Making Data Actionable; PDF
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1. The document outlines strategies for making data actionable, including developing a big data strategy, setting milestones, identifying relevant data sources, and using data to create organizational efficiencies. 2. It emphasizes focusing marketing and data use on engagement, lead generation, and utilization metrics. Data should be used to move from broad approaches like blast marketing to more targeted segmented marketing. 3. Key steps include gathering, organizing, and identifying relevant data, then using data to track activities and outcomes, store results for future use, and continuously tweak marketing based on lessons learned.
Making Data Actionable; PDF
- 1. Rich Jones, Principle Leading2Leadership LLC 720.256.4936, rich0747@comcast.net @rich0747 Making Data Actionable
- 3. Data is too important to be left to bean counters and report writers
- 4. Data needs to answer business questions with actionable information
- 5. So, what’s getting in your way?
- 8. Lack of Skill, Money, or Time?
- 9. Where do I start?
- 10. It Starts With a Strategy
- 11. Big Data Strategy 1. To provide the data, data integrity and data awareness, the reporting and analysis expertise and the tools and services to allow the bank or credit union to become a data driven organization for strategic, financial and operational planning a) Create marketing efficiencies by target product and service offerings b) Use data to discover organizational efficiencies c) Change decisions from “I think” to “I know” 2. To win, we need to excel at a) Data Access b) Data Mining c) Data Analysis d) Data Visualization
- 12. Data sources Data you don’t have Aggregate data Set definitions Choose the tool/software Determine the budget and staffing model BIG DATA “To Do” List
- 13. Set Milestones • Data Strategy organizational buy-in • Create definitions • Evaluate Data gathering, storing and mining tools and resources • Identify tool and resource gaps • Plan to fill gaps • Establish utilization and reporting elements
- 14. Data Sources *Unstructured • Core • Online and Mobile banking platforms • MCIF/CRM • Loan Originations • Credit Bureaus • PFM • Credit Cards • Social Media* • Customer feedback loops* (Some data you hold, some is held by 3rd parties)
- 15. Set Definitions • Customer • Household • Core Deposit • Term Deposit • Consumer Loan / Mortgage loan • Active Customer / Active Account • Inactive customer / Inactive Account • New Customer
- 16. Start NOW with Core Data • monthly ACH deposit to another FI • monthly bill payment via providers website • automatic loan payment to another FI • with no checking • With no debit card • with inactive checking/debit • without a credit card with you • with A credit and low deposit balances • with high deposit balance and no loans • without mortgages with you • with one auto loan • with $10K of deposit balances
- 17. Our Job is to put a Face to Data
- 18. Opportunity Analysis 80% 20% Deposit Opportunity Current Household Deposits Current Household Deposit Opportunity 41% 59% Loan Opportunity Current Household Loans Current Household Loan Opportunity Total Employees 400 Household Per Employee 40.75% Total Members 279 Total Households 163 Deposit Information Loan Information Current Household Deposits $ 5,188,468.00 Current Household Loans $ 2,746,984.00 Deposits per Current Household $ 31,831.09 Loans per Current Household $ 16,852.66 Total Employee Deposit Opportunity $ 10,811,532.00 Total Employee Loan Opportunity $ 13,653,016.00 Current Household Deposit Opportunity $ 1,331,532.00 Current Household Loan Opportunity $ 3,936,016.00 Remaining to Maturity (27% Share of Wallet) $ 359,513.64 Remaining to Maturity (34% Share of Wallet) $ 1,338,245.44 % HSA Households 1.23% % Loan Households 68.71%
- 19. Marketing and Data Use
- 20. Avoid Vanity Metrics • These “vanity metrics” include – Total page views – Twitter followers – Likes – Visits • The strongest marketers are the ones who collect actionable data.
- 21. Ask the “So What Question” • To be more actionable with your analytics, start with the “so what?” question. – For example, click-through and blog views are nice to have, but do they impact revenue? • When you frame your decisions through the “so what?” question, you’re beginning to dig deeper into analytics.
- 22. 5 ways to make the most out of marketing analytics
- 23. 1. Stop relying on gut instincts • 40% of marketers say that they use intuition to make decisions. • Way too many businesses are just gambling on their marketing plans. • Bad guesses waste your time and resources. • Since these marketers probably don’t measure the outcomes of their decisions, they are also likely to repeat past mistakes.
- 24. 2. Don’t be a lukewarm user • ~50% of marketers believe that their most under- utilized asset is their data. • Do your homework. • walk you through the basics of conversion goals, and traffic channels. • It takes more effort to set up individual campaign tracking, it’s worth it when your actionable data starts pouring in.
- 25. 3. Focus on what members are doing • Better understand your customer behavior • Track customer paths • Run behavior reports to figure out what people are doing on your channels. • Evaluate drop-off points. • A/B testing is critical • A low 24% of marketers create and test hypotheses. • Marketers are missing the opportunity to collect real data and improve the customers’ experiences.
- 26. 4. Be consistent with analysis • When marketing departments are busy, complex analysis can become a lower priority. • That’s why only 37 percent of marketers use analytics on a regular basis. • Analyze your past data • Make smart predictions about future campaigns. • Using analytics to improve marketing campaigns can save time—and increase revenue.
- 27. 5. Assign real dollar values • 1/3 of marketers track ROI on their campaigns. • Dollars and revenue need more of your focus. • Don’t spend all your time on numbers, focus on dollars. • Work with your CFO or VP Finance help you calculate the actual value of your marketing efforts. • When you calculate values for customer actions, you can calculate ROI. • This makes it much easier to prove the success of your
- 28. Actionable Data Leads to Better Marketing • When you are collecting actionable data, you can make better marketing decisions.
- 29. Gather Data • Identify you data sources • Build or buy a place to store this data (MCIF/data warehouse/CRM) • Prioritize what data to collect first – Priorities should align with your FIs KPIs and Strategies
- 30. Organize Data • Store data in identifiable segments (transaction data, balance data, process data…) • Knowing what data resides where allows you to access it in the future • Organize for tracking and trending – Use KPIs – Use Strategic goals – Use Key Ratios
- 31. Identify Relevant Data • Always start with a question you want the data to answer then isolate, track and trend that data • There is too much data and not all of it is relevant all the time • Identify which data will provide the answer to your questions
- 32. Use Data to Create Efficiencies From • Blast Marketing >>>>>>>>>>>>>> • One size fits all >>>>>>>>>>>>>> • We did good >>>>>>>>>>>>>>>> • We got a lot of new business >>> • We grew balances >>>>>>>>>>>> • Assuming everyone wants everything >>>>>>>>>>>>>>>>>> • Not knowing the customer >>>>> To • Segmented Marketing • One size fits you • We had X return • We opened X new accounts • We grew balances by $X • Your customer is looking for this one thing • Knowing the customer
- 33. How? • Create smart targets • Create lists from these targets • Create a campaign goal • Store this list info with historical markers • Add the average per unit/balance profit for this offer (work with finance to determine) • Append this list for activity/changes • Build a report to demonstrate this activity • Store this activity for future use/forecasting
- 34. Create a Target Lists • Monthly ACH deposit to another FI • Monthly bill payment via providers website • Automatic loan payment to another FI • No checking • No debit card • Inactive checking/debit • No credit card with you • A credit and low deposit balances • High deposit balance and no loans • No mortgages with you • One auto loan • $10K+ of deposit balances
- 35. Create a Marketing List • Remove from the list – In collections – Sub-par members (CUs) – Underage customers – Do not market
- 36. Create Campaign Goal • By units • By balance • By utilization • Goal should match what the campaign is trying to accomplish
- 37. Store these Lists Under Unique Names • Excel spreadsheet • Data warehouse • MCIF • CRM • Be sure to include historical markers based upon the goal
- 38. Add Product/Balance Profit • ROI or MROI (pros/cons) • Work with Finance • Average 1st year profit by: – Unit – per auto loan – Balance – per $1000 – Customer – Household • Add this profit estimate to the tracking report
- 39. Append this List • Same definitions • Same data source • Add appended data to original list with historical markets • Append weekly/ bi- monthly/monthly/…
- 40. Track, Trending, Reporting • Build a report • Compare historical marker to current • Present graphically (visualize the data) • Tell the story – keep it pithy…
- 41. Store for Future Reference • Improves your goal setting • Helps with forecasting • Helps with budgeting
- 42. Three must measurements • Engagement • Lead Generation • Utilization
- 43. Engagement • Products per customer • Products per household • Balances per customer • Balances per household
- 44. Lead Generation • Inbound Marketing • Social Media • Branch traffic • MCIF/CRM • eMail/Direct Mail • Outdoor • Events • Content Marketing • New customer marketing lists • SEG/Business Partner employees
- 45. Utilization • This metric is the one that matters the most to your C-suite. • Did your marketing compel people to come in for an appointment or attend an event? • Did you marketing result in product adoption and balance growth? • Match the marketing group to those who actually walked through your doors—and give you a direct ROI/MROI on your effort.
- 46. Tweak and Start Over Data quickly becomes addictive Data will temper the “gut” and mitigate the “I think(s)”
- 47. "Information is the oil of the 21st century, and analytics is the combustion engine.“ Peter Sondergaard, SVP Gartner Research Rich Jones rich0747@comcast.net Leading2Leadership LLC 720.256.4936 mobile @rich0747 Twitter LinkedIn.com/in/rich0747