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Who is Fran anyway?

For those of us who have worked in marketing analytics for a while, reports of the Federal Conservative's voter segmentation scheme at first seems like pretty standard practice. They use geodemographic data to understand the various voter constituencies, and they are using that knowledge to identify their best prospects and target swing votes.

However, on second glance, this doesn't seem at all like what my bank is doing to determine that I'd be a good candidate for a line of credit.

Apparently, the Conservatives are not just getting their data from third party sources (like the Census) and information volunteered by their supporters (e.g. party registrations and voluntary surveys). Acccording to a recent report in the Globe and Mail, the Tories have enlisted our neighbours to spy on us; apparently they ask sports team coaches, community activists, and party faithful, to report information on voters to the party's data collectors . They call this FRAN: Friends, Relatives, Acquaintances and Neighbours. This data includes such things as number of children, ethnicity/relegion, political leanings, and education level.

I believe this is very different information than that voluntarily supplied to organizations through the course of a business transaction. We can chose to do business with a company and chose what information to supply - not so when it is being reported by our 'friends". Private sector companies are also legally obligated to allow us to opt-out of the use of that information. Apparently, however, PIPEDA legislation does not apply to political parties - only to businesses.

What is perhaps most worrying is who is doing this. This is the government of the day, and they are collecting personal information on our relegious and political views. Consider this description of the Stalin era in Russia: "The secret police actively encouraged people to inform on neighbours, work mates etc." Personally, I think it sounds a little too familiar.

I think Toronto lawyer Ben Arkin would agree - he received a Rosh Hashanah card from Mr. Harper whom he has never met. Governments tagging you by your religion is a very slippery slope.


P.S. We are having an election in Canada too, for our US readers.

It ain't easy being green

As a follow-up to my post a few weeks back about Direct Mail and the Environment, I thought I'd point out a few recent facts from the DMA (Direct Marketing Association in the US):

- Direct mail accounts for only 2.4 percent of the total municipal solid waste generated in the U.S. annually. {I still think that number is higher than it could be, but not as high as many would have us believe}

- 55 percent of all paper consumed in the U.S. was recovered for recycling in 2007. {Anyone got the number for Canada?}

- By replacing just two shopping trips to the mall each year by buying at home through a catalog, Americans can eliminate 3.3 billion driving miles, reduce emissions by 3 billion pounds, and save
more than $490 million on gas costs. {I knew there was a reason I try to avoid malls and shop where my feet or PC can take me!}

- In 2007, direct marketing accounted for 10.2 percent of total U.S. gross domestic product.
About 10.6 million American jobs depend on direct marketing. {This is a huge industry folks}

For more from the DMA, follow this link:
http://www.the-dma.org/environment/

Knowing your segment

I don't write about customer experience as a rule. As an advocate of leveraging your knowledge about the customer to market smarter, however, I am excited about my recent trips on Porter Airlines.

Porter knows their target market - very well. And they know how to create a value proposition and customer experience that tailors to this market.

The convenient, though controversial, Toronto island airport has long been a favourite of frequent fliers to Montreal and Ottawa; however, Porter does more than leverage its proximity to the downtown core. With their predecessor on the island, one felt that convenience came with the price of sacrificed reliability and the occasional white-knuckled landing. Porter can do little to contend with high winds and small planes but somehow you notice less.

From start to finish, everything about the customer experience makes you feel you are an "important business traveller". The revamped terminals (on both sides of the channel) are clean and efficient and cleverly designed so that you barely notice you are on a ferry and never have to step outside. Check-in and security are also incredibly quick and efficient.

Once beyond the security gates, you are treated to a relaxing lounge complete with a variety of coffee choices (enough to make you look around for the barista), bottled water (Porter logos of course), soft drinks and cookies - all free for the taking. The wi-fi and the morning papers are also complementary. I actually found myself hurrying to get to the airport early for my second trip - just to use the lounge!

On board the plane, friendly staff serve you coffee (in china not plastic) and a small meal (remember those days on Air Canada?) And after a long meeting, many business travellers appreciate a free glass of wine or beer - I know I did!

For me the time alone was worth any price. Last week, I left my home in the Beach at 6:15 am and was in a meeting in Montreal by 9. That just cannot be done from Pearson. As an added benefit, I also arrived relaxed and refreshed without the harried look that usually accompanies an early morning flight.

Frequent flier miles are nice but for many travellers the so-called loyalty programs are doing little to instill loyalty. Cumbersome redemptions and the costs associated with them make the benefits less tangible - especially for those who don't travel quite frequently enough to make the top tiers.

After my first trip to Montreal, I was hooked. I am willing to forgo my beloved Aeroplan miles and pay a little more (surprisingly little, if at all, on some routes). In fact, after I factored in the cab fare savings, my flights were cheaper than the flights on the two competitive brands.

Does this level of experience pay off? I expect it does. I, for one, have already repurchased (and am seriously considering buying a flight pass) and have spread the word to countless others (my clients are getting quite sick of the happy grin and the pro-Porter commentary that dominate the first half of our meetings!) I suspect their Net Promoter Scores would be through the roof if they are measured. As more converts jump on board, I suspect Porter will raise prices to pay for the superiour experience and I doubt many of us would notice.

Cleaning up for Earth Hour

As the countdown to Earth Hour begins today, my thoughts have turned to the impact on the environment of the work we do. I am not crazy enough to tell you that marketing (especially direct mail) is a positive environmental force - I don't think much of industry today can claim that. But I do think that my colleagues and I are reducing the impact, albeit in a small way.

By focusing on customer data, companies can dramatically change the environmental impact of their direct mail initiatives. Specifically,

1) By building a complete view of the customer (linking disparate databases), companies can reduce duplicate mailings and control the flow of communication to their customers.
2) Using analysis techniques such as predictive modelling and segmentation, communications can be targeted maximizing the impact of every piece of mail. This ensures that only those most likely to respond will receive a piece of direct mail.
3) By cleaning up databases, and fixing addresses, undeliverable mail can be reduced.
4) By enabling opt-outs - and specification of contact preferences - companies ensure that those who do not want to receive mail do not get it.
5) By merge-purging external lists against one another and internal files, targeting of the same prospect multiple times can be avoided.

My response for years when asked "Oh, so you are responsible for all this direct mail I get" has been "No, I am responsible for all the direct mail you DON'T get". I have a feeling I might be asked that more and more in the coming years!

For more on this read the Aberdeen Group's report:
Green Marketing: Leveraging Customer Data to Reduce Direct Mail Waste by Aberdeen Group
at http://www.aberdeen.com/includes/asp/sponsored_registration.asp?ci=/launch/report/benchmark/4635-RA-green-marketing-waste.asp&spid=

Show me what's on your laptop

Do you travel to the US on business? Do you take your laptop or PDA with you? Some recent incidents have made me sit up and take notice.

Apparently the US Customs have claimed the right to seize and copy information travelers carry into the United States. In the name of national security, they are asserting the right over private information contained on personal and corporate laptops. Apparently no cause is necessary for them to target travelers – any of us could be selected at random.

Examples recently reported in the Washington Post include laptops being seized - not returned for days or months - and their contents being copied. Although, I’d hate to be without my laptop for any length of time, it’s the copying is what worries me the most. What happens to the data that has been seized? Where is it kept? For how long? How is it destroyed?

As a consultant, I have confidential information on my electronic devices. I have proprietary business information about my client’s businesses and in some cases I have information about their clients. I am also required by my clients to sign legal documents and comply with their privacy policies. These policies include committing that I will not share the information they provide to me with anyone. If I knowingly travel with this information on my hard drive, am I contravening these agreements?

I heard recently of one law firm who requires that their professionals to travel only with “blank laptops”. All information is wiped from their laptop hard drives before they cross the border. When they reach their destination, the information they require is downloaded from the Internet. Despite safety concerns about the Internet, they feel the risk is worth it.

There are a number of lawsuits currently in progress and action groups attempting to force clarity on this policy. But for now, I am going to think long and hard about what I take over the border.

Ever see Brittany Spears and Math Geek in the same sentence?

I heard a great speaker today (Alex Filimon from Dalhousie University) talking about some of the issues we face in Canada; he pointed out that 62% of new jobs over the next few years will require math but only 5% of degrees awarded in Canada are for Math, Computer Science or IT. And the picture would be even worse if you remove foreign students (who often intend to take their degrees home to China or India) from the mix.

Math is still viewed as a geeky non-sexy subject when put alongside Marketing, Finance or Medicine. This is a huge disconnect when you consider that "analytics" is becoming a hot business buzzword ....check out new bestsellers in the business market like "Competing on Analytics" and "Super Crunchers"

We must be doing something wrong.....we need to work to engage students at all levels to understand the relevance and importance of math. I still hear far too many students say "What am I ever going to use this for?" Teachers need to present math in an engaging way; cirriculums need to provide practical math not simply theories and formula; and those of us who work in this field must promote what math has done for them and their business careers.

If we don't get more students engaged in math, we are going to fall behind.

To reinforce the point, my new favourite quote:

“In China today, Bill Gates is Britney Spears. In America today, Britney Spears is Britney Spear s- and that’s our problem.” Jerry Yang, Co-founder Yahoo