BIG-Data Is Not Revolutionising Marketing

Marketers are great for coming up with buzz words. And there are always one or two new ones doing the rounds. They make us sound like we know what we’re talking about; that we are current and ‘cutting edge’. It separates the exclusive club of ‘morketeers’ from the ordinary Joe’s. If you don’t understand the latest jargon, you're not eligible for membership.

One of the buzz words around at the moment is ‘BIG-data’. Apparently it’s going to revolutionise marketing. Well, contrary to popular opinion, it's not (not by itself anyway). The fact is, data is everywhere. Technology provides marketers with the tools to capture all kinds of data on their customers. Not just around what they buy and when they buy it, but also into how they behave, what they are talking about and, perhaps even, how they are thinking.

All of this is great. In truth, however, most marketers have more data than they know what to do with. There is no benefit to having all of this data if you can’t turn it into insights. Data doesn’t inspire great marketing; insights do.

Just as much as they need great creativity, marketing teams now need real expertise in research and analytic analysis. They need people who can translate seemingly meaningless numbers into actionable insights. Finding out what is happening is not enough. Unearthing insights mean we can answer the question of why. Marketing now really is about science and art.

So, the bottom line here is this; BIG-data is not revolutionising marketing. But being able to interpret meaning from it just might. Sure any morketeer worth their salt could tell you that.

Follow me...

https://twitter.com/gavindfox

http://ie.linkedin.com/in/gavindfox/

For New Customers Only

This is, in effect, what many marketers are telling their base of existing loyal customers. Tagged to the end of the radio ad (and sometimes said very quickly so you might not pick it up) or in the small print of the TV, print or digital communication (and sometimes so small that you miss it) are the magic words; "for new customers only". Meaning existing customers are not eligible. Your loyalty doesn't count. Sorry.

Why is this? Why do many marketers put more emphasis on acquiring new customers than they do retaining the ones they already have? It's not because it leads to better results. Most research studies report it's about ten times cheaper to hold onto an existing customer than it is to replace them with a new one. And there are other benefits.

Loyal customers will sell your product far better than you could ever sell it yourself. Word-of-mouth has always been (and still is) the most influential form of communication and loyal customers have so many ways in which to spread the word and win new customers for you. And, if you can build loyalty into the customer experience, you run a far less risk of your customers being wooed by your competitors' fancy "for new customers only" promotions. You will get to benefit from your customers' life-time-value.

Although it is industry-dependent, many organisations lose between 20%-50% of their customers each and every year. Instead of trying to stop this from happening, by rewarding them and earning their loyalty, they look to replace them with expensive new customers. When really, at best all they are doing is renting new customers for a while. Yes they win some new transactions, but a focus on loyalty results in the creation of life-long fans.

You would never tell your existing friends they are not as important to you as the new friends you're trying to attract. (Well, maybe you would, but that's a totally different blog post.) Here's the point; acquiring new customers is a costly business. I'm not saying you shouldn't do it; I'm just saying that, once you win them, you have to make every effort to keep them. As well as asking 'how can we win more new customers', ask yourself 'how can we reward the customers we already have'. Give them a reason to keep coming back. Develop such strong ties that they don't even consider switching to your competitor. And for God's sake reward them. They are, after all, the only customers you have right now.

Follow me...

https://twitter.com/gavindfox

http://ie.linkedin.com/in/gavindfox/

What Line?

Remember the days when marketers used to create ‘above-the-line’ or ‘below-the-line’ campaigns. Everybody knew their place. You were on one team or the other. And you worked with an agency who spoke the same language; one who specialised in marketing that was either side of the line (but never both sides, God forbid).

Then things began to get a little blurred and we couldn’t quite distinguish where the line started and ended. To accommodate this blurring, marketers and agencies came up with another beautiful term to classify the type of marketing they were producing; ‘through-the-line’.

How about acknowledging there is no line? Perhaps there never should have been one in the first place. But it certainly seems a little silly to me to still talk about a line that simply doesn’t exist. Trying to explain it would be a little like that episode of Father Ted, when Ted was trying to convince Dougal about the existence of heaven and hell. The conversation might go a little like... 

Dougal: "Ted, you know when they say 'above-the-line' and 'below-the-line'. What are they talking about? I can't see any line." 

Ted: "Well Dougal, the line is invisible and a bit of a mystery. It's a lovely line our Lord gave us to distinguish between different forms of marketing." 

Dougal: "Well it all sounds a bit mad Ted if you ask me, sure isn't it all just marketing."

And the fact is, Dougal would be right. Marketing no longer exists in silos. There is no ‘above-the-line’, ‘below-the-line’, ‘online’ and ‘offline’ in marketing anymore. Communications, in all its forms, have converged. It’s all just marketing.

So, let’s draw a line under this one. There is no line. Fair enough Ted.

Follow me on Twitter: https://twitter.com/gavindfox

Connect with me on LinkedIn: http://ie.linkedin.com/in/gavindfox/