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Mind-mapping best practices

MM: Does the methodology derive from any particular established profiling methodology?

MB: No, it doesn’t. It was developed internally with the input of some very experienced people who have a track record in handling complex business processes.

We do a lot of things that would probably be familiar to many database practitioners. We conduct a database dimension analysis. There are some unique aspects to our approach. The way we structure it makes it very efficient, as well as very effective, at capturing what’s needed for the business people, as well as identifying the sources of the information.

MM: Is there a corresponding data diagram or an entity-relationship diagram or some other kind of high-level visual abstraction of the transformation of business data into intelligence?

MB: We actually do have a set of proprietary diagrams we use. We use a mind-mapping tool in a very powerful way, that maps the transactional data needed to solve the defined problem and all the business dimensions that would be useful in analyzing, what we call slicing and dicing, that data.

And of course we bring a point of view on best practices, key metrics, the ideal reporting and analytic frameworks that are the best way to gain insight into a business area. We developed these with very notable experts in each functional or industry area where we work.

So we bring a very thoughtful and complete starting point to the table on day one, and we work with our customers to modify these solution templates to meet specific perspectives or needs that they have. We avoid turning it into a full-up custom solution, though. So we get the best of both worlds—a world-class solution as a starting point and the tailoring of that solution to specific customer preferences and needs.

We don’t publish our diagrams obviously, because they contain a lot of our intellectual property, but customers that go through the profiling process obviously get to see and benefit from that analysis.

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Marketing performance

PvT: You just mentioned analytics. How important is it to integrate marketing and customer data across the organization versus at the local level?

MM: Well, analytics is generally a can of worms that once you open it you never find a can large enough to get all the worms back in.

Analytics has become central and critical to success in the always-on, 24-by-7 integrated, online-offline brand theater.

When we start talking about analytics, we discover that 80-90 percent of the data that a marketer needs does not reside, or exist at all, in their CRM systems.

So many marketing organizations spent the last six to ten years getting organized around what I’ll call tactical CRM – your sales force automation platform. I am astounded how many firms still struggle with CRM as operational capability.

Many firms have separate or loosely connected operational CRM used by the customer service or call center. I am also amazed with the number of these system that contain little more than a transaction record about previous purchases and logged complaints.

A number of firms that have not yet integrated tactical CRM from sales operations with the operational CRM of their call centers and customer interaction centers.

I just chalk that up to the penalties of execution—everyone’s heads down hitting their numbers with little extra time or incentives to innovate something better.

Integration of multiple CRM systems represents a major undertaking for most firms, and it requires developing huge data model by which to specify – in very concrete table-to-table or data-element-to-data-element level—specifically how to transform data into high-level business information that supports specific business decisions.

Most companies that I’ve run across have incomplete or just simply wrong data maintenance procedures in place. So, as a function of that they end up with glorified mailing lists with very little useful analytic data beyond who bought what and why.

One version of the customer truth

Often first major initiative in data integration entails creation of customer master.

While simple in name, the development of a customer master represents a Herculean accomplishing: one-version-of-the-customer-truth.

As this starts by developing a data model of what constitutes a customer relationship—and I stress the relational aspects of the customer and way beyond basic name and address—we often discover that multiple individuals with multiple roles and responsibilities within a single customer object.

In this data-centric view of the world, a household or business entity constitutes the cornerstone of a customer relationship—to which you can associate a number of individual buyers and influencers by context.

Right there, many CRM implementations fall down: they make no meaningful distinction between an account, an contact, and customer object—the business entity or household—that represents the economic context for many buyers, transactions, interactions, and influencers.

So, let’s say we have a customer master—one version of the customer truth expressed in clean, uniform data!

This invokes 90/90 rule which state after you have completed 90 percent of the work (i.e., building your customer master), then you another 90 percent more to complete—the second 90 percent!

That almost always requires the purchase of external enriched data overlays to your customer master.

This will take to you companies such as Acxiom, D&B, Experian, Epsilon, InfoUSA, Merkel, etc.

Enriched data overlays of households might include credit histories and scores, the model and year of cars in the household, names of other members of the household, marital status, plus things like educational levels, current job position, annual income, total credit available and the equivalent of a business profile.

By the way, one of the most interesting developments as it relates to the customer data master, relates to the emergence of an XML standard from business reporting called XBRL (XML Business Reporting Language) that mandates that all public firms must publish their annual reports, 10-Ks, and 10-Qs in explicit 2000-element XML schema. While just a side show for now, XBRL will transform database marketing into true one-to-one engagement. Gosh, we take another hour unpacking that idea. But here’s the seed of a big idea: Every system of record in the next 5 years will adopt XBRL for all its publishing and reporting functions, creating a level of hyper transparency within business operations that will boggle the mind.

Segmenting for profit

So let’s get back to customer masters and enriched data overlays. Now you have the ability to really start to slice, and dice, segmenting customers and markets.

However, you can’t slice and dice your customer database using the relational database or the tools of a CRM system. You can start there. But, soon enough you will need more speed and better visualization.

At this point you need to bring in specialized, analytic databases—wicked fast columnar databases—for plowing through 5 or 50 million customer records with a response time of several seconds; as opposed to using a relational database that might take hours or all night to complete one complex query.

So specialized analytic databases with train-of-thought visualization tools use the enriched overlay data to begin understanding things like price sensitivity, unmet needs, and other sorts of buying criteria within dozens or hundreds of micro-markets—what analysts call consumption cohorts.

This fast-cycle analysis enables a practitioner to think in terms of predicting long-term value of individual or small clusters of customers.

With time and practice, a good analyst can profile the ideal or most profitable customer sets, specifically identify them by name, engagement criteria, and media consumption preferences..

Now, everything we have discussed to this point deals with database analytics. Four more analytic disciplines now come into play: Web analytics, messaging or email analytics, social media analytics and content analytics (or semantic analysis of one’s inventory of content and advertising)

Web analytics, site performance, and customer experience management will continue to evolve into an integrated suite—all good but fairly narrow sets of data.

Closing the loop with messaging

Messaging or email analytics really start to validate with quick call-and-response or probe-and-validate procedures of newsletters and emails specifically targeted to those segments that your predictive modeling identified.

In practical terms, this means that you need to have something far more than just the mail list manager or a newsletter system. You need to have really powerful analytics process driving each newsletter.

A creative and analytics team starts by building newsletters with Lego-blocks of content and data that correspond to a specific set of segmentation and targeting criteria.

So as I send out 15,494 emails to those individuals that I know are interested in Mexican cruises with Salsa dancing lessons, I want also want to see the response level to other recreational ideas, venues, and offers.

This will require that each email embeds personal URLs, sometimes called ‘Purls’, so that each click through takes the recipient to an individualized landing page—built just in time, just for them—that validates the messaging effectiveness or lift and associates that event’s data to a preexisting user database record.

This closes the loop in terms of my analytic profile, engagement criteria, and consumption of the media.

Now, most of the time that kind of closed-loop feedback information remains locked up in the newsletter or messaging system, and very rarely, if at all, comes back into the customer master or the creative teams driving other media creation processes.

So, as Website, database, and messaging analytics come together, guess what happens: Gee, given all these really fresh insights that our multi-channel analytics has developed, how then we inform the strategic communications teams in our agencies and our tactical content teams pushing content into the various websites—brand touchpoints that passively activate engagement as visitors land.

I have met hundreds of executives who struggle with breach: how do we get the advertising, web, direct response, and field marketing teams on the same page, using a common set of analytic insights to create effective engagement? How do make creative briefs more interactive and driven by same-day analytic insights.

Part of the underlying problem, we have discovered, lies in the very structure of what most creative and marketing professionals call content—the process of creating content and the operational capabilities of managing multimodal content.

But, I skipped to the end of my argument about the evolving integration of five analytic disciplines: Web, database, messaging, social media, and content analytics.

Getting social with analytics

So let’s pick up with social media analytics.

How do you use technology to quantify three really important dimensions of the Web 2.0 mediaspace (blogs, tweets, forums, and social networks).

How can you track, in near real-time, the mood of the market, the voice of the customer, and their individual patterns of engagement?

Social media analytics takes you further upstream into the buying process—much further up in the buying process where people are still developing awareness and consideration.

For that you need to have a really effective voice-of-the-customer program coupled with social media monitoring.

A good voice-of-the-customer program entails long-form interviews with 50 to 300 customers a month, transcribing exactly what they said about the process on discovering, considering, buying, using, and disposing (where applicable) a featured product or service—what we call the ‘customer journey’.

Of course we now see powerful new systems coming to market that automatically transcribe call-center interactions with customers—requests for information or service—all social content to feed a voice-of-the-customer content analytics process.

With semantic tagging of voice-of-the-customer content and mapping that against segmentation and engagement profile, something quite amazing emerges: each step of the customer journey.

So as a customer transits from no awareness to awareness, consideration, trial, purchase, commitment, repurchase, loyalty, and advocacy—as they transit customer engagement lifecycle—you will have actual dialog of real interviews with people at each of those stages, and, more powerfully, how they transit each stage of the customer engagement life cycle.

With just a few hundred of long-form interviews, a team will use a text mining engine map keywords and phrases of the voice-of-the-customer content and develop a taxonomy of desire: awareness, consideration, trial, preference, as well as things like dissatisfaction and satisfaction, wow, or disgust.

And as you develop this library, this taxonomy of engagement supports all kinds of goodness, including which AdWords to buy, how to optimize content for search engine discovery, and the structure of engagement.

This taxonomy of engagement also supports what practitioners call the basis of conversation—the details of how your customers talk about themselves, their lives, and what makes a contribution, including your products and services.

This all syncs up with social media analytics, usually the work of social agencies or monitoring services with specialized spidering tools that crawl through the 50 to 100 million blogs and forums and hundreds of millions of social network profiles and billions of tweets.

Social media monitoring then mines them these sources for keywords and phrases that correlate to your markets and competition, generating a dashboard with statistics on awareness, consideration, trial, etcetera, by your various customer segments, and more specifically what your customers are saying about your brand, what it means to be in a relationship at various stages of the brand lifecycle.

The voice-of-the-customer basically mines interviews about how customers talk about being in a relationship with you, and then the social media monitoring tells you how to validate which brand stories connect brands and consumers.

Agile methods for content creation

This all brings to the last analytic discipline in my rant: content and how marketers will have to reengineer their processes of creating content and and manage multimodal content.

First, it starts with the principles of digital asset management: systematic reuse, do it once, get it right up front, tag and classify everything for speed discovery and retrieval, optimize media components for database publishing and content transformation processes, build and use templates, etc.

Second, adopt the principles of agile software development. A bit much to go further here…

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Critical success factor: Data model architect

MM: That almost reminds me of a conversation I had with a data warehouse architect. She was building a data warehouse for an executive information system for Bank of America. She would talk about sitting down with a fairly senior marketing executive and saying, “What are the business decisions that you make in the course of a day?” And then, “What information do you need in order to make a fully-informed decision?” And, “Where do you go for that information?”

Of course, there are green bar reports here and a conversation here and a fax here. In the course of doing that, she’d talk about identifying the most important—the number 1 or number 2 most important—business decisions that an executive would make. Then doing a map of logical but physical data sources, so as to be able to identify what the data items were that needed to be collated into information that then supported an action or an insight.

That kind of describes what you’re talking about in terms of this top-down optimization strategy or top-down problem-solving sort of thing.

MB: My expectation is that a large percentage of the projects that have been successful have had practitioners working on them in the model that you just described. Here at Oco, we’ve really taken that notion and turned it into an art form. We sit down with a business for one or sometimes two days and go through a systematic approach to define the key problems they need to solve. We call this approach a profiling session.

We design the solution and figure out the data resources that are going to be required and so forth. We have a quite robust methodology we go through. It’s a precise recipe.

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