I almost called this post “Nobody Knows Anything” but that might have been overkill. I’ll say what I have to say and let you be the judge. Let’s say that you buy a friend’s newborn a gift. You have it shipped to your house. The data says, correctly, that you bought an infant gift. That might also lead to an inferred piece of data that places your household into the “presence of infant” bin, leading to you seeing lots of ads for diapers. If you’re the one placing the ads for those diapers, you’re wasting money.
Lots of the data marketers routinely use is of that sort. It’s inferred. You can see that some thinking at work if you’re a Netflix user: the recommendation engine infers what you might like based on your past viewing. Of course, if your kids or someone else in the house watch something in which you have no interest, the accuracy of those recommendations is diminished (which is part of why there are separate profiles available when you log in). Inaccurate data is, sadly, more the norm than an aberration. Since this data is really what’s behind personalization and targeting, that inaccuracy is a big problem. Any business that buys data from third parties – and an awful lot do so – may be putting garbage into their system. Unfortunately, most don’t know that because there is little transparency in the data business and it’s impossible to verify what’s good and what’s not.
What should you do? Invest in collecting your own, first-person data. You can also demand transparency in any other data you use (good luck with that) with respect to how it was gathered and what it really represents. Is it inferred or does it come directly from consumers (did someone tell you they had a baby in the house or did you guess they did because they bought one infant item?). Who owns the data and was it gathered with the consumer’s permission?
When Facebook tells its customers (marketers) that they have data on 41 million adults aged 18-49 in the US and there are only 31 million of those adults living in the US, you know much of the data is inferred and also that we have a problem. A recent study that found that 70% of marketers believe that the customer data their organizations are using for marketing is low quality or inconsistent. Why bother to market at all when you’re just flying blind?
Filed under Consulting, Huh?
One thing that bad golfers do (and I’m speaking from personal experience here) is to misalign themselves. They might point the clubface at their target but they fail to get their hips, shoulders, and knees properly aligned. When they go to hit the shot, inevitably the ball goes someplace other than where the golfer desires.
I thought of that this morning as I read the results of a study on marketing compensation. Conducted by MediaPost, the study found that:
Agencies and their clients are far apart in terms of what they deem to be the most fair method of compensation, according to findings of a survey of advertiser and agency execs conducted recently by Advertiser Perceptions for MediaPost. While labor-based fees are the No. 1 method preferred by agencies (45%), incentive methods were the top choice among marketers (40%).
You might not be a marketing agency or a marketer, but there is something to be taken from that for whatever business you’re in. Think of a car’s four wheels. When they’re properly aligned, the car is easy to hold on the course you set. If one wheel is out of alignment, the car pulls left or right and you’re constantly having to fight to keep it heading where you want.
Your business is no different. Your goals and your customers’ goals have to be in alignment. So too do yours and your team’s. Being paid fairly is a critical part of the employer/employee relationship, and no one is going to do their best work if they feel like they’ve been treated unfairly. I’ve known agencies who’ve resigned clients because they felt that they were losing money servicing the account. I actually had a client who hired me to complete a project over a few weeks. When I presented the completed work in a little over a week, they asked to reduce what I was being paid since “it didn’t take as long as we thought.” In that case, it was my fault for not being sure that their expectations (how long it would take and the value of that time) were in alignment with how I did the work and the value of the project regardless of the time spent. Sure, I could have sat on the completed work until it was due, but that has no benefit to my client and only helps me justify what they’re paying.
All the wheels need to be aligned. The club face and your body need to be aligned. The goals and expectations of everyone in your organization need to be aligned, and that alignment must extend to your customers as well. Hard to do sometimes, but always worth it, right?
Filed under Consulting, Huh?