Data Marketing 2015
Data Marketing 2015 opened Thursday November 19th this year asking the simple question “How has data and analytics changed the Marketing landscape.” Of course, it has been a complete revolution. With so many vendors, case studies, paradigm shifts and presentations it is challenging to bring it down to just a few key learnings. For me, four main take-aways infused many presentation themes. First, the theme of ‘Insights’ is key to the data marketing paradigm. Second, was the continued observation of the co-mingling of the CMO and CTO roles. Third, a new age of Living Services. Fourth, was the importance of using data marketing to achieve audacious goals for important paradigm shifts.
Insights in Data Marketing
Data Marketing 2015 reminded us that big data, analytics, and clever interpolations are nothing without the insights gleaned from it all. Presenters like Lisa Anderson (SABMiller), Jeb Schneiderman (Tapped Mobile), and Paul Zikopoulos (IBM) resonated similar thoughts. Zikopoulos pointed out that “it’s not only about the infrastructure, its about the insights. Without Analytics the big data is just … data.” In “The New Marketing Technologists,” Anderson noted that you have to dive into the data analytics and mining, spend time with it, and sometimes come up with nothing. Then the next morning you wake up with a brilliant insight that makes the difference to your entire marketing direction. It is not possible to prescribe a step-by-step method to get to data marketing insights. That would be akin to describing the steps to adding a creativity to your work. We all know what it is when we see it, but it is elusive to describe how to accomplish it. However, these insights are the key reason for spending time and resources on data marketing. If you don’t put the time, energy, and deep thought into it, the insights will never emerge. What you must do is go through the analyses, triangulations, and statistics before you can glean the ‘Aha moments’ (insights) that will make the difference.
Magically disappearing CMO
Stephane Berube (CMO at L’Oreal) surprised attendees in two ways. First, he briefly mentioned a 3D printer at L’Oreal that creates fully functional and useable lipstick. This sent a shiver of excitement to many of the women in the audience (the core target market). Back on topic, Berube also suggested that he would be surprised if the CMO (Chief Marketing Officer) role exists in five years. This provocative thought highlights that marketing is evolving into a technologically oriented profession.
In a related vein, Jenne Barbour (TeraData) shone the light on ‘Shadow IT’ organisations popping up in marketing organisations, everywhere. This inspires the need for companies to face up to the fact that today’s marketing requires data. It is not even expressly a data marketing need… all marketing needs data! It also needs technically savvy people to research, analyse and mine the data for insights. Barbour’s point was that firms need to transparently recognize this need for technical resources to drive data marketing – to the organisation’s benefit. With the big jumps in marketing technology, Berube’s point was that the CTO (Chief Technology Officer) and CMO will start looking increasingly similar. At some point we should not be surprised to meet the CMTO (Chief Marketing Technology Officer).
In a particularly thought inspiring presentation by Accenture, Rami Lama discussed the overall modern evolution marketing. Lama suggested the evolution as threefold:
1) 1990’s: Web / Internet Centric
2) 2000’s: Mobility focused
3) 2010’s: Living Services
First generation of digital marketing was the migration to the web. It means getting into the digital world. The focus was on becoming accustomed to transacting, starting research, doing business, creating awareness, and driving demand online. From there marketing progressed to mobility. With more mobile devices on earth (as of Oct 2014 according to CNET, based on GSMA Intelligence) than humans, this was a natural drive for marketing. For the 2010’s the third wave is the realm of Living Services. Here branded services are personalized to each individual. It changes in real-time to meet the needs of the user. It adapts the message to the context and circumstance of the individual prospect.
Think about the internet of things (IOT) for a moment. Think about IOT products everywhere watching, reacting, capturing data about them and adjusting to that person. Think about the data volume about audiences, and the analytics that will evolve marketing to cater to much higher level of personalization. The near future of marketing will:
• track a prospect (physically not just website cookies)
• observe their transactions along a geographic route (could be within a building or store)
• be cognisant of the person’s mood (from health monitors like fitbit),
• be aware of your interests, social connections, upcoming birthdays and special celebrations, and
• adapt in real time to cater personalized marketing to that individual.
Imaging you walk through a shopping mall to get to the train station for your commute home. As you walk past a brand name department store, one of the Bluetooth beacons sends your smartphone a message. It is a promotional offer on Lego available today ONLY – as an ideal gift recommendation for your 8 year old’s birthday in one week. The living services enabled, data marketing engine recognized you. It recognized the multitude of Facebook photos you have posted of your 8 year old. You stopped yesterday near the Lego section of the toys on display. In fact you have a history of Lego, and MegaBlocks purchased at this store. As a result the promotional offer is on the packages you have not yet purchased as gifts. Your fitbit recorded a slight increase in your heart rate, as you pondered. Google Calendar notes that your 8 year old’s birthday is in 2 weeks. Prime time to provide a highly customized premium marketing offer.
Lama detailed the Living Services experience provided to Disneyland visitors, with data collected from each guests wristbands. The service allows purchases along the journey to be sent directly to your hotel room, and billed on one tab. Disney will recommend rides that might interest your family, that are nearby and that currently have short lines. No need for your wallet. No need to carry your purchases. Reduced frustration in lineups. Disney collects five terabytes (5T) of data daily to analyse and provide this insightful data marketing feedback to guests. It enhances their experience, journey, and likelihood of repeat business.
For more on Living Services refer to FjordNet.
BHAG’s (Big Hairy Audacious Goals) was a term coined in 1994 by James Collins and Jerry Porras in their book Built to Last. To achieve paradigm shifting changes you need to have incredibly aggressive goals – to push for revolutionary creativity. Jeff DeChambeau (T4G) brought the conference to a close in the Strategy track, with this very concept. DeChambeau took a parallel observation of the SpaceX program’s audacious goal of landing a rocket on a small barge on the ocean. Even if it has not yet been successful, this is another lesson that fast failures – and adjustment are critical to success, as they are in marketing and data marketing. SpaceX’s efforts have already reduced the cost of taking a payload into orbit from $3700/kg to $1900/kg. Once they achieve their next audacious goal of a fully re-useable rocket – their aspiration is to bring it down to $100/kg. In a similar course, a decade ago a Data Marketing conference would be unthinkable. This realm simply did not exist to any significance. We are taking early steps. DeChambeau highlighted the need to continue evolving the field. Use BHAG’s as part of the process to drive breakthrough creativity and insights out of the Big Data Marketing world toward which we are marching.
A special call-out to Dina Al-Wer, Valentin Caudan, the many volunteers and sponsors for organizing and running the conference. Thank you also for inviting me to host the Strategy Seminar Track. It was truly a delight to meet so many talented speakers.
About the Author:
Charles Dimov is Director of Strategy D, a Digital and Product Marketing consultancy (www.StrategyD.org). He has 20 years of experience in High Technology, with 15+ years in Product Marketing functions – having successfully introduced over 80+ new product to global markets. Charles has a MASc.(MBA), BASc.(Eng), and a BA.(Econ), and loves Photography, Marketing Strategy, and rolling up his sleeves to drive market success. He can be reached at Charles@DimovStrat.com