02/19/14

The path to Big Data: Challenges and Opportunities

Big dataThe New Jersey Institute of Technology’s Online MBA program sent me this infographic entitled “Data Mining and Decision Support Systems“, in which the university describes big data and data mining as the new way of carrying out market research. As a matter of fact, data mining isn’t new – I first heard about it in the 1990s when it started to become fashionable, namely in the Banking industry – and it is not directed at “new  data” but “existing data” as is described in the infographic.

If data mining (or even Big data for that matter) per se isn’t innovative, massive open databases, and unstructured data like those gathered by Facebook and Google actually are the new kids on the block. NJIT even heralds these new giants as the future major players of the data mining industry. To an extent they already are.

And true enough, data mining is bound to become, at last, a major player in the Marketing field for the years to come: when it comes to clients … and prospective customers alike (that’s the real novel aspect of it, we can now gather information about clients to be).

Challenges related to big data implementation

Yet, many challenges will have to be overcome by businesses which want to benefit from this new wave of market research brought by the big data era : improving data quality is one (this is why the retail industry is ahead of the game: check-out data is massive and squeakily clean), allowing time and resources is another, not to mention knowledge and training and, last but not least, internal limitations as to how data can be shared across departments. No wonder that 1% only (according to Information builders) of company information is used at the moment.

Now here’s the challenge, and only those who are able to overcome it will be able to reap the benefits from these new marketing opportunities.

Big data

NJIT New Jersey Institute of Technology – Online MBA

12/6/13

Corporate Blogging is Dead, Long live Content Marketing! – 2013 survey results

book-new-largeI am not certain that Google will maintain Google alerts for very much longer. It seems, to put it in Forbes’s words, that it is broken. There is another cool innovation from the olden times which is still working though, I mean Google web trends. I still find it very interesting to see how things evolved through the use, or disuse, of certain keywords in the Google search engine. Lately, I went back to Google in order to check what was happening to corporate blogs. The only thing I was able to find out, was a 2005 report on corporate blogging. Does that mean that corporate blogging is over? Not at all! It is now part of a much broader subject, named content marketing. In essence, content marketing is bit different from just corporate blogging and it is a much better term. The replies of the interest for content marketing over the past few months is showing that something is happening in the web world again. Maybe it is a sign that companies are now more interested in what they get from the content which they produce rather than just spend time producing it. Let us review the 2013 content marketing survey report which gives us some interesting insight into the use of content marketing in 2013 (courtesy http://www.imninc.com/).

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Interest for corporate blogs has clearly shifted from blogs to content

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Key Survey Findings by IMN

  • Content marketing was a medium or high priority for 90%
    of respondents …”  however, one may point out  that comparisons with the 2012 survey my IMN (the first in the series) is showing that the realisation that content marketing is important is fairly recent, even in the US,
  • “31% of respondents have had a content strategy in place for more than a
    year, with 18% stating they put one in place within the last year and 33%
    working on implementing a strategy” … as stated above, all these content marketing programs are still fairly recent and there is still room for improvement,
  • “67% of respondents use a newsletter to distribute content to their
    customers and prospects” …  this is namely true with regard to newsletters for which a great number of users are sending  them once a year therefore showing little or no understanding of how the medium is used,
  • “78% of respondents curate content; 48% having run into permissions /
    attribution issues during the process” … But 15% of respondents are worried that they could use copyrighted content on their own resources,
  • 44% of respondents cited lead generation as the most important goal of
    content marketing programs; an increase from 16% last year.

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Awareness is widespread now. Content marketers are no longer regarded as zombies… well… I have a few recent counter examples but they are not American.

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Increasing leads is clearly what makes corporations tick. Yet, my personal experience in that area shows that few are able to go beyond buzz words and stick to their guns. Lead generation is a difficult trade, it requires a lot of fine tuning, and stamina. A trial and error mentality must be adopted; typically something that large companies have trouble coping with … long term thinking!

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Blogs are still here in that picture but they are not alone and part of an ecosystem. This makes perfect sense. An overarching strategy for marketing content must be adopted vs. piecemeal technical approaches which lead nowhere. Yet, if your blog is lousy, you are bound to go nowhere at all. The fundamentals must be remembered.

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Success is shifting away from readership to leads. Well… in the States maybe, in Europe, we still have a long way to go!

Download the 2005 blogger survey

09/25/13

Content marketing in UK and Europe: mind the Gap!

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There has been questions in certain European countries with regard to how widespread the adoption of contact marketing on the continent could have been (cf. this piece on my French blog, translated into English by the Google robot). Although undeniable progress has been made in the past few years over here in that respect, and though we may even consider content marketing to be a staple of marketing and especially B2B marketing, it is debatable that the adoption of content marketing in certain European countries is ubiquitous and fully understood.

Considering that, in France for instance, 70% of small businesses websites are never updated (source: Marketing PME’s Serge Henri Saint Michel), we can surmise that there is definitely room for improvement.

I found the following survey from the content marketing Institute which shows the huge gap between what we witness in Europe and what is happening in the United Kingdom. The vast majority of UK B2B companies, either large or small, have all embraced content marketing (95% of the B2B companies having responded to the survey have, even though the sample is very small but varied).

Mind the Gap!

Let us make that point clear: the sample is very small, and we have to remain cautious; but at least one feels that there is a major trend and one more European divide in the making. Whereas, on the continent, I am still battling with certain people about the fact that white papers, for instance, are useful devices (I still hear stuff like “White papers serve no purpose!”), in the United Kingdom, this kind of tactics has been embraced fully and totally incorporated within marketing thinking.

Besides, it is only subcontracted by 55% of the sample. There is one more caveat beyond the size of that survey sample though, and it’s that most interviewees are not always satisfied with the results: approximately half of them rate the results of content marketing as average. One assumption would be that competition on content marketing is very harsh in Britain, and the English-speaking world in general, and that doing things differently in English is a lot more exacting than with other, less represented languages on the Internet.

Obviously, in order to stand out from the crowd, A lot of thinking has to be put into your content beforehand . There is a paradox that the areas where people think that whitepapers aren’t any good, are in fact those where it is a lot easier to produce and promote them than it is in Britain, where adoption is broad but competition is fierce. I can predict that a lot will happen in the B2B arena in the near future, at least on the continental side of the Channel.

07/15/13

Retail: Marketforce Set to Improve European Shopping Experience … Beyond Big Data Dashboards

ideoshoppingcartMystery shoppers aren’t anything new; this marketing technique dates back from the 1940s. It was then used even before the term “marketing” had been coined. Yet, MarketForce, a US company with offices in Britain, and more recently in France and Spain, have begun to revolutionise the way mystery shopping surveys are carried out, thanks to crowdsourcing techniques and the extensive use of digital marketing.

MarketForce offers a piece of software in a software as a service model on which customers can actually build and look at their marketing data in real time. That in itself is very much in sync with what we can be seen with other companies doing big data and is not extremely innovative. But there is one area in which MarketForce is certainly going further than all the companies trying to improve big data usage, it is the way that they collect the data itself. As a matter of fact, much of the quality of the output of big data boils down to the way the information is collected originally. As the old IT adage points out: “garbage in, garbage out”.

Besides, There is something a little bit naive in all the big data craze at the moment, in believing that software alone could actually solve all the marketing issues that companies have regarding mostly CRM, and other subjects, just by the touch of a button. First and foremost, data quality and a clear objective are required. This is definitely what Marketforce have done by integrating the whole chain from data collection to data delivery. As a matter of fact, Marketforce is as much a research company a market research company as it is a big data company, and that is what makes it standout from the crowd in what can almost be described as a blue Ocean strategy.

Janet Eden Harris and Simon Boydell who answered our questions in Paris

Above all, they are using extensively digital marketing techniques (marketing automation, affiliates marketing, etc) to recruit genuine customers who help them carry out the research. As they set up shop in France and in the rest of Europe, where customer service is traditionally bad not to say appalling, MarketForce have provided a business case about French petrol stations (check 2013_Petro Findings France_SB_Final_Clean)  which shows the level of satisfaction even for such a straightforward kind of service. As they say, “okay is just not enough” and hopefully, this piece of research, and the service that MarketForce provides is a great assets for European companies to change their ways about how they keep customers satisfied which, in turn, will help them get through the crisis that we’re experiencing at the moment.

Let us develop this story, with Simon Boydell and Janet Eden Harris from MarketForce, whom I was able to interview in Paris a few weeks ago*.

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cartoon by antimuseum.com

with Janet Eden Harris, CMO & SVP Strategy at Market Force Information  and Simon Boydell, Global Marketing Manager at Market Force Information

What is market force about?

Janet: we have a solution which provides the ability for big retailers to improve their business by focusing on customer satisfaction and the experience they have when they walk in the store.

Simon: we focus on retailers, leisure and hospitality providers, any business that has B2C contact with customers and that can be across all channels, so it’s not just in-store, it could be online, using the call centres, we will be collecting customer experience feedback across all those different channels.

A SaaS model: the knowledge force platform

Simon: our customer intelligence platform knowledge force is the central point for all clients. After login each client has individual tailored user access to the site so that they can access their results live and in real time so they can see exactly how the customers are feeling about the business. It does look like it’s built like a SaaS model but itis something which is very different from the other sorts of CRM systems that are out there. All information is produced and made available across all different devices; you can login and you see those dashboards, it’s not just a predetermined set of dashboards, we also have a series of reports that users can go in and use and create their own individual reports, so they can cut and analyse the data in their own way and at their own leisure.

Data collection: from mystery visits to social media

Simon: we have 600,000 genuine customers now, while going out and completing mystery visits for us and providing feedback on experiences they receive, we also operate customer satisfaction surveys which go out to any customer that the business has and it can feed the information straight back into our system and our customers get to see the results as they are happening, so they can always keep their finger on the pulse of the customer.

Janets: we can also pull out things such as social media data and we can tie in this data potentially with other data that is collected from other vendors and even our customers’ own financial data so that they can match them all together.

Ensuring consistency

Janet: how we do it boils down to the location level so that if I am a manager of that location I can look at the customer satisfaction data for that particular location as well as my mystery shoppers and any social media commentary so that I can take action. I can understand where we’re doing well, and I can also understand where we have to improve.

Recruiting genuine consumers

Simon: there are challenges, but a lot of it comes from the way we optimise our website for search in search engines; we have a variety of initiatives in a number of websites so get a lot of people involved too, looking to experience new and different things so that these people want to get paid to get to the places they enjoy going to already.

It’s a very small amount that there own but they do get reimbursed towards any products that their purchase, so you could say that this is almost a free night out, like going out for a meal out at a restaurant.

UK, France and Spain

Simon: we’ve have been based in the UK since 2003 and we have opened an office in Paris, and we also have one in Madrid and the decision has come by opportunity. We think we have to support businesses in France to get a better understanding of their customers, because in today’s economic climate, customer loyalty is of absolute importance, and we feel the insight we can provide and the data we can collect will really help businesses understand how they can drive that loyalty and where they should look to improve specifically in the business, that will drive future sales.

Business case on French petrol stations : “okay is not good enough!” (check 2013_Petro Findings France_SB_Final_Clean)

Simon: we have recently run a piece of research on a panel to get feedback on people’s experience of petrol stations in France and we are sharing this on the web right now. This highlights which stations people find to be the favourites, not only that, but also the reasons which drive them into these petrol stations, and what are the decisions they are making in those stations and what the opportunities for those retailers to understand whether the service is okay or not. The research highlights that “okay is not good enough!”. 3

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Customer experience in Europe? In the words of my old maths teacher … “could do better!” (excerpt from the Petrol Station research)

This piece of research was carried out with 1,500 consumers across France, evenly spread across ages, sex and the geography; yet our programs will vary depending on the sector.

What insights

Simon: the impact satisfaction can have on consumers on the likelihood to recommend is one of the areas of importance: if you score something like a 4/5, there is a big difference, the research highlights, with 5/5 satisfaction.

Customer experience

Price and convenience are always going to be important, that’s fairly natural but, it’s also about the service they receive in the stations, friendly and efficient service will always go along way in; whilst people might not especially expect it, when they receive it, it will make a very big difference to the customer’s experience.

About the company: a blue Ocean strategy

Our ambition is to help French businesses improve the service they give to their customers. We certainly intend to grow the business; we think we have a very exciting offer for the retailers, leisure and hospitality businesses, they are going to find that very exciting.

In terms of our competitors, we don’t have one single direct competitor, we have several competitors across the various disciplines and methodologies that we use.

We certainly intend to grow and invest into the business here in France, we intend to grow our team rapidly here and I think we’ll see a continuation of the success we’ve had in other countries, here.

Marketforce has 450 employees worldwide. In Europe, we have 156, is growing rapidly.

Janet: our revenues are about $60 million right now.

*note: this interview survived the theft all my belongings in July 2, including my notebook with all his notes. I reconstructed this interview from memory and using the sound bite which I recorded on condition

02/16/12

Byron Sharp: debunking the myths of marketing 3/3

brands that grow

[This report has been published in instalments, type bit.ly/sharpgrow in your browser location bar to display  the piece in its entirety]

myth number six : the 80/20 rule always applies

This isn’t a myth per se, but the numbers don’t quite add up. Sharp, on the basis of numbered evidence once again, shows that Pareto’s Law does apply but real numbers based on observation are closer to 50% for most brands and never reach 80%. This reinforces the need to acquire more customers.

myth number seven: advertising doesn’t sell

Sharp shows on the contrary that advertising has a clear (but mostly long-term) impact on sales… Provided your product is distinctive enough and that your campaigns follow a few simple principles amongst which:

  • reaching all by categories
  • no lapses
  • clear brand links
  • easily noticed and remembered

myth number eight: price promotions increase sales in the long term

That one is far less counterintuitive I find. Price promotions are quite effective in boosting sales. Evidence produced by Byron Sharp shows that promotion have no or little effect on long-term sales. Sharp sees little rationale for maintaining price promotions over time apart from maintaining a relationship with retailers.

myth number nine: loyalty programs are effective

In fact, loyalty programs work a little, but their impact on loyalty is minimal and in some cases, brands won’t even feel the true effect at all for many external reasons. My friend and colleague Prof Christophe Benavent from the Paris University has been a long-time contender that loyalty programs don’t work. He’s actually quoted in Byron Sharp’s book as well. One may have the vague feeling that conclusions might be different whether one looks at airlines for instance, or a company like AMEX which has built its distinctiveness upon its loyalty program (I even chose to get an AMEX card a few years back which is coupled with my airline frequent flyer program and I have transferred the entirety of my purchases to AMEX) but evidence is required before one makes any rash conclusion.

Overall, I really enjoyed Sharp’s approach which is based on fact rather than fiction, even though some of the most counterintuitive conclusions would benefit from a serious data update. I definitely recommend you buy this book and place it on your bookshelf.

Byron Sharp’s blog is available at http://marketinglawsofgrowth.com/

… to be continued

[This report has been published in instalments, type bit.ly/sharpgrow in your browser location bar to display  the piece in its entirety]