Data Driven Marketing

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Data Driven MarketingWhat, why and how to

AgendaWhat DDM is and isntWhy do you need to think about DDMWhat are the important components of DDM implementationNew marketing tactics approachHow to implement DDM in your company 2016, Alexei Cherenkov -- #

What DDM is and is notDefinition, components of Data Driven MarketingPersonalizedCustomer centricTransactions to insightsDigital enterpriseComponentsStop the mess#

What is Data Driven Marketing?Shortly speaking, this is the system of marketing management where key decisions are done based on exact figures.To achieve this, marketing must collect data about everything, and carefully analyse it so insights could be used for upcoming activities. 2016, Alexei Cherenkov -- #

Data Driven Marketing is customer centricIt s all about customerAll interactions of company with customers (clients and prospects) are recorded in the form of transactions - we get (big) data.Where is customer in these data hills? Customer response to the company touches is the most important transactional data for businessCustomer behaviour is what we need to collect, analyse and predict 2016, Alexei Cherenkov -- #

DDM is a part of Data Driven EnterpriseGeneral trend is in digitalization of enterpriseIn the future, each department will be data drivenActually, Finance Department is data driven for dozens of yearsNow, we are talking about conversion of very non-digital department - marketing 2016, Alexei Cherenkov -- #

What is inside DDMBusiness process automation - Marketing Technology or MarTech Changes in marketing business processesChanges in business processes of peer organisations (legal department, sales department, procurement, internal audit, vendors, etc.)Changes in marketing team Analytics and Data Science are a thread included into each business process 2016, Alexei Cherenkov -- #

What DDM is notSome people and even management of big companies do not understand new marketing well, and therefore mash things.Email distribution system, even sophisticated with triggers and analytics is not equal to DDM, its just a component of MarTechDDM is not equal to MarTech (Marketing Technology); however MarTech is a major component of DDMAnalytics is not equal to DDM, however its important componentDigital marketing is just a channel in marketing mix

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A couple of thoughts about AnalyticsIn Data Driven Marketing, all decisions are made based on exact figures derived from raw client data.Analytics can be used in one of 3 forms:Descriptive (what happened in the past) Visualisation of tables summarising behaviour of clients and business processes in the form of charts. Decisions are still made by marketeers based on their ability to make conclusions.Predictive (what will happen in the future) Uses Data Science to estimate hidden interactions to help marketers making non-obvious decisionsPrescriptive (what we must do)Uses Data Science to generate decisions 2016, Alexei Cherenkov -- #

Why do you need in DDM

Historical overviewWhy nowWhat if you skip itWhats new?

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Why did DDM concept appear nowHistorically, market relations were based on personal 1-to-1 communicationsMass production required mass marketing therefore manufacturers treat each customer as average client to get access to the widest marketsLater, technology of market research allowed segmentation and more precise targetingNow, technology (IT, data collection, machine learning) allows returning to personal communications on the next levelDDM establishes mass communication so client feels it as a personal treatment

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What challenges in traditional marketingTraditional marketing always was a bad child in the most of companies.Marketing department was assumed to be spender just because it was difficult to measure ROI. Everyone knows that marketing is required, but it was so easy to cut budget because marketing didnt operate with exact figures.Look, what challenges are reported by CMOs: 2016, Alexei Cherenkov -- #

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Whats new in DDMDDM is an evolution inspired by recent development of e-commerce. Major difference of traditional marketing: Each marketing touch and response (tactic) is accumulated in warehouse.Therefore, analysis of exact data allows controlling money expenses and money revenue. 2016, Alexei Cherenkov -- #

Why DDM is better than old-school marketingResult of every planned marketing campaign is predictableTherefore, company can get slightly more revenue out of smaller set of clients using less marketing budget - because of deeper segmentation and client behaviour modellingQuality of service is higher and loyalty is increasing because of personal communication emulationManagement of the company immediately observes ROI

2016, Alexei Cherenkov -- #

MarTech

What is marketing automationMarket landscape#

What is Marketing Automation (MarTech) 1/2MarTech isnt only about triggers in email marketing, or web site design.Automation of strategic marketing planning. Data driven plans use:exact numerical analysis of previous wins and fails; current status of all customers and cohorts;budgets and expenses; resources (assets, vendors, people, timings);etc.Automation of marketing campaign planning (on a tactic level)Campaign mapsBusiness processes define how team executes the plan 2016, Alexei Cherenkov -- #

What is Marketing Automation (MarTech) 1/2Automation of work with marketing assets Videos, Event presentations and White papers Website and SEOTelemarketing scriptsEmails and direct mails, etc.Automation of recording of all eventsMoney spent on each tacticMessages sent, to whom, how many opened, etcWhom called to with what offer with what resultAutomation of lead nurturingAnalytical dashboards to include exact figures in decision making

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Is there demandIn USA, many companies already use DDM in their work and many plan to implement in the near future Europe is ready and some worldwide enterprises start building departments, however many smaller companies still not ready (while use elements of DDM such as data science or digital marketing)Russia & similar countries are far behind the trend; a couple of leaders (telecom, banks) just started this journey 2016, Alexei Cherenkov -- #

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Core of automation is client databaseDatabase governance is a special discipline within enterpriseLaw, permissions, PI, security - absolute mustDo not delete record! Just flag themData quality is the most important topic, and you need to develop a special client data quality strategy 2016, Alexei Cherenkov -- #

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New marketing tactics

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Marketing campaignPlan. Campaign map and checklist.Execution and recordingAnalysis and insightsPlan based on insights 2016, Alexei Cherenkov -- #

Campaign planningCustomer journey understandingAsset managementCohort descriptionCohort - the segment of clients passing now the same stage of customer journey Sequence of tactics - campaign mapMultichannelProper tagging and metrics/analytics inclusion 2016, Alexei Cherenkov -- #

Digital marketingSEO, SMM, E-mails, Google Analytics - all are projection of Data Driven Marketing to Internet channel of communicationDigital / Mobile Marketing arent a standalone disciplines 2016, Alexei Cherenkov -- #

Campaign executionTest it before going live!Test vendorsTest database (and project counts)Test campaign mapTest web siteTest automation 2016, Alexei Cherenkov -- #

Marketing metricsRoi is the mainIntermediate KPIs - funnel health, conversions etc 2016, Alexei Cherenkov -- #

Data Driven Marketing DepartmentEnterprise stakeholdersVendorsOther DepartmentsClients and ProspectsMarTechClient Database (or CRM)AssetsPlans, Budgets, MapsAnalytics, Data ScienceMarketing team#

How to implement

PrerequisitesWhere to startChanges in teamProceduresWhen to stop#

Go to DDMData Driven Marketing approach should be implemented step-by-step, over the current marketing.Change manager - a special dedicated PM for this transitionMajor prerequisite for this transformation:Management of the company must see the necessity

2016, Alexei Cherenkov -- #

Investments in DDMCompany stakeholders and Marketing department manager have to understand that they will not get immediate return.MarTech assumes investments in specialists, software and its implementationClient Data Base assumes continuous investment in data acquisition, support, cleaning and refreshment. At least 18 months these investments will not bring any profit. Usually Client DB is a further development of CRMIt is necessary to define relations with other teams in the form of business procedures: with sellers, legal, finance, procurement and with external vendors. Many will be unhappy of this formalisation. 2016, Alexei Cherenkov -- #

Investments in DDM - teamIt is necessary to reorganise roles in marketing team and new business processes implementation - after that they can be automatedTrain marketing team to work in the new environment, with software and figures. Teach them to use analyticsIt can happen that some team members cant adoptNew team roles appear and new team members to be taken onboard: web developer, campaign analyst, SEO analyst, database governor, etc

data science DDM , (, ) - ( , )

2016, Alexei Cherenkov -- #

Investments in DDM - analyticsAnalytics and data science are very fashion words however they are just decorations if other components arent implementedWithout martech no raw data will be collectedWithout business process transformation analytical results couldnt be properly used Without changes in team anal