Does DIGITAL MARKETING mean BIG DATA FOR SMBs?
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1 Does DIGITAL MARKETING mean BIG DATA FOR SMBs? WHITE PAPER Srikant Sharma President and General Manager NorthboundDGS
2 In today s ever-evolving market, we constantly hear about new disruptive trends. Among these is a relatively recent trend that is getting quite a bit of attention Big Data. Digital marketing is certainly providing the Big Data that marketers need. In fact, data is to digital marketing what is to marketing, but interestingly enough, we use the term digital instead of data marketing or analytics marketing. In speaking with many B2B marketers, some are struggling to grasp the difference between digital marketing versus online marketing versus internet marketing. I found the clearest and most succinct description of digital marketing on the SAS website not a surprise since SAS products are always about data. An edited version of the definition follows: In simplistic terms, digital marketing is the promotion of products or brands via one or more forms of electronic media. Digital marketing differs from traditional marketing in that it involves the use of channels and methods that enable an organization to analyze marketing campaigns and understand what is working and what isn t typically in real time. [ ] While the Internet is, perhaps, the channel most closely associated with digital marketing, others include wireless text messaging, mobile instant messaging, mobile apps, podcasts, electronic billboards, digital television and radio channels, etc. BIG DATA IN CONSUMER MARKETING The bottom line is that digital marketing provides the data to allow marketers to analyze a prospect or customer s digital interaction history, customer responses/interactions, customer profiles, and so on. Consumer brands, in particular, have taken a forensic approach to collecting and analyzing data and this has become a tedious task. In order to cope, consumer brands learned some time ago that their organizations required a data analyst in some cases, a team of data analysts to map customer touch points, analyze behavior, build consumer profiles for improved targeting, and determine when and how to engage in order to turn a prospect into a customer. A data analyst is the person who collects the data, analyzes the data in order to understand consumer behavior, channel performance, attribution, click streams, etc., and reports on the data so that the management/executive team can consume it. The analyst is responsible for protecting the organization s data (which is a valuable corporate asset), ensuring the quality of the data, and securing management of the data repositories. The analyst is also responsible for identifying new data trends and recommending new methods/processes to collect and analyze. p1
3 Financial services organizations, big banks, and telecom companies are experts at utilizing Big Data methods and analytics to effectively target and serve their customers. Other industries including real estate, retail, and sports organizations are using Big Data to maximize investments, generate profits, and effectively allocate resources. Big Data helps all of these industries increase operational efficiency and predict trends. Data from Point-of-Sale (POS) systems helps retailers analyze and reduce out-of-stock situations and ensure accurate product selection at stores. BIG DATA IN B2B SMB MARKETING Big Data has emerged as a game-changer for large B2B sales and marketing organizations. Most large companies have not only become proficient at analyzing Big Data but are now seeing results improved competitive positioning, customer experience, and productivity. Big Data offers unmatched opportunities for B2B marketers by helping them get smarter about understanding key audiences and executing intelligent campaigns that are more targeted, relevant, and synchronized across all channels. Surveys indicate that most of the CIOs of B2B SMB companies thought that Big Data was going to be the disruptive trend of In spite of this, many SMBs have neglected Big Data. These organizations have not been able to leverage Big Data because managing large volumes of data is expensive, business intelligence software is not easy to use, and managing the data requires analysts to understand the underlying causes of the output. For those reasons, I firmly believe that Big Data has a different definition in the SMB space. For example, it can be data derived from: Google Adwords, Google Analytics, HubSpot, Salesforce software applications that these organizations use and that, for the most part, do not require an analyst to manage. Cloud-based, lightweight business intelligence (BI) software tools like CRM analytics, financial analytics, or supply chain analytics. The array of affordable and easily-accessible platforms and programs such as Zoho, Nimble, Insightly, etc. that track interactions with customers and prospects in a comprehensible and cost-effective manner. p2
4 Social Media also serves as a cost-effective way for SMBs to collect and analyze data. With tools such as Social Mention, Kurrently, and Twilert, you can set-up alerts and notifications about what people are saying about your organization. You can then use this data to develop custom conversations to help create brand buzz and improve customer engagement. Another cost-effective way to capture valuable data is monitoring and mining customer calls. Even as an SMB, you only need a VoIP system with mobile capabilities. The customer call data helps an organization identify caller demographics, common issues across the customer base, etc., so you can analyze inbound calling trends and optimize customer service using strategic call routing. With these alternatives to Big Dollar + Big Data solutions, SMB organizations can be Big Data Ready in their own way. WHAT TO COUNT AND MEASURE Data, in any form, can be overwhelming. So how do B2B SMB organizations know what to count and measure? There is a saying that goes something like this: It is important to keep this quote in mind if you are a marketer/analyst for a B2B SMB organization. Here are some suggestions on how to determine what to count and measure if you are initiating data collection for the first time: Collaborate with colleagues, vendors, and analysts to develop an initial list of three things to count. Collect the data to analyze and count these three things. You are starting small, but bear in mind that you will expand what you count later. What is most interesting about having data is that, once analyzed, there is a tendency to want more data to analyze. This can result in analysis paralysis, so be careful not to get caught in this trap early on. Remember that you must be prepared to change what counts over time. Present your initial findings to colleagues and the management/executive team. Do not give them data, but instead give them information. Stay focused on the three things and do not present too much information or too many trends. Get management feedback and suggestions for what else to count. Not everything that can be counted counts. Not everything that counts can be counted. p3
5 Incorporate their feedback and expand the count to include one to three additional new data points and refine what you initially counted. Expand and evolve. Initially, you want to go slow and get the small number of things you count right rather than taking a giant leap and getting the data and analysis wrong. If that happens, you can lose all credibility with the management team, which will make it difficult for them to trust your analysis in the future. Utilize Big Data in small portions, analyze the results, master the process, and then move ahead. CONCLUSION Big Data no longer holds relevance only for B2C or large B2B companies. As a marketer in a B2B SMB organization, you can do small things with Big Data. Regardless of what you do, you need to start now to remain competitive. Whether you hire in-house or engage a third party agency to help you manage and analyze what is important to your organization, consider doing that sooner rather than later. And while you may have to make some investments, bear in mind that the outcome of Big Data analysis will help you better target your marketing efforts and optimize your budget and resources. Srikant Sharma is President and General Manager at NorthboundDGS, a revenue marketing firm headquartered in Silicon Valley. His areas of expertise include business strategy and execution, sales, and marketing. With two decades of experience in financial services, engineering and manufacturing, and enterprise software, Srikant is responsible for guiding Northbound s customers and targeting their prospects via a solution-selling approach. Srikant s previous roles include running the Americas Strategic Sales & Marketing organization at OpenText, heading the Global Marketing team for the financial services vertical at Interwoven (Autonomy), and Founder and CEO at SOLVOS Corporation. Srikant s educational background includes a Bachelor of Technology from the Indian Institute of Technology, Bombay, and an MBA from Cornell University. NorthboundDGS is a specialized revenue marketing firm we help our clients drive incremental market demand, meaning more leads, better-qualified sales opportunities, and net new revenue. With our services, our clients acquire new customers, extend their market share, and strengthen their brand. Our engagements are customized to each client s needs and are typically designed to supplement internal teams with extra marketing horsepower, broaden inside sales execution bandwidth, and strategically support long-term objectives while delivering immediate tactical benefits. We have a 15-year track record of routinely exceeding our clients quality expectations. Founded in 1998, Northbound is based in Sunnyvale, California. We are a team of highly-experienced B2B and B2C marketing professionals with specific expertise in digital marketing, demand creation, data generation and clean-up, and sales appointment setting. That s why global companies like Sony, Adobe, and PayPal trust NorthboundDGS for their demand generation activities. p4
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