Data-Driven Marketing Campaign Optimization

My report is about how CMOs can use big data and analytics to transform marketing decision-making and advance corporate innovation by using big data to optimize your marketing efforts.  The way I went about writing this report was I interviewed both vendors and CMOs to understand where the market place is with respect to actually using marketing automation software / platforms.

 

There is a lot of software that delivers on the promise, unlike 25 years ago when CRM- Marketing, Sales and Customer Service vendors (either point or suites) had the right ideas and desire to provide this type of business impact, but the software really wasn’t not as advanced as the marketing brochureware (sales pitch and slides) was.

 

In addition, from working with CMOs when I was in the agency world and throughout my career, the story has been very similar. Software has the potential to create and drive revenue when it’s attached to the right strategy. Technology without the right strategy just means we do more of the wrong things faster. That’s not such a good idea, though it happens every day.

 

Level Self-Identification Leads to Marketing Transformation

You can’t change what you “don’t know, you don’t know.” In the report, I provide a picture for Marketers so that they can self identify where they are in the various levels of using marketing automation and then to identify what they’d like to be doing. In consulting or advisory work, this is often known as a “gap analysis.” It helps people see the present as well as the possible future state.

 

What we found in the research is that many Marketers learned that the way they were using marketing automation software as at Level 1 &2. They do not realize there’s more they could do. Others found that they have not chosen software that help them advance their Marketing capabilities to Levels 3, 4, and 5. In the report, I describe some ideas on what those other levels are and what it might look like.

 

The Five Levels Seek To Drive Marketers To Become Chief Intelligence And Revenue Officers

In theory, let’s say that Marketing really drove revenue in your company. The idea I’m really aiming for in this report is to provoke CMOs and Marketers to think about becoming chief intelligence and revenue officers.

 

When they are able to show that they can repeatedly and consistently contribute to bottom-line, the senior leadership team will give them respect they want. Long gone will be the days of suffering from what I lovingly call the “Rodney Dangerfield Affect” – i.e., the day of “they just don’t get enough respect” won’t exist anymore. And that would only be a good thing.

 

Because Marketing software has changed over the last 25 years and can deliver on may more of the promises it aspired to, Marketers must also change. But there is a gap in the talent pool of CMO’s and Marketers that understand how to use marketing automation and customer experience platforms to get to Level 4 and Level 5 activity (see the report). And that’s what I really want to see happen and why I wrote the report. It’s time that we use all this big data revolution and new technology and transform old roles into new roles where respect for the contribution is earned and acknowledged.

 

What This Means to You

What may not be obvious is the “so what?” What does this mean to you? Here’s some brain candy to think about, As a CMO or Marketer, you need to:

  • Understand how marketing automation platforms have transformed and how big data plays a larger part in today’s CMO role
  • Know where your personal skill level are as well as those of people in your organization
  • Be able to pick technology that can provide these more advanced capabilities; often times buying technology was the role of IT, now CMOs are responsible for this
  • Understand requirements definition documents, capability lists (features and functions), business case justification along with bottom-line benefits — when it comes to choosing technology
  • Fill the skill sets in your organization so that you are able to truly justify to your senior leadership team why you want a larger budget and new technology.

 

I don’t think you can wait to do this. I think it will only going to get worse, not easier to pick the right technology for today’s CMO and Marketer. Make sure you are prepared by educating yourself on your options and learn how to choose technology so that you can show your contribution to the bottom-line.

 

I’d love to hear from some folks who have mastered some or all of :choosing technology and business justification capabilities”— how you did it! You never know, you might become part of my disruptive case studies library!

@DrNatalie

Skype: drnatalie007 | LinkedIn | Google+

Catch my latest:
• Thoughts at www.DrNatalieNews.com 
• Upcoming book series: “7 Steps To Digital Customer Experience Mastery” (working title)

SAVE THE DATE!
Constellation’s 4th Annual Connected Enterprise 
The Executive Innovation Conference | October 29th-31st 

Half Moon Bay, CA | Ritz Carlton
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The CMO is Dead: CMOs Use Big Data To Become Chief Revenue And Innovation Officers

I know you’ve seen these types of dramatic headlines before: The CMO is dead. But in actuality, the roles in marketing, sales, and customer service that once governed how business “gets done” are shifting. This best practices report, Data-Driven Marketing Campaign Optimization is about how CMOs can use big data and analytics to transform marketing campaign decision-making and advance corporate innovation and revenue.

What’s driving this shift? A great deal of the shift in roles is being driven by technology that is now available. In attending many conferences over the years, especially in the last 2 years, the technology has changed very dramatically and delivers on many of the promises CRM (Marketing, Sales and Service) wanted to deliver on, but just honestly the technology wasn’t there yet via its fullest capabilities to do this.

Now that we have technology that can deliver more than ever before, we have to make sure that people know how to use it and use it well. You can read the rest of this blog post to understand my point of view on this or jump right to a snap shot of the report.

The Report: Data-Driven Marketing Campaign Optimization     The report is about how CMOs can use big data and analytics to transform marketing campaign decision-making and make better decisions about their businesses. It looks at how to ensure you’re using big data to optimize not just your marketing efforts, but your whole company. A few of the juicy tidbits from the report are that it:

  • Contains a 5 level evaluation marketers can use to determine how well they’re incorporating big data into their marketing efforts
  • Reveals how CMOs can use big data to enhance marketing decision-making and advance corporate innovation and revenue (Level 5)
  • Helps marketers contribute value to making the best possible customer experiences and drive higher customer lifetime values
  • Ensures Marketers become an essential member of senior leadership team that is responsible for driving revenue and showing that’s so by using data-driven marketing
  • Addresses the politics, the “not invented here” and the silly finger pointing (that should actually be a while collar crime) that often happens in companies…
Progression of Marketing Decision Making to Innovation and Revenue Creation

Progression of Marketing Decision Making to Innovation and Revenue Creation

CMO‘s Paradigm Shifting To Innovation and Revenue Officers     I know it’s often tough being a Marketer and not getting the credit due. You might find yourself suffering from what I call the Rodney Dangerfield Affect, meaning you don’t get enough respect in your organization. I get it. But let’s put that idea in the past. You can get credit; you just really need to know that there is a new way to do marketing and the tools and platforms are there to support you.

In the past CMOs were charged with top of the funnel activities, driving qualified leads to Sales. It was then Sales job to take the lead and close as many as they could. But just like we know the earth isn’t flat (old paradigm) revenue generation is now not just the mission of Sales (new paradigm). In fact, the CMO role is changing and changing fast. The reason? Because the technology today can show what the Marketer has contributed to the bottom-line. And that’s what you as a Marketer need to know and need to focus on— for your career and for your company.

While there’s lots more to cover in the transition from the old paradigm of Marketing as “top of the funnel” people – to the Chief Information and Revenue Officers— if you are a Marketer who is interested in the “new world”, this report is a good first step in taking a look at not only where your organization is at with respect to how they view marketing, but also how you, as a Marketer are approaching Marketing. I’ve created a 5 level of Marketing Automation and Campaigns capability matrix (see the above figure). Often times you may not know what level your organization is at or what else you could be doing. This maturity level overview helps you to see where you are and also what other levels you can achieve.

How Can You Get Started?

  • Begin to have a revenue mindset
  • As you choose technology, ask yourself, can I show how I generate revenue with this technology?
  • And if I have the right technology, how am I going to present that I am contributing to the bottom-line to the senior leadership team?

Change Means Politics Heat Up       As part of any change in an organization, you’ll want to be careful of organization change management issues that come up with change. The roles of Marketers and Sales are both needed and provide great value. But if Marketers are becoming Chief Revenue and Innovation Officers because they have a lot of data and know how to use it to close sales, make sure to think through how that might affect other departments (Sales, IT, Customer Service…) And if / or when Marketing transforms into a “Revenue and Innovation Organization” what now is the role of Sales, IT and Customer Service?

Redefining Roles    In one particular company that I worked with on this this transformation, Marketing became responsible for the top and middle funnel revenue drivers. Sales then transitioned into executive account management and renewals: they were really the relationship builders and maintainers. And Customer Service delivered on the “promises” made by Marketing and Sales by integrally working together with Marketing and Sales. This meant that all three departments knew what their new roles were and the importance of customer lifetime value (CLTV). They knew that all three department’s goals were to collaborate to increase CLTV so that customers, whether it was a B2B or a B2C company, spent more time and money with the company over longer periods of time- hence increasing the customer life time value.

What business experts are really striving for with Big Data is to create blue ocean strategies where the competition is irrelevant; we learned that from the authors of the Book, Blue Ocean Strategies,  W. Chan Kim and Renée Mauborgne. We also learned from W. Edwards Deming, that if we listen to our customers and our employees and take that data, we’d have better products, services and companies — which help to build companies that become their own marketplace or live in an uncontested market space. And that’s what can be done with all the data that we have today — if CMO’s know what to do with it.

Making Cross-Functional Collaboration The Most Rewarded Executive Activity    In this particular company, when cross-functional collaboration was a primary part of their culture, Marketing wasn’t spending millions of dollars to acquire customers only to have the other departments provide such poor relationship building and service that the customer’s defected. Instead they made sure that once the customer had bought and come on board, Customer Service delivered on promises by Sales and Marketing. (In your company, it might mean people in these departments have to talk to each other…) Now that’s an interesting concept!

This is just one company’s take on how they approached these issues. I’d love to hear what you think about the report. There’s much more I could / need to cover in this area. This report just a first look at the idea of CMOs transforming into Chief Intelligence and Revenue Officers.

@DrNatalie

Skype: drnatalie007 | LinkedIn | Google+

Catch my latest:
• Thoughts at www.DrNatalieNews.com 
• Upcoming book series: “7 Steps To Digital Customer Experience Mastery” (working title) 

SAVE THE DATE!
Constellation’s 4th Annual Connected Enterprise 
The Executive Innovation Conference | October 29th-31st 

Half Moon Bay, CA | Ritz Carlton
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How to Improve Customer Service by Dr. Natalie (Part 2) Using The Management Theory of OODA

Customer Service and The Theory of Observe, Orient, Decide and Act

Customer Service Your Guide to Integrating Social Media to the Customer ExperienceHave you ever wondered why fighter pilots make such good decisions? And how you could learn from them to make better business decisions — especially in customer service.  You might have caught my webinar on Social Customer Service as the Force Multiplier. If you didn’t, here’s the link. In that webinar, I talked about John Boyd. He was a military strategist, a Colonel and fighter pilot. As a fighter pilot, he found that he had to make decisions in real-time. For him and the pilots he trained, those decisions often were a matter of life and death. What he noticed over time was that there was a repeatable process that pilots went through to make good decisions.

For the whole story on how to use the OODA Loop as a unique way to use Social Media to improve Customer Service, download the white paper here. Or read on…

Years later Boyd’s theories became highly influential and used by the military, by sports professionals and by business strategists. In fact some consider his ideas as influential as Carl von Clausewitz, who wrote On War and The Fog of War, as well as Sun Tzu, who wrote the Art of War.

Boyd created a process called the OODA Loop. It’s based on a way to generate the new actions and ideas we need to thrive and grow in an uncertain and competitive world—which, for many companies, is the challenge they are facing. The OODA Loop consists of four steps: Observe, Orient, Decide and Act.

Full diagram originally drawn by John Boyd for...

Full diagram originally drawn by John Boyd for his briefings on military strategy, fighter pilot strategy, etc (Photo credit: Wikipedia)

Here’s what the steps mean:
• Observe: It’s the collection of data
–– Make use of the best sensors and other intelligence available
• Orient: It’s the analysis and synthesis of data
–– Put the new observations into a context with the old
• Decide: It’s determining a course of action
–– Select the next action based on the combined observation and local knowledge
• Act: It’s how you take action on those decisions
–– Carry out the selected action, ideally while the competitor is still observing your last action.

Do you have systems to monitor/measure what employees and customers know, think and feel about how customer service is provided and how the rest of the business operates? And do you take that information and integrate it into your company and make improvements that deliver better products, services and, in particular, better customer service?

If you think about it, this is very similar to what W. Edward Deming was suggesting when he provided business advice to companies. The fact is some companies collect feedback, but that information rarely gets to the right department or person who could make use of it. And then if it does get to the right person, there are not systems or a process to use that insight to make improvements. And even fewer companies
tell customers and employees when they have taken the feedback into consideration and made the right changes. One of the most powerful things companies can do is to let customers know that they care by not only making changes, but to let customers know their voice was heard and taken seriously.

In the next posts, I’ll go more into how the OODA loop work for you and your customer service program and the rest of your company

For the whole story on OODA Loop and How to Use Social Media For Business download the white paper here.

Learn. Share. Grow!
@DrNatalie
 
Let’s Connect here:
Twitter:
@drnatalie
LinkedIn: DrNataliePetouhoff
G+ : Google Plus posts

For More Info on My Work:
Social Media ROI YouTube Videos:
Video 1: Building the Business Case for Social Media,
Video 2: ROI of Social Media,
Video 3: How Social Media Benefits the Whole Company

Ebook: Social Media ROI Myths and Truths

White Papers: Social Media ROI

Book on Monetizing Facebook:
 Like My Stuff – How to Monetize Your Facebook Fans With Social Commerce & A Facebook Store


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Could Social Media Monitoring Have Saved Netflix & Blockbuster from Themselves?

Word Cloud On Netflix from Social Media Monitoring

I teamed up with my friend Jennifer Tyler, @JenHowell4, at Sysomos and we did a little social media monitoring on the Netflix situation. One of the goals of this blog post is to show that data can be used to tell a story. When you tell a story, the audience listens.

A Cause for Pause I hope that this case study gives every CEO, CMO… a cause for pause — to consider social media as well as social media monitoring –to give it a real, hard consideration. Not just because you want to avoid risk, but because you can begin to see that there is mission critical, real-time data that you can use in your business. And so now to our story, aided by the social media monitoring data.

Blockbuster’s Customers Didn’t Like the Delivery System Because It Involved Late Fees If we examine what was being said about Blockbuster in social media prior to bankruptcy, the negative conversation was around late fees. Clearly there was something not working about the delivery of movies. Customers had to come in, rent the DVD and remember to return them on time. Or else the “evil” late fees would consume their positivity around the brand.

But was Blockbuster listening? It doesn’t appear that they were “hearing” the feedback, at least not enough to shift their business model. Here’s a word cloud that can be generated via social media monitoring. It tells you what was being said about Blockbuster in social media. You can clearly see- in the word cloud- that the main jist of the conversation was about late fees. (In word clouds, the larger the words, the more times they are mentioned in social media.)

Social Media Monitoring Word Cloud on Blockbuster

If Blockbuster was using social media monitoring, they could have seen that their customer sentiment was not positive. They could have clicked on the red part of the pie chart to understand what customer’s were upset about. By clicking on the graph they could choose to look at tweets, at blog posts, etc… that pertain to that negative sentiment.

Blockbuster Sentiment Chart in 2010

But Blockbuster didn’t listen — or at least they didn’t hear and shift their business and had to file bankruptcy on Sept 23, 2010. You can see in the word cloud about Blockbuster’s bankruptcy, that Netflix is showing up in the conversation. Clearly something to pay attention to — when the word cloud is supposed to be about your business and your competitor is showing up in the same cloud! YIKES!

Blockbuster Word Cloud Sept 23 1010 Bankruptcy

Social media monitoring can show you what is being said about your company. Below are clips that represent blog posts in social media about Blockbuster’s bankruptcy.

Conversations on the web about Blockbuster's Bankruptcy

And here’s customer sentiment around Blockbuster’s bankruptcy in tweets:

Blockbuster Twitter Conversations About the Bankruptcy

July 12, 2011 Flash Forward to July 12, 2011. Was Netflix listening to their customers? If you look at the graph at the top left hand side, you see a yellow-ish curve. It is pretty much the same height until July 12, 2011.

What you can do in social media monitoring is to click on the peak and then see what that is attributed to. In the upper, right hand corner, you can see the blog post by Netflix’s CEO Reed Hastings is what gave rise to the spike in social media and online conversations. The screenshot is of the Facebook post with a link to the CEO’s blog post. There are 81,789 comments. Out of those comments, there are 1,429 Likes. That’s about 1.7% positive responses.

If we do a word cloud on the same peak, we can see what the main topics are. That’s the group of words to the lower right. The key words are: Netflix, price, hike, streaming, dear…. It’s clear what the crowd is upset about. If we look at the lower left screen grab, you can see a buzz graph. The buzz graph tells you what words are being used in association with other words and the thicker the line, the more prominent is the use of the word. Those words are: increase, stream and redbox…

Social Media Monitoring Data on Netflix July 12 2011 Price Hike/ Change

Here’s the actual blog post by Hastings— note that he ends the post with telling customers that they can cancel their services at any time.

Netflix CEO Reed Hastings Blog Post July 12 2011, With Invitation To Cancel Customer Subscriptions

Here’s some of the thousands of comments to the CEO’s posts, most all negative, about the changes to the Netflix services:

Customers Reaction to Netflix CEO Reed Hastings Blog Post July 12 2011

Despite the >23,000 negative comments on the blog on July 12, 2011, Netflix sent out a notice on the price hike on Sept 19th, 2011. What happens when you don’t listen or hear & you act without considering what customers think, feel and know? Customers were outraged… and the press picked up the coverage… If for no other reason than the press looks to social media for stories, companies MUST start taking social media seriously.

Press That Covered Netflix Price Change and Splitting Up the Company

And here’s some of the titles of the articles below. Companies work very hard to get coverage like this. Unfortunately, it wasn’t positive coverage.

Titles of Articles About Netflix

Here’s a sample of the tweets about Qwikster (Netflix’s new offering) – Sept 19th, 2011.

Sample of Tweets About Netflix Qwikster

And the three top words in the Buzz Graph?

Reed
• Hastings
• Apologize
 

Buzz Graph on Netflix CEO Reed Hastings

Here’s Doug Gross’s article, from CNN Tech and The Daily Dog’s Report on Netflix:

 

Daily Dog's Story on Reed Hastings and Netflix

And Tom Loftus’s Wall Street Journal story on Netflix and Reed Hastings:

 

Wall Street Journal's Story on Netflix's CEO Reed Hastings

 

And more stories from some great journalists:  

, Mashable: Netflix’s @Qwikster Problem: Twitter Account Controlled by Weed-Smoking Elmo  

Ben Fritz, LATimes: Netflix CEO admits ‘arrogance,’ renames disc business Qwikster  NPR: Netflix’ News: Signal Of DVD’s Demise?

Scott Cleland, Forbes: Netflix Crushes Its Own Momentum

Matt Burns, TechCrunch: Netflix Stock Erases 12 Months Of Massive Growth, Crashes Through 52 Week Low

Mike Issac, WIRED: Meet Qwikster: Netflix Spins Off Discs-By-Mail from Streaming Video

Austin Carr, FastCompany: Netflix: What We’ve Got Here Is A Failure To Communicate

What was interesting is that I checked Blockbuster’s twitter handle… and guess what I saw? Blockbuster is NOW listening! They are offering 1 year subscription to the people who provide the best reason for leaving NetFlix:

 

 

Blockbuster is listening now!!!

What makes this whole situation even worse, like Stan at Mashable said… Netflix didn’t even check the twitter handle– @Qwikster. Someone else has it. Here is one of his typical tweets. It’s not “on brand” with Netflix and Netflix doesn’t own the twitter handle. (Note to companies- before you pick the name of a new company, go to Twitter and check to see if the name is available!!)

 

Qwikster Tweets

Deming On Steroids Maybe its good to listen to your customers. Deming said it years ago. Listen to your customers and employees. Take the feedback and integrate it into your company. What we have in social media is Deming on steroids. We have feedback that is honest, genuine, and transparent. What’s worse is that, like cave paintings, it is something that will last forever for whomever is searching to find it.

Did Blockbuster cross the chasm of it’s time? No. It’s customers were saying, “We want a different delivery system where we don’t get dinged for late fees.” It didn’t shift with the changes in the marketplace. Did Netflix take their spot. You bet. Did Netflix get arrogant? One would think that after >87,000 comments or 24,000 comments, that if the customer’s weren’t good with what was being proposed, and Netflix went ahead anyways, yes, it appears so.

What could Netflix have done better? Ask the customers what they think before making a declaration. Explain that to keep the company profitable and to keep delivering the streaming services, that there might need to be some changes. Ask, don’t tell is the VERY FIRST things good leaders learn in and out of business school. Asking vs telling would be a paradigm shift for most CEOs.

Netflix announced the deal with Facebook and Michael Drobac, director of Government Relations at Netflix is asking customers to help bring Facebook Sharing to the US. Has Hastings done so much damage that fans and customers will not rise to help? Did the apologies and explanations by Hastings help or hurt the company? Do you think Hastings understands what he did wrong?  Todd Wasserman of Mashable.com reported rumors of Blockbuster to launch a Netflix rival. Is it too late for Netflix?

A Social Media Teaching Moment What can we learn from this? Call it a “teaching moment.” We can conclude that’s its important to listen to our customers. It’s important that executives listen to customers and use that feedback to make good decisions. The information about a company that is contained in social media is real-time and real relevant. It’s your customers, your advocates, your influencers, your ambassadors, the press and your nay-sayers giving you their point of view. And it lives forever, it can go viral and change not only what customer’s think but also what investors think, as well as stock prices. Social media is clearly a medium, that if you don’t understand it, it can get you!

So where is your company in the adoption of social media? If it’s stuck, then perhaps consider social media monitoring. It will give you:

  • A benchmark on where your sentiment and share of voice is- especially compared to your competitors
  • Assurances that what you are doing is working; fair warning when it isn’t
  • Mission critical data to adjust your products and service
  • Data to help create a business case for the decisions you are making
  • And give you data that can be used to calculate social media ROI.

Where is Social Media Going? Many people are asking me what’s the next phase in social media? They’ve got their Facebook and Twitter handle and they are posting. They have somewhat of a content strategy and interaction plan. And they are trying to drive customers through a marketing funnel and help customers with their customer service issues.

The Third WAVE of Social Media Adoption The next phase, and maybe it should be one of the first phases, is to do social media monitoring. Why? A good case study in this is re: Netflix and Blockbuster situation. Where we are in the social media lifecycle is the Third Wave. Wave One was lead by the Innnovators. Wave Two was championed by the Early Adopters.

The Social Media Adoption Curve by Dr Natalie Petouhoff

For social media to become the business-changing paradigm shift that it can be, it must win over the Early Majority. If that happens, then the business world would be entering WAVE Three, in the Social Media Adoption Curve. (I adopted Geoffrey Moore’s and Roger’s Diffusion Theory thought leadership around this concept.)

So what will it take to get the majority of the business world to buy into social media? The Early Majority are pragmatists. They want assurances that what they are going to do, is gonna work. They want business cases and they’d love to see ROI. One of the ways to show companies that social media matters is all of the above. And one of the best ways to create a business case is to do a little social media monitoring. At least that’s my take!

Don't do the Ostrich

Take your head out of the sand and cross the chasm

What’s your take on where business is in the social media adoption process?
Does this type of social media monitoring data make it easier to understand why someone should invest in social media? Love to hear your thoughts!

The Social Media Adoption Chasm - Don't Fall Into The Gap

@drnatalie Learn. Share. Grow!

Here’s more information to that might help you:
A link to the powerpoint presentation on slideshare: http://www.slideshare.net/doctornatalie/social-media-breakfast-club-and-sysomos-presentation-sept-22-drnatalie

Link to my Social Media ROI videos: http://www.drnatalienews.com/blog/did-u-see-the-videos-on-the-roi-of-social-media

Link to my white papers on the ROI of Social Media: http://www.drnatalienews.com/blog/roi-of-social-media-white-papers-by-dr-natalie-petouhoff

 


 

 

 

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