Irked: Return on Marketing Remains Elusive ... No, Really???

posted Sep 20, 2014, 7:35 AM by Michael R Hoffman   [ updated Sep 20, 2014, 7:54 AM ]
This is not rant on marketing or banking or big data or IT but  
this article in American Banker  is still bothering me on this Saturday morning
because I'm frustrated as a banker, marketer and a customer by
the inability of companies (not just banks) to adapt practices to leverage 
analytics - we are in the post information age and moving into the *age of continuous iteration, after all.

*Did @jrmcgee  say "we are entering an ere of continuous a b testing" when describing benefits of page 15 (Oh, the best use case would be CxC Matrix) 

Return on Marketing Investment Remains Elusive for Bankers
SEP 18, 2014 1:04pm ET

Judging the return on investment for a marketing budget can be very difficult, even for banks with access to sophisticated analytics. [NOT TRUE - BIG DATA (that every bank already has) MEANS YOU CAN EASILY SEE ROI FROM MULTIPLE PERSPECTIVES: product, customer, LTV, channel, program, offer, CSR, segment - simultaneously]  

Questions abound. Do you assess a campaign based on new customers? Brand-recognition surveys? Unique visitors? The number of clicks or likes or shares online? Each of these figures tells just one part of the survey, and each is affected by other factors, which makes judging return on investment difficult. [ALL OF THE ABOVE...THAT'S KIND OF THE POINT, C'MON]

At the Financial Services Marketing and Innovation Conference in New York on Wednesday, marketing executives outlined differing strategies, though they generally agreed that the key to success involves getting good, specific data on a campaign's effectiveness. 

"The question is, how will I know it's working?" said Deborah Van Valkenburgh, senior vice president of strategic brand management at PNC Bank in Pittsburgh. "You need to be able to develop metrics and measures all along the campaign trail and come back and demonstrate the effectiveness."

Sorry for the bluntness - It's a Saturday morning and this article in American Banker irked me something terrible - especially after attending IBM Financial Services Business Analytics  and IBM Accelerate [Marketing/CIO/CTO read these links together - Fiserv, D+H, FIS]  this week - IBM's analytics session was as patronizing as this American Banker article  (comment from my customers at 4 different banks that commented - "Didn't we see this presentation 20 years ago?" 

And that's the source of the IRK - Why aren't traditional bank's leveraging their substantial information and analytics assets to improve return on customer and realize the optimum value of retail, small business and commercial customers and the Metcalfe's Law potential of all the big data interactions digitized [makes each interaction measurable, programmable, syndicate -able (see maturity pyramid Chapter 7, figure 7.1 also in images). 

The irk comes from bank's inability to change their behavior based on these analytic observations which have been evident for 2 decades (yes, I was the 'MCIF guy' at a bank then at Experian (worked with 400 banks on this stuff - so I know they have/had it...arghhh) -

But banks are not alone - the structural, political and cultural barriers to leveraging information to grow performance while improving the customer's experience is pervasive across most industries and businesses.

Big Data, machine learning, predictive analytics embedded in processes distributed through programmable interactions exposed through the internet of things will not change traditional business culture and management structure.... yet.

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