Despite the dark cloud over the financial markets, it's an exciting time to attend the November 18-20 Bank Administration Institute (BAI) conference in Orlando.  World markets have been in a tailspin, a wide assortment of industry acquisitions, bailouts and bankruptcies are in abundance, while the consumer lending crisis seems to be at the center of an economic firestorm. Attendees will be eager to hear Colin Powell's comments, as well as an impressive array of other speakers ranging from George Stephanopoulos to Arkadi Kuhlmann (President/CEO of ING Direct) to Bill Taylor, co-founder of Fast Company.  
Colin Powell
Conclusive Marketing will exhibiting at the show highlighting our data management, data intelligence and data delivery proficiencies, alongside MicroStrategy, our chosen vendor for business intelligence and data analysis solutions.  The timing seems ripe for the industry to respond to a very challenging marketing environment whereby there must be marketing integration to ensure that all facets of programs work together to achieve the highest possible return on investment.

Conclusive's Event Driven Marketing platform provides a compelling option for banks to identify and prioritize customers who are in the midst of anomalistic transaction behavior; while our data delivery services offers banks tightly integrated methods of ensuring that each customer meriting communication receives communication.  Our relationship with MicroStrategy adds an extra array of value added solutions for the banking industry, solutions that particularly ensure  management can attentively monitor key customer-facing metrics.

If you are out in Orlando for the show, drop by to booth 1251 and let's trade thoughts about the changes you are facing, and what the perspectives of our keynotes and colleague presenters imply for these dynamic times. 

October the 21st Conclusive Marketing (www.conclusivemarketing.com) and MicroStrategy (www.microstrategy.com) released a press release announcing how Conclusive is adopting MicroStrategy technology to put Business Intelligence ("BI") right in the middle of our services. 

To the casual onlooker that might look like a ho-hum technology announcement, but in the marketing services arena this is a meaningful signal how marketing paradigms are shifting from simply executing communications to continuously searching for improved ROI by analyzing programs.  Its not enough to outfit tomorrow's marketer to simply perform direct marketing, they need to be properly tooled to view the macro and micro condition of their programs.  We believe in a highly automated data-driven future and Conclusive is seriously investing to ensure that our clients can transition into this paradigm with us. 

Without recent tools like MicroStrategy, firms' analyzing marketing programs have all too often relied on one or two staff who know both how to think about marketing analysis and also how to engineer the data for analysis.   With MicroStrategy, however, the data engineering is out of the way and all the analysts can actually focus on, (catch this!) analysis.  The MicroStrategy report and charting options are attractive and easy to use by anyone in the marketing department.   And the impact can be dramatic. 



One client, an agency for a major automotive OEM, reports that it now takes them 10 minutes to examine data that used to take 8-10 hours to digest.  More of their team members can contribute to the analytic process, as the task of doing so is now focused on viewing, as opposed to managing the data.  And with the time savings, the resources now have the "luxury" of digging deeper into analysis.

So there is now definitely some BI in the middle of Conclusive Marketing.  MicroStrategy could be our middle name.
 

While it's now clear the earth is flat, data intelligence is key, and integrated marketing is all the rage, too often I find that Brand strategies are still linear and often media focused.  With the media landscape evolving incessantly these days, Brands and Brand strategy need to be agile and all-inclusive.
The concept of open source was initially a software development method that allowed for distributed peer review and transparency of process.  Opensource.org believes the promise of open source is better quality, higher reliability, more flexibility and lower cost and this has generally proven to be true.  But open source has evolved beyond software in my opinion.  Wikipedia explains the open source model as allowing for concurrent input of different agendas, approaches and priorities and made available for public collaboration. Just like web 2.0.
Brands today need to adopt an open source strategy.  Along the marketing continuum, the media and touch point options will continue to segment and proliferate.  A strategic position reliant on only current options is doomed to long term failure in our new environment.  However, a strong strategy that allows for immediate execution in any media stream or any environment and that allows for ongoing customer interaction is one that will survive as well as thrive.

It’s amazing how much money is spent launching new products these days.  One auto manufacturer recently spent over $85 million on a new launch.  Even in a fully integrated marketing campaign, you know broadcast still got the bulk of that budget.  But it seems to me that they could have given away several cars a day for a year and really generated some viral buzz! Yet along the marketing continuum, hands on experience with brands is of increasing value these days – especially in large ticket categories.   

Toyota recently broke the ‘never done that before’ rule many times when they launched the highly anticipated new Tundra.  They showed the Tundra at places like Home Depot parking lots and construction sites while offering free breakfast for those that took a closer look. They built new displays for state fairs and Bass Pro Shops to highlight the size of key features such as brake rotors and body welds. 

In doing all of this, Toyota had a successful launch and generated terrific buzz but was stuck with an often ignored dilemma -  What happens to those people who see and like the truck, but aren’t ready to buy?  Management certainly wants to see the marketing data and ROI as with every other spend.  So how do you track the guy who ate your breakfast at Home Depot? We’ll explore those options next time!


There's an old line in advertising that the smaller your hammer, the sharper your nail has to be. And while traditional business intelligence says spending more in a downturn is a sure means to build market share, most companies are busy making their hammers smaller.
Today the news is that the world's largest advertiser, P&G has slashed media spending and competitors like Unilever are doing much the same.  If even the big guys are killing their budgets what is the lesson to be learned?

You need a sharper nail. It seems that broadcast and general print are taking most of the hit. What the smart marketers know is that better targeting through data analysis and data intelligence is the answer. When your marketing budget is smaller you've got to be sure that every dollar is highly targeted. Using data analysis to pinpoint your target and then delivering your message in targeted communications like email and direct mail are just a couple elements of an integrated campaign.  Use all your marketing intelligence to keep the nail sharp!  

Advanced data processing occurs once data is cleaned, standardized and consolidated to ensure that data is up to date.  Move updates should be applied periodically with services such as National Change of Address (NCOA).  Providers that perform NCOA updates often will also provide phone number updates and appends.  It is vital to have the accurate addresses and phone numbers to reach customers. 

Now that the customers can be reached, it is important to determine if they want to be reached.  If you are planning telemarketing efforts, you need to bounce your customer database against the National Do Not Call directory.  This will enable you to identify those who do not want to receive phone calls. 

For direct mail marketing it is important to determine if your customers want to be contacted via mail.  Data providers can flag customers on national do not mail lists.  Your company should also maintain its own do not mail indicator. 

Finally, it is essential to determine customers that are deceased.  Data providers can supply flags to indicate those customers that are deceased.  Communicating to deceased customers is upsetting to family members and will burn their goodwill with your company. 

Once data is up to date and solicitation preferences noted, the third step to continue turning data into information is data enhancement...


Gone are the good old days when marketing was straight-forward and simple.  A marketing director used to be able to plan out his or her budget for the year and then spend to that budget.  The job was highly visible and seen as a major contributor to company success. However, the more hyper-connected and hyper-speed society has become, the lower the tenure of the CMO. Is this related? Some report that the average tenure of the Chief Marketing Officer today is little more than 18 months. Why is that?

I postulate that one reason for this is that marketing directors have unwittingly become myopic…siloed into a functional role. Cata1 argues that “CMO's must move away from thinking like functional executives embedded in their own siloed departments and instead think instead like operational executives." 

Another possible reason is that marketers are still marketing in silos—in multiple, individual and siloed channels without a comprehensive view of the customer's needs and interaction with the company. "Integrated Marketing" requires more complex data analysis and marketers need to catch up.

A third explanation could be because CMO’s do not fully understand that they are now, as Thomas Davenport2 says, “Competing on Analytics”. Everything, including mass media, has become measureable. Marketing is now about Business Intelligence along the full marketing continuum. Those who don’t adopt a metrics mindset, cannot optimize their companies’ marketing spend. I recently heard Hanssens3 make this point clearly.

CMO’s should be the voice of the customer, driving the company toward customer-centricity. Christensen and Raynor4 assert that “What customers really want is for you to do their jobs for them”. I agree.  Marketers must focus on the customer and must focus the entire company on the customer if they want to last.5

_______________________________

1Carlos Cata, "CMOs, Stop Obsessing over the Tenure Stat." Advertising Age 79, no. 20 (2008). 
2
Thomas H. Davenport, "Competing on Analytics," Harvard Business Review 84, no. 1 (2006).
3Dominique M. Hanssens, Daniel Thorpe, and Carl Finkbeiner, "Marketing When Customer Equity Matters," Harvard Business Review 86, no. 5 (2008).
4Clayton M. Christensen and Michael E. Raynor, "What Customers Really Want Is for You to Do Their Jobs ; to Make Innovative Products That Drive Growth, Companies Must Forget About Demographics, Product Attributes and Market Size Data, and Focus on the Specific Jobs Customers Need to Get Done," CIO 17, no. 4 (2003).
5Jennifer Rooney, "Marty Homlish Knows Why CMOs Don't Last," Advertising Age 79, no. 14 (2008).


Marketing has undergone a paradigm shift. New tools, new technologies, new approaches and new data have opened marketers’ eyes that there is indeed a cause and effect and predictability in customer’s actions. It is discernable in the marketing data, as Davenport notes: “Most business functions, even those, like marketing, that have historically depended on art rather than science—can be improved with sophisticated quantitative techniques.” 1 In a paper, “CRM from ‘art to science’” Jackson2 sets forth a new framework for treating marketing as a science:

Early research and methods concerning customer relationship work often focus on more intuitive approaches to customer management. Many of the initial theories, such as one to one marketing and value-based management, were less analytical in their approach. Likewise, too often companies that have implemented customer relationship management (CRM) systems have done so with an unstructured approach (art) as opposed to a structured and by-the-numbers approach (science).
 
Historically, marketing is known as a social science, rooted in psychology and sociology. However, as has been recently discovered, customer behavior is actually quite quantitatively predictive:

Marketing…has always been tough to quantify because it is rooted in psychology. But now consumer products companies can hone their market research using multiattribute utility theory–a tool for understanding and predicting consumer behaviors and decisions. Similarly, the advertising industry is adopting econometricsstatistical techniques for measuring the lift provided by different ads and promotions over time.3

It is only recently that the marketers have discovered new data mining methods which are proving to be highly robust and reliable. “Over the last 10 years, a paradigm shift has occurred in the statistical analysis of marketing data.” 4

At the same time, consumers themselves have undergone their own paradigm shift…from being marketed to, to taking control of what messages they hear, when they hear them and what channels of communication that companies are able to use to communicate with them.“ The consumer is deluged with messages. The average consumer sees about one million marketing messages a year-about 3,000 a day. One trip to the supermarket alone can expose you to more than 10,000 marketing messages!” 5Customers will no longer tolerate this mass media or mass customization approach. Customers are individuals, not transactions or demographics. "Customers are demanding that marketers communicate when and how it is convenient for them. Underlying right-time marketing are analytic and predictive capabilities that determine the optimal interaction strategies, automation and incorporation of repeatable best practices” 6

One of the key shifts that has occurred is the need to treat customers as individuals and not as segments or clusters: “Successful direct marketing initiatives require firms to predict the behavior of specific individuals.” 7

Today’s managers are very interested in predicting the future purchasing patterns of their customers. Faced with a database containing information on the frequency and timing of transactions for a list of customers, it is natural to try to make forecasts about future purchasing.These projections often range from aggregate sales trajectories (e.g., for the next 52 weeks), to individual-level conditional expectations (i.e., the best guess about a particular customer's future purchasing, given information about his past behavior). There is a great deal of interest, among marketing practitioners and academics alike, in developing models to accomplish these tasks.

A new approach to customer data analysis is needed. Customers must be analyzed and treated as individuals.Today it is possible to analyze individual customer behavior and act on it with custom marketing materials, with the right message at the right time. It is intuitively obvious: “The secret to achieving a good marketing ROI is simple: Give customers more of what they truly want and less of what they don’t.”9With marketing data analytics and business intelligence, we can figure out what this is and optimize for it.


1 Thomas H. Davenport, "Competing on Analytics," Harvard Business Review 84, no. 1 (2006).

2 Tyrone W. Jackson, "CRM: From 'Art to Science'," Journal of Database Marketing & Customer Strategy Management 13, no. 1 (2005).

3 Davenport, "Competing on Analytics."

4 Greg M. Allenby, David G. Bakken, and Peter E. Rossi, "The HB Revolution," Marketing Research 16, no. 2 (2004).

5 Seth Godin, Permission Marketing (New York: Simon & Schuster, 1999).

6Dan Goldstein and Yuchun Lee, "The Rise of Right-Time Marketing," Journal of Database Marketing & Customer Strategy Management 12, no. 3 (2005).

7 Greg M. Allenby, Robert P. Leone, and Lichung Jen, "A Dynamic Model of Purchase Timing with Application to Direct Marketing," Journal of the American Statistical Association 94, no. 336 (1999).

8 Peter S. Fader, Bruce G. S. Hardie, and Ka Lok Lee, ""Counting Your Customers" The Easy Way: An Alternative to the Pareto/NBD Model," Marketing Science 24, no. 2 (2005).

9 V. Kumar, Rajkumar Venkatesan, and Werner Reinartz, "Knowing What to Sell, When, and to Whom," Harvard Business Review 84, no. 3 (2006


Jay Buford Fly Fishing

Not only is fly-fishing on a beautiful, cold water stream relaxing, it is the challenge of imitating nature in it's most pure form that makes me feel alive. Stealthily entering the water you envision the fish in their gin clear world, facing upstream, patiently waiting for the almost invisible aquatic insect to catch their attention. The reaction so sudden, yet so cautious, if you blink you have missed the moment; the opportunity. Imitating the natural environment with a perfect presentation, tremendous focus and the willingness to try variations; different flies, angles, tippets and times of day all make the sport so rewarding when finally you feel the fish on your line. You have succeeded despite the noise of others enjoying the river in their own way, splashing and thrashing, throwing rocks, hitting canoes with paddles...sometimes seeming like they do not care that they are creating havoc for the river residents.

 

Producing Marketing ROI holds the same challenge for me, both the art and the science of direct marketing must combine perfectly to create the opportunity to generate leads, acquire and retain business and ultimately ROI. The marketer, like the fly-fisherman, is faced with environmental factors that can determine the outcome despite a perfect presentation. Customers can be spooked by the economy, by their unique personal situation or even by disruptive competitive practices that create noise that mask the well-designed and timed marketing communication, to the perfect database, you have so carefully delivered.

 

So how can the marketer evolve campaigns to create a higher probability of success? Just like in fishing, one must discover the most fertile waters (data and business intelligence) and then deliver a consistent, relevant and timely message that cuts through the noise and restores the natural order. The marketer must enjoy the refinement of all aspects of the marketing continuum in order to be successful. The variables and iterations are endless; therefore the supporting tools and solutions must be just as robust. Think of Conclusive Marketing as your "Marketing Outfitter," providing unique marketing solutions that allow you to consistently capture the attention of the finicky consumer.


What interests me about marketing is its dynamic nature. There are no set rulesit's an ongoing evolution. I'm looking to explore this process as we seek to integrate, execute, and measure to continuously improve yourmarketing ROI.

 

Sound familiar? Many companies believe they deliver on marketing ROI, but what they generally deliver iscampaign ROIa single campaign-email or direct mail, a single point in time, or a “high-five” for getting the campaign out the door. Even more “high-fives” if there are actually leads generated! 

 

Is that lead considered ROI? Absolutely not! Too often companies are tracking "leads per investment" instead of "return on investment." 

 

Ture ROI comes from viewing the complete marketing continuum—from business intelligence to data intelligence and data delivery (communication event) all the way through to response analysis, sales tracking and finally, the financial results that provide the ability to measure the efficacy of the entire effort.

 

Once prepared for the dynamic nature of the marketing process, you’re better able to adapt quickly to market changes, respond to immediate opportunities and more importantlymeasure true marketing ROI.  I look forward to sharing how we use integrated solution frameworks to manage this ongoing evolution with you.


With a slowing economy, it is important to use information to drive marketing communications. Data collection and analysis needs to create business intelligence that marketers can use to identify the right opportunity at the right time and guides marketers to deliver the right message.

Data is everywhere. It is with sales reps, in departmental databases, in market research departments, and list processing services to name a few. The first step to turning this data into marketing information is to utilize data management services.   

A key element to data management services is electronic data processing. Automatic data processing is used to consolidate data into a 360 view of the customer. Data quality management uses hygiene procedures to clean and standardize the data. Data consultants can assist in recommending data management solutions to address specific needs and concerns.

Once data is clean and consolidated, the second step is using advanced data processing to continue turning data into information . . .


Sophisticated new automated marketing systems designed by Conclusive aspire to reflect the highest form of marketing prowess—selecting and executing communications for customers as if your best sales representative was always there. 

That description (as if your best representative were there) might sound a bit "Back to the Future," but think about it—advertising and marketing departments have for years sought to present the best marketing communiciations possible to their customers, but have historically issued a relatively small number of messages and imagery in their communications in order to be realistically economic. For years we've recognized that type of communication strategy was suboptimal, if only because one or a small number of communications could never speak adequately, much less optimally, to all the members of a large customer base. To communicate most effectively with a customer base, one would have to be prepared with a nearly limitless set of communication options for each individual consumer. It would be as if [indeed] your best sales representative(s) was on the virtual showfloor greeting each customer, selecting their messages according to the very wide set of factors that might be influencing each of those customers' choices.

What might the "best" sales representatives be looking for? Well, they'd be observing each consumer as they enter the store, recognizing how they dress, what they drive, whether they had children at their side . . . they'd notice what seemed to interest each consumer and they'd align their own efforts to sell the store products that most closely matched the combination of the consumer's interest and situation (i.e. factors that might lead them away from their initial interest, such as what they wore, what they drove, and those children . . . ). Frankly this is how the best sales and marketing departments operated a century ago—they just had no scaleability to apply their "best practices" to more than a consumer or two at a time!

So advertising and marketing evolved to determine central messages that could appeal more economically to larger numbers of consumers. Hence mass marketing flourished. The trouble was, that evolution brought the messages further and further from each individual consumers' interest. Now with the emergence of deep databases and technology that position us to more elegantly overcome marketing's "scale" issues, its time to evolve back!—back toward "human" marketing that lets us conduct careful and thoughtful custom communications for  thousands upon thousands upon thousands of individual customers as if we were meeting each individually on our virtual showfloor.

What is Conclusive's plan for this marketing future? The key is structuring marketing solutions to simulate human practices—leveraging any and all knowledge known to the marketeer, building "rules" that can determine the most appropriate communications to issue each consumer based on their interactions with us, and enslaving technologies that can execute those predetermined communications automatically when customer interactions are detected. Conclusive have meaningful assets in all these areas and has begun building an as-yet-to-be-named next generation solution that captures the essence of the "best" salesperson in a scaleable marketing automation platform. 

On our website, we call the ingredients Data Management, Data Intelligence and Data Delivery. Together, it can also be called Event Driven Marketing, Knowledge-based Marketing or Interaction-based Marketing. Funny though, to me (despite all the new terms) all this sounds so old as to be new.



In addition to collecting back taxes, the IRS also applies interest and penalties against those who do not follow the rules. The United States Postal Service® (USPS®) needs to take a page from the IRS book and apply more strict consequences for those who choose to cheat the Move Update rules.

Claiming postal discounts for using an NCOALINK® service, but never applying the changes to your list is illegal.

It is not that the USPS® lacks authority to consistently apply strong consequences, but historically it has not taken full advantage of this authority. In fact, the Move Update form states  “I understand that anyone who furnishes false or misleading information on this form or who omits information requested on this form may be subject to criminal and/or civil penalties, including fines and imprisonment.”

Yes, there have been periodic reports of Move Update audits finding companies not in compliance, but the scarcity of these reports and the relatively light consequences does little to deter would-be cheaters. However, let the word spread that some executives are going to jail and the USPS® now hands out penalties and interest charges amounting to five times the illegally claimed postal discounts and the mailing industry will take notice.

Specifically, NCOALINK® crooks are costing all of us higher postal rates. They place multiple financial burdens on the USPS® by claiming discounts not earned and then depositing a higher percentage of Undeliverable As Addressed (UAA) mail into the system. This costs the USPS® (and ultimately us) twice.

With the coming Intelligent Mail Barcode, the USPS® will be in a very good position to more easily see which mailers have the highest UAA mail. With this information, increasing the number of audit teams and publicizing ‘busts’ will quickly pay for any increase in required manpower.

Let’s stop subsidizing the cheaters!