Author Archives: Anthony Nygren

Making Use of Data: 5 Questions Marketers Need to Answer to Succeed

A recent Forrester/Dun and Bradstreet survey revealed that only about half of sales and marketing decisions at B2B companies with over 500 employees are made based on data. The following summary from MarketingProfs shows that challenges to the effective use of data abound: From gathering to application to measurement, all are seen as either “extremely” or “very” challenging by a large portion of the respondents.

The paradox here is that businesses are awash in data today. Companies are spending vast amounts on software, hardware, and services related to data acquisition, management, and display. Moreover, businesses are constantly talking about data and the need to make better use of it. Unfortunately, neither these solutions nor the organizational desire solves the problem. In fact, the solutions often make the problem worse because they are seen (and sold) as a silver bullet and enable managers to check a box saying they are pursuing a “data initiative.”

The reality is that the problem lies not in a lack of will or technology. It lies in a lack of focus—a lack of strategy around data management and analytics. When you can measure anything, you do…but more measures mean more data and more difficulty making it all align. More data also mean more potential interpretations—and a decreased likelihood of consensus around what the data mean and the implications.

To construct an effective data and analytics strategy, marketers need to answer the five questions below. You’ll see that several are much more about strategy than data. Why? Because to capture and leverage the right data, we must first be clear on strategy.

  • What are the key stages of the customer journey? The point of marketing and sales is to influence behavior towards revenue generation. If you don’t know the path customers will follow that will generate revenue, what good is your data?
  • What activities are we undertaking today to move people through those stages? Marketing and sales should be targeting points on the customer journey with activities designed to influence behavior. Organizing activities along the journey ensures that you will use data about those activities and customers in the right way.
  • What should be the measure(s) of success for the impact these activities are having? Once you have aligned activities with the journey, identify ways of assessing whether those activities are successful, specifically with respect to the goal of moving from one stage to the next.
  • How can we align data we have or could plausibly get with these measures? Effectively using data to make decisions depends on being able to capture the right data consistently and with confidence. If it’s hard to acquire data or the data is subject to skepticism in the organization, it will never be used.
  • What decisions will we make based on the data? Imagine if, for a given measure or data point, one month it’s high and the next month it’s low. What decision will that trigger? If you can’t articulate the decision that will flow from the data, why capture the data in the first place?

To be clear, answering these questions is NOT easy for most companies. Data strategy isn’t easy. It’s actually much harder than buying software or hiring consultants to deliver more data and more measures through more systems. But without that hard work to decide what data and what measurements can really impact business outcomes, it’s unlikely that surveys like the one above will show any better results.

Raising the SaaS Onboarding Bar for Niche Segments: RIAs and Software Frustrations

According to a recent survey of RIAs by Trust Company of America and TechValidate, advisors are not satisfied with the value they receive from their software. Almost half said that they couldn’t use it to its full capacity and more than a third complained that it couldn’t be customized to meet their needs. This data highlights the fact that even if you believe you have designed a product to target a specific market segment, there is no less of a need to properly set expectations in the sales process and invest in engaging and onboarding customers.

For the advisor market—especially RIAs, who may not have much of a technical staff to support them—the profile of the user makes this need particularly acute. Smart, used to moving quickly and strapped for time, these customers will have little patience for inefficiency and delays in going live and in finding out they were given misleading promises in the sales process. The actions and communications pre- and immediately post-sale will either put these customers on a positive trajectory for success and strong lifetime value or on a path to dissatisfaction.

In our experience, the keys to reaching and influencing RIAs are:

  • Demonstrate an understanding of them and their business.
  • Respect the fact that any time not spent working with existing clients or finding new ones is time wasted.
  • Communicate in plain language and facts, not marketing-speak and fluff.

SaaS businesses, obviously including those targeting RIAs and other niche customer groups, need to ensure customer success to maximize the retention and upsell opportunities that are necessary to turn a profit on acquisition. But like any revenue generation opportunity, this requires investment—in time, personnel, and money. In a niche segment, it doesn’t become easier to satisfy, but rather harder as the bar gets higher for the knowledge and experience necessary to “talk the talk” and “walk the walk”.

Notes from InVest 2017: From Fear of Robos to Hybrid Optimization

When you attend a conference that has a particular thematic focus two years in a row, you have the opportunity to observe the progression of the discussion. InVest 2017, following on the inaugural InVest 2016, very much offered this opportunity.

From my perspective, 2016 was about the retirement advice industry coming to terms with digital advice and moving from seeing human and digital advice channels as competitors to seeing them as complementary. By the 2017 conference, the attendees had come to recognize and understand the necessity of a hybrid model and now were focused on how to manage and optimize that hybrid structure. Two discussion panels exemplified the new focus:

The Empire Strikes Back had a panel of senior executives from large financial services companies (Citi, UBS, Bank of America/Merrill Lynch, and JP Morgan). They all talked about the need to start from a place of understanding the business opportunity offered by digital—an improved client experience, increased efficiency, cross-selling—and to use that understanding to shape digital advice strategy. Throughout the session, the panelists repeatedly highlighted both the opportunity and risks that face big advice providers. The opportunity is to leverage technology to enhance and build new relationships; the risk is that existing clients could be turned off. Specific comments from the panelists illustrate these dynamics:

  • “The industry is moving from product distribution to client relationship management and digital is a big part of that new delivery model.” (Venu Krishnamurthy, Head of Citigold, Citipriority, Citi Personal Wealth Management)
  • “We learned that we couldn’t just rely on our industry experience to deliver a strong digital experience; UI matters a lot.” (Richard Steinmeier, Head of Emerging Affluent and The Wealth Advice Center, UBS Wealth Management Americas)
  • “Clients don’t just use us for one thing, so we have to think about digital advice in the context of overall relationship and be aware of how everything fits together.” (Kelli Keough, Global Head of Digital Wealth Management, JPMorgan Chase)
  • “You have to look at decisions about digital implementations on the basis of the value to client relationships.” (Aron Levine, Head of Consumer Banking and Merrill Edge, Bank of America)

In the Hybrid Strategy IRL (“in real life”) session, panelists from the front lines of client advice talked about how the foundation of the hybrid structure has to be the client and that technology should support, not hinder, the necessary and valued human interactions. In their words:

  • “You have to know who your clients are and how the technology will help you manage and deliver value in their eyes.” (Ryan Parker, CEO, Edelman Financial Services)
  • “Technology should be used to help advisors have better conversations, and to help deliver better outcomes. The guiding questions should be: “What can you automate?”, “What can you augment human with?”, “How do you segment?” (Ben Jones, Managing Director – Intermediary Distribution, BMO Global Asset Management)
  • “Don’t make the mistake of falling in love with the technology” because “our product is our experience…the rest is pipes and plumbing.” (Parker)
  • “Always go back to question: how does it help the client experience?” (Paul Duval, President, Genesis Wealth Advisors)
  • “Technology is empowering. [Clients value our ability] to have tough conversations. The more efficiently we can get “housekeeping” done, the more time we have for those conversations.” (Duval)

As this year’s InVest approaches it will be interesting to see the current state of thinking about the hybrid model, and how far down the road of grappling with the strategic and operational challenges that will likely come with implementing the model companies have come.