Back in 1991, I trained in a database marketing boot camp. I worked on American Express (AMEX), managing it’s Gold Card direct marketing efforts. AmEx, a leader in personalizing printed communications, had created its most successful program when it highlighted in direct mail pieces that someone was a “Member since XXXX.” Yes, membership had its privileges. But for American Express, this personalization triggered a lift.
Show Me What You Got
Now it’s over 20 years later. And while 2013 was the year of big data in the back office where companies tried to set up the proper infrastructure and human resources to be part of this phenomenon, 2014 will be the year to personalize big data on the screen.
The term personalization has many meanings to many people. For the purposes of this post, I am focusing on "the content on the screen." Customizing what the user reads and sees will be the challenge, especially because a responsive design approach still requires careful consideration about what is personalized on a tablet versus an iPhone.
Big Data Will be Operationalized
With personalization being a key theme in 2014, marketers will need to get their hands dirty and truly understand the different categories in their customer database. They need to design their digital platforms with their database in mind, knowing that different areas of the screen can pull in content from both the customer and product database.
For example, Amazon pulls in two different types of data based on my purchase behavior: books on digital marketing, which I am interested in, and children’s videos, which I access every night via their Instant Video. Their customer database might carry just the title name, the author and the price. The assets for that information would be in a product database. The two need to work closely together on the screen.
Every day, Netflix and Amazon demonstrate their ability to leverage this kind of data to talk to their customers on an individual and personal level. Sometimes, I think they could go a step further in personalizing information on the page, especially because one of the big battle grounds in 2014 will be same day delivery. Amazon and Walmart can incorporate GPS data to determine potential offline purchases or product drop off points.
Intuit’s 2013 Turbo Tax product offers a nice personalized solutions for its loyal members. It automatically transfers returning customer’s personal information and prior year tax return data, including wage and salary information from their employer, and then adapts itself based on that information to splash screens and questions that are not relevant to their specific tax situation. The company leverages all of the valuable preexisting info that sits in its databases.
Size Doesn't Matter
Smaller and medium size companies need to take their old school "face-to-face" approach to the next level and personalize more than just ads or emails. They need to personalize at all touch points, including customer service, Skype, Hangouts, etc.
It’s important to remember that having the largest dataset or most sophisticated database will not guarantee an effective personalization program. It requires testing out and knowing what data elements will motivate a customer or partner to take an action.
Getting Under the Hood
Here are simple steps to get you started:
- Assume any data element in your customer or product database can be used to personalize information on the screen.
- Identify the type of tribes/segments who will visit your site or your app (or call customer service).
- Prioritize a list of three calls to action you want each of these segments to take when they use your product/site.
- List out the information you want to display on screen.
- Map out these info elements for multiple screens (tablets, smartphones, etc.) because you can’t share the same information on a smartphone as you can on a PC.
- Confirm these data elements are stored in your database(s) and if not, plan on capturing and storing them.
- Work with your designers and programmers to determine how many characters, picture size, etc. you can fit on the page.
- Work with your analytics team to set up the proper tracking
- Remember: Start simple. You don’t need to personalize each area on the screen.
- Also remember, give your marketing team a basic course in database marketing.
Training marketers on how to leverage their customer and product databases will take time. The more they can understand about how data can be pulled from a system and displayed on a screen, the more effective they will be in selling their products and services. This will take time. This will require marketers to get their hands dirty, get under the hood and understand more than the fundamentals of big database marketing. This is true even if they work outside Silicon Valley or Silicon Alley.
The question is: Do they have the desire to acquire this skill set?
Title image by Maksim Schmeljof (Shutterstock)
Editor's Note: Read more from Scott in How to Build a Community Like Disney
About the Author
Scott K. Wilder is currently with Google, working Small and Medium Business initiatives. Scott previously was at Human 1.0, consulting to SAP, Oracle, Microsoft and other companies. From 2002-2009, he worked at Intuit, where he created its award winning Online Community. Scott has held senior management positions with American Express, AOL, Apple, Borders, eToys and Intuit. Scott's been in the trenches leveraging interactive media since the early 1980s.
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