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

Priceless PR?

Last week, MasterCard Canada announced that it will donate $160,000 to the City of Toronto to be used to operate the city’s 49 outdoor rinks in the month of December (earlier the city had announced that it couldn't afford to open the outdoor rinks until January). Good for them!

And while MasterCard says that it is not looking for reciprocation from the city in terms of signage or sponsorship, it will reap many other marketing benefits.

I’ve written before about the benefit and need to make all marketing spending accountable and PR is no different. Public relations campaigns can, and should, be measured like any other marketing initiative. Their cost needs to be compared to the benefit you achieve. It is not enough to pat yourself on the back for getting the company in the paper but you need to take a hard look at what the benefit was.

Start by considering the coverage they've received....front page news, radio and TV coverage. One way to measuring the value of this would be to consider what similar coverage would cost for an advertising campaign. My guess is considerably more than $160,000.

Awareness and attitude changes -Change in awareness (aided and unaided) and attitude towards MasterCard. All of the articles I saw focused on the positive – how MasterCard was helping kids get out and skate (contributing to the fitness levels of our youth) and how there were no strings attached (no signage at the rinks etc.) - so my guess is there will be a postive impression created for the public.

Of course, for most organizations the rubber hits the road not with increased awareness but with actual sales. I am sure MasterCard will be watching more concrete metrics too – they want more people pulling out their MasterCard and more applications.

I am sure MasterCard will be watching these measures carefully. No business spends money for solely altruistic reasons.

And for MasterCard’s sake, hope for a cold December and lots of rosy- cheeked kids on the rinks!

Do you do CRM?

For a long time, I have debated whether to use the term CRM (Customer Relationship Management) in my marketing materials - the acronym has been so closely associated with the technology - and so many different types of technology - that I am always afraid that I will start getting questions about whether to buy ACT!

I notice thatEurope's www.CRM-Forum.com has rebranded recently and is now www.MyCustomer.com

Do you use the term in your organization?

If so, is it used to refer to a business project? An IT one? A piece of technology? All of of these?
If not, why not?

I have consciously stayed away from it for two primary reasons:

1) Everyone has a different definition of what it is.....case and point, this week I had two calls using the term ...with very different meanings "My sales people input data into the CRM" and "Our CRM steering committee is looking at change management issues"

2) There have been too many articles on the failure of CRM.

Is it time to retire CRM for good? If so, what replaces it? Customer-centricity? CVM?

Changing face of marketing

I heard from an old friend today ....one I hadn't seen in 20 years.

All because of Facebook. Yes, I have finally joined the modern age and signed on to Facebook. Once the bastion of college and university students - and a few who were still clinging to youth - Facebook use is becoming prevalent even amoung old folks like me!

What does this mean for Facebook (other than the fact that the college students will start going elsewhere?!) And for those who market using the Internet?

Facebook is a non-commercial entity so marketers can't really capitalize on its success directly. That being said, Bill Sweetman recently tried an experiment recently that shows that the potential is there (http://www.sweetmantra.com/2007/07/my-facebook-coa.html).

The rapid growth and viral success of Facebook is however a lesson for all marketers.

Facebook works by getting people like me to actively want to:

1. Tell other people and encourage their participation
2. Come back regularly (I have to come back to the site whenever someone sends me a note/tags me in a photo etc.)
3. Self-segment by joining groups and inviting others to join.
4. Provide information.
5. Interact within communities.

If only every Web site had that power over its visitors....of course, noone would get any work done but still.....

Branding vs. DM

Do you ever feel that your direct marketing message is lost in a focus on your brand? That the call to action is diluted in your attempts to confirm to the brand strategy?

Thought this was an interesting thread....
http://www.targetmarketingmag.com/story/story.bsp?sid=50583&var=story&publication=Target%20Marketing&publicationDate=4/1/07&slug=TM0407_BtoBInsights&category=Sales%20&%20Marketing&section=Unknown

I have too often seen the CMO-vision for the brand corrupt the direct marketing message. It is critical to remember that direct marketing is about selling....the offer and the call-to action are key. Branding is an entirely different exercise - one that will likely help the response to your direct mail but should not be the reason for it.

I remember having this discussion with an organization I worked with. In an attempt to become customer, rather than product, centric, they lost the strong call to action in their direct marketing. Their messages were diluted into brand messages - and direct mail was the wrong medium. The result: dismal 'response' rates to the dm messages .....because they really never told the customer what to do to "respond".

This article comes from B2B but the same applies across the board.

Are you really a data miner?

As we plan for the next Data Mining Users Group (May 9), we find ourselves debating what data mining really is. How does your organizaiton define data mining? Does it include classical statistics (like regression and clustering)? Is it limited to machine learning and artificial intelligence? Does it include OLAP and reporting?

We'll be discussing this topic - and why it matters - on May 9 at the Toronto Data Mining Users Group (www.torontodatamining.ca )

A Pandora's Box of Data

I think we've all heard of the Human Genome Project - the analysis of data to determine the complete genome sequence for the human body.....how about the Music Genome Project?

A group of musicians and music-loving technologists have analysed hundreds of musical attributes or "genes" into a very large Music Genome. One of the results is Internet Radio station Pandora

As a analytic marketer, I am fascinated by this site as it endeavours to match my specified music tastes with other music I might like based on the similarity of its attritbutes....not simply other music of the same genre or artist but based on such things "heavy use of rythmic syncopation" and "accoustic rhythm guitars". It builds each user a customized "radio station" giving a chance for feedback to help it "learn". A rather fun application of data!

Make your own station at http://www.pandora.com/

Marketing Outlook for 2007

Good News! The CMO Council (http://www.cmocouncil.org/index.asp) has released their Marketing Outlook 2007 and insight and measurement get top billing.

Of the top 10 challenges facing marketers in 2007, the ability to "grow customer knowledge, insight and conversations" was number 3, and the ability to "quantify and measure the value of marketing programs and investments" was number 1.

In marketing automation, "marketing performance measurement dashboards" was the top area of spend. CRM, customer intelligence and analytics and campaign management also made the top 5.

Encouraging to me....

Wikinomics

Anyone been reading Wikinomics? I've been making my way through it and it certainly makes you think. I am still not totally sure how to open my business up to mass collaboration (but I'm only on chapter 2!)

I'm going to hear Don Tapscott, author of Wikinomics: How Mass Collaboration Changes Everything... speak in a couple of weeks. If you are in Toronto and want to attend, here are the details:

Date and Time: Tuesday March 27th, 2007, 7 PM
Location: Marriott (Courtyard Hall B), 475 Yonge Street, Toronto
More details at:
http://www.wiredwoman.com/mc/community/eventdetails.do?eventId=117778

Number Portability

While this blog typically focuses on database and analytic issues....it is really all about marketing. Today, I saw a marketing campaign that I thought I'd share....its about numbers of a different kind.

Many in the telecom world are watching with baited breath to see what impact Wireless Number Portability with have on cellphone churn. That is, the ability to take your exising number with you when you move from one carrier to another - breaking down a huge barrier to exit for many cellphone users.

This can also create a huge opporutnity for companies wishing to attract business from competitors .... and when your a fairly new entrant in this market, this is golden. Virgin Mobile has begun an aggressive campaign focused on "freeing your number" .... this includes an escape stunt by Richard Branson himself and chocolate handcuffs!

Check out their microsite, www.youcanswitch.ca ....it will make you smile....even if you work for the competition.

More on the campaign at: http://www.mediaincanada.com/articles/mic/20070308/virgin.html

US Patriots Act...for Canadians

Have you put much thought into the impact the US Patriots Act has on how you do business? Has it changed the way you work or your willingness to work with US suppliers?

Our privacy commissioner has raised the issue of transfering cusomter data over borders and some US suppliers have set up offices here to counter this. A recent poll suggests 94 per cent of Canadians surveyed have expressed some concern about Canadian companies transferring customers' personal information to companies in other countries. Your thoughts?

Under the terms of the US Patriot Act, as I understand it, US firms can be forced to hand over information contained in databases and corporate records, including data from non-US subsidiaries.

CBC Disses Data Mining

Back in December (before I had my blog), I heard this 'report' on CBC radio. A very one-sided (negative) report on the "threat of data mining". I've mentioned it to a few folks so I thought I'd provide the link:
http://www.cbc.ca/thecurrent/2006/200612/20061218.html
(scroll down to Part 2 to listen to the broadcast)

I was very disappointed that they didn't interview anyone in the data mining space for their side of the story. Actually this is more a story on data and privacy NOT data mining at all but it's important for us all to understand what the public is hearing.

Are we lacking innovation?

Is the Canadian marketing analytics community lacking in innovation?

I had an interesting conversation with an executive from the US yesterday; he was bemoaning the fact that he didn't see anything interesting happening in Canadian data mining community. He commented that it was all the "same old, same old"....lots of logistic regression response and propensity models and k-means clustering. He claimed that the US was miles ahead and doing much more interesting things. This certainly got me thinking.; I am not sure I agree with him... but I suspect that we are not as innovative as we could be.


Are we really pushing ourselves to try new things or are we happy with the status quo?? I know we are exploring more new ideas than we used to be; new tools have made coding less onerous and advanced statistics knowledge a little less critical. But are we given the freedom to explore truly new things?

Is this the fault of clients and executitves not giving data miners freedom to test new things? Or is the fault of data miners not pushing boundaries?

What do you think?

Customer Networks

I recently read some interesting stuff about analysing customer networks - the network of influencers and peers who are part of the buying decision (perhaps most applicable in the B2B and not-for-profit spaces).

Any good salesperson has always understood these influences and attempted, where possible, to reach them. What is different appears to be the attempt to apply some analytic rigour to this work. Social networks are a hot field in marketing right now - in fact, Gartner cited Social Network Analysis (SNA) as an emerging technology for the nex ten years (see: http://www.gartner.com/it/page.jsp?id=495475)

I'm not endorsing this company but at first blush it looks like they have some interesting ideas on how to approach this....anyone out there want to add to the discussion? http://www.comlytics.com/Home/

A related Harvard Business Review article:
http://www.comlytics.com/ID=2819/TYPE=1161/HBR-Network%20Selling.pdf

A Culture of Learning

I was recently asked whether the culture of an organization plays a role in analytic sucess....here was my response.

"An emphatic “Yes”! I believe very strongly that, for analytic success, you must create a culture of learning across your organization. In many organizations the “creatives”, “suits” and “techies” work in independent silos interacting only when absolutely necessary. Cultures that embrace analytics encourage these individuals to work closely - learning from each other and sharing information.

The most successful analytics programs get analytics out of the cubicle and into the boardroom. C-level executives must see the value of analytics – and manage by the results; and the onus is on analysts need to become better communicators, sharing their approaches and their findings with the business.

For the true benefits of analytics to be realized, organizations must be willing to ask the hard questions: “Did it really work?”, “Can we do better?”, “If we take some more time, can we achieve a better result?” This type of self-examination only happens when organizations reward curiosity and measure everything."

Do you agree?

Dumbing it down

Marketers have been patting themselves on the back a lot recently over their ability to customize and personalize direct marketing efforts. Great results have been acheived through personalized mailings and the customization of creative. However, I'd like to suggest that we need to exercise caution in using the information we collect on our customers.

In fact, I don't believe even customer permission is enough. Let me use an example to explain.

Just before the birth of my second child, I received a direct mail package from an infant formula company. As an advocate of leveraging data, I appreciated how well targeted it was; it spoke to me as an “experienced” mother, who had used infant formula before. In fact, it came with a free can of formula (valued at approximately $10). However, I did not buy the product, or even try the sample; I was so put off that I gave the sample to a women’s shelter and never considered the brand when feeding my new baby.

So what went wrong? In this case, the customer data was accurate but the use of it was inappropriate. I expect I willingly provided all the information that they used to target me - likely via a survey at a maternity store - and even gave permission for the contact.

But such intimacy requires more than just access and permission to use the information.
The communication came from a company I had no prior relationship with and they used information that I consider of a personal nature. The customization left me feeling violated, rather than understood.

Advocates of one-to-one have talked about “remembering for” the customers, but many marketers instead have been “remembering about”. I already knew I was having a baby and would need to use formula – telling me that was of no benefit to me. It just made me ask how they knew.

Maintaining customer data is a privilege and a responsibility. As marketers, we need to ensure that we are using it for our customers’ benefit, not to show how clever we are.

Even when we really do know something, sometimes we are better off to “dumb it down.” If instead they had sent me an innocuous mailing with a formula sample; still using the data to target the right customer at the right time but not making it so obvious that they know; I expect I would have accepted it willingly, would have read about the benefits of their new formula and considered it for my new baby.

This post paraphrases an earlier article. For the full article please go to: http://www.emmawarrillow.com/images/How%20Not%20to%20do%20CRM.pdf