Data Will Lead Marketers Into a New World in 2020
The year 2020 sounds like some futuristic time period in a science fiction novel. At the dawn of this funny sounding year, maybe it’s good time to think about where all these data and technologies will lead us. If not for the entire human collective in this short article, but at the minimum, for us marketers.
What will be so different in this ever-changing world, and how can marketers better prepare ourselves for the new world? Haven’t we been using data for multichannel marketing for a few decades already?
Every Channel Is, or Will Be Interactive
Multichannel marketing is not a new concept, and many have been saying that every channel will become interactive medium. Then I wonder why many marketers are still acting like every channel is just another broadcasting medium for “them." Do you really believe that marketers are still in control? That marketers can just push their agenda, the same old ways, through every channel? Uniformly? “Yeah! We are putting out this new product, so come and see!” That is so last century.
For instance, an app is not more real estate where you just hang your banners and wait for someone to click. By definition, a mobile app is an interactive medium, where information goes back and forth. And that changes the nature of the communication from “We talk, they listen” to “We listen first, and then we talk based on what we just heard."
Traditional media will go through similar changes. Even the billboards on streets, in the future, will be customized based on who’s seeing it. Young people don’t watch TV in the old-fashioned way, mindlessly flipping through channels like their parents. They will actively seek out content that suites “them," not the other way around. And in such an interactive world, the consumers of the content have all the power. They will mercilessly stop, cut out, opt out, and reject anything that is even remotely boring to “them."
Marketers are not in charge of communication anymore. They say an average human being looks at six to seven different screens every day. And with wearable devices and advancement in mobile technologies, even the dashboard on a car will stop being just a dumb dashboard. What should marketers do then? Just create another marketing department called “wearable division," like they created the “email marketing” division?
The sooner marketers realize that they are not in charge, but the consumers are, the better off they would be. Because with that realization, they will cease to conduct channel marketing the way they used to do, with extremely channel-centric mindsets.
When the consumers are in charge, we must think differently. Everything must be customer-centric, not channel- or division-centric. Know that we can be cut off from any customer anytime through any channel, if we are more about us than about them.
Every Interaction Will Be Data-based, and in Real-time
Interactive media leave ample amounts of data behind every interaction. How do you think this word “Big Data” came about? Every breath we take and every move we make turn into piles of data somewhere. That much is not new.
What is new is that our ability to process and dissect such ample amounts of data is getting better and faster, at an alarming rate. So fast that we don’t even say words like Big Data anymore.
In this interactive world, marketers must listen first, and then react. That listening part is what we casually call data-mining, done by humans and machines, alike. Without ploughing through data, how will we even know what the conversation is about?
Then the second keyword in the subheading is “real-time." Not only do we have to read our customers’ behavior through breadcrumbs they leave behind (i.e., their behavioral data), we must do it incredibly fast, so that our responses seem spontaneous. As in “Oh, you’re looking for a set of new noise-canceling earbuds! Here are the ones that you should consider," all in real-time.
Remember the rule No. 1 that customers can cut us out anytime. We may have less than a second before they move on.
Marketers Must Stay Relevant to Cut Through the Noise
Consumers are bored to tears with almost all marketing messages. There are too many of them, and most aren’t about the readers, but the pushers. Again, it should be all about the consumers, not the sellers.
It stops being entirely boring when the message is about them though. Everybody is all about themselves, really. If you receive a group photo that includes you, whose face would you check out first? Of course, your own, as in “Hmm, let me see how I look here."
That is the fundamental reason why personalization works. But only if it’s done right.
Consumers can smell fake intimacy from miles away. Young people are particularly good at that. They think that the grownups don’t understand social media at all for that reason. They just hate it when someone crashes a party to hard-sell something. Personalization is about knowing your targets’ affinities and suggesting — not pushing — something that may suite “them." A gentle nudge, but not a hard sell.
With ample amounts of data all around, it may be very tempting to show how much we know about the customers. But never cross that line of creepiness. Marketers must be relevant to stay connected, but not overly so. It is a fine balance that we must maintain to not be ignored or rejected.
Machine Learning and AI Will Lead to Automation on All Fronts
To stay relevant at all times, using all of the data that we have is a lot of work. Tasks that used to take months — from data collection and refinement to model-based targeting and messaging — should be done in minutes, if not seconds. Such a feat isn’t possible without automation. On that front, things that were not imaginable only a few years ago are possible through advancement in machine learning or AI, in general.
One important note for marketers who may not necessarily be machine learning specialists is that what the machines are supposed to do is still up to the marketers, not the machines. Always set the goals first, have a few practice rounds in more conventional ways, and then get on a full automation mode. Otherwise, you may end up automating wrong practices. You definitely don’t want that. And, more importantly, target consumers would hate that. Remember, they hate fake intimacy, and more so if they smell cold algorithms in play along the way.
Huge Difference Between Advanced Users and Those Who Are Falling Behind
In the past, many marketers considered data and analytics as optional items, as in “Sure, they sound interesting, and we’ll get around to it when we have more time to think about it." Such attitudes may put you out of business, when giants like Amazon are eating up the world with every bit of computing power they have (not that they do personalization in an exemplary way all of the time).
If you have lines of products that consumers line up to buy, well, all the more power to you. And, by all means, don’t worry about pampering them proactively with data. But if you don’t see lines around the block, you are in a business that needs to attract new customers and retain existing customers more effectively. And such work is not something that you can just catch up on in a few months. So get your data and targeting strategy set up right away. I don’t believe in new year’s resolutions, but this month being January and all, you might as well call it that.
Are You Ready for the New World?
In the end, it is all about your target customers, not you. Through data, you have all the ammunition that you need to understand them and pamper them accordingly. In this age, marketers must stay relevant with their targets through proper personalization at all stages of the customer journey. It may sound daunting, but all of the technologies and techniques are ripe for such advanced personalization. It really is about your commitment — not anything else.
Stephen H. Yu is a world-class database marketer. He has a proven track record in comprehensive strategic planning and tactical execution, effectively bridging the gap between the marketing and technology world with a balanced view obtained from more than 30 years of experience in best practices of database marketing. Currently, Yu is president and chief consultant at Willow Data Strategy. Previously, he was the head of analytics and insights at eClerx, and VP, Data Strategy & Analytics at Infogroup. Prior to that, Yu was the founding CTO of I-Behavior Inc., which pioneered the use of SKU-level behavioral data. “As a long-time data player with plenty of battle experiences, I would like to share my thoughts and knowledge that I obtained from being a bridge person between the marketing world and the technology world. In the end, data and analytics are just tools for decision-makers; let’s think about what we should be (or shouldn’t be) doing with them first. And the tools must be wielded properly to meet the goals, so let me share some useful tricks in database design, data refinement process and analytics.” Reach him at email@example.com.