Years Later, the Tangle of Data Still Presents Challenges
0 comments | 840 reads 
Oh, what a tangled dilemma marketers face today.
After years of financial stress, demand for marketing accountability has not let up in the least, putting loyalty marketers under immediate pressure to produce results, or face the consequences.
I first wrote about this dilemma two years ago and I realize that not much has changed. In fact, my old article still holds up.
Generally, companies still find themselves with loads of data but not enough action. Now, as then, a partnership is needed between the marketing and finance departments to link customer performance measures with revenue, sales and cost measures.
This should be good news for loyalty marketers. With our ability to isolate incremental behavior to quantify customer value, we’ve helped transform marketing into a science. But our strength can also be our Achilles’ heel, because the highly measurable quality of loyalty marketing means it is held to a higher standard. Scrutiny falls on every dollar we spend, and any perceived misstep is deemed a failure.
Yet we push on, amassing data, oftentimes missing the opportunity to extract value from this asset.
This data commoditization has forced CMOs and CFOs into active debate, struggling to link customer activity to marketing efforts, and in turn, with financial performance. How can we create the perception of value in loyalty marketing beyond its currency-related benefits?
One simple solution is to apply value to the actual data. Take customer segmentation. If one particular segment can capture basic metrics, such as cost and margin, and is also predictive of future customer activity, then there is a solid basis for linking financial performance to customer measurement.
I know; prediction is never valued as much as explanation, but it is where the CMO and CFO can work together to make that connection. Customer activity measures can reveal the results of individual campaigns, and they can link such activity to future corporate performance.
Segmentation is an old standard, but how many organizations view it as an asset to be shared by the entire enterprise, and not merely the marketing department? No one silver bullet defines marketing accountability, but customer behavior can be more telling, actionable and accountable than other metrics.
If a downturn is when innovation matters most, then a recovery is when it proves its mettle. As long as we’re rich in data, integrated in our strategy, and imaginative in our approach, we’ll continue to combine the science of marketing analysis with the art of marketing creativity, and improve the bottom line.
Photo courtesy of aginity.com.
Bryan Pearson
- About Bryan Pearson |
Connect:
- 840 reads
0 comments »
Join the conversation!
MarketPlace
Boost Customer Satisfaction & Loyalty at SCORE 2013
[May 29-31, Boston] Customer experience management (CEM) strategy meets customer operations at SCORE Conference 2013. Topics include driving customer satisfaction and loyalty, employee engagement, customer retention, call center technology and big data analytics. CustomerThink members save $700 off the regular registration fee.
Digital vs. Human Banking Experiences: Can This Be a Happy Marriage?
[June 6] It's time for banking leaders to rethink how to nurture and grow customer relationships in an increasingly digital world. Get the results of a new study that revealed the CX practices of top performing banks. Learn how digital Innovations can enable more personal service.
[June 10-13, Chicago] If you are responsible for the results of your company’s website, social media, ecommerce, web intelligence, data strategy, audience research and/or measurement, then mark your calendar. Customerthink members save 15% off full conference passes with code CTKTO15.
[June 10-13, Chicago] PAW's program will feature over 40 sessions with case studies so you can witness how predictive analytics is applied at leading enterprises. Customerthink members save 15% off full conference passes with code CTKTO15.
Confirmit’s Community Conference ’13 – London and Las Vegas
[June 19-21, London; June 26-28, Las Vegas] Attending CCC ‘13 gives you an unrivaled opportunity to understand and address rapid industry changes and discover new techniques that can drive your business forward. Create a tailored agenda that explains how to overcome the challenges your business faces. Take advantage of excellent networking opportunities and face-to-face discussions with thought leaders.
Global Customer Experience Management (CEM) Certification Program
[Sept 19-20, Amsterdam; Sept 24-25, Sao Paulo; Nov 12-13, San Francisco] An internationally recognized program with proven track record of success - being run for 40 times in 17 cities with attendees from 58 countries, the program is developed based on the U.S. patent-pending Branded CEM Method which aims to drive customer loyalty and brand differentiation with quantifiable business results. Limited offer: USD300 early bird discount.
Customer Experience Certification
[Sept 24-26, London] If you’re developing a customer experience program or want to review your current approach, join other customer experience leaders for this intensive 2.5-day certification. Presented by Medallia, the global leader in customer experience management. Enter code ‘Cthink’ to save$300/£200.
Voice of Customer 2.0: Creating Change Your Customers and Employees Can Believe In
[Recorded April 25] Despite good intentions, in the majority of companies Voice of Customer programs contribute little to business success. Join us to learn the secrets to capitalize on Customer Experience feedback, so you can drive organization actions that will unlock profitable growth.
Get your event or resource listed in the MarketPlace, reaching 200,000 business leaders monthly.
For more information, contact
CustomerThink advertising sales.
Follow CustomerThink
The Future of Work - Please Give Your Input
CustomerThink is collaborating with Chess Media Group in a study about "The Future of Work" including the use of social/collaborative tools. Please take a few minutes to share your input. As thanks for your time, you'll receive a complimentary copy of the report.
Featured Resources
