Marketing Darwinism caught up with Samir Saluja, Co-Founder of DeriveOne and former Microsoft Learning Executive.

Marketing Darwinism: Samir, you left Microsoft to start DeriveOne with your partner Jason Talwar. Tell us about that transition.

Samir: Microsoft played a huge role in my development and in my understanding of the needs of customers. It also helped me understand the importance of data and using data for scale. What Jason and I realized is that despite the importance of data in the organizational and business world, most were not conceiving of it correctly or in the most efficient manner. We saw that “data for data’s sake” started becoming the essential mantra for companies and we wanted to help them avoid that trap. Thus we started DeriveOne. We consider Microsoft a key partner so still are in the ecosystem.

Marketing Darwinism: “Data for data’s sake?” What do you mean?

Samir: Data has come to be seen as an important commodity and as such companies are scrambling to ingest it and even hoard it. Ingestion is great but what about digestion? How do you use this data? What about data-overload? What about useless data? What about “fake” data? The point here is that data is not an unalloyed good if not trained on decisions. In fact, we believe you need to look at the decisions first and figure out the data needed based on the decisions not just because “data is good.”

Marketing Darwinism: You have a very varied background. Tell us more about your journey.

Samir: Thanks Paul. I have spent time in the Peace Corp, as an entrepreneur, as a business-owner, as a Microsoft employee and as a volunteer. All of these experiences helped me converge on being who I am today, personally and professionally. The Peace Corp helped me learn to listen, empathize and act. Being an entrepreneur taught me about risk and reward. Microsoft helped me understand the importance scaling through partnerships. DeriveOne has helped me realize the value of focus.

Marketing Darwinism: Why should an organization hire DeriveOne?

Samir: We believe that partnering with our customers in the context of what they need and what their customers need is crucial. We help organizations, medium to large and even some startups, use data to hone and focus their customer segmentation strategy, the cognitive diversity of their teams, and to inculcate the culture of decision-driven data. We believe that methodology matters, eliciting what the true decisions that need to be made is key, and delivering accountability is necessary. We are humbled daily by interest in our company.

Fashions change. 

This cliché doesn’t apply just to hemlines and jeans, but to business as well.  Anyone who claims that business is all about logic and data needs to get a reality-check; Marketers are perhaps the worst offenders here, much to their detriment.  Of late, Marketers have suffered from a deep alienation from the real essences of their profession and we hope that 2018 will usher in a return to sanity.

This alienation – or departure from sanity in Marketing- stems from the over-indexing on Data and Measurement.  While this sounds strange, even counterintuitive and heretical, it stands the test of logic and does not require a deep knowledge of Marketing to understand.  Data and Measurement are no doubt valuable but they can also be the refuge of scoundrels.

The key in the above paragraph is the term “over-indexing.”  In other areas of life, the tendency to over-index is called zealotry.  In Marketing, the zealotry of measurement has created an untenable situation in which Marketing is asked to be as resilient as Physics or Mathematics; So too are Marketers, who feel forced to conform to the fashions of the day.  For the past decade or so, the fashion has been “Performance Marketing” or, in a wild conflation of strategy and channel, “Digital Marketing.” 

The genesis story here is a good one.  Marketing for a long time appeared to be a cocktail of guesses mixed with a dose of manipulation.  Organizations started to get frustrated with the lack of predictability and rising costs associated with Marketing and the ecosystem of agencies and media companies that had to be invoked when even considering bringing a product, service, or brand to market.  Theories of consumer reception abounded, but the overall logic of Marketing appeared to be something akin to “do it and it will work.”  Since no company could afford to shut off all Marketing, they continued in an inertial frame for decades.

Then came the Internet.  Almost overnight- or so it seemed- behavior patterns changed.  In addition, the almost infinite real estate and low cost of replication on the Internet, allowed for a completely different cost structure for Marketing. Completing the hat-trick was the fact that digitized Marketing can be “revved” quickly and tests of efficacy can be run in record time.  A heady mix indeed!

And for a while it seemed great.  Marketers could “go to market” quickly and bypass the usual middle-men.

Soon, however, the false “quants” took over and started writing how Marketing was both a “Science” and “Predictive.”  Tomes could be written about the false attribution that plagued the marketing scene with the eminent measurability of Digital Marketing.  We neglected Pater Semper Incertus Est. 

Marketers new to the profession became one-channel ponies. They only knew Digital Marketing. They also grew up under the totalitarianism of measurement.  They believed in the falsity of attribution and hewed only to the channels that provided an easy story for attribution.

Lo and behold, pundits declared the demise of “traditional” marketing.  Some said TV was dead. Others eulogized radio.  Still others print and outdoor.  Digital Marketing was ROI Marketing and ROI Marketing was King (forgive the pun!)

The zealotry created real problems for real Marketers.  First, they were subjected to Wall Street-type time-frames. What would in a sane world take a year, had to be measured in weeks or months.  Second, the need to show ROI created a channel bias in which they were forced to market in only those channels which were eminently measurable.  Third, they lost the Art which defined Marketing and chose, instead, to genuflect at the altar of a false science.  CMOs lost their jobs in 18 months because they could not prove the ROI they agreed to.  Marketing lost its way.

Fast forward to now. 

Are Marketers ready to reclaim their profession?  Are they ready to bring back that Evergreen-yet-needs-to-be-green-again concept that defined their art?  Yes, you know what we mean- The Marketing Mix. 

We predict that 2018 will be the year in which Marketers re-embrace the notion of managing a portfolio of bets, of which some are measurable and others are not.  The rush to measurement restricts the channels Marketers pick to engage with, not unlike a Chef with an infinitude of ingredients but only one ladle and one pan with which to create a gourmet meal.  

The portfolio will no doubt contain elements of Digital Marketing but will also likely concentrate on what the current and future audience really needs and could, thus, index on physical marketing, TV, Radio, Outdoor, even Print.  Who knows.  Why discount ideas and channels a priori? 

Ironically, the zealotry around measurability and ROI lands Marketers in an ironic soup- they restrict themselves from generating real ROI by thinking of it as an input and not as an outcome.

All fashions have their arc.  It’s high time we reclaim Marketing from the ROI zealots and re-engage with the world as it is and as it could be.

Guest post by:
Romi Mahajan, Blueprint Consulting
Steven Salta, Agilysys

The phenomenon of big data certainly comes with big promise. After all, having terabytes of data on customer history and behavior is certainly better than trying to extrapolate from just a few data points.

For sure, online marketers who make sense of big data are going to be better able to build customer experiences around hard data and evidence rather than on hunches and guesswork. Instead of working on intuition, or crude analytics, you could use definitive evidence to design product pages that lure your best customers directly toward the shopping cart. You’d know exactly when to introduce your promotions and offers, and you’d know which promotion would work best with each particular customer. You could optimize your online interface, so that everything from search to registration to “Place Order” was virtually friction-free.

Getting to that point, however, requires first harnessing the data. It is no small feat to integrate huge amounts of data from a variety of sources. It is even trickier to figure out exactly how to translate that information into more visits and fuller shopping carts—in real time, customer by customer.

The good news is, there are technologies and tools that make it much easier to find the gold hidden in the data—and use it to refine your online marketing with laser precision. But there’s a mind-set at work here, too—a way of thinking about data that may involve some shifts in culture, depending on where your organization is right now.

Having worked with a number of online marketers who needed to tame big data, here are six steps to help you get there:

1) Think continuous evolution and iteration, not instantaneous.

Yes, big data can fundamentally shift the way you do business. But don’t try to change everything at once. It’s far more productive to adopt a “test and learn” philosophy. Two dozen incremental improvements in site design or wording or personalization can get you much further than trying to “innovate” in one fell swoop. We see this every day.

The most successful marketers are optimizing and refining all the time. They steadily move ahead, with a thousand baby steps, finding something to improve almost every day.

Note: This tactic may call for some adjustments to Web development processes. The most agile marketers can typically go “live” with tweaks, adjustments or tests in a matter of hours. (Slow marketers wait for the next release. Don’t do that.)

2) Align big data goals with your individual business goals.

Create separate initiatives or projects for each of your business goals, such as acquiring new customers, boosting conversion rates, improving customer loyalty or increasing lifetime customer value. This approach makes it much easier to determine what type of data to reel in, and exactly how to use it. Focus a team or a project on one objective at a time.

3) Sell the concept internally.

In some organizations, moving toward data-driven, evidence-based marketing may call for some extra communication to get everyone on board:

• Encourage knowledge sharing, continual learning. Let everyone know what you found out.
• Simplify everything. Present data and outcomes in easy-to-understand terms that managers can use to make decisions. Use pictures and graphs.
• Communicate plans and achievements across the organization. Don’t hide results.

 4) Create one team for big data.

You will need to include marketing strategists, analytics gurus and Web developers. And especially creatives, who may sometimes feel threatened or hampered by having to work with hard evidence.

Then integrate with those responsible for e-commerce and site optimization. No silos allowed.

Find a committed, obsessed, dedicated executive to drive the process and act as a focus for future customer experience innovations.

5) Your own data is best. By far.

The real-time data that your website and CRM systems are gathering is far more valuable than anything you can obtain from an outside vendor. Because it’s about your own living, breathing customers, it is data that your competitors don’t have. Advantage, you.

Examples of the typical aggregate data you can capitalize on in a big data strategy:

For most marketers, the goal should be to make in-session decisions as to what customers should see, what offers you recommend and what you say to them.

Craft a custom experience for each visitor, and they’ll buy more.

Do all of this, and they’ll be back.

This article was originally published on iMedia Connection

Recently there has been a lot of conversation against the importance of relationships in selling such as this recent Harvard Business Review article on Selling is Not about Relationships which makes it seem like social media would not make a good fit for sales people.

But a new RAIN Group report proves otherwise and shows that sales people that truly “connect” with buyers in this “always on” environment we live in to win more often. So here are 3 reasons why …

Social media provides great way to connect with potential buyers

• Social media provides the sales person with unprecedented ways to connect with potential buyers, increase likes or followers to the business, build relationships and most importantly start conversations.
• Social media provides the sales person with a platform to allow for their online personality to shine and begin that trusted relationship which can create affinity with the buyer
• Social media provides the sales person a platform for sharing value, which builds reputation and affinity for the seller

Social media provides a platform to collaborate with potential buyers

• Sales people can use popular online meetings tools like Google Hangout or even GoToMeeting to create spontaneous meetings with potential buyers
• Other technologies like Postwire can be used for more direct collaboration with more middle of funnel prospects
• Social listening technologies like Radian6, Hootsuite (or whatever your favorite is) will allow you to chime in at most relevant times with potential buyers, middle of funnel prospects or even existing customers – keeping you top of mind at all times!

Social media allows you to educate potential buyers with new ideas

• Social media provides plenty of ways to do this. Sales people that tweet their own ideas or find blogs articles that espouse their position – make it easy to connect with buyers. Content is king so being able to use it to your advantage is key.
• Marketing teams provides the platform and resources to sales to be able to do this. Too many companies in my opinion leave it to the sales team to figure this out all this by themselves. Content is the new collateral. If marketing creates the platform and the sales team can bring it to life with customers then sales will surely flow.

An integral part of the sales process is getting to know your prospects and establishing relationships—and it turns out social media can help you accomplish this quickly and easily. Follow the steps above to help your sales team make the cash register ring using social media. Remember – when you’re there alone there is no one to compete!