The Rise of the Data-Driven,

Customer-Focused Business

Exploring Themes from

The Big Data-Driven Business

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The Age of

DATA

We have long been promised a

“Jetsons”-like future with robots and

automation. In marketing, this future is

already here. Data and automation are

giving marketing more power.

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“The number of transistors

on a computer chip will

double approximately

every two years.”

Gordon Moore, founder of Intel

With Moore’s Law, Gordon Moore predicted the process

that would give us the computerized future we live in,

with amazing computing speeds and cheap data storage.

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Your smartphone has a

microprocessor more than 1,000

times faster than the computer that

launched Apollo 11 to the moon.

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Every six hours, the NSA collects

as much data as is contained

in the Library of Congress.

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The fulfillment of Moore’s Law

made the Internet, and its 1.1

billion websites a reality.

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BIGDATA

Moore Law’s also made big data possible. What is big data? In a narrow sense, big data is

the incredibly fast analysis (enabled by faster process speeds and cheaper storage) of

massive sets of unstructured data to find previously impossible insights.

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In a larger sense, big data is the accumulation of technological advances that

enable any company of any size to analyze their customer base, to track and

provide personal experiences to website visitors, to probe email open rates to

figure out what customers are reacting to.11

“Big data is the most disruptive business force there is. Big data is the stuff that is really moving economic power from one group to another.”

Geoffrey Moore, Crossing the Chasm and Inside the Tornado

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Geoffrey Moore says big data’s

disruption creates new “gorillas,”

companies who disrupt old

industries and dominate new ones.

Big data is the force behind

Amazon’s uncanny

recommendation engine. It’s all

about data-driven, customer focus.

And it led to the demise of Borders.

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Google is like a big data muscle:

Every time its search engine is

used, Google gets stronger,

because the company knows more

about its customers. It’s all about

data-driven, customer focus. And it

led to the demise of Alta Vista.

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Netflix used data on what its

customers watch to develop its own

content, including the wildly

successful “House of Cards.” And it

led to the demise of Blockbuster.

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“You can really be David

to the big companies’

Goliath by leveraging

data effectively.”

Brian Kardon, CMO of Lattice Engines

Any company of any size in any industry can build a

data-driven, customer focused business.

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“Marketing is the last

department to come to

the table in this data

revolution—but arguably

the most important.”

Heather Zynczak, CMO of Domo

For most of its history, marketing has suffered from a

lack of data. No longer. In fact, the CMO may be able to

get more out of data than anyone else in the company.

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“Half the money I spend

on advertising is

wasted; the trouble is

I don't know which half.”

John Wanamaker, Pioneering 19th Century Retailer

For so many years, this hapless quote from

John Wanamaker has defined marketing.

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Don Draper

IT’S TOASTED

Marketing and advertising were not data-driven. On the

very first episode of “Mad Men,” Don Draper throws

data-driven research into the trash.

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IBM

360But in a later season, Draper’s agency

brings in a computer. Which makes

the creative types nervous.

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With more data, the CMO can gain:

More insight. More measurement. More value. More revenue.

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“Marketing is sitting on

top of this treasure

trove of data.”

Glenn Gow, President of Crimson Marketing

With this data, marketing can analyze customers

and better identify prospects.

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Using the marketing stack, CMOs can

measure performance and determine which

tactics are driving the most revenue.

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“For the first time we have a pretty good sense of how people are using our software and when they’re using, how frequently they’re using, and how many people are using it...”

Joe Payne, former CEO of Eloqua More knowledge about

customers and their needs

and their desires, and how to

serve them better and create

great experiences.

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“When I tell people that we can in real time know every single visitor when they arrive on our site and what company type they are from, and that we can target specific titles or regions or individual companies, they’re blown away.”Bill Macaitis, former CMO, Zendesk More insight into prospects

and the buyer’s journey.

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“I think John Wanamaker’s quote is obsolete.”

Meagen Eisenberg, VP-customer marketing, DocuSign More precise targeting

capability, and more

accurate measurement of

marketing performance.

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Nick Panayi, Head of global brand & digital marketing,

Computer Sciences Corporation

“As a sales professional, whether you truly appreciate marketing or not, the very basic fact that marketing is the only entity in the company that can shed light on that 60 percent to 80 percent of what the buyer did before talking to you ought to be enough for you to pay attention.”

More harmony with sales.

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More proof that marketing

is driving revenue.

“Marketing can now be accountable for ROI.”

Heather Zycnzak, CMO, Domo

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What does this all mean?

More personal relevant experiences for customers.

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How amazing is it when you

call and a person picks up

the phone and they know

exactly who you are and why

you’re calling?

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Isn’t it cool when you walk

into a hotel room and they

have your favorite snack

waiting because they know

who you are?

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Isn’t it great when you go to

a website and immediately

see exactly what you want to

do there?

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THE BIG QUESTION

ABOUT BIG DATA:

How do I implement big data principles in my own business?

PRINCIPLE NO. 1

Determine what you know (and want to know) about your customer.

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THE BIG QUESTION

ABOUT BIG DATA:

How do I implement big data principles in my own business?

PRINCIPLE NO. 2

Start small by thinking, ‘Big data, little triggers.’

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THE BIG QUESTION

ABOUT BIG DATA:

How do I implement big data principles in my own business?

PRINCIPLE NO. 3

Be prudent but not shy about investing in technology: CRM systems are a must, marketing automation is becoming so, and analytics tools are a no-brainer.

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THE BIG QUESTION

ABOUT BIG DATA:

How do I implement big data principles in my own business?

PRINCIPLE NO. 4

Hire the right people. Marketers must hire data-oriented people, math majors, and left-brained thinkers.

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THE BIG QUESTION

ABOUT BIG DATA:

How do I implement big data principles in my own business?

PRINCIPLE NO. 5

Test, test, test, measure, measure, measure. Ideally, measure your contribution to revenue: It is the way to prove marketing’s value.

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“The number of transistors

on a computer chip will

double approximately

every two years.”

Gordon Moore, founder of Intel

Moore’s law is not slowing down. Its fulfillment will

continue to transform industries such as education,

healthcare, and government. It will also bring us the

Internet of Things.

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All of these changes only make the marketing department stronger. There’s more data,

more customer focus. Driven by data and by an intense customer focus, CMOs have

the skills be front and center in the next generation of CEOs.

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“Half the money I spend

on advertising is

wasted; the trouble is

I don't know which half.”

John Wanamaker, Pioneering 19th Century Retailer

Marketing will no longer be defined by

Wanamaker’s helpless-sounding quote.

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“Business has only two

functions: marketing

and innovation.”

Peter F. Drucker

Instead, marketing will be defined by this quote

from Peter Drucker.

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Business has only two

functions: marketing

and innovation…

and both of them will

be led by the CMO.

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Publish Date: November 24, 2014

Available from Amazon, Barnes & Noble,

Books-A-Million, and 800-CEO-READ

Contact: Mark@FortierPR.com

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