So far you’ve established your strategic priorities and objectives (see blogs 1 and 2), and you’ve analysed your customers and know whom you want to go after. Now you need a data strategy to support that.
Why a data strategy is important
As internal budgets fight for priority, we often get asked “why should I prioritise a data strategy?”. It’s not a silly question; after all, data has mostly been seen as an output from business processes, as opposed to a resource.
However, as modern markets shift and change rapidly, data has not only become a valuable resource, but one that many organisations are not sure how to leverage.
A data strategy delivers:
In this eBook we are concentrating on acquiring net new customers, a function of sales and marketing, so here we’ll discuss data in that context only, as opposed to a company wide data strategy.
Marketing Data Strategy
A marketing data strategy focuses on how you can build and leverage data models to improve campaign performance and fulfil the strategic objectives around Consumer Engagement, Acquisition and Retention.
Our simple data strategy model can help you define campaign activity, ensure it delivers the insight you need going forward, and leverages that insight for improved marketing ROI.
a) What you Know
This is the “here and now”. What information do you have? Where is it stored? How is it stored? What does this information tell us about our customers? What doesn’t it tell us? These are all the crucial aspects of this stage. You may need to get other departments involved in this part, making sure that marketing has access to all the relevant information.
b) What you don’t know
This can be the fun part, sit down with various stakeholders and determine what you’d like to know about your customers. You can be as outlandish and as demanding as you want, we’ll prioritise it later. We usually run this as a workshop with stakeholders from all parts of the business. You’ll be surprised at what comes from this session, for example while you focus on what you need to know from a marketing point of view, perhaps product development have a key insight they’re missing?
As well as creating a strategic direction for data collection within sales and marketing, you have an opportunity to streamline internal processes and deliver additional value to the business.
c) What you want to know
This is where you prioritise the list you’ve developed in step B, and determined what information will be collected by which campaign and via which channel. This becomes your campaign blueprint, over which you lay the messaging, promotions and content.
d) What you do with what you know
As you complete the first three steps, you are on your way to becoming a master of your own data destiny. This fourth step means you’re leveraging the data and insight that you have in order to better engage, acquire and retain customers. You know them far better than before, and can create more predictable models in terms of marketing performance.
At Callimedia we have a framework we use to capture this, in order to prioritise campaigns, a simple example is below, using retention:
What we know: we know that our client’s customers are music lovers because they buy expensive HiFi equipment.
What we don’t know: We don’t know which genre of music they like
What we want to know: We want to offer them a 12 month Spotify subscription and in return ask them to share their music preferences with us.
What we’ll do with what we know: We’ll invite them to music events relevant to their music taste so that they stay loyal to the brand
While a simple example, you can start to see how strategic thinking can be directly linked to campaign themes that will drive revenue. Now you have your data strategy, you then need to move on to defining and deploying your channel strategy.