“Right now most organizations are dealing with terabytes of data. Over a third [manage] more than 10 terabytes of data and one-fifth will manage half a petabyte of data within three years,” Zagorski tells me. “The key objective for marketers seeking to harness the power of big-data is to make it actionable.”
As a marketer, it is likely that you have access to a great deal of data, and maybe even the kind of big-data we’ve been hearing so much about. CRM data grows every day; point-of-sale data gets easier and less expensive to store; tag-collected data from websites and social sites expands daily; and there is a seemingly infinite amount of third-party data available for purchasing and mixing in with your own.
The modern CMO must find a way to value the data assets she has, learn to listen for the real signals among the noise, and find a way to put that data to use. Mostly, that means understanding customer attributes, what drives them to transact, and how much it costs to get them to do so more frequently.
For Darren Herman, in charge of digital media at forward-looking agency Media Kitchen, data is all about the way it can be leveraged for his clients. “We care less about big-data and more about actionable data. Our clients have tons of first-party data,” Herman tells me, adding that the real challenge is in “uniting the data between silos (usually within client organizations) and making them available and actionable for advertising and marketing decisions. Much of the time, the clients’ data is available through the IT organization, and it’s not quite understood how it will be used for marketing decisions.”
In many ways, data-driven CMOs face two challenges: Firstly, winning the internal battle with the CTO to get access to disparate data sources, and bringing them together in a way that creates the opportunity to glean global insights; and secondly, building the platform that enables them to normalize many discrete data types, query that data quickly, and “activate” that data to produce a sales outcome.
Think of a large, global consumer products organization. A company that sells soap suds around the world may have up to 20 regional operating companies, and as many as 200 separate datacenters throughout the organization. Within all of those data silos are digital stories of marketing success and failure. Imagine if you could duplicate the promotional dynamics that drove a 20 percent increase in Italian diaper sales across the entire global organization, or leverage the learnings that one operating company had when a key discounting scheme failed?
These types of insights can be obtained when the CMO asks the right questions, and when he has data management platforms behind him that can make it possible to get the answers. Being a data-driven marketer isn’t about how much data you can centralize in a single platform. The data may be big, but ultimately the data you store is only as valuable as your ability to extract insights from it — and act upon it.
[This post originally appeared in the CMO Site on 3/20/13]