(Direct) The rest of the world finally appears to have caught up with direct marketers' focus on accountability.
Marketing databases are overflowing with information — they can hold millions of records and thousands of data points on prospects and customers. The ready availability of data has fueled a tendency to analyze things to death; everyone wants to know something slightly different. An inexperienced analyst can end up fulfilling 101 analytical requests, when probably only 10 or so relate to actual success.
The identification of actionable data-driven insights is the single most important strategic driver of all customer relationship management programs. These insights inform and optimize communication strategies. Their use ensures that marketing dollars are focused on consumers with the greatest potential of delivering profitable relationships.
I once inherited a situation where a deck of analytic tables akin to “War and Peace” was being published monthly for a client. An even more comprehensive look at the data was being produced quarterly. Between these two reports, a library of analysis had been produced over the course of a year. The client was overwhelmed, and the work was perceived as being of little business value.
Using the six steps below, we reduced the mammoth 50-page monthly report to a more digestible five-pager. We thus were able to articulate how the CRM objectives were being met or exceeded.
Step 1) Discovery workshop. First we invited representatives from brand management, market research, and finance to a workshop. We intended to do two things: reaffirm strategic objectives and identify a wish list of key performance indictors (KPIs). The abridged version of the analytics report cut to the chase: Most metrics were discarded because they didn't align with the strategic objectives.
Step 2) Data audit. We made the data audit a discovery phase that confirmed how the data sources informed each of the KPIs.
Step 3) Measurement plan. Each KPI was reevaluated to ensure that it aligned with at least one strategic objective. We then revised our analytic plan accordingly. The plan was delivered for client sign-off.
Step 4) Benchmarking. We conducted a CRM audit of each of the client's dozen or so other CRM programs. The audit enabled the agency to benchmark response and ROI, and set realistic expectations for the success of our CRM program.
Step 5) Reporting and implementation. The CRM objectives had been confirmed, the KPIs benchmarked and agreed upon. Only then did the analytical team begin to crunch the data.
Step 6) Interpretation and action planning. The cross-functional team reviewed the easier-to-digest analytical deck. Many of the KPIs were met or exceeded, enabling us to prioritize and focus our CRM efforts. The analytical findings informed the rollout strategy and identified elements that could be tested and optimized.
Jatinder Singh is senior vice president/group director of strategic services at Wunderman, New York.
