If you want a killer customer experience, start with an effective data strategy
Companies seem paralyzed faced with the speed and power of digital players like Netflix, Uber, or Airbnb and the horde of start-ups that are helping them disrupt the business of long-established players. Beyond their velocity and agility, it is often their success at appealing to customers with an experience reinvented using new technology that makes the difference. In a world where information is becoming more transparent and more accessible and travels instantly from one end of the planet to the other with social media, there is a bonus for the player offering the current “killer app.” However, behind this seemingly simple, straightforward success ultimately hides a new data control culture. At a time where everything is digital, companies should urgently re-examine their data strategy and go on red alert if they do not have one!
Companies have to catch up where they’ve fallen behind in terms of data.
While writing our book, Le Guide de la Transformation Digitale [The Digital Transformation Guide], with Vincent Ducrey, we were shocked to discover that data is still very poorly used within large companies: scattered data gathered redundantly; no backup; unclean data that had not been updated, verified, or even used. The tools are often antiquated (when they aren’t simply missing) in an “IT Frankenstein” that is unstable, hardly scalable, in silos, and totally unfit for the real-time use of this key value for the business. With the arrival of connected objects, chatbots, artificial intelligence, and predictive data, chances are this lag will become a fatal handicap.
Data strategy? Better understand your customers, know how to target them, personalize your messages, and measure your ROI
If you want to increase your effectiveness in terms of marketing, offer a customer experience equal to your competition and equal to the latest expectations of your connected consumer, start by taking the time to build a solid foundation. Implementing data strategy, tools, and governance is the be-all and end-all of the company of the future.
It all begins with recruiting, retaining, and continuing to train employees with the right skills: not many current marketing managers have been trained to master the challenges of data and algorithms. However, this control of data is becoming critical. Regardless of their line of work, the future of companies rests increasingly on software development and data use. Companies are all going to have to fight to attract the most skilled employees by offering attractive wages, assignments, and resources. There is still a lot of work to do to become as appealing as Google, Apple, Facebook, and Amazon or the start-ups from around the world.
You can bet that most large companies are going to have a “Chief Data Officer” to define a strategy and oversee the teams and their efforts on the subject of data. In fact, these days, data is too often a topic managed by default and divided up among the CIO, marketing, CRM, and legal, without any clear leadership.
Once staffed, you have to identify, capture, collect, stock, clean, and use the data. In short, transform this exponential, multi-format deluge of raw data into usable, useful information. It is basically just a matter of becoming capable of tracking customers throughout their journey: from a consumer exposed to an advertising message targeted online or offline, to a visitor, to a prospective customer, or to a loyal regular customer via the brand ambassador. Your systems’ agility requires you to abandon long, expensive, barely scalable ad hoc developments in order to blend the best of the technological components available and set up APIs to interface easily with software and data from your providers, partners, and customers.
You also need to put the proper tools in place to better track, understand, and target your customers: Social listening, SCV (Single Customer View), DMP (Data Management Platform), CRM onboarding (linking the behavior and profile of unidentified visitors to their customer files when they check out), and CRM in B2C. Or the Inbound strategy (creating content to attract and characterize customer leads), CRM and “social selling” (transforming your salespeople into expert sales representatives on social media) in B2B.
This characterization and this progressive segmentation (behavioral, socio-demographic, etc.) then makes it possible to use these insights and this targeting in quasi-real time to:
- manage your media buying more closely, quasi-automatically, and instantaneously (Programmatic media buying and Real Time Bidding) in concert with your DMP
- personalize the experience, be it with advertising messages (make sure you have a DAM, or Digital Asset Management, and a personalization engine for your sites or your campaigns), the experience at the point of sale (by connecting your sales force to your offer and to your customers’ histories: clienteling), online (make sure you have a PIM: Product Information Management to update your product catalogue throughout your entire company), or by adapting the product or service itself (for example, the musical streaming service Spotify offers a customized playlist each week based on the subscriber’s past tastes).
Towards creating a Chief Performance Officer position
Lastly, measurement will become a strategic concern. Measuring better and faster than the competition will prove to be a key advantage for making decisions ahead of the competition and investing more pertinently. You can even conceive of creating a Chief Performance Officer position in the coming years. This person’s role will be wide-ranging and crucial:
- Implementing good measurement indicators (metrics and KPIs) with adequate tools
- Testing and optimizing indicators, actions, and measurement tools based on good algorithms (A/B or multivariable testing, machine learning, Big Data, and Artificial Intelligence)
- Analyze results (transform data into information) for fast, tangible actions at all levels of the organization
- Benchmark this information in relation to direct competition and other industries’ best practices
The major players of Silicon Valley built a large part of their success on mastering data, and their revenues continue to experience double-digit growth. What are you waiting for?
To find out more, join our Data Driven Marketing Track session at Adobe Summit EMEA.