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.
 

Forecasting the need for standalone online NCOA services is a function of five intersecting variables: USPS regulations, ACS Options, Software Integration, Internalization, and competitive offerings. 

The largest impact on NCOA services in the last 10 years is the USPS’s change to the Move Update regulations.   Beginning in November of this year, the new regulations will add Standard Mail and double the frequency requirement to 95 days.

With this projected increase in demand comes more options and changing economics.    For some larger mailers, the regulation may make it cost effective to bring the processing in house.  These larger mailers are also more likely to have already purchased industry specific software that includes integrated flat rate NCOA services.   Finally, the changing options with ACS services may be optimal for some clients who don’t need to clean a list before it is mailed.

However, for the vast majority of smaller to medium size mailers, nothing is easier or less costly than using an on demand, online NCOA service.    No software to buy, no hardware to buy, no agreements to sign, and no payments in advance.    Combine these benefits with sub 10 minute turn times (coming in December) and the benefits of advanced bundled services, and nothing is simpler or less costly for the small to medium size mailer.    Make sure you ask for a competitive rate, and see why even some of the industry's largest mailers still prefer the benefits of working with an independent online list hygiene company.


I, for one, am thrilled with the USPS change in regulations on NCOA requirements for Standard Mail and the frequency of Move Update requirements for First Class mail.  In my world of database marketing, I rely on quality data management as the core to delivering marketing ROI to my clients.  Their message sometimes finds itself in the trash beside a piece of true "junk mail" due to other database marketers refusal to adhere to data quality management best practices.  Recently my mail box included mail addressed to a former Tennessee Titan player who built my house 11 years ago and then was traded and moved the next year!  The Doctor who bought the house from the Titan also has mail from his former life, he has been gone for 7 years!  Not only will these new regulations save the USPS untold millions of dollars in UAA mail, the by product should include better results for my client's direct mail marketing programs and less trash in our landfills.  As Sarah Palin would say, that is just a great win for all of us!

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.

Imagine landing aboard an aircraft carrier at night with limited visibility and a pitching deck for the first time. Without the assistance of the Landing Signal Officer, onboard instrumentation, lots of practice on shore and an occasional peek outside the cockpit at the carrier, it would be challenging to find the carrier let alone land successfully aboard the ship.

Why wouldn't you use all the tools available to you to acquire, cross-sell and retain your most profitable customers? An integrated marketing solution from Conclusive Marketing represents a practical approach to upgrading your traditional marketing program by incorporating analytics, business rules and customer preferences. The Armed Forces provide the best aircraft, training systems and instructors to ensure that pilots learn from each flight and improve their mission readiness. Learning from each marketing event can also help you determine the best message and channel by which to reach your existing customers and prospective customers while improving your marketing ROI.

Are you are constantly challenged to build enduring relationships with your customers in a very competitive landscape? Organizations that continue to grow during these challenging times have built a core base of customers and differentiate themselves from their competitors by superior customer service and an effective integrated marketing solution. Increasing customer retention by 5% can improve your profitability by 30%!  Unfortunately, attrition can be even more damaging to profitability since it is significantly more costly to acquire a profitable new customer than it is to retain an existing customer. 

Don't fly solo as you evaluate the options to achieving your marketing objectives. As you evaluate technology and integrated marketing solutions, fly with a Top Gun. Consider an Integrated Marketing Solution from Conclusive Marketing as you look at your options for the rest of 2008 and start your planning for 2009.


In the past few years, this concept has driven integrated marketing services applications: provide an interface and let the individual marketer take care of their own marketing and marketing analysis.  It was sold as a win-win, as the marketer had "more control;" and, it appeared cost effective since the marketer was also their own resource.

The funny thing is, a tool that seemed "easy to use" and provided the marketer with "endless" possibilities for program development and business intelligence often left users frustrated; since flexibility can easily equate to complexity.  Most business people, regardless of their position, simply don't have the time to learn yet another tool to simply get a single report on how effect a marketing campaign was.

To me, it seems the focus for integrated marketing services needs to be on SERVICES - allowing a marketer to intelligently 1) select and target the right customers for campaigns using data intelligence (modeling and response analysis); 2) select the correct message, channel and frequency for individual campaigns and customers; and 3) leverage business intelligence tools to evaluate and continually improve ROI  and provide value to their customers. However, marketers shouldn't have to do the legwork to make all of this happen.

Conclusive Marketing has an integrated marketing services platform underway which will provide all of these services to clients - it will be exciting to see the possibilities and opportunities that this platform will bring to our clients in the very near future.

User generated content has been touted for some time now.  And for good reason, in the right scenarios it can be very effective.  But another less noticed variation has been around since about 2001. It's called an Ad Builder. For companies who have distributed channel partners including franchisees, dealers, retailers, and so on, an ad builder solution allows them to create and distribute their own content, all while enhancing the Brand. Something most UGC can't guarantee!

Importantly, this end-user generated content goes online but also offline to traditional media including print advertising, direct mail, flyers, brochures, point-of-sale and even out-of-home (billboards, kiosks, and the like).  

Managing assets is no longer enough.  Like with Web 2.0, ad builder success comes from setting those assets free and allowing your end-users to customize your marketing materials for their local needs.  You simply have to provide your end-users with an ad builder solution and then let them use their market intelligence to drive effective marketing programs for you and your Brand.
 

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


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.