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.
 

Bellagio HotelAt the DMA Conference in Las Vegas this week, I heard a common question.  "Why set up a Marketing Database?  We have a CRM platform."  Then I begin to ask the questions.  How long does it take to get data from IT to complete the data processing for your marketing campaigns?  How difficult is it to utilize business intelligence to develop campaign triggers or report on marketing results? Where does the marketing information reside in your CRM platform?  I often hear "by the time our business intelligence group recieves data and completes data analysis the relevance of the marketing opportunity discovered by our market research has passed!"  The reason this is happening is simple;  you have data management occuring at the enterprise level in order to run the back-end of the business, not specifically marketing data that captures the essence of the customer interaction required for integrated marketing activities. We service several Fortune 500 clients, those with a true marketing database are able to successfully execute campaign management, triggered marketing and deliver great marketing ROI.  Those of our clients that rely on enterprise level information management are only able to manage campaigns as "one-offs,"  the results often a fraction of those with a true marketing database.  It is a simple question with a simpler answer, in order to optimize marketing ROI you must have a database built for that purpose.


DM Covers Aug-SeptWhat times we live in  ... the cover title of DIRECT magazine proclaims "Mad Money" in August 2008 and "What Downturn?" in September 2008 as Wall Street registers its first dip below 10,000 in years just a week before the October 2008 DMA Conference.

How is it that those headlines could co-mingle?  Were the circumstances related to the DIRECT articles simply darting in and out to be replaced by an economy that arrived as quick as the season's first turn in weather?  Was data on the Dow's decline misleading?  Or were there people at Wall Street or DIRECT that simply missed the story?

As practictioners of direct marketing, and particularly as experts with data analysis, we are much better positioned than our public to make sense of these paradoxical times.  We recognize that both our headlines are true -- the economic downturn is striking, but there is still room for success if we can cull through data and identify that event, that moment in time, that each consumer returns to purchase products.  

Of course our margin for error is getting smaller - a lot smaller. To be prepared for precision marketing, we need to sharpen our data management - search for new sources, perform thorough data processing to cleanse it more thoroughly, incorporate data analysis services to elevate our knowledge about consumers and generally do all we can to optimize our marketing information.

Recognizing the challenge suggested by today's headlines, the vital ingredient is to conduct integrated marketing, to link all that data management to the point in time that clean data is relevant -- the seemingly narrower and narrowing point in time that each consumers' purchasing window is actually open.  And that, dear reader, implies that marketing must evolve to event driven marketing solutions

Mad Money will be on display at the DMA next week when the convention center opens its Starbucks and $4 coffee stands right in front of marketers, marketers who are staring this economy straight in the face.  But the product will be right, the prospects will be thirsty and the timing will be right.  Marketers will smell the coffee and buy that event driven solution.  Now, we just need to fix that Dow ...

With marketing dollars declining, it is more important than ever to communicate to customers and prospects most likely to purchase.  Your customer base is your best resource for generating additional revenue and determining your best possible prospects.  In order to utilize this valuable resource, your must learn as much as possible about them.

 

Third party data providers can determine important facts about your customers by simply matching your database of names and addresses to theirs.  Types of information available are age, income, education, marital status, presence of children, credit score, and on and on.  Once these details are known, data analysis can be used to determine what a customer of your product “looks like”.  This data intelligence will enable you to create a customer profile for each product in your portfolio. 

 

Customer profiles create the ability of a company to increase sales in a couple of ways.  The first way is to cross-sell to current customers.  By using the profiles of customers currently purchasing certain combinations of products in your portfolio you can determine the next best product to sell to each customer.  Secondly, these profiles also give you guidelines for acquiring prospects.  Third party data providers can provide prospect lists based on detailed demographics that you determine through the customer profiling.  In essence you are determining the next product to sell your customers and the next prospect to sell your product.  Follow up with lead management processes such as direct mail marketing and both approaches translate into additional revenue.


On a recent Alaskan adventure with my family I discovered that there is complex data science involved in the Alaskan salmon fishery.  The Alaska Department of Fish and Game use technology, such as sonar monitoring systems and advanced statistical models, to monitor commercial and sport catch as they track salmon migration into the various river systems to complete their natural journey.  The most interesting part is how this statistical research is utilized to communicate fish location to the fishing public through multi-channel communication methods; email alerts, websites, printed materials, broadcasts on TV and radio, now even automated text messages on the streams!  I would consider this a great example of real-time event based marketing.  As with any ecosystem, opportunistic bears also go where the fish are, without the need for technology; they just wait patiently for the fishermen to show up. We have unintentionally created data-enabled bears!

Alaska is everything I expected and more.  The grandeur of the mountains, rivers and sea, the vastness of the wilderness and the opportunity to respectfully interact with wildlife in this unbelievable setting is only enhanced by the data based science that protects this priceless renewable resource. 



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!  

This is one of my favorite quotes from the movie “Ghostbusters”.  Remember it?  Bill Murray as Dr. Peter Venkman.  Classic.

I’m reminded of this quote every time two key marketing constructs - Campaigns and Triggers - end up in the same conversation.  For whatever reason, it seems to me like most marketers like to keep these separate.  Even Gartner classifies them separately, “basic” versus “advanced”, in their evaluation criteria for multichannel campaign management (MCM). 

But if we are truly focused on the customer (or prospect, which is really just a customer who hasn’t purchased…yet), then we as marketers have to find a way to get these dogs and cats to live together.  A customer doesn’t care about a campaign or a trigger - or a model, or a creative, or a workflow for that matter.  They, well actually we, care about relevant messages at the relevant times.  And when it’s done right, we actually appreciate it.  But when it’s done wrong, it really annoys us.

Both campaigns and triggers are important marketing tools.  Excluding one or the other dilutes the overall effectiveness of the marketing function.  But if we don’t reconcile them intelligently then we risk producing inconsistent, irrelevant and potentially ill-timed messages. 

To be fair, in many ways, campaigns – at least traditional campaigns - and triggers are different animals.  Traditional campaigns are driven by a marketer, “on demand”, if you will.  They are sometimes based on data, or even better on segmentation and/or analytics, but often on intuition.  And they are typically executed based on the marketer’s preferred timeframe and channel, not necessarily the customer’s.   

Triggers are similar to campaigns in that they are initially conceived and defined by a marketer.  However, they must, by definition, be driven by data.  And they must have pre-defined criteria to apply to the data so that the triggering system can “watch” for the condition represented by the criteria to manifest.  Now, the criteria can very simple, such as a birthday approaching, a 3,000 mile / 3 month oil change coming due or a CD about to mature.  Or the criteria can be very sophisticated, such as the occurrence of statistically abnormal transaction behavior (think applying fraud detection-like algorithms to marketing).  And finally, triggers “fire” based on the customer’s timeframe (as long as the data is right), not necessarily the marketer’s.   
 
Even though triggers may seem more attractive in some cases due to their data-driven and automated nature, both techniques are important.  There are things that a marketer knows that often won’t make it into the database – or at least not in time – to become available to the triggering system.  For example, if a regional hail storm strong enough to do damage to cars occurred, a rapidly executed, on-demand campaign from an auto body shop to attract customers with hail damage for repairs could be very effective.

Interestingly, from my experience, in cases where on-demand campaigns seem like the logical, or perhaps only, option, shortly thereafter there is usually some brainstorming about how the situation could be “triggerized”.  Given the previous example, one might ponder “if the triggering system only had access to weather data, then…hmm…”. 

But that’s enough for now; more later…


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


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 . . .


I like to enjoy the ironies in life. Remember how we once worried about privacy on the internet? We didn't want Amazon to know what we bought last time we shopped. We worried that our Google searches would end up compiled in a master database on a server farm somewhere? (they are...).

 

Then came blogs and many of us started to share our thoughts and ideas with all who would listen. Then social networks like MySpace and Facebook allowed us to share nearly everything else with our hundreds of "friends". And now we have life streaming. New sites including Lifestream.fm,  Twitter and Friendfeed allow users to instantly update their digital personas across numerous networks with every single, minute detail of their lives.

 

People are generally willing to tell us what they like, what they want, what they need. Yet, as marketers we continue to not listen. We compile marketing data, do analysis after analysis, send email and direct mail, then look for sales. But do we actually communicate?  Do we meet our customers' needs?  Do we provide for a continuous loop of enhanced understanding?

 

Compiling data alone won't do the trick. It's the nuances we see, the insight we impart, the understanding of who our customers are, that makes us intelligent marketers.