How life-event data can improve & protect your marketing in a post-GDPR world

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How life-event data can improve and protect your marketing in a post-GDPR world


• 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


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


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


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


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



Are you going to buy, just because someone like you bought in the past?


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



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



Case study: Working with insurance companies to improve targeting


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



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



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.


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



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



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


Key contactsPAUL LAUGHLIN

w: customerinsightleader.com

w: laughlinconsultancy.com

e: [email protected]

m: 07446 958061

twitter: @LaughlinPaul

LI: linkedin.com/in/paullaughlin

AUDRIE LUNNY, Head of Sales


m: 07442 507190

Royal Mail Data Services

w: www.royalmail.com/corporate/marketing/data-services


t: 08456 000 098

MyCustomer www.mycustomer.com e: [email protected]

twitter: @MyCustomer

How life-event data can improve & protect your marketing in a post-GDPR world

Marketing

Transcript of How life-event data can improve & protect your marketing in a post-GDPR world