Archive for the ‘Marketing’ Category

Database and digital marketing: two sides of the same coin?

Friday, July 9th, 2010

Earlier in the year I commented on a series of posts on the excellent Customer Experience Matrix blog maintained by marketing technology analyst and consultant David Raab, comparing and contrasting database and digital marketing. I’ve been meaning to highlight the posts here for a while as I think they’re thought provoking and important to the future of these two disciplines, and I’ve finally got around to it. If I’m being honest, I’m not sure (as I make clear in my comment) what the answer is here, and there’s a good deal of evolution yet to come. Still, David’s posts make interesting reading which I wanted to share.

In Unica and Alterian Lead Database Marketers to the Digital Promised Land, David reports on a recent Unica acquisition and a survey released by Alterian, making the observation that longer-standing database marketing vendors “have failed to adapt to the new world of digital marketing”. Although David contends that this doesn’t apply to Unica and Alterian, he cites a statistic from Alterian’s study that 61% of marketers do not integrate Web analytics with other customer data, to support his overall position. “Marketers are eagerly moving from classic direct marketing to digitalÂ…but still lack the skills and resources to do it effectively,” he says.

David’s follow-up post, Can Database Marketers Learn Digital Tricks? goes into more detail. He comments on the relative measurability of the two disciplines, particularly concerning “addressable individuals” and the greater comfort that database marketing has in working with existing, well-known customers rather than prospects about which less information is available. Finally, in Clarifying the Differences Between Database and Digital Marketing, David outlines a detailed comparison of key aspects of both database and digital marketing, highlighting common characteristics and key differences.

“There’s no reason the same organization or individual can’t master both database and digital marketing,” David concludes, but “it will take conscious effort to address the differences and fill the gaps that they imply.” A crucial topic that necessitates further discussion…

Gartner CRM Summit and the IDM Annual Lecture

Monday, March 19th, 2007

A quick entry to mention a couple of recent events: the closing keynote at the Gartner CRM Summit, featuring Patrick Barwise from the London Business School and the IDM Annual Lecture delivered by Kevin Roberts, CEO Worldwide of Saatchi & Saatchi. Patrick Barwise’ basic premise revolved around his assertion of the twin myths that achieving uniqueness must be the ultimate objective for every company and that getting the basics right is simply a go-to-market “table stake”. Volvo, for instance, is a highly differentiated brand – everyone know what it stands for – but is in fact worth one tenth that of Toyota. Equally, Tesco and Proctor and Gamble demonstrate a focus on customer and insight basics, to great effect. Service quality, then, is not a commodity but drives brand value. How does this relate to insight? Companies need to understand their customers and give them what they value (which is usually simplicity and follow-through). We should search for customer insight that matters and learn about customers from as many sources as possible, including analysis, research, operations and partners. However, insight that doesn’t lead to improvement, says Barwise, achieves nothing.

At the IDM Lecture, Roberts’ “The Lovemarks Effect” address suggested that brands’ future success depends on the emotional connections made with customers. Winning attention, we were told, is not enough; brands need to attract consumers, creating an “Attraction Economy” in which the consumer is in control. The question is whether you can be successful without having to juggle many other balls as well. Enter “Lovemarks”, where your offering is loved rather than liked and irresistible is better than irreplaceable – loyalty beyond reason being the objective. Although a highly amusing and impactful presentation from a larger than life character, I was left wondering exactly how I should be achieving this utopia (along with Roberts’ exhortation to the industry to exorcise the term “junk mail”)? The presentation was also packed with 60 second ad spots – again, very amusing, but aren’t these the interruption marketing from which we’re supposed to be getting away?! I suppose all the answers would be offered in exchange for a hansom Saatchi & Saatchi fee! Nonetheless, his notions of relevance, engagement and interaction are key concepts for direct marketing, in which an integrated marketing insight approach plays a key role.