Data-Driven Marketing for Next-Generation Citizen Engagement 1
Putting Citizens First Understanding how Data-Driven Strategies Propel Next-Generation Citizen Engagement executives are struggling with so many questions. What do citizens seek when they interact with us? What programs will help citizens most? What is their current situation? What is the most efficient, effective way to help each one of our key constituents? Which channels deliver the best return on our investment? How can we use social media to better engage citizens? And the most dynamic institutions already know where to find the answers In their data. The American Red Cross, for example, is leveraging analytics to integrate data from multiple sources to better understand each donor s experience. This effort will aid the Red Cross mission of delivering help and hope, including a better experience when a donor turns compassion into action with donations of time, money, and blood. And Michigan has been able to improve foster care for children, through better matching of key information on both the children and potential foster parents. Using data-driven analytics, this program has improved children s lives by reducing the number of times they must move to different homes. By accurately measuring the effectiveness of citizen interactions, government can bring greater legitimacy and accountability to key programs and services. Utilizing data-driven analytic tools and techniques, government can effectively measure the impact of programs, inform future decisions, improve interactions with citizens and streamline operational processes. Just as customers expect personalized service from suppliers, those same citizens now expect more, in terms of responsive service and support, from the government institutions put in place to serve them. Indeed, organizations that do not provide meaningful outreach are at risk for an onslaught of negative feedback that could do more than merely tarnish reputations. Instead, agencies are starting to realize that engaging with citizens can help improve effectiveness. By leveraging advanced analytics, government can drive personalized, timely, relevant, outcome-based interactions. As they work to optimize services and better qualify citizens to ensure key services are delivered to those who most need them, agencies are finding that meaningful citizen engagement translates to lower costs and greater operational efficiencies. These are goals that budget-strapped public sector organizations cannot afford to ignore. International Data Corp. (IDC) predicts the drive for heightened citizen engagement will be strong enough to compel organizations to experiment with the personal behavior data amassed so far to gain greater insights, according to a forthcoming report, IDC Big Data 2014 Top 10 Predictions. Clearly, the data exists. Without sharing Personally Identifiable Information (PII), citizens leave a fairly precise digital footprint, which outlines their interests, needs and preferences. All of this information can be used to help optimize and personalize interactions. What government executives choose to do with this information is what matters most. Gone are the days of decision making by intuition, being replaced by datadriven decisions. As government struggles with how to efficiently streamline operations while simultaneously improving constituent services, it is evident that executives must learn to leverage data analytics to transform citizen engagement. Enter the age of data-driven strategies using data analytics to help citizens by better understanding individual needs, including when and how to deliver services based on individual needs or preferences. By integrating behavioral analytics and contextual information agencies can deliver optimized, real-time citizen interactions. With time, government can continually learn from prior interactions and effectively grow smarter. Unlike private sector businesses that have broadly embraced data-driven marketing to increase customer response rates and generate greater brand loyalty, government executives have barely cracked the surface of what their data can do to help improve citizen engagement. 2
Increasingly, government officials realize they can no longer afford to be content with trailing the commercial world when it comes to information technology. Federal/ Central, state/regional, and local governments must be expected to provide more effective personalized services to citizens. Those citizens are also consumers who readily expect more from private and public sector organizations. Using data analytics, agencies can do more to better detect fraud, improve citizen interactions and streamline processes to help reduce costs. With this insight, and the solutions used by commercial companies, government can drive outreach and communications with data-driven marketing. can help ensure a consistent experience across channels while decreasing the burden on call centers. They can proactively meet citizen expectations with personalized and timely communications. They can even identify specific constituent segments and develop targeted outreach campaigns. What many executives may not currently realize is that while they are not marketing in a traditional sense, there are concepts and tools from the science of marketing that when leveraged by government can dramatically transform citizen engagement. Exploiting Data-Driven Insights Data-driven marketing is the combination of collecting and connecting large amounts of online data with traditional offline data and rapidly analyzing and gaining cross-channel insights about the citizens you serve. The resultant insight is then brought to use in a highly personalized outreach campaign that is tailored to each constituent at their individual point of need. In other words, it is about moving away from traditional citizen transactions to more engaging citizen interactions or getting the right information to the right person, using the best possible channel, when its needed most. Next-Generation, Data-Driven Citizen Engagement ANALYZE & DISCOVER EXECUTE & DELIVER affinity conversion path delivery INTEGRATE & UNDERSTAND enrollment response in person website mobile EXPLORE social citizen behavior attribution $ spend process segmentation ENGAGE? decision offer ACT & OPTIMIZE compliance preference governance Figure 1. Driving Insight Into Action 3
In the commercial world, before marketing moved online, private sector organizations were limited in their ability to analyze customers. They relied on transactional data, such as purchase history or life events. Once these companies built an online presence, they gathered research on cart abandonment statistics to create more compelling conversations with customers. Now, thanks to the explosion of data available on customer interactions from multiple channels, marketers gain broad insights from browsing behavior, social reach and even display ad response rates, to help inform a stronger, deeper, more anticipatory consumer relationship. In the public sector, the unique preferences of individual citizens clearly exist within the data government collects today. The trouble is that these agencies typically have multiple disconnected channels of engagement, which are further complicated by disconnected programs and information siloes. The challenge for most government decision makers is how best to extract and understand citizen preferences and target outreach campaigns to make a bigger difference to the citizens served. As always, government may also use data-driven strategies to help streamline agency processes and lower costs, while simultaneously striving to better meet the needs of citizens. Ultimately, the goal government should strive for is nextgeneration citizen engagement, which uses data-driven outreach to deliver outcome-based results. Driven by the expectations of citizens to gain experiences similar to what they receive from commercial businesses today, government agencies must find a way to engage citizens, with relevant, personalized services and communications, when and where they want it (see Figure 1). Luckily, with its deep base of un-mined, unleveraged data, government may even be able to eclipse what is being done by business to engage consumers. Using data analytics, agencies can improve the lives of citizens, by better understanding individual needs, as well as when and how to deliver services based on citizen needs and preferences. Citizen Engagement Roadblocks Adopting data-driven marketing strategies is undoubtedly a substantial undertaking. Executives need a clear picture of citizen needs, not the siloed, disjointed, or programby-program view that currently exists inside many government organizations. However, this is not what agencies, and more importantly, citizens typically encounter. Citizens usually engage with government when they need something. Perhaps they are reaching out for information about recreational activities to help plan for a long overdue vacation. Or, at the other end of the spectrum, they are seeking immediate assistance after a life-altering event. Imagine what may be happening when a family s sole bread-winner loses his or her job and they have no savings, no severance and three children to feed? Already in distress, this citizen may still face an onerous task in reaching out for government information on assistance. Confusing, generic information will not help, at a time when the citizen needs help most. While it would be nice to gain a personalized experience when shopping for a vacation, it is absolutely critical to gain personalized help when seeking assistance following a job loss. Agency Challenges As it stands, most government executives cite the following challenges in fully utilizing data from citizen interactions: ~ ~ Our daily operations, citizen interactions, and demographic data is collected, stored, and analyzed in isolation, preventing us from garnering a clear, 360-degree view of each citizen. ~ ~ The data collected comes in from different regions, in different formats, and exists in varying levels of quality. ~ ~ Our outreach processes are delayed because data insights take too long to identify. ~ ~ It is difficult to connect the dots from the insights collected, to our planning efforts, along with the costs and spending processes that are part of each of our outreach programs. Where in the past, government executives may have relied on intuitive hunches to help create valuable programs, agencies are increasingly finding these efforts no longer meet the needs of citizens, or those of internal agency officials who must justify the cost of such outreach investments. 4
Instead, in most government interactions today, citizens face a dizzying array of online, print or emailed information that is simply not pertinent to them. They tend to get stuck on web sites that require them to ferret out what they need or fill out a required government form to complete a transaction. And this occurs no matter whether citizens are trying to apply to renew a passport online or if they are desperate to learn whether they qualify to gain disaster relief funding in the aftermath of an emergency. While citizens fully expect to gain needed services, at the right time, using whatever channel they prefer, they are often met in government interactions with websites or other programs that are still primarily one size fits all. Take, for example, one citizen s online request for information on a Chamber of Commerce website. This request elicits not only a digital response, but also a costly four-color paper brochure mailed to each citizen who interacts with the Chamber. By personalizing the experience slightly, Chamber of Commerce executives could identify the citizens who are legitimately seeking to open a business within the Chamber s jurisdiction, rather than those who are just browsing. This way, the Chamber could respond accordingly, sending the right materials to the citizens with business plans making this outreach program more cost efficient for taxpayers. As one of the world s largest data producers, government has an amazing opportunity to do more to engage with citizens. Right now, the information exists that would help an agency get the right services to the right citizens, at the right time, in the best possible format, using the citizen s most favored method of interaction. The insights needed most may be hidden in stove-piped systems and artificially separated agency processes that exist across government today. If those data assets could somehow be brought together, all levels of government would be able to transform citizen engagement, in fundamentally significant ways. Turning to Big Data Insights To overcome the challenges, government is turning to integrated data, combined with advanced analytics and brought to life using tools that operationalize those insights. Indeed, the cost of not leveraging data to inform government programs is high. Citizens now expect to be in control when they interact with businesses in purchasing goods and services, using seamless, relevant and personalized interactions, no matter where or when they choose to engage. This is likely why a prominent analyst firm estimates that by 2017, marketing executives in the private sector will spend more on technology than CIOs. Separately, a leading industry publisher estimates commercial marketing executives will spend 60% more on analytics solutions in the next three years. At the same time, the cost advantages of implementing data-driven marketing are measurable. A recent study conducted by Telecom Advisory Services LLC, an integrated technology solution, recognized the following benefits: ~ ~ A 20% reduction in acquisition and implementation cost ~ ~ A 43% reduction in operating costs ~ ~ A 39% reduction in maintenance costs The research is clear. executives who fail to adopt data-driven strategies will suffer in effectively meeting constituent needs and will also be unable to efficiently manage costs associated with mission-critical citizen-centered services in the future. At Teradata, we truly believe government can effectively transform citizen engagement, delivering highly personalized experiences, when citizens need them most. It is entirely possible that government could rival, if not exceed results achieved by commercial businesses, simply by leveraging data-driven citizen engagement. Teradata Knows Big Data When you are ready to leverage the full impact of datadriven marketing strategies, Teradata can support you with a solution that delivers a unified 360-degree view of each citizen, along with advanced analytics and comprehensive Integrated Outreach Management. Our industry leading, integrated, citizen engagement solution consists of: ~ ~ Data Warehousing Integrated and shared data environments to help you manage agency operations and deliver strategic analytics to your extended organization. ~ ~ Analytics Rapid discovery analytics, which are fully accessible by internal agency analysts, to unlock big data insights through iterative exploration using a variety of analytic techniques to find the golden path to help understand each citizen s multi-channel journey. 5
~ ~ Operational Automation Automation tools to connect your ongoing campaign results with internal planning, production management and agency expenses. This enables you to improve processes, direct budget dollars to the channels that perform best, and effectively boost your return on investment (ROI). ~ ~ Campaign Management Management techniques to drive citizen interaction and satisfaction from a marketing machine fed with critical citizen data. You gain the ability to provide a consistent citizen experience across both online and traditional channels, including inbound and outbound communications. This solution also enables you to offer services in real-time, to substantially improve interactivity and ultimately, citizen engagement. ~ ~ Performance Management A performance dashboard to close the loop and justify your investment in data-driven marketing strategies by tying your results to internal investments. Use advanced reporting to uncover insights into citizen behavior that can power subsequent agency programs and services. ~ ~ Professional Services Best practice advice from Teradata experts who have completed 30+ years of successful implementations, including proven data models and vetted processes. Teradata can bring the skilled professionals you need to help you build a fully integrated data-driven citizen engagement implementation, one that leverages already existing technical resources. With the right technologies, a citizen-centered vision, top management buy-in, and a data-driven strategy that utilizes seasoned expertise, your efforts will unlock new and better ways to engage with key constituencies, as you work within budgetary restrictions to better meet individual needs. Put Your Data to Work is most effective when it puts data to work for the betterment of its citizenry. In the end, the concept of next-generation citizen engagement feeds effective governance, locally, regionally and nationally. Teradata already works closely with the largest and most innovative private and public sector organizations to help them gain an integrated view of their operations and make smarter decisions. We are uniquely positioned to deliver a complete solution combining award-winning technology with world-class expertise and proven processes derived from thousands of successful customers. Data is our business. We have the most robust data-driven solutions available, via our Unified Data Architecture, Big Data Discovery Platform, and broad Integrated Marketing Management products. Through a detailed understanding of citizen behaviors, Teradata s solutions can help you gain more effective program results, better serve citizens and improve your agency s overall citizen experience by increasing the significance, relevance, and timeliness of those interactions. For More Information For more information about how data-driven marketing strategies can help strengthen your most crucial citizencentered mission goals, please take advantage of the following additional resources to help you: 1. Read about how agencies can use outcome based analytics to improve citizen engagement at Teradata.com/brochures/Adopting-a-New-Mantra- Protect-Serve-and-Engage-Citizens/. 2. Learn how the American Red Cross is using Teradata at Teradata.com/videos/American-Red-Cross-Doing- More-with-Data-to-Offer-Help-and-Hope/. 3. Visit us at Teradata.com/gov, and follow us on Twitter at #citengage. 10000 Innovation Drive Dayton, OH 45342 teradata.com Teradata and the Teradata logo are registered trademarks of Teradata Corporation and/or its affiliates in the U.S. and worldwide. Teradata continually improves products as new technologies and components become available. Teradata, therefore, reserves the right to change specifications without prior notice. All features, functions, and operations described herein may not be marketed in all parts of the world. Consult your Teradata representative or Teradata.com for more information. Copyright 2014 by Teradata Corporation All Rights Reserved. Produced in U.S.A.