DATA EMPOWERMENT DEVELOPING DATA STRATEGIES AND TACTICS FOR PROFITABILITYBy Steven Schnoll

ABOUT THIS WHITE PAPER

In a world where content travels at the speed of the internet, mobile devices, and social media,

one can shape thoughts and decision making in minutes. Effective delivery of subject matter

is essential to every type of enterprise no matter how big or small.

WE LIVE in a DEMOCRATICALLY DRIVEN CONTENT REVOLUTION

There is no technology more pervasive to orchestrated content marketing in the digital age

than data management. The digital business universe is growing at a phenomenal rate and

the driving force is data. The amount of data collected is expected to grow to 44 zettabytes

(a zettabyte is 1,000,000,000,000 gigabytes). The challenge facing most content communication

companies is not only being overwhelmed by the massive amounts of data but effectively

managing it for the benefit of customers. So, what does this all mean to a typical Print Service

Provider (PSP) attempting to survive in this dynamic data-driven omnichannel world?

Very simply, a strategic data plan must be put into place. This white paper will highlight some

of the key points in developing a growth strategy surrounding the smart use of data.

KEY TAKEAWAYS1. Defining data

Data is everywhere. The vast range of data points collected on people and entities is what makes data management so essential. Defining these data points is the first step in the process.

2. Capturing the right data and then leveraging it with personalized direct campaign marketing With the world swirling around with big data it can often be a daunting task to collect the most meaningful and relevant data for a marketing campaign. Many small to medium sized organizations have either no or outdated data/content management software. Assist them to achieve meaningful results and a better data experience and you have a winning formula. Remember, the eyeballs can be found in print, online, and mobile. Where and how to capture is critical.

3. Empowering your company in driving customer engagment The tools to leverage data can be very confusing and complicated. Effectively managing the process defines success or failure.

4. The Five Rights Paradigm Marketers are learning. The target audiences they want to reach are made up of millions of data points. Marketers want to ensure they are reaching the audience correctly, and the only way to achieve that is following the “Five Rights”.

5. Security issues The issues to maintain a secure environment for hosting

data can be costly but are essential.

6. Analytics The key to data management is proving results.

Doing a personalized marketing campaign has no value

without proving ROI.

KEY PAIN POINTS CONCERNING DATA

• Determining methods for collecting data.

• Integrating multi-channel media, often termed “the omnichannel”, into current business models.

• Understanding that you really don’t have a choice; you must provide data management services.

• Identifying the right suppliers or internal people to get a data program operational.

• Learning the data strategies and tactics that will stimulate sales, control costs, and improve processes to drive profitability.

DEFINING DATAData is everywhere, and one of the best opportunities for profitable growth lies in mastering it for print and omnichannel communications. The question is: how does one easily define data?

Very basically, data comes in two flavors: Big Data and Little Data. Big Data, according to sas.com, encompasses large volumes of data — structured and unstructured — that inundate a business on a day-to-day basis. For example big data is every transaction at a bank, airline, or brokerage house. Little data, according to technopedia.com, describes data that relies on targeted data acquisition and data mining, such as what individual customers purchased at a local retailer. Whatever the flavor of the data, though, it’s not the amount of it that’s important, but what organizations do with it that matters. And between print and other omnichannel uses, there is a lot that a print provider can do.

An important term that relates to defining data is “patternicity”. This word refers to the human tendency to find meaning in random events. Gathering Big Data or Little Data into useable forms is the corner stone of “patternicity”. This sounds logical, and all marketing programs today hinge on knowing the vital information obtained on marketing targets and then leveraging it successfully. Good marketers look for partners who can assist in determining buying patterns, event patterns, and things that can be used as a predictive model for future actions. The poster child for this type of marketing is Amazon, with their astute predictive

modeling software. This is where Big Data and Little Data comes into play, because if you don’t know anything about a customer’s past habits, you are wasting marketing dollars. For example, those direct mail pieces addressed to Dear Neighbor, Occupant or Friend are destined for the trash bin because they lack any kind of targeting. And, with the price of postage skyrocketing, that generic direct mail piece just wasted valuable dollars with little or no return. So, if the printer can acquire basic data management skills, great value can be achieved for a customer. Printers who master data management are destined for success.

CAPTURING, GATHERING, AND LEVERAGING DATABIG DATA, LITTLE DATA, SMART DATA—THE RIGHT DATA

Every good marketing plan today begins with collecting relevant data. The problem is most small to medium organizations find this a challenge they can’t handle. There is no one real location for the customer to find all their data. Most often data is siloed in many different locations. It can be found in human resources, sales and marketing, finance, production, and shipping. Data may also be obtained from 3rd party sources to either complement existing files or as a virgin source. There is no one right structure, and as a consequence, this is the perfect opportunity for a printer to offer a simple solution: become the one unifying entity for data capture. The PSP must offer database management as another viable service offering.

DATA SOURCES

There are several methods for pursuing the capture of data.

1. In the case of many business-to-consumer (B2C) retailers the answer may lie in credit card data or sales receipts. A customer makes a purchase and the items purchased are detailed. This type of information is critical for leveraging predictive analytics, one of the key success tools that has propelled companies like Amazon and Vistaprint.

2. For business-to-business (B2B) organizations most often it can be found in accounts receivable information. When a company makes a sale, the invoice describes all the details of the work performed.

3. Acquiring information from 3rd party vendors is yet another avenue. There are many excellent data list companies who can provide excellent lists based on certain criteria i.e. ZIP codes, income levels, age, marital status and family information, etc. Remember these lists are only rented for a specific set of uses. One never actually purchases a list.

OUTSOURCING VS. INTERNAL

Once data files are obtained, the next issue that surfaces is: how do I handle data internally? There are two potential answers. One, hire an outside company who specializes in data management services, or two, train people internally or hire tech savvy new employees.

Starting out with the latter approach can often lead to complications. One of the best routes is to start with an outside service and then start a migration path to training people internally to eventually make the switch. Management often claims there is no one currently in place to handle this type of work. That probably is not accurate. Today millennials live on digital devices. There is a strong likelihood a young current employee is a tech savvy gamer and would be eager to take on this new corporate challenge.

For a printer to truly manage data properly one must establish a secure data infrastructure. For a small to medium sized printer just starting out, this may be costly and challenging. Quite often the answer lies in finding an independent data management company who can optimize data capture and provide the proper security in a safe and compliant environment.

SOFTWARE

A critical aspect of gathering data is the software mechanisms used to collect, cleanse, merge, purge, and mine. There are many excellent software packages in the marketplace. One must understand that spreadsheets like Excel or any other CSV type of file are flat files that don’t permit value searches or manipulation. While these types of files may provide a good source for basic data collection, relational software packages are essential.

The software list below, while not all inclusive, is a beginning as to what is available in the marketplace. The total number of companies providing relational data software is much too extensive to detail in this white paper. The list provided herewith starts with the basics and works to the more complex.

Non-Relational

• Excel

Relational

• FileMakerPro

• MS Access

• SQL

• Oracle

• Amazon RDS

Big Data Software

• Hadoop

• ContractRoom

• Capterra

• Apache

STORING CUSTOMER DATA: INTERNAL SERVER VS. EXTERNAL CLOUD

There has been a great deal of controversy over the best means to store a customer’s data. The two best options are:

The Internal Server: The internal methodology is building a sophisticated dedicated server farm infrastructure internal to the PSP business. Extensive research must be done to ensure the proper hardware and software are purchased. To deploy new servers and keep up to date with expanding customer demands can be costly and physically challenging to meet space requirements. The internal server farm, however, often increases peace of mind for companies, yet it also creates the need for more comprehensive management tools and rules.

The External Cloud: Most businesses have already started to use this model; it is becoming quite pervasive in business. The SaaS model, Software as a Service, is the humble beginning of cloud technology. This is the model that allows companies to rent software and have it delivered securely over the web, integrated to one’s backend systems. This helps users reduce and eliminate more of their IT assets. The cloud initially was thought to have security issues, but that fear has basically disappeared with the entry of Amazon, Microsoft, Oracle, etc. into the market. These models align with current CIO strategies of reducing IT capital, consolidation, and reducing IT operational costs so they can drive business innovation.

EMPOWERING WITH DATAUnderstanding your customer needs so they may meet their respective customer needs is what data empowering is all about.

When printers are often asked about how they use data, quite often a confused answer is provided. If data is used properly, clients who employ an omnichannel approach to targeting customers generally will achieve measurable results. The days of “spray and pray” are gone. So where does a printer start to harness the power of data and fuel the growth of their respective customer’s business? It all begins with a strong omnichannel plan of managing orchestrated content, with data being the core. PSPs who provide data management services seem to be showing a healthier financial picture. By adding multiple, ancillary digital services to their service portfolio, these companies can now offer total campaign project management. As a result many have rebranded themselves as Marketing Service Providers (MSP) or Content Service Providers (CSP).

A core component of dealing with data is data mining, which entails sorting through huge data sets using sophisticated software to identify undiscovered patterns and establish hidden relationships.

Patternicity illuminates probabilistic behavioral patterns that will identify consumers or other potential customers who are “in market” at a given time. If one has deterministic data points that show a definitive pattern and can provide a timely communication to that individual or organization, then there is a high likelihood of achieving a positive result from a marketing campaign. Having the ability to collect data points that are meaningful and then provide a relevant message to a subset of consumers with that data with a personalized message brings data to a realistic level. The PSPs that provide this kind of service to marketers are truly making waves and profits. Making a difference with focused data-driven marketing requires an arsenal of many different

mediums and techniques.

ROLE OF DATA

• Monitor buying patterns

• Demographics

• Psychographics

• Lifestyles

• Behavior patterns

• Existing customer analysis

• Predictive modeling

1ATTITUDES

2VALUES

3HABITS

4INCLINATIONS

5PREFERENCES

6NEEDS

7HISTORY

8PATTERNS

9BEHAVIOR

ROLE OF DATA

Some of the methods of successfully enabling the role of data are:

VARIABLE DATA PRINTING

The middle word in VDP is data. As discussed earlier, most printers fear data, a fear that can result in an inability (or unwillingness) to do personalization. One of the great profit opportunities of digital print is personalized direct mail pieces. It behooves the printer to find sources of expertise that can teach them the proper methods to execute personalized direct mail programs.

There are many personalized marketing software programs available for the PSP to use. These software packages integrate data along with graphics into targeted direct mail or email communications.

EMAIL BLASTS

Email is a pervasive marketing technique that has become a norm for communication. Email campaigns, when run in conjunction with personalized direct mail, can boost the results. The challenge is to get past the targets’ spam filters. Generally, the best way to achieve that is leveraging the printed piece with, personalized URLs (pURLs).

PERSONALIZED MICROSITES (pURLs)

A pURL is a unique and personalized Landing Page created especially for each recipient of a direct mail or email marketing campaign. When an individual goes to the internet and types in their unique pURL address, they are taken to a personalized Landing Page. Each time they visit the site, all activity is tracked on a dashboard. The owner of the site is instantly notified of the visit and any information submitted through the landing page form is recorded for follow-up.

Typically, pURLs are used in conjunction with a direct mail campaign, or with email marketing.

Typical results from using pURLs are:

• The ability to track responses in real time, and receive email alerts to instantly follow up with interested prospects.

• Engage customers at a deeper level by collecting valuable information from your prospects, and using that information to make subsequent campaigns even more relevant.

DIGITAL ASSET MANAGEMENT

Part of any successful personalized marketing campaign is inserting relevant graphics in the direct mail piece or microsite. Digital photographs, animations, videos and music exemplify some of the typical media assets inserted. To do this requires Digital Asset Management (DAM) software.

The term “digital asset management” also refers to the protocol for downloading, renaming, backing up, rating, grouping, archiving, optimizing, maintaining, thinning, and exporting files.

MOBILE APPS

According to the New York Times there are over 5.5 million mobile apps. Mobile apps are software applications designed to run on mobile devices such as smartphones and tablet computers. These apps are becoming a very important part of any personalized marketing campaign. Apps allow for many actions to happen easier and faster, which seems to be the growing desire of basically everyone. They can easily connect a target who has downloaded an app to the cloud for tracking customer data by using point-and-click tools in minutes. Developing the capability to build mobile apps for customers is very aligned with the whole topic of data management. They work in combination.

FIVE RIGHTS PARADIGMMarketing Automation is a proliferating phrase. Data technology has significantly enhanced the methods organizations employ to reach a target audience while using automated marketing techniques. Data technology has paved the way to improved marketing efficiency and then measuring defined results with the capability to offer predictive add-ons. However, when business professionals discuss personalized marketing they must also consider the Five Rights concept. If each of the Five Rights is not executed properly, then achieving the desired results of any marketing campaign may be in question.

When the Five Rights are employed, marketers realize more fruitful outcomes with potential and existing contacts. When one can track personalized behavior patterns - “patternicity” - it makes interactions far more relevant. Current data marketing software has the tools to gain

insight into contact preferences and history to help shape the best relevant message. When a PSP can work with a customer to successfully execute a program with analytics to support the ROI, one has gained a trusted position in the eyes of the customer.

Some the benefits of using the Five Rights within marketing campaigns:

• Improved lead generation

• Relevant touches with target audience

• Acquisition of better market intelligence

• User friendly outcomes

• Measurable results

RIGHTMESSAGE

RIGHTPERSON

RIGHTTIME

RIGHTMEDIUM

RIGHTREASON

FIVE RIGHTS

* Schnoll Media Consulting

SECURITYWhen analyzing security for a data center there are many considerations. The PSP MUST create a documented best practices plan. Some points to consider:

1. Physical Security Checklist

a. Fire Protection

b. Key/Code/Card Issuance policy

c. Physical location in a low crime area

d. Door, Window & Lock construction

e. Flood protection, 2nd floor data center

f. Disaster recovery /Business continuation plan

g. Remote backup site

h. Cabling areas locked/protected

i. Data Center areas have limited access

j. Access logs kept on Data Center (or card access)

k. Customer data on restricted number of machines

l. Power/UPS and Air Conditioning redundancy

m. Access & Destruction of old media, paper, scrap, proofs, spoilage

n. Employees have badges & limited access to customer data

o. Document/Media marking, handling & storage of customer-sensitive data

p. PCs and portable equipment secured and signed out

q. Restricted use of USB drives

r. Laptops, mobile devices and PCs have biometric entry

s. Laptops, mobile devices and certain PCs have encrypted drives

2. FirewallsThe firewall is the core of a well-defined network security policy. The goal of any firewall protection software is to create rules that only allow the specified connections to enter and prevent hacking from unknown outsiders.

3. Virus ProtectionAntivirus software is a must for every computer data system. Without it, a company risks losing critical information, files, and any other stored information.

4. Network mappingA company can’t protect what it doesn’t understand. Network mapping provides a picture of the network (servers, routers, etc.) and its connections. Furthermore, network mapping can capture applications and associated data. A robust mapping capability will map the dependencies between applications, data, and network layers.

5. Human elementEmployees must be trained to implement security policies that they will accept and use. Effective security awareness must be cultivated, watered, and grown. Automation can curb, but not fix the human threat exposure. Security must blend transparently into the workflow wherever possible. It should flow into every department, not just the front office.

6. Customer documentationCreating a document that clearly delineates the procedures in place to protect the data files entrusted to the PSP.

7. HIPAA The Health Information Portability & Accountability Act (HIPAA) covers the handling and storage of personal medical information and transactions. Personal information regarding an individual healthcare plan or any health-related information is subject to HIPAA compliance and restricted access. Understanding HIPAA requirements is a must if doing healthcare work.

ANALYTICSThe key to any marketing campaign is to clearly demonstrate profitable/intended results that can be defended.

Data analytics (DA) is the science of examining raw data with the purpose of drawing conclusions about that information. Data analytics is used in many industries to allow companies and organizations to make better business decisions and achieve sales results.

Analytics help entities determine the success of a marketing campaign. If a PSP can play a pivotal role in the analytics, they ensure that they will continue to be a part of the customer engagement process. Analytics help an

organization understand the position of the target audience.

PREDICTIVE ANALYTICS

Several years ago, a new online retailer, Amazon, developed a whole new digital business model. One of its core components was predictive analytics. Now many other companies, including Vistaprint, have brought that same customer engagement strategy to a whole new level. Brands historically always attempted to create an emotional attachment to their products and services through loyalty programs and outstanding service that attempted to build more profitable customers that were less sensitive to price. Predictive analytics navigation process provided a new methodology to review purchasing habits or patterns to produce personalized suggestions of related products that a target may like. This takes the whole analytical experience to new levels. When a printer can provide this type of service to its customer they have the potential to better secure customer loyalty.

KEY ANALYTIC PSP POINTS

• What metrics to use to determine your marketing programs accountability.

• Proving your customer investment is not a waste of money.

• Evaluating the price of success.

• How to understand the relative economics between customer acquisition, retention, and CRM.

• How to measure process improvements that will have the most impact.

Knowing which customers are WORTH MORE

to the bottom line!

Most Loyal

CompetitorRisk

Old Leads

ABOUT THE AUTHOR

Steven Schnoll

Steven Schnoll is the managing director in the consulting firm of SCHNOLL MEDIA CONSULTING. He has had leadership and ownership interests spanning several decades in five content media organizations and one software company. He has built a reputation as a practical innovator for companies attempting to enter new markets or revitalizing existing markets. Steven was inducted into the prestigious Ben Franklin Honor Society of the Printing Industries of America in 2008.

This analysis was commissioned by Canon Solutions America and NAPCO Media to help printers better understand how today’s technology can optimize their production and how they can benefit by adopting these solutions.

Canon Solutions America, Inc., a Canon U.S.A. Company, provides enterprise, production print and large format solutions, supported by exceptional professional service offerings. www.csa.canon.com.

CONCLUSIONThe future of personalized omnichannel campaign marketing is based on the

simple slogan “knowledge is power”. Never lose site that no matter what or who the market is, people are filled with emotions that trigger decision

making. Collecting relevant data on those emotions is simply one tool in the marketing arsenal to hit the “five rights” relevancy button.

If the PSP understands the database concept, that creates a very valuable value added service. Keeping up with the world of data

management can provide some essential best data practices to help their customers achieve successful personalized

marketing campaigns and in turn a profitable business

model for themselves.

DATA + RELEVANT CONTENT + ANALYTICS + MULTI-MEDIA =

RESULTS

Canon is a registered trademark of Canon Inc. in the United States and elsewhere. All other referenced product names and marks are trademarks of their respective owners and are hereby acknowledged. ©2017 Canon Solutions America, Inc. All rights reserved. 3/17-066-1144

For more information, call or visit 1-800-815-4000 CSA.CANON.COM