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Posts tagged with Database

The problems with Big Data and how DirectLink™ solves them

Posted on April 17, 2013 by Leave a comment

FutureShift is a data-driven strategic and brand planning company, which uses its proprietary software to develop databases and customer feedback that enables direct communication to any user defined segment.  

If you’re like most people in business today, you’re probably talking about “Big Data” and what it can do for you.  One can hardly scan the business section of any newspaper or magazine without reading about it.

On April 15th NY Times, columnist David Brooks wrote an excellent article about the limits of Big Data.  It’s titled, “What You’ll Do Next”. It was of interest to me because we offer large-scale, qualitative customer intelligence to our clients with the ability to instantaneously email people who share a distinct set of differences.

Let me explain because it’s really quite simple.

The purpose of research or recording data (quantitative or qualitative) is not to tell you what people have in common but what drives them apart.  If in your marketing, you find the common denominator between all your customers and then deliver them a message that addresses that commonality, you’re actually speaking to no one.  You haven’t addressed any particular interest that anybody has that might indicate that you understand their specific needs.

This is why we use (or build) your database to tell you how your customers are different from each other and how they want that difference to be addressed.  As Brooks points out, “People are discontinuous…the passing of time can produce gigantic and unpredictable changes in taste and behavior, changes that are poorly anticipated by looking at patterns of data on what just happened.” Nothing could be truer in marketing today.

One of the problems with Big Data is that it is essentially a rear-view mirror. It looks for past patterns of preferences based on purchases or contacts and assumes their patterns will tell you how they will act in the future.  Brooks quotes the Viktor Mayer-Schönberger and Kenneth Cukier book, “Big Data,” noting “this movement asks us to move from causation to correlation.” But he writes, “Correlations are actually not all that clear.  A zillion things can correlate with each other depending on how you structure the data and what you compare.”

We’ve all probably experienced this when buying products ranging from books to vacuum cleaners from Amazon.  You’ve surely seen, their notations that people who bought these books, also bought these.  What they’re doing is simply taking your history of book buying, comparing it to others with similar lists and laying what those people bought next onto your page.  In other words, past history from people like you equals future purchase probability and with enough purchase data, there may be some accuracy in that prediction.  However, Amazon can’t know that last week I had no interest in buying books about terrorism and this week, sadly due to the events in Boston, I do.  Until I make my purchase, but then all kinds of things can intercede with my buying decision.  There are just too many potential disruptions to patterns of purchases to be good predictor of future behavior.

We’ve created a forward-looking mirror called DirectLink™ We ask your customers “what if” and “why” questions.  We capture their words and then quantify their ideas, perceptions and motivations.  Then, we give you the ability to instantly segment them and download the email addresses of any segment you select.

With DirectLink™, you can immediately see what differentiates your customers, the words they use to describe their differences and their emails so you can you respond specifically to their unmet needs.  Most purchases are motivated by either frustrations or the need to fulfill unmet needs.  Big Data doesn’t engage customers to determine their frustrations or needs.  DirectLink™ does. In doing so, you are directly engaging your customers to increase loyalty and ultimately, sales.

Learn how Futureshift would approach your marketing challenge or arrange for an online demo of DirectLink™  by calling 212-444-7192/7193 or email strategy@futureshiftnow.com

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3 social media/research enhancements you’ve never seen before

Posted on October 25, 2012 by 3 Comments

In the mad dash to build Facebook and LinkedIn communities, something has been missing.  Companies have been campaigning for as many Facebook “likes” as possible but now, they’re asking, “How do we know if our message is getting through?” and “Is there any way to tell whether (1) awareness is being raised; (2) brand loyalty is increasing; and, (3) social media is having an effect on sales?”

They’re good questions to ask and now there is a way to answer them.  With a simple link on your social media page, you can gather comments and get key strategic questions answered by your social media network.  With our DirectLink™ software, you can ask them questions about their understanding of your brand, unmet needs and the information they’d really like to have from you.  They can be open-ended questions that allow people to write as much as they want and then you can apply these three new tools:

1. See what they’re writing in real time – as they write it!

Now, you can actually monitor what your community is saying about you and how they’re answering your questions.  Take a look at the example below for one of our clients that is a wine producer.  The question asked is “Please describe the qualities that you find in our wines that differentiate them from other wines at any given price level.” With one click on the button on the upper right that says “Get Verbatims”, everything written in answer to that question immediately appears.

And if you want to see all of the text responses quantified, you simply close the verbatims screen and bar charts appear showing how all of the answers have been categorized.

In other words, we’re quantifying qualitative information – conversational text – and enabling you to see the actual words behind the data.  It’s like listening in to hundreds of conversations about all the questions you want answered about your brand.

2. See the key words they use while they’re using them.

When considering the key needs among your customers to address, it helps to know their top-of-mind thoughts.  Word clouds can provide a quick look at what any customer group is saying about your brand.  With one click on the “Word Cloud” button, you’ll see your word cloud develop before your eyes.

DirectLink™ automatically throws out the meaningless words such as articles, pronouns and other common words that might improperly skew the response.  Still, there will be words you’ll see in the word cloud that get through the screening process but don’t provide insights.  DirectLink™ enables you to quickly toss out those words.  For answers to the same question as above, “Please describe the qualities that you find in our wines that differentiate them from other wines at any given price level.”, we tossed out seven additional words to get the picture above.  It’s as easy as clicking on the words you don’t want and the word cloud quickly reforms.

With this feature, you see the top-of-mind thoughts your customers have and the descriptive words they use.  Every product or service creates its own lexicon of words that both the trade and consumers use.  Now, you can see what those are and use them to talk to your customers.

3. Segment your customers instantly and respond immediately.

A common reaction to seeing what people say about you is to think “if only I could talk directly to these people about their beliefs.  Then, I could convince them.” Now, you can!

To the same question above, we wondered if the media that follows the wine and spirits industry might have different topics on their minds.  So, we quickly selected only the media respondents, clicked on the Word Cloud button and this picture appeared: 

Whereas the top-of-mind words used by the larger audience were “food, fruit, price, friendly, oak, aging”, the media has prominently added “complex” and “smooth”.  If we were to speak about these wines to a journalist then, we might stress both the complexity and smoothness of the wines as being key factors that make them so good with food.  It’s this type of parsing that can enable you to tailor your response to any particular trade or consumer group based on factors that you define.

Now, let’s go a step further because DirectLink™ makes a seamless connection between survey responses and direct marketing.

Among the DirectLink™ features on the control panel, you’ll see that there is another button on the upper right that says “Get Emails”.  Clicking this button immediately downloads an email list of only those people who responded to the question or multiple-questions you selected.  You can send them an email using the words they’ve used in response to your question that is specific to their ideas, perceptions and beliefs.

Who can use these 3 features that come with DirectLink™?

  • Brand marketers trying to understand what people think about their products.
  • Sales managers who want to improve and tailor their sales pitches.
  • CEO’s who want to test a new strategy with their customers.
  • HR managers who want to assess employee morale or improve internal services.
  • Trade association managers who are seeking ways to raise awareness and open doors for their members.
  • Foreign trade development officers who want to better understand what makes their country attractive.
  • Tourism departments that want to know what will motivate consumers to visit.
  • PR and ad agency account executives who want to know what’s on their client’s customers’ minds so they can address them in marketing communications.
  • University and college administrators that want to understand and respond to student or alumni views.
  • Non-profit development directors seeking the keys to increased fund raising.
  • Political campaign managers who need to understand what voters want.

The list goes on and on.  All of the above have used DirectLink™ in the past and now these new features make it even more effective and faster.  We can make your social media programs more effective and improve the ROI of research or direct marketing programs.  If you’d like to know how DirectLink™ can help you and see an online demo, let us know.

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10 ways to make your customer database work harder

Posted on September 18, 2012 by 2 Comments

It has become a standard part of every organization’s marketing plan to have a database of customer emails.  Millions of companies and institutions are sending out email newsletters, promotions and solicitations everyday, both for consumers and the trade.  You’re probably receiving many of them yourself and if you’re anything like me, you probably delete all but a few as soon as you see them land in your email box.  More often than not, these are emails from companies you know or may even have requested information from.  The others end up in your junk folder.

About 20% of these emails get opened but a much lower number are actually read — click through rates are about 5%.  Another way of saying that is 80% of these emails are never opened and 95% are never read.  When you think of it that way, you have to ask how you can improve?

At Futureshift, we have a different approach on how to make databases work harder and we put them to work for our clients.  Here are 10 tips for improving your database performance:

1.  Have a database strategy.

Think of it this way:  Would you advertise without an objective, creative strategy and message?  Database marketing is no different.  What do you want your database to do for you?  Who do you want to reach?  What do you know about them that tells you what they want to hear from you?  Do they all want to hear the same thing or should you segment them by interest or need and address them accordingly?  Think these things through and write a strategy that keeps your database use focused, disciplined and integrates it with your other marketing programs.  Otherwise, say hello to junk folders.

2.  Think of your database as a community.

If you think about databases as numbers of files and demographic fields, you’re working with an outdated framework.  Imagine that you’re the mayor of a town and each member of your database is a resident.  They live in separate areas that may have demographic and psychographic markers but more importantly, they have different needs.  Some areas may want better schools, some more security or different zoning.  Databases are no different.  They can be grouped by needs and then you can address your database members with just the information that they’re looking for.

3.  Don’t buy.  Build!

You can build your database more quickly by buying names from list brokers.  You also can alienate a lot of potential customers and get labeled as spam.  It’s better to build one by one, if necessary, even if you’re starting at zero.  There are a number of techniques that can raise awareness of your company and you’ll add prospective customers who actually are interested in learning more.  For one of our clients, we began at zero several years ago and now have 8,000 members of their trade and nearly 100,000 loyal consumers signed up.  Click-through and open rates are higher than industry averages and unsubscribes are lower.  The reason is that people want to be there.

4.  One size does not fit all

Perhaps the biggest mistake companies make with the information they send to their database members is that they send the same information to everyone.  That’s a fast way to increasing the number of unsubscribes.  People want information that pertains to their needs.  Email is similar to advertising in that you have only a few seconds to attract the reader’s attention.  It’s a quick trip to the delete key.  A singular approach, whether in e-newsletters, promotions or other announcements will speak to only one group.  Over the years, the amount of competition and market clutter has fragmented both trade and consumer markets.  You can think of it like cable TV.  We now have access to more than 1,000 channels with most focused on a specific area of programming to meet specific viewer needs (history, cooking, discovery, shopping, etc.) When programming doesn’t address needs, people change the channel…or they hit the delete key.

5. If you can only know one thing about your customers, know their frustrations.

A frustration is simply an unmet need.  If you can fulfill unmet needs, you’ll have a customer.  How do you learn what frustrates people about your product?  Ask.  Your first email to a prospective database member should be to ask questions about their frustrations and needs.  There are some easy ways to use either closed- or open-ended questions to do this.  Once you understand unmet needs, you’ll see that people can be moved into needs-based segments.  You’ll also learn that many of the demographic and psychographic markers you used to use are really not an accurate guide to predicting what customers and non-customers want to know.

6. Your job is to listen, not tell.

Most databases are used to broadcast information about companies and products, and the goal of most database acquisition programs is to build quantity rather than quality. The conventional wisdom goes that since conversion percentages run so low, you’ll need larger and larger databases so that very small number of customers will continue to grow.  But at the same time, you’re making yourself vulnerable to a competitor who is better at building database size than you and has more resources to offer incentives.  The old adage that it’s better to talk to people not at them is true with database marketing too.  Ask questions, find out what people need, and what they really want to hear from you.  We often ask “What is it about this product that companies tell you that is of no use to you?” and “What would you like to know that nobody has asked you in the past?”

7. Tell them what you heard.

Whether trade or consumer, the first question people ask is “What do other people like me think?”  B2B customers want to know how their peers are dealing with the same issues they have.  Consumers want to know how others, just like them, solved the same problems or used certain products.  This is why early chat rooms were immediately successful and led to the growth of social media.  After you ask your customers about their needs, report back to them on what you learned.  This says that you listened to them and that you have an understanding of who they are, how they are distinct and what they share with others like them.  It pays off.

8. Involvement = Loyalty

This is the payoff.  Build by asking, then listen, acknowledge and then ask again.  Stop giving a monologue to your customers and build a dialogue with them.  Do this enough and you’ll be able to get them to help you add qualified people to your database through friends and family or associates programs, join advisory boards or participate in regular feedback panels.  Over time, you can turn them into your brand ambassadors and expand your marketing reach.  Isn’t this the real goal of marketing?

Two other commonly misunderstood caveats need to be kept in mind:

9. Facebook likes are not a customer database.

Social media has its uses.  It’s a like a TV channel that goes out to the masses.  It can be great for raising awareness but it does not acquire an audience that you can always reach nor does it help you segment customer needs.  Social media is like shooting a shotgun and hoping you’ll hit your target.  They’re out there but you don’t know where they are nor when they’re paying attention to you.  Database marketing is a completely different marketing tactic and one is not a substitution for the other.

10. Using successive emails to qualify people.

Many companies capture emails from people who visit their websites.  Then they begin a series of successive emails and key future marketing based on which email garners a response.  However, it doesn’t work that way because customers don’t give you that many chances.  Keep in mind the environment in which your email is one of dozens or even hundreds your customers or prospects receive each day.  Your first email has to give them a reason to respond.  Draw them into a dialogue and then you can qualify them along the way.

Follow these ten tips and you’ll improve the performance of your database.  More importantly, you’ll get closer to your customers and create relationships that generate sales and referrals.  While I’m advocating asking a lot of questions of your database members, note that I didn’t mention market research once.   Market research will tell you what people think at a point in time and that information can be a good evaluative mechanism.  But this is about having a conversation and using some digital tools to allow you to engage your customers in very large numbers.  While we have our own proprietary tools for increasing customer involvement and loyalty, we can also help you do it on your own.  The important point is to stop looking at database marketing as a linear process and see it as a relational part of your marketing program.

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CRM Systems are a form of corporate myopia…but they don’t have to be

Posted on July 19, 2012 by 2 Comments

Investment management firms always warn that “past performance does not necessarily predict future results.”  It makes sense.  Just because an investment manager has hit it big in the past doesn’t mean that he or she will know when the next big rise or fall in the market will come.

So why doesn’t that same caveat go with Customer Relationship Management (CRM) systems?  Companies spend millions of dollars with companies like Oracle, SAP, Salesforce, Microsoft and many others (and what’s a small to medium size company to do when faced with the investment and difficult implementation?).  These systems work off of customer “touchpoints” to make relationships and customer management easier.  A “touchpoint” is any past interaction with a customer whether it is a sale where product purchase and customer demographics are acquired, a complaint, inquiry or field contact (assuming the field rep enters the information properly and accurately).

Have you ever gotten upset that you can’t understand the foreign accented customer center rep when you call to ask a question about your bill?  Some of us don’t care but others find it annoying.  It’s because the company using the CRM system didn’t note that your call should be routed to a U.S. based call center and decided it’s cheaper to have your call go to someone they’re paying only several dollars a day, customer satisfaction be damned.  CRM didn’t help there.

Or do you get annoyed when political campaigns send you two or three fund raising requests a day while never asking about your beliefs?   They use CRM too but the systems don’t gather your opinions and beliefs.  They only note where you live, how you voted last time, whether you gave before and possibly what type of car you drive and magazines you read so they can create a profile they believe is predictive.

How about coming home to find the post office has delivered four L.L.Bean catalogs?  Waste of paper?  Absolutely, but blame their CRM system for the confusion.  Amazon is quite sure that because you bought a book about wine, you’ll absolutely want to purchase a new wine cooler they’re carrying.  You may not have even noticed but their CRM system says you’re a prospect.  Millions of customers, sales, inquiries, complaints equals billions of data points so inaccurate interpretations, solicitations, mail and email deliveries are bound to happen, right?

Not necessarily.  What if something like “forward-looking CRM” were available and affordable?  Imagine if companies or politicians asked you what your needs and frustrations are and once they knew, could use that information to tailor responses to you and provide better products, services and build their overall customer relationships.  Imagine politicians asking what his or her constituents believe – the massive Town Hall that Ross Perot used to rant about – and adjusting their positions to truly be representative of what voters are telling them.  Sound impossible?

It exists

Futureshift’s DirectLink™ system enables you to ask any group what they believe and why, what their needs are and why, and most importantly, what their frustrations are and why.  You can ask in an open-ended way questions that begin with “why”, “what” and “tell us about” and people write like they’ve never been asked these questions before.  Then, CALCAT™ software takes over and helps tag ideas and beliefs so that qualitative information can be shown quantitatively in bars and graphs just like people are used to.

Below is an example of how DirectLink™ can reveal more about customers.  The topic is wine but it could be any product or service.  The question in the chart below (“What one piece of information could a winery give you that you would find valuable when selecting a wine?”) was answered by 3,119 people and you can see the array of responses.

But now, let’s say you want to know more.  How did people write about some of their answers because you might want to refine the way you give them information.  So let’s say you select the response “Flavor/Tasting notes”.  You can click that response and then one button, called “Get Verbatims”, which instantly shows a screen like below.

Now, you can read how all of the respondents talked about “Flavor/Tasting notes” and you can see the descriptive language they use or even create word clouds so the most common terms stand out and then you’ll know what the customer’s lexicon is so you can know just what language to use to talk back to them.

Now, it gets more interesting because you’ll want to talk back to them in a way that is specifically tailored to their needs.  This group has indicated that they want better flavor and tasting notes from wine marketers.  What if you have something to say to them about this?  Is there a way you can reach them immediately?  Easy!  All you do is click the button at the side that says “Get Emails” and an email list of all the people who are looking for better flavor and tasting notes downloads to your computer, or for that matter, to your mobile device if you’re on the road.  Now, you can email them something specific to their needs.  This ease in immediate implementation makes it both practical and effective for small businesses to target market.

It gets better

Typically, with most products, marketers want to get more specific in regards to addressing consumer or customer beliefs.  They might have three, four or five variables they want to combine together and this can take days to obtain multi-variable analysis, let alone find the people behind those beliefs.  Not any more.  Multi-variable analysis and grabbing the people in that specific multi-variable segment is now instantaneous and automatic.

Above, four variables have been selected:  (1) women; (2) age 50 – 59; (3) want Flavor/Tasting notes; and (4) prefer to get recommendations from the sommelier.  Now, you can look at every question you’ve asked for that group or you can quickly download a list of email addresses for this refined segment so you can send them a message tailored to their needs.  The result is a personalized response tailored to your customer’s needs.  This creates more customer awareness, interest and loyalty because you’ve shown you’ve listened and are responsive, which is the point of CRM to begin with.  Perhaps of more note, however, is how easy it is to operate the system yourself without a bevy of expensive consultants descending to your business and drowning you with minutiae.

Making CRM work better

DirectLink™ can act as a “look-forward CRM” system for small to medium sized companies with databases of several hundred thousand.  Groups can be defined by a series of responses to questions and messaging can be tailored to the language they use, beliefs they hold or frustrations they’re holding.  In this way, marketing can address the current and future needs of consumers and customers and be truly predictive at a cost that makes it more approachable than those big CRM systems.  With larger databases, DirectLink™ information can be appended to databases to make those systems “needs-based” and ultimately more effective.

DirectLink™ and its underlying software platform, CALCAT©, are proprietary products owned by Futureshift, Inc.  DirectLink™ is fully functional for both English and Spanish speaking markets.  For more information Forward-Looking CRM, write strategy@futureshiftnow.com

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