BEST PRACTICES IN MARKETING DATA GOVERNANCE

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1 BEST PRACTICES IN MARKETING DATA GOVERNANCE CMA Customer Insights & Analytics Council Paul Tyndall Council Chair and Director, Client Knowledge & Insights RBC Royal Bank Alexis Zamkow General Manager Data and Targeting Solutions Canada Post INTEGRATION 2013

2 DATA SOURCES ARE EXPANDING And Aggregated insights Targeted messaging And Digital sources

3 DATA SOURCES ARE EXPANDING And Anonymous data And Internal data External data

4 REGULATIONS ARE EVER CHANGING PIPEDA CASL/Anti-Spam Opt-in/Opt out CRTC Do Not Call Competition Bureau consumer protection

5 CONSUMER CONCERNS ARE RISING receiving a benefit for sharing personal information down from 78 to 74% feeling companies use personal information to provide better service down from 52% to 48% giving more personal information in exchange for relevant offers down from 67 to 63% 74% refuse to provide financial data Source: LoyaltyOne 2012 study

6 MARKETING PERFORMANCE IS TIED TO DATA How dependent on consumer data is your company s marketing efforts and performance? Somewhat dependent Very dependent 89% of panelists say their company s marketing efforts and performance rely on consumer data Not at all dependent Not very dependent

7 AND ITS INFLUENCE IS GROWING How much positive value does data-driven marketing drive to your company? In the Future Today While 66% of panelists say data drives positive value to their company today, 93% predict data will have this influence in the future Percentage of panelists who say a great deal

8 ASK YOURSELF THESE QUESTIONS Who is responsible for the integrity of data collected by marketing? How are you ensuring that new data sources are being captured with rights management in mind? How are you creating new data elements in a way that is repeatable and extendable across the organization? What is the level of sensitivity of each element and the ramifications if it is no longer available or credible? Who is responsible to partners when their data is engaged and used or mis-used?

9 MARKETERS NEED TO ADDRESS BOTH SIDES Major Structural Issues QUALITY TIMELINESS ACCURACY VALIDITY Major Policy Issues PRIVACY ACCESS INTERPRETATION LEGAL Marketing Data Governance

10 MARKETING GOVERNANCE: A GROWING REQUIREMENT How much would your organization benefit from more sophisticated policies with respect to data governance? Benefit some Benefit a great deal 79% of panelists say their business would benefit from better data governance Would not benefit at all Would not benefit much

11 FEW HAVE INSTITUTED A STRATEGIC APPROACH Marketing data governance has been identified as a priority for my organization. Strongly agree Somewhat agree Fewer than onethird of panelists strongly agree that marketing data governance has been identified as a priority by their company Percentage of panelists who agree

12 TODAY, MOST CORPORATE DATA POLICIES FOCUS ALMOST EXCLUSIVELY ON PRIVACY AND SECURITY I don t think [at the corporate level] they think too much about data governance. There are privacy and protection protocols, but I don t think there s a universal approach to data. Major Insurance Marketer

13 Let s look at the Canadian Perspective

14 FOR SMALLER COMPANIES Most cite PIPEDA, PCI compliance and their own employee confidentiality agreements as their governing policies Biggest challenge observed getting someone to take ownership

15 FOR LARGER COMPANIES Biggest challenges are showing a cost benefit and establishing clear ownership Areas for improvement include: accountability in job descriptions; enterprise education; and senior management endorsement

16 ALL COMPANIES INDICATED THEY FACE CHALLENGES IN DATA GOVERNANCE With common concerns: fragmented data from legacy systems and multiple domains the constantly changing risks to customer data controlling data threats outside the organization securing the endorsement of senior management

17 HOW DO I GET STARTED?

18 WHO IS ON YOUR GOVERNANCE TEAM? Privacy and/or Policy Legal / Regulatory Business Intelligence Product Management Distribution / Channel Management Enterprise Data Architecture / Governance

19 THE TEAM S MANDATE Oversee the management of the marketing data which will be collected, organized and analyzed to drive business performance Ensure that there is one trusted and consistent version and appropriate policies and procedures to safeguard the distribution and usage of this data

20 WHAT DOES YOUR MARKETING DATA STEWARD DO? Data Maintenance Data Protection Data Knowledge IT / Governance Liaison

21 THE FIRST STEP: FIGURE OUT THE DATA LANDSCAPE Define the key data elements used by marketing and for whom they are the source Outline usage restrictions for each data element within marketing and enterprise use Collect and understand any policy or privacy standards related to the use of internal or external data Collect and classify all legal documentation currently available for the exchange of data with third partiers

22 SECOND STEP: POLICIES AND PROCEDURES Create a dissemination approach for existing and new data element definitions Define user rules for data, and template for evaluation Define a process for data issues or privacy breaches Ensure policy and privacy compliance for all data elements, both at source and transformed Define the legal and privacy rules with external data partners

23 BUT GOVERNANCE CAN START IN MANY PLACES

24 WHO IS DOING THIS TODAY? Governance Function Data Stewards IT and Business 33% IT 16% IT and Business 28% IT 11% Business 51% Business 61%

25 CASE STUDY CTC IT LEAD INITIATIVE Governance originated with IT function, but extended early on to business Focused on key benefit areas to show success Key aspects include data definition, quality, integration, security and compliance Benefits include reduce duplication of effort, inconsistent or incorrect results

26 CASE STUDY CPC PRODUCT LED SOLUTION New data products launched leveraging operational, third-party and transformed data assets Team of Legal, Privacy, Technology and Product Documentation of all sources, transformations, access rules, use cases and destruction req mts Governance Council reviews of all sources, partnerships and primary transformations Expanding to Marketing and Enterprise

27 CASE STUDY MAJOR INCIDENT STIMULUS Major US Bank experienced a data breach, with no governance function in place Privacy and security wanted to restrict data collection Marketing established a governance function with privacy, security, product and technology leads All data collection plans are vetted in advance and prescreened for approval before implementation Marketing continues to own and collect data, with the support of the organization

28 THE ROADMAP Embrace the need Assemble the team Define your steward Understand the landscape Create your rules Communicate organizationally

29 Your thoughts on Data Governance?

30 QUESTIONS

31 CONTACT INFORMATION Paul Tyndall Chair, CMA Customer Insights & Analytics Council Director, Client Knowledge & Insights RBC Royal Bank Alexis Zamkow Member, CMA Customer Insights & Analytics Council General Manager, Data and Targeting Solutions Canada Post