p><strong>Break down data silos.</strong> Legacy systems produce data silos which get in the way of understanding customers. This is a big challenge and without a strategy it is next to impossible.</p> </li> <li> <p><strong>Culture.</strong> For a business to be customer centric a data-driven culture is necessary. Developing a data driven culture does not happen by itself, it needs a plan.</p> </li> </ul> <p><img src="https://assets.econsultancy.com/images/resized/0006/9791/data_stragegy-blog-flyer.jpg" alt="" width="564" height="317"></p> <h3>What should a good data strategy include?</h3> <p><strong>1. Data collection and cleansing. </strong></p> <p>What data do you need to run your organization? What data is necessary to meet your business goals? How frequently does it need to be updated? What data archiving and summarisation requirements are there?</p> <p><strong>2. Data architecture and integration.</strong></p> <p>How should data be shared between the various data silos? This is often where things go wrong. The need to join the dots means data connections are becoming as important as data collections.</p> <p><strong>3. Data storage and technology. </strong></p> <p>How to access, share and manage data? Some data may need to be available in real-time whereas other data may not be as time critical.</p> <p>Should it be a SaaS or in-house solution? Each has their pros and cons and which way to go should be a business rather than an IT or marketing decision.</p> <p><strong>4. Data insight and analysis. </strong></p> <p>You can’t manage what you can’t measure. What KPIs need to be measured? How should you facilitate data exploration? What analytical resources exist? How should you foster collaboration on data throughout the organization?</p> <p><strong>5. Data governance, privacy and security. </strong></p> <p>Larger businesses need to define roles and responsibilities, approvals and workflows.</p> <p><em>For more on this topic, read Econsultancy's <a href="https://econsultancy.com/reports/digital-marketing-organisational-structures-and-resourcing-best-practice-guide/">Organisational Structures and Resourcing Best Practice Guide</a>.</em></p> <h3>Key questions to ask</h3> <p>These are some of the most important questions that businesses need to ask when developing a data strategy:</p> <ul> <li> <p><strong>What are you trying to achieve?</strong> The data strategy must compliment the business strategy.</p> </li> <li> <p><strong>What data do you need where and when?</strong> Today and in the future? What level of data quality is practical? Map the customer journey to understand and prioritise where the ball is being dropped.</p> </li> <li> <p><strong>Where is your database of record for different data and do you require a single customer view?</strong></p> </li> <li> <p><strong>Where do you need real-time data?</strong> What specific data should be real-time? With today’s technology it is rarely practical or necessary to have all data available in real-time in one place.</p> </li> <li> <p><strong>How do you integrate data silos?</strong> What data transfers are necessary and how frequently?</p> </li> <li> <p><strong>How do you track cross channel?</strong> What tags are you using and do you need to standardise?</p> </li> <li> <p><strong>What data skills and knowledge are in the organisation and business partners?</strong> Are there any organisational silos getting in the way? For example, between different channels or marketing and IT.</p> </li> <li> <p><strong>How much is your data worth?</strong> For example, what is the value of an email address? What incremental revenue can you expect? Putting a value on data helps to make data management a continuous improvement process. This way you can be in control of your data optimisation rather than fire-fighting.</p> </li> </ul> <h3>In conclusion...</h3> <p>Other than start-ups, very few organisations have a perfect data set up.</p> <p>Data strategy is continuously evolving as requirements change. Data perfection is normally too expensive. At the other end of the scale a lack of strategy can be equally costly.</p> <p>Try to strike the right balance with incremental evolution of the imperfect world we inhabit. </p> <p>A data strategy, when properly understood and implemented, focuses the business on the right things and gives you a framework to prioritize limited resources.</p> <p>You need a data strategy which develops over time in the same way as the business or IT plan does.</p> tag:www.econsultancy.com,2008:BlogPost/67234 2015-12-01T09:44:00+00:00 2015-12-01T09:44:00+00:00 Three key steps to getting your marketing data & analytics 'just right' Scott Lawson <p>Rarely was performance data from multiple channels being placed side-by-side to give a full picture of success. So saying that joined-up data wasn't a big priority would be quite an understatement.</p> <h3>We’ve come a long way since then</h3> <p>Today, integrated data is not only essential to proving marketing efforts, but we are now flooded with "<a href="http://www.slideshare.net/BernardMarr/big-data-25-facts">big data</a>", which has huge potential but can often be confusing to digest. </p> <p><img src="https://assets.econsultancy.com/images/0006/9488/dt120729.jpg" alt="" width="715" height="349"></p> <p>When implemented well, it is being harnessed to drive more revenue through digital strategy than ever before. </p> <p>All of this has created its own unique set of challenges: not just the volume of data available to be harnessed, but the sheer number of data sources required to collate the data, often in different formats, with plenty of room for error.</p> <p>In this brave new world of truly integrated digital activity and huge volumes of available data, <strong>how do we collect, utilise and interpret the exact data</strong> we need to aid strategic decision making without overwhelming ourselves with more data than we can make sense of?</p> <h3>Getting it ‘Just Right’</h3> <p>In the fairy tale, Goldilocks finds an empty house owned by three bears and decides to help herself to their food before having a nap, only to find that their porridge and beds were either too hot or hard, or too cold or soft.</p> <p>It took several attempts to find the ideal. This is the essence of <a href="http://www.alanbonner.com/sales-tips-series-1-goldilocks-principle/">The Goldilocks Principle</a>, which states that something must fall within certain parameters, as opposed to reaching extremes.</p> <p>Getting data requirements ‘just right’ is essential for companies who want to be market leaders.</p> <p>With insufficient data, decision-makers suffer from blind spots, and at worse make incorrect assumptions based on only partial data available to them.</p> <p>Too much data can have a similar effect, making it difficult and time-consuming to find the relevant information, or even missing key insights due to data overload.</p> <p>I spend a great deal of time speaking with digital marketers who have grand plans of what they’d like do with lots of data, but get understandably overwhelmed as to how to actually implement their ideas.</p> <p>Their first impulse is often to invest in sophisticated technology to make sense of the data (which is why I’m usually speaking with them in the first place), and while I agree it’s essential, technology is unlikely to magically solve the problem on its own. </p> <p>Here are a few key requirements I have learnt are necessary to ensure you have the right data, to provide the level of insight you might require.</p> <h2><img src="https://assets.econsultancy.com/images/0006/9489/revenue-by-source.png" alt="" width="748" height="431"></h2> <h3>1. Start with the outputs</h3> <p><em>What do you want to see? Which business decisions will the data influence? Who needs to use the data? How do you want it visualised and how will it be communicated and shared? </em></p> <p>When speaking to customers about their data requirements, I always start at the end.</p> <p>It may seem counter-intuitive, but people often forget why they’re embarking on a ‘data discovery journey’ - it shouldn’t be to use data just because it’s available. In order to use data effectively it’s essential to first understand what you’re trying to achieve.</p> <p>Start with your key performance indicators (KPIs). I can’t stress that strongly enough.</p> <p>It may seem obvious, but it’s amazing how often these get forgotten when there’s a lot of exciting juicy nuggets of information available to use.</p> <h2><img src="https://assets.econsultancy.com/images/0006/9318/image00.png" alt="" width="563" height="348"></h2> <p>KPIs can, and should, change throughout the life of a business, and particularly within the digital industry as it rapidly evolves. Some, however, should remain constant in order to be able to truly compare performance over time.</p> <p>For instance, many SEOs have reduced the priority of search engine ranking data as a KPI - in part due to keyword traffic data being <a href="https://econsultancy.com/blog/8342-how-to-steal-some-not-provided-data-back-from-google/">more difficult to come by</a>, but in many cases because search engine result pages are now complicated by localisation and universal search, and are merely a stepping stone to the more important priorities (for instance, rankings + traffic + conversions = revenue!). The list, however, goes on. </p> <p>For most commercial businesses, the essential KPI that won’t change is revenue and profitability.</p> <p>In most cases, all business activity, including digital marketing, should be aimed at increasing revenue, and other KPIs should be helping support this objective in some shape or form.</p> <p>There are some exceptions as it's not an exact science - there are still many cases where marketers can’t directly link marketing activity to revenue - but data should still be able to show correlation even if not causality.</p> <p>It’s not perfect, but it’s better than flying blind.</p> <p>Even with all the data in the world, if you can’t show return on investment, and use the right data to drive improvements on this, you would seem to be missing a fairly big trick.</p> <h3>2. Clearly communicate your objectives</h3> <p><em>Does everyone in the team understand the end goal? Does the tech team understand what the digital marketers need to see and vice versa? </em></p> <p>Once everyone is on the same page, you may find that you don’t need as much data as you originally thought.</p> <p>For instance, I heard of a large organisation that gave its digital agency an enormous budget to ensure its products were ranking well in natural and paid search and drive traffic to key product pages.</p> <p>Monthly reports took days to put together due to the sheer number of keywords and campaigns being monitored. Traffic to the product pages from these efforts was high, and therefore the agency’s KPIs were met.</p> <h2><img src="https://assets.econsultancy.com/images/0006/9317/image02.png" alt="" width="594" height="305"></h2> <p>However, customers weren’t converting. They were dropping off the product pages like flies because the commodity service just wasn’t competitive.</p> <p>In the end, all the promotion in the world wasn’t going to drive revenue unless the products themselves became what people were looking for.</p> <p>While all the reports showed campaign success, the organisation wasn’t happy.</p> <p>An enormous amount of data at a granular level was available to see the problem and provide a solution, however everyone was so focused on the detail they lost sight of the bigger picture.</p> <p>Their report was too complex and missing the most important KPI -  customers converting.</p> <p>All the data in the world will miss the mark if the most important objectives aren’t aligned and communicated effectively.</p> <h3>3. Evaluate the inputs</h3> <p><em>Which data sources are necessary to achieve the agreed output? What are the technical, legal or cost limitations? How will you obtain and manage the data?</em></p> <p>With so much information being created every day, when aggregating and reporting on data it’s very easy to find yourself in a situation that is probably best described as “information overload”.</p> <p>Instead of using some of it, you end up using none of it because it becomes unmanageable. </p> <p>Once your KPIs are defined, technology can handle more data aggregation and output than most companies need, often at affordable prices.</p> <p>Finding the right technology to meet your exact requirements will avoid you ending up in a cloud-based superstorm of data.</p> <p>However technology is only just one part of it. Can you legally use the data? Do you have to pay for it and is it worth it? Is the data reliable and going to remain consistent in the future? Perhaps you don’t need granular data, but just a high level summary.</p> <p>If you can’t extract useful actionable insights, then the data you are collecting has no value.  </p> <h3>4. Start Small. Think BIG.</h3> <p>Don’t get caught up in the big data hype, believing that all companies should be investing big budgets into collecting and analysing all available data immediately.</p> <p>The reality is that most businesses can achieve exactly what they need by starting with just a few key data sets and utilising technology already on the market.</p> <p>It’s essential to avoid flooding yourself with too much data if you don’t initially have the resource to use it effectively.</p> <p>Learn what works and keep adding to it, but avoid adding data for data’s sake - ensure that any additional metrics enhance the measurement of your objectives and KPIs.</p> <p>Don't make the mistake Goldilocks did by going straight for what appears the “biggest or best”, but instead spend a bit of time figuring out what is right for you.</p> <p>It will save you a lot of pain in the long run and provide a much more valuable journey.</p> <p><em>For more on this topic, book yourself onto one of Econsultancy’s <a href="https://econsultancy.com/training/courses/topics/data-analytics/">Data &amp; Analytics training courses</a> or download the <a href="https://econsultancy.com/reports/measurement-and-analytics-report/">Measurement &amp; Analytics Report 2015</a>.</em></p>