EMARKETER ROUNDUP: USING BIG DATA TO POWER MARKETING PERFORMANCE

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1 APRIL 2014 EMARKETER ROUNDUP: USING BIG DATA TO POWER MARKETING PERFORMANCE Big data is a top concern of marketers around the world it has the potential to change nearly everything about the way they do business. To help you stay on top of the latest trends in utilizing big data, emarketer has put together a roundup of some of our latest coverage on the subject, including statistics, insights and interviews. sponsored by

2 USING BIG DATA TO POWER MARKETING PERFORMANCE Overview Big data is among the top concerns of marketers around the world not least because it has the potential to change nearly everything about the way they do business. When Adobe surveyed US marketers in February 2014, big data was the No. 2 marketing tactic deemed most important, edging out social media. What s more, it s the marketers with the biggest budgets who consider big data more important than smaller firms. Even for large firms, however, it can be challenging to implement learnings from big data. C-suites around the world are increasing their capacity for dealing with the data and using it to implement more effective marketing and sales plans. But big data is not going away, and research suggests most marketers still have a lot to learn about it. The use cases for big data are numerous: Research from dnx outlined a number of efforts under way in marketing departments. As EMC s director of data and insight Mike Foley told emarketer, When you re bringing in data from different marketing channels or other areas of the company, the challenge is to put all those pieces of the puzzle together into one unified view of the customer. Most Important Marketing Tactic* According to US Marketers, by Level of Digital Spending, Feb 2014 Low** High*** Total Personalization 36% 31% 33% Big data 17% 22% 22% Social 22% 21% 21% Real time 18% 12% 14% Mobile 7% 14% 11% Note: n=1,004; read as 31% of marketers who have high digital spending budgets believe that personalization is the most important marketing tactic moving forward; numbers may not add up to 100% due to rounding; *for their company moving forward; **digital spending is <10% of total marketing budget; ***digital spending is 25%+ of total marketing budget Source: Adobe, "Digital Roadblock: Marketers Struggle to Reinvent Themselves" produced by Edelman Berland and conducted by Research Now, March 25, Ways Marketing Departments Use Big Data According to Marketing Professionals in Europe, Jan 2014 Store multichannel information (e.g., sales, website, mobile, social media data, etc.) Segment customers (discover new micromarkets) Determine marketing strategy Analyze buying behavior patterns Justify marketing strategy Develop personalized communications or individual customers Predict future trends Develop personalized offers for individual customers Respond to customer requests and/or complaints in real time (e.g.,on social media) Collaborate with other organizations (e.g., share data) Set price points Sell lists of data to generate revenue Other None of these 30% 29% 29% 23% 23% 21% 15% 13% 12% 8% 4% 2% 4% 2% Note: 90 were from the UK Source: dnx, "When will marketing be promoted to the boardroom? The reality of big data's promise" conducted by Circle Research, March 21, emarketer Roundup: Using Big Data to Power Marketing Performance Copyright 2014 emarketer, Inc. All rights reserved. 2

3 Marketers Recognize that Big Data Is a Big Deal More than half of C-suite execs have changed their business strategy because of big data How important is harnessing big data for your marketing efforts? It s something most marketers hadn t even heard of until a few short years ago, but its importance or at least, lip service about its importance grew quickly. When Econsultancy and Adobe queried client-side marketers worldwide about the most important areas of focus in 2012, big data wasn t even in the picture. By 2013, the first year the response was an option, more than one-third of marketers chose it. Though it s still not as important to most client-side marketers as understanding how mobile users research and buy, or finding out where and when people use different devices, more than two in five marketers know they need a handle on big data. Perhaps that s because they realize big data has the power to change their whole business strategy. A separate survey, conducted by KPMG in August 2013, found that nearly twothirds of CFOs and CIOs in the Americas had changed their business strategy because of big data. The C-suite was nearly as likely to do so in Asia-Pacific, and the worldwide rate was 56%. If big data is big enough to get a majority of marketers to change not just their marketing tactics but their whole business strategy, it should be big enough to pay attention to. Most Important Areas of Digital Marketing Focus According to Client-Side Marketers Worldwide, Using online data to optimize the offline experience 43% 51% 50% Understanding how mobile users research/buy products Using offline data to optimize the online experience 47% 56% 62% 42% 42% 46% Understanding when and where customers use different devices 52% 54% Harnessing big data for more effective marketing 37% 42% Source: Econsultancy and Adobe, "2014 Digital Trends Briefing," Jan 28, CFOs and CIOs Worldwide Whose Business Strategy Has Changed Because of Big Data, by Region, Aug 2013 Americas Asia-Pacific 63% 38% 58% 42% EMEA Worldwide 50% 50% 56% 44% Yes No Note: over the past months; numbers may not add up to 100% due to rounding Source: KPMG, "Going Beyond the Data: Achieving Actionable Insights with Data and Analytics," Jan 27, emarketer Roundup: Using Big Data to Power Marketing Performance Copyright 2014 emarketer, Inc. All rights reserved. 3

4 Using Big Data Still a Challenge for Marketers Big data is changing business strategy, but marketers find it difficult to handle the information When KPMG asked CFOs and CIOs around the world about big data and business strategy last summer, more than half said it was changing everything. How is that happening especially when marketers report struggling with actually using big data? The KPMG survey found that the top change to business strategy the C-suite was making was just along those lines: Nearly half were simply increasing their capacity for dealing with big data, whether that meant adding human or physical capital. Management buy-in was important for about two respondents in five, but a comparatively small 25% were actually putting any big data-related insights into practice. The benefits are expected to include analyzing more data, faster helping to find insights that would otherwise have been missed, as well as other improved efficiencies. But the future is still just that. According to data management decision-makers surveyed by Experian Data Quality in December 2013, contact data was the most important for marketing success, followed by sales and demographic data. But there s a host of information that business executives say they don t have available to them for use in marketing programs, for example, according to November 2013 polling by StrongView in conjunction with SENSORPRO. Even consumer packaged goods (CPG) firms, relatively experienced in dealing with sophisticated shopper insights, have difficulty processing some kinds of retailer data that could paint a more detailed picture of customer behavior. Less than one-third of US CPG marketing executives reported in October 2013 that they were highly able to process transaction-level data, according to research from the Path to Purchase Institute and Shopper Marketing. Business Strategy Changes Made by CFOs and CIOs Worldwide in Response to Big Data, Aug 2013 Increasing the capacity (either hardware or personnel) to analyze big data 47% Attaining management buy-in for big data collection and analysis Honing the parameters for data collection 27% 39% Putting insights garnered from big data into practice in a timely way 25% Note: among respondents who have changed their business strategy due to big data Source: KPMG, "Going Beyond the Data: Achieving Actionable Insights with Data and Analytics," Jan 27, Most Valuable Data that Business Executives Worldwide Are Currently Unable to Use in Their Marketing Programs, Nov 2013 Web behavior Shopping/browsing behavior Sentiment Purchase history Device engagement Demographic Life stage Channel engagement 16% 20% 19% 18% 18% 23% 25% External feeds (weather, economic conditions, etc.) Location data Other 8% 10% 12% 34% Source: StrongView, "2014 Marketing Trends Survey" conducted in conjunction with SENSORPRO, Dec 17, emarketer Roundup: Using Big Data to Power Marketing Performance Copyright 2014 emarketer, Inc. All rights reserved. 4

5 Business Leaders See Challenges in Customer Data, Digital Channels Consumer/retail, technology executives wary of digital changes In the fast-moving global economy, business executives who aren t planning ahead are getting left behind. According to a June 2013 survey of business executives worldwide conducted by the Boston Consulting Group (BCG), the top challenges faced by businesses were closely related to the state of constant change that businesses now operate in. In fact, 20 named large-scale transformation as the top challenge for which firms were unprepared for, while 19% cited openness to innovation. But issues related to digital changes also factored prominently in the concerns of executives. Eighteen percent said businesses were not ready to deal with leveraging consumer data, while 17% thought companies ill-prepared to handle digital channels. According to BCG, executives from the consumer/retail and technology sectors saw challenges in digital initiatives such as leveraging consumer data and managing digital channels more often than executives working in other sectors. While 70% of retail executives and 65% of technology leaders saw obstacles in leveraging consumer data, just 43% of senior professionals working in healthcare cited the same challenges. Though retail executives were concerned about leveraging consumer information, figures released by 1010data in December 2013 painted a more optimistic picture. When asked which industries would see the most success with Big Data by the end of 2013, US business executives ranked the sector second at 42%, just behind finance (49%). BCG found that more than seven in 10 executives working in technology considered digital channels to present a challenge, making them significantly more sensitive to the issue than respondents from the other sectors studied. But the industry seems to be addressing this challenge. Q data from Millennial Media, based on campaigns on its network, ranked the technology sector as one of the leading industries worldwide for mobile ad spending growth a hot topic when it comes to digital at 132%. Leading Challenges for Which Businesses Are Unprepared* According to Senior Executives Worldwide, June 2013 Large-scale transformation 20% Open innovation 19% Leveraging customer data 18% Digital channels 17% Distinctive business models 14% Talent management 14% Growth in new markets 14% Localization of production 13% Sustainability 12% Supply chain excellence 10% Long-term values 6% Adaptiveness 6% 2% 7% 8% Growth in current markets Flexible & efficient operations Balancing growth & efficiency Note: *very unprepared or unprepared Source: Boston Consulting Group (BCG), "BCG@50 Executive Survey," Dec 12, Industries that Will See the Most Success with Big Data by the End of 2013 According to US Business Executives Finance 49% Retail 42% Consumer products 39% Manufacturing 37% Media & advertising 33% Healthcare 32% Telecom 26% Gaming 24% Government 16% 4% None of these Note: n=158 Source: 1010data, "2013 Big Data in Business Study" fielded by usamp, Dec 12, emarketer Roundup: Using Big Data to Power Marketing Performance Copyright 2014 emarketer, Inc. All rights reserved. 5

6 Education Is Still the Problem for Big Data Proving data s case in the business world Lack of education is still the No. 1 thing hindering greater adoption of Big Data by businesses, according to research. And executives indicate it will be years before Big Data s usefulness is fully realized. Research from 1010data conducted by usamp found that a majority of US business executives said their companies were not using Big Data because they needed more education on how it solves business problems. There was also a strong perception that the solutions offered by Big Data did not necessarily address the needs of business users another sign education is a big remaining hurdle for businesses to overcome before getting the most out of their data. That lack of education has likely already hampered adoption of Big Data by businesses, and only 12 thought Big Data had already reached its full potential in the business world. While around a third of respondents were optimistic enough to say that would happen sometime in the next year, the most common response was the next five years. Nearly as many people thought it would take 10 or 20 years for Big Data to come into its own as said it already had. Respondents expected the finance and retail industries to get the most out of Big Data by the end of this year two verticals that have been relatively quick to take up the Big Data burden. While about half of respondents thought finance would see success with Big Data in 2013, just 33% said the same of the media and advertising industry. Reasons Companies Are Not Using Big Data According to US Business Executives, 2013 Need more education on how big data solves business problems 62% Need big data solutions to better address the needs of business users 53% Need simplified solutions for big data with fewer moving parts Need better time to value for big data Need prices for big data solutions to come down Other 1% None of these 1% 40% 47% 49% Note: n=158 Source: 1010data, "2013 Big Data in Business Study" fielded by usamp, Dec 12, Timeframe in Which US Business Executives Think Big Data Will Reach Its Potential in the Business World, 2013 Next 10 years 6% Next 5 years 44% Next 20 years 1% 20+ years 2% It already has 12% By end of % Note: n=158 Source: 1010data, "2013 Big Data in Business Study" fielded by usamp, Dec 12, emarketer Roundup: Using Big Data to Power Marketing Performance Copyright 2014 emarketer, Inc. All rights reserved. 6

7 Big Data Helps Reveal Consumer Behavior Marketers, agencies on same page regarding benefits from data analysis Big Data holds many promises for companies some of which it is already delivering on, and some of which have yet to be realized. According to an August 2013 survey of senior marketers in the US conducted by Forbes Insights and Rocket Fuel, companies are seeing returns on their Big Data investments in a number of areas. Among US agency and brand executives, 85% said Big Data had yielded more than half of marketing initiatives when it came to increasing insights into consumer behavior. Increasing sales, sign-ups and registrations, ROI, customer satisfaction and sales leads also saw similar numbers when seeing benefits from using Big Data. Advertising agencies and marketers were largely aligned in determining the major benefits of Big Data initiatives. Leading Benefits of Big Data According to US Agency and Brand Executives, Aug 2013 Developing greater insight into the customer experience across all types of media, and then crafting a strategy that turns this understanding into positive results 64% 63% Using customer feedback to pinpoint the types of products that consumers want, and then acting on them 50% 52% Understanding customer opinion about products and services 42% 48% Dissecting customer behavior to understand when, where and under what circumstances consumers engage with brands and make purchases Fine-tuning marketing initiatives in real-time Don't see any benefits to Big Data 3% 7% Agencies Marketers 31% 35% 44% 46% Areas that Have Benefited from the Use of Big Data According to US Agency and Brand Executives, Aug 2013 Increasing insights into consumer behavior Increasing sales Increasing sign-ups and registrations Increasing ROI 40% 39% Increasing customer satisfaction Increasing sales leads 41% 42% 47% 52% Big data drives 50%+ of marketing initiatives Big data drives <50% of marketing initiatives 81% 73% 71% Source: Forbes Insights and Rocket Fuel, "The Big Potential of Big Data: A Field Guide for CMOs," Oct 24, 2013 For agencies, 64% said Big Data allowed them to develop insight into customer experiences to help drive useful strategy, and 63% of marketers said the same. Agencies and marketers were also on the same page about the benefit of using Big Data to parse customer feedback and identify products that they wanted 52% of agencies and 50% of marketers saw this as a benefit. 85% 77% 76% The web is playing an ever-increasing role in collecting the raw information needed to fuel Big Data initiatives, according to a separate survey conducted by Forbes Insight and Turn in September Sixty-five percent of companies said they used the web to collect customer data, making it the most popular source for information. Call centers and in-person data gathering techniques were more popular than several other digital channels, however, including mobile devices and social media. Source: Forbes Insights and Rocket Fuel, "The Big Potential of Big Data: A Field Guide for CMOs," Oct 24, emarketer Roundup: Using Big Data to Power Marketing Performance Copyright 2014 emarketer, Inc. All rights reserved. 7

8 Customer Transaction Info Is Leading Big Data Element Sales, marketing departments are most interested in Big Data Financial services and healthcare companies in the US are among the leaders in Big Data adoption with financial services particularly ahead in terms of usage and their data strategies are indicators of trends across the verticals. A July 2013 survey from data and analytics consulting company NewVantage Partners found that US executives from these industries reported that on average, 68% expected to spend more than $1 million on Big Data initiatives this year, while 19% said they would spend more than $10 million. And by 2016, half of execs expected to spend more than $10 million. The study found that the sales and marketing departments were driving investments in Big Data, cited by 77% of respondents. Risk management, fraud and security was another set of business functions well served by execs investing in data, cited by 68%. In third place was a three-way tie between new product development and innovation, research and discovery, and IT and operational management, each cited by 64% of respondents. Business Functions that Are Driving Investments in Big Data According to US Executives at Financial Services and Healthcare Companies, July 2013 Sales, marketing Risk management, fraud, security, regulatory compliance, monitoring New product development and innovation Research, discovery IT and operational management Customer, CRM, personalization Corporate strategy, planning 52% Finance, human resources, business administration Logistics 40% 49% 64% 64% 64% 62% 68% Source: NewVantage Partners, "Big Data Executive Survey 2013," Sep 9, % Even the business function seen by the fewest respondents as driving Big Data investment logistics was still cited by 40% of execs. These responses suggest that while there may be areas where Big Data adds the most value, it is seen as useful across business functions, as companies move to a more informationdriven, analytical approach to their work. The data domains that were of the most interest to execs again spanned the gamut, with customer transaction data as No. 1, cited by 82. Other top data sets included financial data (75%), market data (68%) and social media and behavioral data, at 65% each. Companies also have choices as to how to organize and invest in the various data sets they are examining. Accelerating analytical processes, as well as making the analytics more sophisticated, were on the radar for 70 each, followed immediately at 69% by more effectively integrating existing sources of data. emarketer Roundup: Using Big Data to Power Marketing Performance Copyright 2014 emarketer, Inc. All rights reserved. 8

9 Improving Customer Experience Leads Big Data Priorities Creating actionable insights is leading challenge There is no question that businesses see the value in Big Data but putting that info to work is a different story. According to a June 2013 survey from comptia, an IT industry association, more than 78% of US business and IT executives agreed that if they could harness their data, they d be a much stronger business. And nearly as many said data was one of their firm s greatest assets. But just slightly fewer respondents 73% also conceded that converting the volumes of data into actionable intelligence remained a challenge. The primary goal execs see Big Data serving is helping improve the customer experience. That was the top response among IT and business leaders worldwide in a June 2013 survey from Gartner, followed by achieving process efficiency. In this study as well, putting Big Data to work was the biggest challenge posed by the information onslaught. Other top goals among respondents included using data to determine what new products to release or new business models to use, as well as how to create more targeted marketing. The value of Big Data may be evident to business leaders across industries, but some have moved faster than others to incorporate data into their strategy. In the Gartner survey, the media and communications category led as the industry most likely to have already invested in Big Data, at 35%, and within the next one to two years, 61% total expected to be invested. Attitudes of US Business and IT Executives Toward Their Data, June 2013 If we could harness all of our data, we'd be a much stronger business 78% 18% 4% Data is one of my firm's greatest assets 75% 20% 5% We need much better real-time analysis of incoming data 74% 19% 7% Converting volumes of data into actionable intelligence has been a challenge 73% 19% 8% We have more data than we know what to do with 53% 26% 22% Agree Neutral Disagree Note: n=500; numbers may not add up to 100% due to rounding Source: CompTIA, "Big Data Insights and Opportunities," Sep 18, Leading Priorities for Big Data According to IT and Business Leaders Worldwide, June 2013 Top Second Third Enhanced customer experience 23% 18% 12% Process efficiency 17% 14% 11% New products/new business models 16% 14% 9% More targeted marketing 14% 13% 9% Cost reduction 8% 12% 9% Improved risk management 6% 10% 9% Monetize information directly 5% 4% 7% Regulatory compliance 6% 4% 4% Enhanced security capabilities 3% 3% 4% Note: n=687 Source: Gartner, "Big Data Adoption in 2013 Shows Substance Behind the Hype," Sep 23, Banking followed right behind media and communications, with 34% having invested in Big Data, and another 24% expecting to invest in the near term. Surprisingly, retail was toward the bottom of the list of industries already implementing Big Data. The ecommerce sector is a huge and growing area for retail, and Big Data has a potentially significant role to play in the online shopping customer experience. As of the survey, 26% of respondents from the retail industry had invested in Big Data, and 39% planned to invest in the next couple of years. emarketer Roundup: Using Big Data to Power Marketing Performance Copyright 2014 emarketer, Inc. All rights reserved. 9

10 How Rite Aid Turns Loyalty Card Data into Dollars John Learish Senior Vice President, Marketing Rite Aid Loyalty and discount programs have become common practice among supermarket and drugstore chains. Rite Aid was the last of the major US pharmacy chains to offer such a program. But since launching a scheme of its own in 2010, the retailer has been able to motivate shoppers to spend at both ends of the store thanks to a resulting ability to bridge front-end and prescription sales, according to SVP of Marketing John Learish. He spoke with emarketer s Christine Bittar about the program s details and the usefulness of the customer data it produces. emarketer: What made Rite Aid decide to launch its current loyalty program? John Learish: One of our objectives was to motivate people to shop both the pharmacy and front-end sections of the store. CVS had its loyalty program a decade earlier. It was mature and very successful, with very high engagement. That set the bar pretty high for us. One of the reasons we felt strongly about doing it was because there was a lot of churn in the pharmacy segment. Previously, people didn t move their business when they had a relationship with a pharmacy as was [also] the case with banking. Now pharmacy and banking information is portable, so competing chains are often incentivizing customers to move their business. We did it, and consumers were using pharmacy-transfer incentives to move back and forth between drug chains. With pharmacy representing about 70% of our revenue, we were really looking to stabilize that churn. emarketer: With that in mind, how did you go about structuring the features of the program? Learish: We wanted to give our members more than discounts and make the card an extension of our brand positioning. We conceived various services around the wellness theme, including 24-hour-a-day access to a pharmacist and a wellness reward offering a choice of health tests or services like cholesterol screening or a partial gym membership. Now pharmacy information is portable, so competing chains are often incentivizing customers to move their business. We had to offer discounts, too, of course, and that was kind of a cost-of-entry benefit for us, but the discount alone wasn t going to differentiate us. The one differentiator in the drug store business which has nothing to do with a loyalty card is that the relationship people have with their pharmacist. It s very important and it can foster loyalty by itself, but not always. emarketer: How generous are you with the discounts? Learish: We were one of the last drug chains [to launch] a loyalty program so the whole package needed to be compelling, but it also had to be something we could afford. We give points and we increase rewards incrementally as people buy more. We also disproportionately reward customers for their prescription business, so the discounts grow quicker and become more meaningful with new or refilled prescriptions, versus front-of-the-store purchases. Ultimately, we ll give up to 20% off of virtually everything in the store [once a certain threshold is met]. I can tell you that a 20% everyday discount on the whole store is really the richest reward of any of the loyalty programs out there. emarketer Roundup: Using Big Data to Power Marketing Performance Copyright 2014 emarketer, Inc. All rights reserved. 10

11 How Rite Aid Turns Loyalty Card Data into Dollars (continued) It s a substantial percentage off for us to offer, but when a customer gets to that level, we re getting a very high share of their wallet both in pharmacy and in nonprescription spend. So when they get to that level, we get significantly higher market baskets, greater trip frequency and higher profit. We re investing significantly more on rewards for these customers, and we re making a lower gross margin rate, but in total we re making many more gross dollars. emarketer: How are you able to use the loyalty program data you ve been able to collect through the program? Learish: We ve been able to segment customers based on the number of trips, dollars spent, frequency of visits and the number of categories they re shopping. We can also cluster customers based on trip mission, so we can categorize whether someone is primarily a beauty customer, health customer or convenience customer. That allows us to customize the types of offers we re going to give to these customers. emarketer: Can you say if all of the technological advancements and the work you ve done with loyalty and data gathering paid off financially, or it is just something that s expected and necessary at this point? Learish: We placed a big bet on this program we literally invest hundreds of millions of dollars every year against it and had to generate a pretty big return on this investment. The short answer is we can pay out that investment because of the way we structured the program. The other thing is that the data allows us to be much more accurate. We re much better able to measure the results of our efforts as well, and that ll just continue to improve as we refine our communications over time. We also now have a price-sensitivity model to determine what level of offers or discounting we need to give these customers to be able to motivate behavior change. We know what produces a response and we can very precisely segment the customers we want to reach. This is something we ve started within the past year. We ve been able to segment customers based on the number of trips, dollars spent, frequency of visits and the number of categories they re shopping. emarketer: Are you able to use this new consumer data for third parties or anything that falls outside of the realm of marketing and promotions? Learish: The customer data is actually useful to our suppliers in that they re using it to drive some of their merchandising decisions, which could lead them to a different assortment decision. This is all a lot more work on our side and the supplier side, but it allows for more informed decisions. emarketer Roundup: Using Big Data to Power Marketing Performance Copyright 2014 emarketer, Inc. All rights reserved. 11

12 B2B Perspective: At EMC, Big Data Delivers Rich View of the Customer Mike Foley Director of Data and Insight EMC Mike Foley, director of data and insight at computer data storage company EMC, spoke with emarketer s Rimma Kats on the importance of leveraging Big Data to better target consumers. emarketer: A buzzword that is being used a lot is Big Data. Why do you think that is? Mike Foley: This didn t happen overnight. Twenty years ago, the amount of data you would deal with, and some of the techniques used, were really very time-consuming and much more limited. Since then, there s been a huge explosion in marketing capabilities driven by technology. The ability to store and manage data has just increased in order of magnitude. In fact, in the past two years, I ve seen a huge shift in the ability to store, manage and process data, as well as the ability to run new techniques that you ve never been able to use before. So you get a huge amount of targeting precision and a really rich view of the customer. Bringing in data from disparate sources like mobile apps, online and social and all the legacy data you have in your company and blending it all together, that s going to be the big trend this year. For us, we re not really masters of any particular type of data, like social, manufacturing or sales. There are domain experts in all of those, but for us, it s about assembling the widest and richest perspective of the customer we can get so we can bring data from all sorts of marketing channels and manufacturing. This huge amount of data, and the ability to blend, analyze and execute it in a really precise way that s the fundamental shift I think. emarketer: Do you think that marketers are harnessing the power of data, or are they still not sure how to use it? Foley: Some people are trying to understand it, but it s also a mystical thing to a lot of people. Some people don t trust it, they don t trust machine learning, for example. A lot of people have to let go of their preconceived ideas and move into that space, and for some people that transition has to happen. emarketer: What are some of the trends you re seeing in terms of personalized data? Foley: There are different sources of data, and they aren t all necessarily structured to work together. Bringing in data from disparate sources like mobile apps, online and social which requires text mining and all the legacy data you have in your company and blending it all together, that s going to be the big trend this year. The marketers that master that are going to have a sustainable competitive advantage. When you re bringing in data from different marketing channels or other areas of the company, the challenge is to put all those pieces of the puzzle together into one unified view of the customer. emarketer: What are some challenges that you re facing? Foley: Data is always a challenge. All sources have different types of data and there is no standard anymore. When you re bringing in data from different marketing channels or other areas of the company, the challenge is to put all those pieces of the puzzle together into one unified view of the customer and to be able to go out and market against that. emarketer: What are your digital predictions for 2014? emarketer Roundup: Using Big Data to Power Marketing Performance Copyright 2014 emarketer, Inc. All rights reserved. 12

13 B2B Perspective: At EMC, Big Data Delivers Rich View of the Customer (continued) Foley: There is an awareness now that the lead generation funnel is dead. Instead, the idea is the customer buying journey is continuous, and 70% of the buying decision happens before we re really in touch with the customer in a lead generation way. All of those things feed into this idea of understanding the actual customer buying journey, which involves many people. You can t just look at any one thing in isolation, like what comes in through lead generation or mobile support. If you look at any one of those, you re not getting the full picture. The whole idea is to look at it multidimensionally and be able to talk to a customer with an understanding of all those dimensions in a really relevant way. emarketer Roundup: Using Big Data to Power Marketing Performance Copyright 2014 emarketer, Inc. All rights reserved. 13

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