Although he just turned 10, my son is very serious about his finances. And his entire life savings (such as it is — he only gets $3 per week for his allowance) is at Citizens Bank.
Personally I'm more interested in how my kid gets treated by his bank than I am about his account balance. So I was quite keen to hear from Nick Primola from Citizens Financial Group, one of the speakers at Forrester's Customer Experience Forum, 2011.
Nick is senior vice president of direct marketing at Citizens Financial Group, where he’s responsible for enterprisewide direct marketing efforts supporting all of the bank’s business lines. As a self-confessed "data guy," that could have put us at odds. Was he going to be the driving force behind a spam attack on my kid? But as it turns out, Nick has a very enlightened view of how data gets used.
Frank Gertsenberger, VP of Product Marketing for Audience Science wrapped up day one with an excellent update on privacy concerns and expected changes due to FTC and congressional work on behavioral advertising policy.
The concern is that even though data is being collected anonymously, when enough anonymous data points are collected, is an individual still anonymous?
Four entities are running concurrently to tackle this challenge:
The FTC began investigating data practices about two years ago and determined that the risk with behavioral marketing is that consumers are not aware of what data is being collected; current privacy policies are insufficient at explaining how consumer data is employed with behavioral marketing.
Congress – A subcommittee was convened last year to quantify the value of behavioral marketing in order to determine its value in the online economy. Through studies supported by the NAI (the network advertising initiative), Congress now understands this and is outlining a policy outlining what the baseline protections should be for consumers.
NAI– A membership organization which now represents more than 80% of all online ad spend, and created studies focused on answering Congress' need to value behavioral marketing. Also helps audit member sites to aid compliance efforts.
The Associations – This is a collection of online advertising associations like the DMA (direct marketing association), the IAB (interactive advertising bureau) and the ANA (association of national advertisers). This group is taking a pass at developing requirements for providing enhanced notice to consumers.
Would you classify your marketing organization as "highly accountable"? What I mean is, are you always able to accurately measure the true business value of your marketing efforts, and do your senior leaders trust the results? If you're like most marketers, the honest answer to that question is a resounding "no". Proving the business value of multichannel marketing is getting progressively harder—and more important—because:
Traditional marketing measurement practices are rooted in stable but inflexible tactics that leave marketers ill-equipped to keep pace with the real time nature of channel digitization.
CFOs wield ever-more influence over marketing budgets, which is driving your CMO to lean harder on you to measure business results with scientific rigor.
Your customers are in control; uncertainty and unpredictability are the norm; and marketers that can't adapt appropriately are doomed to fail.
This is where you come in. I believe that Customer Intelligence professionals are remarkably well positioned to address these challenges head on, and improve marketing accountability across the enterprise. Why? Because you sit at the cross-section of unfettered access to mountains of customer data from a dizzying array of online and offline sources. "Big data" as the recent article data, data, everywhere in The Economist puts it, is big business. CI professionals are right in the middle of it all helping firms capture customer data, analyze it, measure business results, and act upon the findings.
I was asked a very interesting question by a client recently about how firms value their marketing database and the consumer data stored in it. I’ve asked a lot of marketers during engagements and we surveyed our Direct Marketing Council – we found that while some marketers point to incremental value that they help generate, they do not necessarily have a value on the database itself.
So are any of you out there assigning a monetary value to your database? Is anyone accounting for it on your balance sheet? Or is it simply seen as a cost center/cost of doing business? I’d love to hear your thoughts.
Traditional direct marketing has faced a range of hurdles over the last several years from Do Not Call lists, budgets shifting to online, spam complaints, etc. Where’s the latest challenge coming from? It appears to be the green movement. Advocacy groups and consumers are shining the light on the practices of direct mailers and catalogers – and their impact on the environment. Some states are proposing Do Not Mail lists, organizations like the DMA, CatalogChoice, and GreenDimes allow consumers to register to cut back on the catalogs they receive, while the whole subject of Greenness gets brighter.
I recently heard from a client who wanted to know whether I had any data or best practices around how business-to-business firms define – and count – their customers.
Here are two scenarios to consider:
A large software company sells to Vodafone UK, Vodafone Spain, and Verizon (US). All are owned by the parent company, Vodafone. Each entity goes through a separate buying process, contract negotiation, and installation. How would you count this: as one customer or three?
A top ten professional services firm has separate engagements with GE Money, GE Appliance, and GE Medical. These are three very different businesses, each with a separate purchase process. How would you classify any subsequent sales to GE Appliance: cross-sells/upsells or new business?
My perspective: I see B2B companies define “customer” as a legal entity with which they have a contractual obligation. A “customer” is the part of the organization with the budget authority and the potential to deliver a future revenue stream through service contracts, training, consulting, upsell/cross-sell, and the like – without having to run to the parent for approval.
When Google announced its intention to acquire DoubleClick six weeks ago, it sparked upheaval in the interactive marketing industry with aQuantive, Right Media, and 24/7 Real Media subsequently being gobbled up. Then two weeks ago, offline marketing powerhouses Acxiom and Epsilon's parent company, ADS announced that they will both be acquired by private equity companies for sizable chunks of change. So what’s going on in the marketing and media arena? And, is there a link to between these ‘old’ and ‘new’ media company deals?
As private equity deals, the Acxiom and ADS acquisitions are pretty distinct from those of the interactive marketing companies. Private equity has become a business story in its own right during the past few years, partly because of the factors that have enabled such a slew of PE deals – cash is easy to come by, credit is cheap, interest rates are low, and balance sheets are clean and relatively debt-free.
This morning, Merkle announced the acquisition of an independent, Chicago-based, direct marketing agency, CFM Direct. From Merkle’s perspective, the move bolsters their existing agency services and further strengthens their exposure in the financial services industry – CFM’s primary focus area.
But the move emphasizes an interesting trend in the direct marketing industry. The lines between direct marketing agency and database marketing service provider are blurring. Both are adding services or acquiring companies that boast the historical strengths of their opposite numbers. On paper, their capabilities are beginning to look the same.
But, they are still different beasts - one is creatively focused, the other operationally focused; one sells time, the other sells output; one is often tied to exclusivity, the other will sometimes work with all of the top firms in a given vertical; one demonstrates phenomenal account management and program management rigor, the other, well, doesn’t…
We're all finally settling down from our blockbuster of a consumer forum in Chicago last week (check out http://blogs.forrester.com/consumerforum for summaries, thoughts, and highlights from the event) and processing some of the learnings that came out of our client conversations. I didn't end up listening in on very many of the main tent speakers as I was pretty booked with one-on-one sessions. These are 30 minute, in person meetings that forum attendees can book with the analysts of their choice to discuss business issues. I was definitely tired after my few days of back to back one-on-ones, but to be honest, I came back to the office pretty recharged. I've been so heads down on research of late, that it was really nice to engage with clients face to face. I really enjoyed sharing ideas and meeting the real people who are out there reading my research!
One topic that came up several times in one-on-ones with different clients is: the role of the service provider in the next era of marketing. We've all been talking about integrated marketing for years. And this year's forum theme pushed integrated marketing even further by looking at how to "Humanize the Digital Experience." This means the entire integrated customer experience.