Post on 23-Jan-2018
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WELCOME
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How life-event data can improve and protect your marketing in a post-GDPR world
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• How dynamic, life-event data, can help you drive engagement.
• How event triggers are outperforming propensity models to
improve campaign targeting, timing, and relevancy.
• The impact of opt-in vs opt-out permission models in light of
changes to data regulations.
• Why data quality is critical to event-based marketing and
getting ready for GDPR.
Today we’ll be discussing
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0.02012
BFSI Healthcare
Government Media & Entertainment
Manufacturing Telecom
OthersRetail
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
2,000.04,000.06000.08,000.0
10,000.012,000.014,000.016,000.018,000.020,000.0
Reve
nue
(USD
bill
ion)
2014 2015 2016 2017 2018 2019 2020
Explosion in use of Big Data and Predictive Analytics in marketing
Size of ‘Big Data market’ by sector
usage across UK and Europe
(USD millions)
Over $10 bn already.
Predicted over $20 bn by 2022.
Source: GrandViewResearch.com, August 2016
Size of global
‘Predictive Analytics market’
(USD billions)
Over $3 bn already.
Predicted over $7.8 bn by 2020.
Source: Zion Research Analysis 2016
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Several studies have demonstrated potential for analytics to improve profitability
+131%
+126%
22
22
15
43
45
50
49Profit1
No extensive use of customer analytics2
Extensive use of customer analytics
Sales
Sales growth
ROI
Percentage of companies above competition
Extensive users of customer analytics are more likely to outperform the market
20+186%
+132%
Extensive use of customer analytics has a positive impact on corporate performance
1 Based on “Please describe the performance of your firm/business unit in the following areas relative to your average competitor”. “Above competition” defined as 6 to 7 a 7-point scale: 1 = Well below competition, 7 = Well above competition.2 Based on “Please indicate how much you agree or disagree with the following statement: ‘We use customer analytics extensively in our firm/business unit’. ” Scale of 1 to 7: 1 = Strongly disagree, 7 = Strongly agree. Comparison of items assigned 1 or 2 vs. 6 or 7.
Source: McKinsey, DataMatics 2013
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Marketers continue to face challenges acquiring and keeping customers
Marketing’s biggest challenge The problem of customer churn
Source: “How better customer data drives marketing performance and business growth.” Royal Mail Data Services, 2017
Finding and acquiring new customers
Keeping our existing customers
Converting registered customers to active purchasers
Reactivating lapsed customers who bought previously
Encouraging existing customers to buy more
80%
60%
40%
20%
0%
2014 2015 2016
20.7%
18.6%
19.8%
% (Excluding don’t knows)
21%
20%
19%
18%
17%
2014 2015 2016
Percentage annual churn rate
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Marketers needing a range of metrics, but data quality is crucial to campaign success
11.1%
7.3%
2.1%
3.0%
2.6%
67.9%
65.8%
62.0%
44.0%
41.0%
36.3%
35.0%
33.8%
30.3%
0 15 30 45 60 75
Website traffic
Direct sales
Click through rate
Cost per aquisition
Leads generated
Attributable revenue
Social shares/mentions
Cost per click
Market share
Retail footfall
Don’t measure
Can’t measure
Other
Don’t know
0 1 2 3 4
Quality of contact data3.48
3.47
3.45
3.32
3.11
2.86
3.74
3.63
3.53
3.50
3.10
2.98
3.36
3.61
3.44
3.24
2.89
2.92
Segmentation & targeting
Timing
Personalised content
Creative design
Life-event data
2016 2015 2014
Range of marketing metrics used Positive factors driving campaign performance
Source: “How better customer data drives marketing performance and business growth.” Royal Mail Data Services, 2017
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Are you going to buy, just because someone like you bought in the past?
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Decreasing recognition as to the importance of life-event triggers for marketing targeting
Term is new to me
Understand, but yet to realise value
Understand and use
34.2%
20.8%
29.5%
49.1%
55.2%
46.2%
16.7%
24.0%
24.4%
0 15 30 45 60
2016 2015 2014 2016 2015 2014
60.8%
70.3%
32.7%
59.3%
49.7%
15.7%
50.3%
44.1%
30.1%
36.5%
33.1%
11.8%
15.9%
8.3%9.8%
Provides reason to engage
Provides sales opportunity
Provides opportunity toupdate contact data
Provides customer insightto reduce churn
Not important
0 20 40 60 80
How well do marketers understand
‘life-event marketing’?
Marketing opportunities from life events
Source: “How better customer data drives marketing performance and business growth.” Royal Mail Data Services, 2017
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What are life events and why do they work as triggers for marketing?
Use of life events to target ‘right time’ by marketers
This can vary per sector, but here are some common
life-event triggers used within financial services:
• Renewal date.
• Date moved home.
• Date of birth of first/second child.
But think beyond life events to consider other types of
both future events and reactive events:
• Large deposit (customer interaction event).
• Rates rising or new alternative (market event).
• Digital ‘call back’ button (promised contact event).
• End of ‘discounted rate’ offer (product event).
Moved home
New job
Planning to move home
New addition to family
New car
2.55
3.28
0 1 2 3 4 5
2.70
2.54
2.932.36
2.302.83
2.07
2.17
2.902.01
1.802.63
2016 2015 2014
Importance of life events in customer relationships
Source: “How better customer data drives marketing performance and business growth.” Royal Mail Data Services, 2017
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Case study: Working with insurance companies to improve targeting
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Despite the importance of life-event triggers, data gaps exist
69.5%67.3%
47.8%49.0%
44.1%45.7%
43.0%45.1%
41.5%47.7%
40.4%51.0%
36.4%44.4%
29.0%32.7%
27.2%31.4%
16.5%17.7%
16.2%21.6%
12.1%17.0%
6.2%5.2%
5.5%
Postal address
Online transactions
Digital marketing
Location
Inbound customer service data
Demographic/lifestage
f i e tra sacti s
Financial
Mobile phone
Life event
Social data
Mobile app usage
Other
Don’t know
0 20 40 60 80
Only use customer data gathered ourselves
Enrich with third-party data
Outsource to third party
Don’t know
0 15 30 45 60
49.0%45.3%
39.4%
47.0%49.6%
55.9%
2.0%
2.2%
2.7%
2.0%
2.9%
2.1%
2014
2016
2015
Where do marketers source their data?Data captured and used for marketing
Source: “How better customer data drives marketing performance and business growth.” Royal Mail Data Services, 2017
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Addressing data quality is fundamental to improving marketing effectiveness
37.6%
20.3%
11.9%
11.9%
9.4%
4.0%
4.9%
Legacy systems
Poor data quality
Sourcing responsive data
No challenges
Non-compliancewith GDPR
Don’t know
Other
0 20 40
Incomplete data
Out-of-date information
Missing data
Duplicates
Spelling mistakes
ata i i c rrect fie
None
Don’t know
Other
0 20 40 60 80
2016 2015 2014
70.7%72.5%
62.8%
70.7%70.2%
63.3%
63.1%
67.9%60.1%
61.1%48.8%
50.0%
51.5%
39.7%
38.8%
34.8%
38.9%
29.8%
5.4%3.0%3.7%
3.0%
2.3%2.1%
2.5%4.6%
Challenges in managing customer data Causes of poor data quality
Source: “How better customer data drives marketing performance and business growth.” Royal Mail Data Services, 2017
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Real world objections can get in the way of the progress that marketing needs
Client A’s situation:
• Needed to improve cross-sell, reduce churn and improve marketing ROI.
• Lacked all the data and analytics skills needed (but had a small team).
• Relying on marketers’ biases for campaign rules and propensity models.
• Recommended to move across to multi-channel coordinated ‘event triggers’ as primary targeting method.
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Marketers need to become data leaders in their organisations
37.6%
20.3%
11.9%
11.9%
9.4%
4.0%
4.9%
Legacy systems
Poor data quality
Sourcing responsive data
No challenges
Non-compliancewith GDPR
Don’t know
Other
0 20 40
Setting the data strategy Data collection Privacy/permissions
Board
Marketing
Data management
Strategy
CRM
IT/IS
Legal/compliance
Sales
Product
Customer service
Ecommerce
Nobody
Don’t know
53.5%
36.1%
26.7%
26.2%
25.7%
17.8%
14.9%
14.8%
14.4%
12.9%
10.4% 19.3%
33.7%
15.8%
33.2%
8.4%
9.4% 15.8%
24.8%
21.3%
22.3%
10.9%
44.6%
8.9%
22.8%
40.1%
27.7%
48.5% 41.6%
5.9%
7.4%
4.9%
5.9%
5.4%
3%
3%
4%
2%
3%
Data responsibilities of different business functions Barriers to managing
customer data
Source: “How better customer data drives marketing performance and business growth.” Royal Mail Data Services, 2017
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Success with event marketing relies on data and permission, are you ready for GDPR challenge?
• Understandably marketers are concerned about
risk of non-compliance with GDPR (May 2018).
• GDPR brings the threat of significant fines (up to 20
million Euros or 4% of global annual turnover).
• Raises the bar on positive, unambiguous consent,
hence re-permissioning projects.
• Requires clarity on usage and explicit consent for
‘profiling’ (analytics).
• Together with issues still to be clarified by ICO (right
to be forgotten, compliant systems).
• Increases risk of losing marketing permission.
Greatest risk?
Third-party data Our own data
Mildly concerned
Very concerned
Not concerned
Don’t hold/don’t source
Don’t know
0 10 20 30 40 50
15.7%13.9%
26.8%
23.7%
29.8%
44.1%
35.1%
3.0%
4.0%
4.0%
0 10 20 30
Already implementing 17.8%
Plan to implement in 3-6 months 7.9%
Plan to implement in 6-12 months 7.3 17.3%
Plan to implement in 12+ months 2.1 8.9%
No plans 27.7%
Don't know 20.3%
Concerns about compliance with GDPR
Use of repermissioning strategies
Source: “How better customer data drives marketing performance and business growth.” Royal Mail Data Services, 2017
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1. Which life-event triggers could be relevant for your marketing?
2. Which barriers (if any) prevent you from using life-event triggers?
3. W r ar eti be efit fr e ter a ata e e ts
4. Does your readiness for GDPR change the importance of you implementing event-based marketing?
Points for discussion
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Key contactsPAUL LAUGHLIN
w: customerinsightleader.com
w: laughlinconsultancy.com
e: paul@laughlinconsultancy.com
m: 07446 958061
twitter: @LaughlinPaul
LI: linkedin.com/in/paullaughlin
AUDRIE LUNNY, Head of Sales
e: audrie.lunny@royalmail.com
m: 07442 507190
Royal Mail Data Services
w: www.royalmail.com/corporate/marketing/data-services
e: datasales@royalmail.com
t: 08456 000 098
MyCustomer www.mycustomer.com e: neil.davey@mycustomer.com
twitter: @MyCustomer