Big Data is Here to Stay- Are you becoming a lifelong learner?

Posted on January 7, 2013 by DrCedricAlford

By 2020, Gartner expects big data features and functionality (such as data mining) will be routinely expected from traditional enterprise vendors. That means that as marketing professionals, you will be expected to know a lot more about the management of big data than you likely know today.

IBM and MIT have been tracking organizations’ analytics maturity annually since 2010 when they introduced the Analytics Sophistication Assessment. It served to benchmark where organizations were in their analytic maturity. Three stages of analytic maturity were identified: Aspirational, Experienced and Transformed (see chart).

In subsequent years the study has been focusing on the widening gap between basic users (called Aspirational) and the moderate users (Experienced) verses sophisticated users (Transformed). The widening gap demonstrates that some organizations are getting better at using analytics and expecting more from their analytic professionals and tool sets.

 

 

 

 

 

 

 

 

So where does that leave you? Are you currently working in an Aspirational organization and want to help move things forward? Or perhaps you are in a more Experienced organization, edging its way to Transformed?

Consider these three questions to begin to get a sense of which stage your organization may be in right now:

1.       What motivates your organization to use analytics?

a)      Aspirational | Guiding decision making in financial management and supply chain   management

b)      Experienced | Guiding future strategies, and increasingly guide activities in marketing and operations

c)       Transformed | Guiding actions in day-to-day operations and future strategies across the organization

2.       How would you describe your organization’s current analytics tools?

a)      Aspirational | Primarily uses spreadsheets

b)      Experienced | Expanding portfolio of analytics tools

c)       Transformed | Comprehensive portfolio of tools to support advanced analytic modeling

3.       How would you describe your organization’s analytics skills?

a)      Aspirational | Ad hoc analysis is done at point-of-need; has difficulty hiring analytics talent

b)      Experienced | Analysts work in line-of-business units with growing focus on cross-training and hiring skills externally

c)       Transformed |Strong top-line mandate to use analytics supports a culture open to new ideas and champions who shepherd methodology and skills

If Garner’s prediction comes true, you will need to become a lifelong learner when it comes to big data.

 

To get a more comprehensive assessment of your organization’s current multi-channel analytics opportunities, call me at 972.496.7033 to schedule a no obligation appointment.

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Three Things You Need to Know About Big Data

Posted on January 3, 2013 by DrCedricAlford

Insight #1:  Big Data is Here to Stay

Understandably, there is a tremendous amount of interest, along with some confusion, about “big data”–what it is, how it can help create competitive advantage. If you ask the opinion of thought leaders at highly regarded academic and corporate institutions like MIT, McKinsey and IBM, for instance, you will hear largely universal consensus that big data is real and that it is only going to get bigger.

Imagine the strides companies could make if they had access to all the petabytes and zettabytes of data they’ve collected over the years. Not only would it allow for potentially groundbreaking customer and market insights, but it would also enable significantly improved, real-time decision making.

Big data is definitely on a lot of executives’ minds. Consider these findings from MIT Sloan School of Management and IBM’s New Intelligent Enterprise Global Executive Study (2011),

  • 50% of the 3,000 respondents across 30 industries and 100 countries said that improvement of information and analytics was a top priority in their organization.
  • 60% said innovating to achieve competitive advantage was a top business challenge.
  • 60% said their organization had more data than it can effectively use.

Bottom line, big data exists and it’s here to stay.

Insight #2:  To Be Useful, Big Data Must Be Made Smaller

Most CRM and automation technologies introduced in the past two decades are simply not equipped to handle the volume, velocity and variety of today’s big data. This is especially true of unstructured data from the digital channel (e.g., social networks, online shopping, digital marketing).

While today’s big data is too big for most existing technologies to handle, there are valuable insights waiting to be unlocked in the massive amounts of operational (e.g., sales, costs), non-operational (e.g., sales forecasts) and unstructured digital (e.g., search engine marketing) data being generated today.

To unlock those insights, companies must do two things:

a)      Choose technologies designed to handle big data and

b)      Facilitate effective data mining to chunk data down to a manageable size.

Bottom line, big data must be made smaller through data mining.

Insight #3:  Beware of a DIY Approach

While effective big data and data mining technology are readily available today, the bigger challenge is the acquisition, implementation and adoption of this advanced technology.

According to Bill Franks, Chief Analytics Officer of Teradata, “Today you can find products and solutions for whatever you need to do with big data. The real problems are getting budget, doing the implementation, getting people up to speed on how to use the tools, getting buy in from various stakeholders, and pushing against a culture averse to change.”  We see this daily in our engagements with clients.

Bottom line, in order to get to full benefit from big data, avoid the temptation to do it yourself.  Outside help will cut light years off your learning curve, saving you money and frustration.

To learn more about how to improve or launch a multi-channel analytics system for your organization, call me at 972.496.7033 to schedule a no obligation appointment.

 

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The Marketing Benefits of Multi-Channel Analytics

Posted on November 10, 2012 by DrCedricAlford

Multi-channel analytics is no longer a “nice to have” but now a true need to have in today’s marketing. Consider that 60-75% of consumers have become multi-channel shoppers, using multiple channels to gather information on cost, benefit and reputation. And since they invest more time researching you, they become very informed before you ever identify them. If you think this limited to B2C marketing, think again. We are seeing the same trend with B2B prospects.

So consider the following three reasons to get serious about improving or launching a multi-channel analytics system.

1.     Deeper Customer Insight

The customer data is already flowing into most organizations. The problem is that it typically flows into different information silos. With a multi-channel analytics system you can consolidate and discipline that data glut with data marts (see our post, “Introduction to Big Data, Data Warehouse and Data Mart Concepts”). And with social media growing exponentially, as evidenced by Facebook growing to 1 billion users, there is much to be learned about your customers and prospects via multi-channel analytics.

2.     Smarter Marketing Outreach

Using multi-channel analytics is the only way to accomplish comprehensive, closed-loop reporting on marketing campaigns. Which means you can unequivocally determine what is actually working. In addition, multi-channel analytics will break down information silos that exist across your organization, resulting in unified customer intelligence between departments and business units. And that leads to a much more cohesive approach to all of your marketing touch points, from sales and marketing to customer service.

3.     Enhanced Profitability

With multi-channel analytics, you can stop offering unnecessary discounts or offers which are just one-size fits all. These do not take into consideration your prospects’ specific hot buttons, needs or the buying signals they are communicating to you. We have seen scenarios where clients were leaving money on the table because they were not using multi-channel analytics to inform their marketing decisions, particularly around special offers and promotions they were sending on a mass scale. Stop letting the tail wag the dog and start using multi-channel analytics to enhance profits.

To learn more about how to improve or launch a multi-channel analytics system for your organization, call me at 972.496.7033 to schedule a no obligation appointment.

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Introduction to Big Data, Data Warehouse and Data Mart Concepts

Posted on October 31, 2012 by DrCedricAlford

In order to effectively discuss multi-channel analytics, you will need to have some working vocabulary around big data, data warehouses and data marts. Below is an introduction to these terms.

What is Big Data?

In 2012, Gartner updated its definition of big data as follows: “Big Data are high-volume, high-velocity, and/or high-variety information assets that require new forms of processing to enable enhanced decision making, insight discovery and process optimization.”

Like most definitions of big data, there is inclusion of the 3Vs:

  • Volume= Increasing amount of data
  • Velocity= Speed of data in and out
  • Variety= Range and data types and sources

Implementing multi-channel analytics in a big data world is increasingly challenging. Often we see marketing clients try and manage multi-channel analytics with a collection of massive spreadsheets created by individuals at different times using different data sources and rules for defining metrics in an organization, creating a fractured view of the enterprise. Marketing professionals today who are trying to master multi-channel analytics need to get out of spreadsheet jockey mode and instead look to data marts and data warehouses as the keys to success.

What is a Data Warehouse?

A data warehouse is a central repository and is a relational database that is designed for query and analysis rather than for transaction processing. There are three key characteristics: data is integrated, nonvolatile and historically robust.

When data is integrated that means it is put into the warehouse in a consistent format by resolving problems such as naming conflicts and inconsistencies among units of measure. The data in a data warehouse is considered nonvolatile, which means that once it’s entered into the warehouse, it should not change. This is important so different are operating off one version of the truth. And finally, the data warehouse should have a robust amount of historical data in order to be of use in trend analysis and predictive analytics.

What is a Data Mart?

If a data warehouse is a central repository, then the data mart serves as the access layer of the data warehouse environment, according to Bill Inmon. It’s used to get data out to the users. Without a data mart, users in the marketing department will struggle to extract quality data and turn it into any usable insight.

Usually in an enterprise situation, there are multiple data marts, marketing has their data mart, sales has their data mart, finance has theirs and so on. Each data mart is a collection of subject areas organized for decision support based on the needs of a given department.

Today data marts are typically cloud based applications. This allows each department to use, manipulate and develop their data any way they see fit; without altering information inside other data marts or the data warehouse. And this fits with the trend we see in marketers demanding more “self-serve” technology verses going to their IT department to get a report created.

Big data, data warehouses and data marts are concepts you must understand in order to begin to master multi-channel analytics. To learn more about how to improve or launch a multi-channel analytics system for your organization, call Dr. Cedric Alford at 972.496.7033 to schedule a no obligation appointment.

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Three Key Considerations for Selecting a Marketing Automation System

Posted on July 10, 2012 by DrCedricAlford

For those who have been in marketing a while you’ve heard the term Marketing Automation. And if you’ve done any research on the topic, you know that the 20+ suppliers in this space are very fragmented. So where should you begin when selecting a Marketing Automation system?

We believe success in Marketing Automation comes down to the goodness of fit between:

  • Your expectations of Marketing Automation
  • Compatibility with other technologies and
  • Willingness to manage change.

1. Expectations | Are they realistic?

As you consider Marketing Automation there is a natural tendency to think that it “runs itself” since it’s an automated technology. But first you have to have realistic expectations of what Marketing Automation can and can’t do.

Marketing Automation can automate manual, repetitive, mundane tasks in the marketing function. For example, marketers can automate the set-up of an email campaign, send it out, and track performance. Or they can create a new landing page with a lead form capture element; or even manage communication with a prospect across multiple channels (email, the Web site, microsites), and track their behavior to identify the relative propensity to purchase.

But you can’t expect Marketing Automation to be completely self-managing. You have to expect your people to own Marketing Automation.

2. Interoperability | Will Marketing Automation conflict with other systems?

As you consider Marketing Automation you can’t think about it in isolation. Instead, you have to consider the other systems that Marketing Automation will integrate with. These systems often include your customer relationship management (CRM), sales force automation (SFA), business intelligence (BI), campaign management, digital asset management and lead management, to name a few. Choosing an integration-ready technology that will be compatible with the organization’s current installed infrastructure is essential. But this requires close scrutiny of the interoperability of these systems. And often this scrutiny is best assigned to an objective, experienced, outside technology consultant.

3. Change Management | How will you get your people ready?

In addition to considering expectations and system compatibilities, there is the matter of how ready (or near ready) are your future users of Marketing Automation? Is there enough “pain” at the user level to make the necessary changes? Will users step-up and self-serve when Marketing Automation is launched? And will leadership invest in the necessary training and feedback processes?

Often there is a need for a cultural shift. A shift to achieve data governance and organizational alignment between different departments and external partners. Making that cultural shift takes time and honest dialog about the anticipated benefits and the implementation realities. Fortunately the anticipated benefits of Marketing Automation are well documented. For example, Gartner Research has shown companies that automate lead management see a 10% or greater increase in revenue in 6-9 months! Gartner Research has also shown that Marketing Automation can yield a 15% gain in creative services’ productivity. Increases like these can begin to build the business case for Marketing Automation.

To discuss this topic in greater detail, please give me a call at 972.496.7033!

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Three Things You Can Expect from Marketing Automation

Posted on July 6, 2012 by DrCedricAlford

Marketing Automation. It can be a marketing maximization “coup” for those who are committed to it.

As we see it, Marketing Automation is a technology to help marketers easily generate, nurture, score and qualify leads, and drive sales, using multichannel marketing communications that are both customized and automated. Since its introduction, we have seen an evolution in Marketing Automation that has made:

  • Relationship building more strategic
  • Content more relevant and
  • Closed loop reporting more attainable.

More Strategic Relationship Building

Marketers who are using Marketing Automation are no longer guessing what their audiences want to learn about, as well as when and how they want to be contacted. With Marketing Automation marketing professionals are getting more precise in their marketing campaign choices. And this deeper understanding of audiences is accelerating the relationship between buyers and marketers.

More Relevant Content

With Marketing Automation technology, marketers are increasing their customer intelligence thanks to more track-able touch points. Learning which content engages, which content stimulates action and which helps close the sale is leading to savvier content development. And by creating more relevant content, marketers are increasing response rates and sales.

More Closed Loop Reporting

Finally, closing the loop on how marketing campaigns are actually performing is another area where Marketing Automation has made much progress. With Marketing Automation technology, marketing professionals know exactly what works and what does not. Gone are the days when a marketer knew 50% of the advertising was working, they just didn’t not know which 50%! Today marketing professionals using Marketing Automation are closing the analytics loop and getting smarter with every marketing and lead nurturing campaign.

To discuss this topic in greater detail, please give me a call at 972.496.7033!

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It Takes Two. Good People + Good Technology.

Posted on July 4, 2012 by DrCedricAlford

Recently I was meeting with a prospect at a large enterprise. He shared with me how he thought that investing in a certain software “solution” would solve his marketing woes. Yet after a heavy investment in licensing, consultants and time, his company was no better off.

Worse, all the change associated with this software initiative had turned relatively happy employees into battered, skeptical naysayers. If you’ve been through a technology initiative, you know what I am talking about.

The reality is that today’s marketing departments need the one-two punch of good people and good technology. One without the other is like a beautiful car without any gas. It looks good parked in the garage but takes you nowhere.

By “good people”, we mean marketing professionals who understand current marketing best practices AND can wrap their heads around marketing technologies. And let’s face it; good marketing professionals do keep up with changes in technology.

When we say “good technology”, we mean technology specifically designed to enable marketers to anticipate where their prospects are going next in their buying process.  Technology to help marketers develop and prioritize their content touch points. And technology that ultimately helps marketers learn which variables in the marketing mix matter most.

Mastering that combination of good people plus good technology is what makes marketers win at marketing. To discuss this topic in greater detail, please give me a call at 972.496.7033!

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How can a marketer ensure buy-in from stakeholders for a marketing automation platform, especially from sales?

Posted on April 17, 2012 by DrCedricAlford

How can a marketer ensure buy-in from stakeholders for a marketing automation platform, especially from sales?

The best means of ensuring buy-in from stakeholders for a marketing automation platform is to focus on the well-documented benefits of marketing automation. For marketing stakeholders, Gartner Research has shown that 15% in productivity is gained in creative services. Just think of how an organization could use this savings – maybe ad a channel for the creative distribution? Also, from a sales standpoint, according to Gartner Research, companies that automate lead management see a 10% or greater increase in revenue in 6-9 months! These two facts alone should help the marketer understand the benefits of automation. The selling of this initiative to sales is a bit more straightforward, as sales is more interested in how quickly can they get beyond the 6-9 month waiting period to realized that increased revenue.

At the end of the day, it is important for the marketer to base his or her premise on facts from reliable sources. From there, a true assessment needs to be made as to the readiness of the organization for marketing automation, which is perceived as progress by some and too much change too soon by others. Regardless of the push back, the research shows that it is the right way to go. By not investigating this as an option, your organization is potentially leaving 15% creative productivity and 10% revenue on the table.

To discuss this topic in greater detail, please give me a call at 972.496.7033!

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How can marketing automation help with sales / marketing alignment?

Posted on April 17, 2012 by DrCedricAlford

The issue of marketing and sales alignment is a common theme across organizations spanning all industries given that these two departments tend to work towards uncommon goals. However, when one considers that the true role of marketing is create demand and the historical role of sales is the create value, the two departments are ripe for alignment in ways that can increase sales productivity as well as marketing ROI. Marketing automation supports this process of offering three key contributions: campaign management, marketing operations, and reporting.

Campaign Management offers the ability to have sales provide marketing with ideas for campaigns that cross channels. Marketing then develops relevant and personalized campaign messages across email, mobile or social media, including providing the list segmentation and dialog with the target audience. Marketing Operations provides the tools to make the communication of requests from Sales to Marketing both efficient and visible. Marketing Operations provides Sales with the ability to not only communicate with marketing, but also access to the marketing calendar, assets, and costs associated with lead generation activities.

Marketing automation can also support sales and marketing alignment by providing reports that detail marketing activity, performance as well as efficiency. This is a very long conversation that requires a bit more information as to your specific need.

To discuss this in greater detail, please give me a call directly at 972.496.7033!

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Why do you think some marketers are hesitant to invest in marketing automation?

Posted on April 17, 2012 by DrCedricAlford

Why do you think some marketers are hesitant to invest in marketing automation? 

Marketers are hesitant to invest in the marketing automation because of concerns with the total cost of ownership as well as with challenges in gaining consensus around the organization make marketing automation a breakthrough initiative. As executives seek to push marketing automation through their organizations, special attention should be placed on the benefits, including the fact that more productivity and efficiency in the sales and marketing organization will lead to more effective campaigns.

Marketing automation drives this increased effectiveness by offering online marketing, marketing automation and lead management tools that capture key stakeholder input that – when integrated in the marketing program strategy – results in a better return on the marketing investment. So, while total cost of ownership is at the forefront of the hesitancy by marketers, the efficiency gains can go a long way in establishing the business case for why getting started now is the best path forward.

Want to discuss this topic further? Please give me a call at 972.496.7033!

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