Ethical By Design – Marketing in the Age of Personalization and Privacy

Over the past few years, marketing has experienced a shift. As businesses moved into digital channels, and with the emergence of social media platforms, they were given the opportunity to communicate with customers on an individual level. Although personalized marketing has allowed businesses to understand their customers individually, how ethical is it for businesses to use affinity data to learn more about their consumers?

Momentum always follows money and motivation. In 2017, over $15B had been invested in AI-focused startups. As of this year, that amount has been surpassed and is forecasted to be over $58B by 2021. Industry analysts believe AI-enabled businesses will create over $2.1T worth of business value and generate over 2.3M new jobs while eliminating 1.8M existing jobs. Technology has always been the core of our economic growth, where disruption and business value are constantly created and recreated in a virtuous cycle.

Creating business value is defined by new revenue, new markets, new customer experiences, and cost reductions. Although the needs of the consumer are the main focus, their personal values seem to fade into the back as companies digitally transform. How do we unlock business value that also serves the beliefs of the greater good? Creating this balance can be challenging.

AI-enabled experience economies, for example, face this challenge. However, these technologies come with self-learning techniques, so they are able to seamlessly gather and sift through information on individuals and their interests. Although this data provides businesses with the ability to understand and persuade consumers on a personal level, without human judgment and intervention things can go awry. We will need a moral and ethical playbook for the practice of personalization.

Data is our frenemy. It’s our fuel. It’s also the basis of the Information Age.

Consider Facebook, Google, and WhatsApp’s business models. We don’t value them simply because they’re free. We value them because they adapt to our needs and values. These platforms allow us to connect with our external environment by adapting to our behaviors, and subsequently suggesting where we should go, who we should meet, and what we should do all day, every day.. It is free because businesses realize, in the long run, that having and subsequently monetizing your data is much more valuable than having you pay for their services.

Although these platforms make daily life easier, we are collectively subsidizing our personal data for access to free browsers, searches, ratings, and reviews. Digital social platforms, in some cases, have been able to manipulate this data to influence our way of thinking and being instead of serving us what we have consented to. This helps businesses understand your values and provide you with items that may be of high value to you. Data, in that sense, helps businesses and users cut through the digital noise, and provides us with an experience that feels more gratifying and focused. Instead of having to enter our information constantly, or searching for related items, we are given recommendations that are just a click away.

Well, Data is still your frenemy. But, so is Personalization.

So that begs a few questions: Where are our ethical boundaries in our data usage? What are the gray areas? Who gets to store, share, secure, and govern our data? Who decides? It is our responsibility to be vigilant and to remain aware of how and where our data is being used.

Ethics isn’t a pile of red tape that we have to maneuver around in order to forge connections. Ethics is the system upon which our businesses and technological systems should be designed-in.

In the conquest for privacy, personalization takes a hit.

In the quest for personalization, individual freedoms take a hit.

So what does ethical marketing look like? That will be the focus of our series on ethical marketing and personalization. Why? Because it’s personal.

After Giving Tuesday Has Come and Gone

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Giving Tuesday (or your Local Giving Day) has come and gone. While your “heavy lifting” is done and you’ve raised some money, what can you do to leverage these efforts? 

WealthEngine can help. WE have put together a great resource to help you in the wake of Giving Tuesday.

Download our free tip sheet, After Giving Tuesday Checklist, and get started on maximizing your year end fundraising efforts. 

Predictive Lead Scoring and Analytics – It’s Easier Than You Think.

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The statement ‘predictive lead scoring and analytics made easy’ seems counterintuitive. How can lead scoring and analytics be easy? If it was easy wouldn’t everyone be doing it?

According to a marketing effectiveness study by The Lenskold and Pedowitz Groups, 68% of successful marketers cite lead scoring as most responsible for improving revenue contribution. Additionally, the Pareto Principle says that about 80% of your sales comes from the top 20% of your customers. These statistics should give you pause.

Think about it. What if you could find new prospects that look like your best customers and discover new opportunities among people you already know? Simply put, wouldn’t you want to find prospects that have the same characteristics as those in the top 20% of your customers? Having these actionable insights can dramatically impact your sales and marketing strategies, resulting in increased revenue. This is empowering and valuable information.

Let’s take it a step further with an example:

A luxury retail organization is developing a strategy for their holiday marketing campaign. Specifically, they are planning to host an instore event and want to ensure they are inviting the right people so that they get the most out of the dollars spent. They also want the event to be enticing so both customers and prospects attend.

The organization analyzed their top customers residing within a 30 mile radius of the store location to develop a customer profile. Surprise! These customers have an affinity for equestrian and tend to drive a Lexus. Just those two data points alone influence their marketing plan. What about partnering on the event with Lexus or an equestrian-focused organization? Additionally, the retailer can now identify prospects who fit this customer profile and have the same interests, increasing the likelihood that they will be interested in attending the event.

Going forward, the organization can now score new prospects and customers to determine how to market to them going forward.

Bonus – this information was identified in minutes and doesn’t require a data scientist. How’s that for actionable?

Insights at your fingertips. Increased efficiency and productivity. Find out more now in our on demand webinar Predictive Lead Scoring & Analytics Made Easy.

What to Do Now to Maximize Holiday Spending This Year

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The current retail landscape presents many challenges that can be difficult to manage including decreased customer growth, little transaction growth, growing competition, shifts in spending, and unfavorable demographics. With a rapidly approaching holiday season and only 114 days until Black Friday it can be daunting trying to develop a successful strategy to overcome these challenges.

It’s no surprise that using data and analytics can dramatically impact your revenue, but analytics can only go so far if your data is vague or incomplete. Having complete, rich customer profiles will provide a stronger foundation for your analytics, and thus a stronger foundation for your marketing and sales strategy.

How can you enrich your customer data? Conduct a wealth screening to gain transformational insight into customers and prospects. A screening appends data to your customer database so you can better segment your database and determine who to prioritize in your marketing and sales efforts. This insight is helpful to not only identify your best customers, but to uncover those individuals who may show potential for additional business. You may be missing out on potential opportunities because you don’t know who has the capacity to spend more.

A wealth screening supplies you with wealth, income, lifestyle, and affinity information on individuals. This includes net worth, income, assets, real estate, stock holding, charitable contributions and other financial related data as well as business and personal contact information. Having this information allows you to prioritize who you focus on to maximize revenue.

A screening also lets you determine what marketing messages should be sent to each customer and prospect segment. In regards to gearing up your campaigns for the holiday shopping season, certain segments of your consumer database will have the ability to spend more than others. These individuals should receive offerings for higher cost items, while those who don’t have the capacity to spend as much should be shown lower cost items or a promo code to use to be able to purchase a more expensive item.  

The insights you can gain from a wealth screening are undeniable. By better understanding your customers and prospects the analytics and data you use to inform your decision-making will be more valuable and more impactful.

Contact us to learn more about how you can use these insights to not only identify your wealthiest customers, but to uncover those with the capacity to spend more.

Maximize Revenue with a Complete Picture of your Customers’ Capacity to Spend

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Luxury brands face tough competition to capture and retain high net worth customers. They are now facing competition from non-luxury brands, who have been gaining traction, and wallet share, among HNW individuals. In 2016, Nike was ranked the most valuable apparel brand in the world, overtaking Louis Vuitton, and Kia, a non-luxury vehicle, came out on top in J.D. Power’s quality car survey.

Luxury brand or not, the competition is fierce to both attract and keep the attention of HNW customers. Their business can make a huge impact on your business. A Bain & Company study found that a 5% increase in customer retention can increase a company’s profitability by 7% and that the average amount spent by a repeat customer was two-thirds more than a new customer.

Because of the current landscape, it is imperative for brands, both luxury and non-luxury, to prioritize and segment their customer base and identify who they should focus their time and budget on in their marketing campaigns. One approach is to use transactional history, however, spend history does not equate to spend ability, so you need to be more granular.

Previous spending is a key component, but it should not be the only data point you’re using. Instead, focus your efforts on identifying the low spend, high net worth customers among your current database. Think about it – a customer may have purchased something for $100 when they actually have the capacity to buy something that’s $1,000. Use this information to personalize your sales and marketing outreach and present higher cost items.

Remember, not all existing customers have the capacity or ability to spend more with you. Identifying those that do are critical to enhancing revenue and driving a higher customer lifetime value.

Contact us for more information on analyzing your customer base and identifying those with the capacity and net worth to spend more.

Marketing Analytics Conference Recap

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This week, we attended the Marketing Analytics Conference, hosted by the DMA. The event was 2 days packed with great thought leadership and real-life examples how organizations are using analytics as the base for successful strategies. It also provided a setting for executives across many industries to learn from each other and share best practices.

We were very excited to not only participate but also to lead some of the discussion. Our SVP of Product Management, John Funge, led an outstanding a panel on “The Promise of Personalization – Two Approaches in Conversation”. John was joined on stage by Abby Lee, VP, Marketing & Media Strategies, at Re/Max and Justin Boggs, Senior Director, Marketing Analytics at Sephora. They discussed a wide variety of topics about how they address personalization, from the basics such as how they define it to more specific methods they are using to customize their conversations to customers and prospects. It was a fascinating look at two different industries and their challenges of using data to enable better 1-to-1 marketing.

Personalization was just one of the many great themes at the event. The agenda was jam-packed with topics such as data-driven processes and technology, how to reach buyers, developing a data-driven culture, AI, attribution, automation, and more. Like most of the participants at the event, we came away from the session with a ton of ideas to implement in our own businesses when we get back to the office.

After plenty of discussions about marketing analytics and how it is integral for success in the industry, it’s more clear that in order to succeed, you need a good foundation of the right data. That’s where we come in. We can help your organization enhance your own internal 1st party data with more information about the people you already know and supplement that with additional prospects who you don’t. Without the right data, it’s impossible to implement any analytics to drive success. You wouldn’t jump straight to building your house without first pouring the foundation. Likewise, one shouldn’t start trying to implement a sophisticated data-driven program without ensuring you have the right data in place.

If you want to learn about all the ways we can help you with personalization and segmentation, take a look at our products and services here. When you’re ready, contact us for a free demo anytime.

Marketing Analytics in Action: Join WE at the Marketing Analytics Conference

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Marketing has become increasingly sophisticated over the years. From real-time personalization to dynamic messaging, marketers can do some powerful things to segment their audience and engage with them on a 1-to-1 basis with relevant content. While there are many routes to marketing success, all of these tactics have one thing in common – data. Comprehensive and informative data is a prerequisite to everything marketing today. It’s the foundation that needs to be laid down before you can build the house. After all, you need to know something about an individual before you can customize your engagement strategies.

As a data and analytics company, we’re fully bought into this mindset. We know the powerful things that our data can do to help drive successful sales and marketing strategies. And we love talking about it with colleagues, customers, prospects, and anyone else who is interested! Which is why we’re excited to attend this year’s Marketing Analytics Conference by the DMA on June 5-6 in Austin, TX. Here’s a brief synopsis of the event straight from the company’s website: 

The Marketing Analytics Conference brings together the most brilliant minds at the front lines of marketing and data science to share strategies for building out, managing and drawing the most value from your marketing analytics practice. Navigating today’s multitude of channels, touch points, and data sources requires that marketing executives and data scientists collaborate to turn insights into intuitive customer interactions.  Attendees will leave MAC 2017 with specific tactics for enhancing their marketing analytics strategy and the connections needed to continue building out their practice in the years to come.

We’re excited to be participating with industry leaders to discuss the ways we can drive more revenue and better engagement using our data. We’re also excited to contribute to the discussion by presenting. Our SVP of Product Management, John Funge, is leading a panel on Personalization. John will be joined on stage by Abby Lee, VP, Marketing & Media Strategies, at Re/Max and Justin Boggs, Senior Director, Marketing Analytics at Sephora as they discuss how they address personalization from different perspectives and what they have learned along the way. It’s going to be a great session.

If you’re planning to be in Austin at the DMA MAC next Monday, make sure you keep an eye out for us. John speaks at 1:20 pm and is gearing up for a successful session. We’ll also be ready to demonstrate WealthEngine with anyone who stops by our table. If you can’t make it, don’t worry. You can follow us on social as we’ll be frequently updating the event.

Check back on the blog next week for a recap of the event. In the meantime, if you want to learn about all the ways we can help you with personalization and segmentation, take a look at our products and services here.

Take Personalization Beyond Email

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Personalization in email marketing, and the positive ROI that can result, is frequently discussed. It’s been proven that personalized emails result in 6x higher transaction rates. However, personalization should not stop at email marketing. Emails are just one component of the whole customer experience.

Real-time personalization across all channels is key. The speed at which you can customize your  messages and offerings to your customers can dramatically impact your revenue, boosting total sales by 15 to 20 percent.

Imagine instantly knowing key demographic and wealth information of an individual who calls into your customer service department. Within seconds your representative would be able to determine what approach to take with the customer and who to route them to, whether it is rolling out the red carpet, inviting them to a preferred customer program, or pointing them to goods and services that match the individual’s spending capacity.

You could also utilize this consumer information to tailor and enhance a hotel guest’s experience upon check-in. For example – upgrade their room to a suite or sign them up for a guest experience that closely aligns with their interests and wealth bracket. The personalization shouldn’t stop once your guest checks out. You should send emails with specific packages that would appeal to their interests and lifestyle, or ask them to sign up for a rewards program.  

While the majority of marketers agree that personalization has improved their customer experience, only a little more than half believe they are doing it correctly. If you’re not building personalization into your marketing and sales strategies, you are missing out on revenue opportunities.

Take the time now to gather your company’s stakeholders and discuss the need for personalization in the customer experience. By making it a priority, you will better understand your customers, which will result in increased brand loyalty and higher lifetime customer value.

To hear more about personalization join WealthEngine at the Marketing Analytics Conference on Monday, June 5 for a session on The Promise of Personalization – Two Approaches in Conversation.     

CEO Mark Logan on Marketing to Gen X, Y, & Z

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On Wednesday, May 3, our CEO, Mark Logan, joined senior executives and decision makers at the 2nd annual Luxury Roundtable hosted in New York City by Luxury Daily. The goal of the roundtable was to discuss a serious issue facing luxury marketers: how to drive and sustain demand from Generations X, Y and Z whose shopping habits are strikingly different from the silent generation and baby boomers.

Mark joined a panel of experts to discuss “Ecommerce and Mobile: Symbol of the New Path to Purchase.” The focus of their session was how to deploy online and mobile channels to generate new business while retaining existing customers for generations who live on their smartphones. Mark shared how WealthEngine can provide useful insights on customer segmentation and the critical importance of personalization.

WealthEngine has put together a useful resource to help luxury marketers use predictive analytics and modeling. You can download it here.

For more on the roundtable, including slides and other panel summaries, click here.

Marketing to the Affluent Millennial Consumer

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There is constant chatter about millennials and whether they work hard or are hardly working. Put this debate aside and pay attention. Millennials are going to have a big impact on our economy. You cannot discount this particular group and their growing wealth, regardless of where your thinking falls on the spectrum of their work ethic. The number of wealthy millennials in the United States is increasing every year with millennials themselves making up nearly a quarter of affluent U.S. households. Where does their wealth come from – inheritances and early professional success in the technology industry.

Affluent millennials are a key consumer segment, one that you will be competing against other luxury brands for their attention. The way brands need to market to them in order to capture their attention is also changing. If you haven’t already, it’s time to start shifting your thinking and strategy. Luxury consumers are more valuable to marketers when they are younger as they spend 1.5 to 2 times more than older affluents on luxury goods and services.

How do you successfully do this? By learning everything you can about them and personalizing not only your messaging, but the whole customer experience. Here are some ways you can better understand and market to affluent millennials.

  • Start by identifying your top customers that fall into the millennial demographic. Affluent millennials, more so than other generations, show brand loyalty so luxury retailers should strive to understand this group and their spending habits.
  • Build on the information you already have by appending wealth, income, lifestyle and affinity information to these individuals. What interests or attributes do they have in common? Do an overwhelming number reside in one area of the country? This information is key because it’s specific to your brand and your millennial buyers.
  • Once you know the characteristics of your top millennial buyers it’s time to find more just like them. Don’t try and go after all affluent millennials and hope your message resonates with some of them. Be smart and focus on the ones that most resemble your customers.
  • Finally, don’t disregard the power of taking immediate action.  Consumers are 22% more likely to consider a brand as a result of real-time marketing. Everyday people are engaging with your website. Identify affluent millennials are as they interact with your site so you can personalize their experience by showing specific products or offers.

These are just a few ways to get started so you aren’t missing out on opportunities with affluent millennials. Engage with and cultivate them now in order to build long-term brand loyalty and lifetime customers.

For more information download An Analytical Approach to Wealth Intelligence: How Luxury Brands Can Grow Market Share Using Predictive Analytics and Modeling.