Wednesday, December 3, 2008

Data-Based Marketing, Steps for Success, and a little More Albert


Ok, here’s another quotation from Einstein that I love: We can't solve problems by using the same kind of thinking we used when we created them.”

This is exactly what I’ve been getting at. As marketers, we need to apply our analytical skills and way of “reading” the numbers to identify patterns, open up new perspectives, and stimulate different ways of thinking in order to solve problems and create opportunities.

One hurdle marketers express to me is the feeling that they are drowning in sales numbers yet don’t see any actionable information there. When I probe deeper, I find these marketers often don’t’ know what questions to ask other than things like, “How well did ___ sell? And how much profit did ___ make?” That kind of sales “analysis” repeated again and again won’t get us to Al’s different kind of thinking. Instead, try these steps:

First, remember this: research and data is just a numeric language for actual human behavior. What you need is a translator for this language. That translator is a series of good questions. There are all sorts of questions that marketers can ask when looking at sales histories cross-referenced with customer data—questions that spur deep reflection on customer action. I personally have a long list. (And you can check tomorrow’s post for a sample.)

Second, keep asking these questions, and the next logical question, until you arrive at a definable human behavior.

Third, what you’re looking for is the need, fear or desire that drives this definable human behavior. Sometimes this is already known. Sometimes it can be deduced. Most often you will have to ask. Actually get on the phone, send an email, post a question to your website, corner customers at an convention, whatever—just ask. And if you think you know the answer because you learned it when you asked ten years ago—better ask again. The reason may have changed or be changing.

And forth—and this is where the creative thinking side of marketing comes in—you need to then reflect on what I call “bridging” questions. For example: How do I use this behavior to my company’s advantage? How do I change my product mix to solve this need, fear or desire? How do I change our marketing or sales efforts to immediately speak to this need, fear, or desire?

Your first response should not be to try to change the defined human behavior; first you should brainstorm ways to change your company’s relationship to that behavior. For example, a customer group buy lots Product A and some of Product B. Relationship change: sell Product A packaged with Product B at a reduced rate. But don’t stop there. The real gold to be minded is found in the needs, fears, and desires you identified as driving the behaviors. Again, don’t try to change the customer’s need, fear or desirer—try to change your company’s relationship to that those three.

Looking at data in this manner will help you to see connections, think differently and lead to better product development and marketing and sales practices.