In my last post, I shared two key steps for organizing your data “closet.” I assured you that all organizations—from Fortune 1000 to the small but mighty among us—are struggling with data and that you are not alone. I noted that you should begin to get in the habit of documenting two facts: the origin and use of your data assets. I recommend that you do this to achieve excellent data management that will ultimately fuel superior customer experiences.
Today, I will provide four more steps to help you organize your data in the new year.
Step 3: Note the Performance of Your Data
Successful marketers are able to tie performance to the data that is driving the performance. Often marketers want to scrutinize the individual elements (e.g., their construction, accuracy, etc.), but the most important point is “how well it works.” For example, measure the quality of the data based upon how well it works, not on how closely it resembles the actual demographics of an individual consumer.
Be honest. Note the good, the bad, and the ugly. That way, ugly won’t be repeated next time.
To determine the return on your data investment, you should understand the specific data components that are driving successful marketing outcomes (e.g., conversions, leads, sales). Tying measurement back to the data origin completes the information cycle.
The most critical point: Make sure that the underlying data in a model—or a segmentation system—that may be the key driver receives a proper valuation assignment. I’d suggest tying value to the data that forms a successful model and not just the algorithmic or analytic intelligence used to create it. In other words, the analyst who created a great model may have done exceptional work, but you need to tie the underlying data that enabled the model, as well as the data science that created it, to your notes on data performance.
Step 4: Experiment With New Data
New devices and emerging technologies are creating more data every sixty seconds. Consequently, you should consider new and unique data elements that may be available to your organization (e.g., wearable device data, mobile device location, connected vehicle data, chatbot data, etc.). These elements could represent new categories of data you haven’t yet tried on; or they could represent components needed, but not readily available in the data marketplace.
In addition, modeling is one technique to expand targeting opportunities for the newest consumer trends in digital, mobile or social. However, you must find a partner who is modeling to fulfill niche targets or find a provider who can link you to a wide range of data targets for your own in-house analysts to model.
Step 5: Choose The Right Data Provider
Choose the right relationship. Pick a data provider that fits your needs both today and tomorrow. You will want a partner who is advancing technologically, always innovating and moving forward to enable data that is tried and true yet creating data for the latest marketing trends. When you take a partnership approach, you gain a listener and a consultant who provides insight as they work to better understand your marketing plans. The partner approach opens the door for joint initiatives and constructs a pathway for data into your organization as well as a pathway to monetize your data externally. Pick a trusted, valued partner that balances technology and innovative thinking.
Step 6: Monetize Your Data
And finally, explore opportunities to monetize your data. Every company is now a data company. First party data owners are starting to monetize their data, making it available in ways previously unseen.
However, before you can really monetize data, you must organize what you have today and prepare for new data assets that emerge every year. Will your organization’s data “closet” be organized and prepared enough to reap the benefits of data decisioning? When a brand needs niche data to fuel marketing, will it be searchable and discoverable? Will your organization become a data provider as well as a data buyer? Are there opportunities to share data with a partner in a privacy compliant environment to benefit both companies as well as consumers? Begin preparing now for a world where data becomes the fuel for increasing your organization’s bottom line.
To learn more about Acxiom’s consumer data, please click here.