Data Analytics and Customer Insights

 Copyright by Debra Zahay 2015
Data in the Driver’s Seat
Dr. Debra Zahay @zahay
Full Professor of Marketing at Aurora University
and President, Zahay, Inc.
McGuffin Mornings, May 19, 2015
Chicago Illinois

Agenda
• Who am I?
• Marketing data and strategy
• Data quality and the organization
• Data Analytics
• Conversion
• Automation
• Social/Mobile Trends

Driving is Multi-Dimensional
•Road•Maintenance
•Vehicle/Engine•Driver
Management
Quality
Database
Strategic
Direction
Fine Tuning/
Analytics

I followed my questions to
Academia…
Information
Systems
Sales/Marketing
/Databases
IMC &
More Databases
????
Ph.D.

Over 800 Article Citations
Co-Author: Leading Intern Textbook

Editor: Journal of Research in
Interactive Marketing

Co-Author: Leading Internet
Marketing Textbook

Forthcoming:
Zahay, Roberts

Also Forthcoming
…..Contemporary Database
Marketing and Analytics
Spiller, Ruf and Zahay, Eds.

Data is big news
• Big data
• Broad data (360 degree view of customer)
• Data Scientists are ‘sexy’

But YET……
• CMO’s report not getting insights from data
• Executives don’t think their team is ready to
analyze data
• Everyone says are drowning in data

How to get results is not
necessarily purely data
oriented.
• Customer Data Management Practices and
Measurement
• Data Management/Performance
Relationship
• Customer Data Quality
• Organizing for data quality
• Personalization and customization
• Transactional vs. relational data, differences,
contribution to performance

Research Scope 1998-2013
• Over 400 companies
• Over ten years of research
• B2B and B2C
• Qualitative and Quantitative
• 20 academic papers
• Over 800 citations (Debra Zahay on Google
Scholar)

Starting Question: What is the
relationship between Customer
Information Management and
Firm Performance?

Customer Information
Management Breeds Success

Companiesmustconsiderhavingthreecapabilitiestomanage
customerinformationwell:
1. A corporate strategy consistent
with data collected
2. A clear mission and vision for data
collection and use
3. Shared data and organizational
cooperation

Learning Organization: Information
and its management are intangible
assets that can create a competitive
advantage which can lead to
improved company performance.

CopyrightbyDebraL.Zahay2000
Low
Results: Firm Strategy and CIS
Differentiation
Low-Cost
Low-Cost
N=40
High
Low
High
Strategically
Excellent
N=67
“Stuck in
the Middle”
N=47
Differentiators
N=55
From Porter (1985), Treacy and Wiersema(1993)

CopyrightbyDebraL.Zahay2000
CIS related to Customer Performance
less strongly than Strategic Excellence
.38*
.19*
.14
*
.25*
* Significant at p <.05, 2 tailed
** Significant at p < .01, 2-tailed
.30*
.20*
.17**
.17**
.17**
RMR = .011
RMSEA = .000
GFI = .996
Chi. Sq. (df) = 2.416 (6)
p = .878
Strategic
Excellence
Personali-
zation
Customi-
zation
CIS Customer
Performance
Business
Growth
N=206
Customer Performance = Share of Wallet, LTCV, Retention, ROI versus competitors

1. Customer Retention
2. Customer Satisfaction
3. Cross-selling
What is Customer Performance?

Companiesmustconsiderhavingthreecapabilitiestomanage
customerinformationwell:
1. A corporate strategy consistent
with data collected
2. A clear mission and vision for
data collection and use
3. Shared data and organizational
cooperation

Successful CRM Hinges On Data
Quality
Innovative Systems, Inc.
Author: Jeffrey Canter, VP of Operations

Successful CRM Hinges On Data
Quality
Innovative Systems, Inc.
Author: Jeffrey Canter, VP of Operations
May 2002 Issue of CRM Magazine

Why Do CRM Projects Fail?
• Silent killer: lack of accurate customer
information (Gartner Group report)
• Ensuring accurate customer information is
a difficult task
• High CRM spends will not protect companies
from losing sales opportunities and valued
customers and many CRM Projects will fail

The Solution…
• CRM applications need to present a unified, real-time, view
of the customer and to achieve this goal customers need a
comprehensive CDQ
Customer Data Quality
Management Program

So if everyone knows data quality
is important, why isn’t it being
done?

8 Gartner CRM Building Blocks
• CRM Vision: Leadership, Market Position, Value Proposition
• CRM Strategy: Objectives, Segments, Effective Interaction
• Valued Customer Experience
• Organizational Collaboration
• Culture and Structure
• Customer Understanding
• People: Skills, Competencies
• Incentives and Compensation
• Employee Communications
• Partners and Suppliers
• Processes: Customer Lifecycle, Knowledge Management
• Information: Data, Analysis, One View Across Channels
• Technology: Applications, Architecture, Infrastructure
• Metrics: Value, Retention, Satisfaction, Loyalty, Cost to Serve

FactorsInfluencingSuccessof Digital
OutcomesareManagerial
• Senior management buy-in (32%)
• Internal leadership (30%)
• Alignment between organizational structure and
initiative’s goals (21%)
• Good management of and sufficient organizational
support for the initiative (also 21%)
• Source: McKinsey and Company via Marketing Charts 850 C-Level executives
asked about digital engagement of customers, big data, digital engagement of
employees, automation, and digital innovation of products

FactorsContributingtoFailuresofDigital
OutcomesareAlsoManagerial
• Lack of senior management buy-in 23%
• Lack of technology infrastructure and IT
systems (22%)
• Quality data (21%),
• Absence of internal leadership (17%).
• Source: McKinsey and Company via Marketing Charts 850 C-Level executives asked about
digital engagement of customers, big data, digital engagement of employees, automation, and
digital innovation of products

Is Data Quality Bigger than Big Data?
• 53% of companies in the recent TDWI (The Data
Warehousing Institute) study reported they have suffered
losses, problems, or costs due to poor data quality (Quaero,
December 2012)
• Moveo Integrated Branding, February 2013
• Customers report 23% undeliverable emails
• 11% Duplicate records
• 54% phone numbers “unconnectable”
• Poor quality data is the biggest barrier to effective email
marketing: Econsultancy Report, April 2013

TheKeyRoleoftheTopExecutive
Organizational
Culture
Data
Quality
Cross-
Functional
Cooperation
Customer
Performance
Business
PerformanceData
Sharing
Marketing/IT
Integration

1. Do you have an agreed vision for managing Customer
information?
2. Is there a common purpose?
2. Is the vision shared?
3 Do you use cross-functional teams?
Do you reward teams for good performance?
How should you organize for Customer
Information Management?

1. Overall data quality?
2. Data quality of transactions,
touchpoints, interactions?
3. Overall quality of
contact/loyalty/satisfaction data?
How do you rate in Customer Data Quality?

1. Can you store it in one place?
2. Can you query it?
3. Can your employees get at it?
Three Questions Assess Customer Data
Sharing

Data Analytics
• Can mean many things
• Had their roots in Database Marketing
• Are NOT that intimidating

Titles have changed, basics are the
same
Buzzwords: Database Marketing, Direct Marketing
Payton, F. & Zahay, D. L.
(2003). Understanding Why
Marketing Doesn't Use the
Corporate Data Warehouse
for CRM Applications.
Journal of Database
Marketing, 10 (4), 315-326.
Zahay, D. L. & Griffin, A.
(2003). Information
Antecedents and
Consequences of
Personalization and
Customization in Business-
to-Business Service Markets.
Journal of Database
Marketing, 10 (3), 255-271-
326.

We want to find best customers,
treat segments differently
Buzzwords: Customer Relationship Management/Marketing
Zahay, D., Peltier, J., &
Krishen, A. (2012). Building
the Foundation for
Customer Data Quality in
CRM Systems for Financial
Services Firms, Journal of
Database Marketing and
Customer Strategy
Management formerly
Journal of Database
Marketing, Vol. 19 (1), pp. 5-
16.

Data Analytics is “Now”
Buzzwords: Marketing Data Analytics, Big Data
Peltier, J., Zahay, D.
& Krishen, A.
(2013). A
Hierarchical IMC
Data Integration
and Measurement
Framework. The
Journal of
Marketing
Analytics, formerly
Journal of Database
Marketing and
Customer Strategy
Management, Vol. 1,
1, 32-48.

Conversion
• Action
• Measurable
• Gain Insight (A/B), Which Test Won

“If the average direct marketer
spend as much time testing and
refining and fine tuning his or her
offer as editing and polishing a
piece of direct response copy, the
bottom line would look a lot
different.”
#convcon@bmassey@zahay
Jim Kobs

Changing offer to “Same DayShipping”ImprovedCTR
Dramatically (GuaranteeOffer)
Reciprocity
Unsuccessful ad (impressions only)
Improved ad (4.76% CTR)
Thanks to Allworld Machinery and the Northern Stars Team,
Marketing Technology, NIU, Spring 2013

• Planned:
• Sakagami – Unbranded
• Sakagami Seals
www.allworldmachinery.com/
seals
All of Your Machinery Supply
Needs.
Quick & Easy Delivery, Call
Today!
(815) 943-0120
• Used:
• Sakagami – Unbranded (Most
Effective
– Industrial Machine Parts
Wide Selection of Seals & Packings.
Same Day Shipping. (815) 943-0120
allworld.com/SakagmiSeals
Again, clear offer “Same Day Shipping”
Outperforms Weak Offer
Thanks to Allworld Machinery and the TBA Team,
Marketing Technology, NIU, Spring 2013

“The word “Free” has a lot of
magic to it.”
#convcon@bmassey@zahay
Jim Kobs

Just adding the word “free” to this ad
resulted in a 7% CTR on Adwords
(Reciprocity)
Why it was successful
Manage Your Website
All Your Site Services, One System
Call For A Free Consultation Today
www.IdeosityCMS.com
Thanks to Ideosity and the Interactive Masterminds
Team, Marketing Technology, NIU, Spring 2013

Poor Results with a Weak Call to
Action
What went wrong?• High Impressions/low CTR
• Weak Call-To-Action
• Poor Results
B2B Website MGMT Software
Create Customize and Manage Content
See Our Site Solutions Here
www.IdeosityCMS.com
Thanks to Ideosity and the Interactive Masterminds
Team, Marketing Technology, NIU, Spring 2013

Marketing is Automated
• Nearly 50% of ad spend was ‘programmatic’ in 2013, expected
to rise to over 80% by 2017.
• Technologies will increasingly make promotional decisions
based on customer response.
• “Analytics” will drive these systems.
• C-Level execs will rely more heavily
on dashboards.

Social Media/Mobile Trends
• Engagement
• Engagement
• Engagement

Starting Question: What is the
relationship between Customer
Information Management and
Firm Performance?
Research suggests that Customer
Information Management is a
multi-faceted organizational
operation and that strategy,
shareability and quality data each
play a key role, but that results
must be driven by the executive
suite.

Drive Safely
•Road•Maintenance
•Vehicle/Engine•Driver
Management
Quality
Database
Strategic
Direction
Fine Tuning/
Analytics

Contact information
• Dr. Debra Zahay-Blatz
• http://www.zahay.com
• Best email: debra@zahay.com
• Cell 630-300-8838
• Forthcoming: Chair, Department of Entrepreneurship and
Digital Marketing and Media Management at St. Edward’s
University, Austin, TX

Data Analytics and Customer Insights

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