Understanding the lifetime value (LTV) of your customer is one of the most important capabilities your Big Data programme can, and should, offer.
Simply put, you cannot have a meaningful conversation about business threats or opportunities in a customer-centric context without a detailed understanding of what the long-term profitability of your relationships are.
In fact, I would argue it makes little sense to advance a Big Data road map focused on all the best data science and technology has to offer without doing the heavy lifting (and thinking) required in developing customer lifetime value metrics and implementing a plan to embed the required vocabulary into business processes.
Customer lifetime value is the net profit attributed to a customer relationship over the predicted tenure of the relationship with your organisation.
It is important because ......[more]
29 September 2014 · By John M. Lervik
Like other industries confronted with a new paradigm, publishers felt challenged as digital media began overtaking traditional publishing channels. But digital is here to stay.
Now it’s time for publishers to truly own it – capitalising on content, implementing new revenue models, and making them work.
The key to success? It’s all about the audience and the context.
Gone are the days when geography alone helped assure a valuable audience. Today’s successful publishers actively seek site visitors, and have figured out how to keep them on the site and engage them with premium content.
The result is readers who are more likely to become repeat and loyal visitors and potentially paid subscribers.
Seeking out audiences can be ......[more]
19 August 2014 · By John M. Lervik
Digital publishers are compromised by third parties (Google, Facebook, advertising vendors, social media widget providers, and others) that take, use, and monetise the customer data publishers generate.
And it’s precisely that access to customer data that causes its value to diminish and threatens publisher profitability.
Instead of inadvertently giving data away, publishers need to learn what it means to take control of their data and start putting it to use to boost audience engagement, increase digital advertising revenue, and drive more paid digital subscriptions.
A recent publishing profitability survey of nearly 400 United States publishing executives showed that 78% of publishers don’t know if third parties access their data, and whether or how they are monetising it. Furthermore, publishers don’t have a clear idea of who or how many third parties are ...
03 August 2014 · By Greg Doufas
I don’t care how many coupons you send me, I am not buying your crappy pizza.
Amusing, or depressing, as the case may be, it often seems the old marketer’s adage still holds true. And although the expression may come from a time before it was fashionable to refer to things like “customer centricity,” that is the point.
In today’s reality, if you’re dealing with the challenges of operating a subscription- or relationship-based business model, your ability to compete by being customer-centric will only be proportionate to the maturity of your data strategy.
It’s been like this for a while.
Years ago, it was savvy marketers who caught on first. They realised that data and analytics could be leveraged to drive marketing communications more effectively, and direct marketing evolved into database marketing.
This sort of successful collaboration between business functions and data sciences further evolved into ......[more]
06 July 2014 · By John M. Lervik
Publishers are reputedly pessimistic by nature. But if nearly two out of three of them participating in a recent online publishing profitability survey are correct, there is solid justification for their negative outlook — but also a path to regain momentum.
In the survey, more than 65% of nearly 400 U.S. publishing executives said they believe the publishing industry is in for a long, slow slog – at least two to five years or more – before ad sales will start showing some real traction again.
That’s a rather dismal outlook on one’s business.
The survey, conducted by Cxense in conjunction with Editor & Publisher magazine, took the pulse on profitability in publishing. Perhaps most sobering of all the results was that more than one-third of respondents don’t believe ......[more]
02 June 2014 · By John M. Lervik
For some stargazers, a view of the heavens with the naked eye suffices. But others – admittedly a smaller group – are more curious.
They want to identify the planets, glimpse Saturn’s rings, count the moons around Jupiter, or view our moon’s seas and craters – all of which require a good lens.
The digital media business works in much the same way. Most readers surf the vast Web seeing what catches their eye, while a subset pays for favoured publication subscriptions where they can home-in on the content that most interests them.
This reality is not sustainable. After all, it costs money to create and manage a publisher site and its content. With revenue-generation a major priority, various subscription models are being tested at publications around the globe. But most have been slow to catch hold.
So how do we convince site visitors that being able to home-in with a subscription “lens” is worth paying for?
It won’t be easy.
The Digital News Report from The Reuters Institute for the Study of Journalism shows ......[more]
18 May 2014 · By Greg Doufas
It’s been lost to the vagaries of crowd-sourced curation, but for a while my favourite definition of the word “capability” came from Wikipedia, where it was succinctly described as “the sum of expertise and capacity.”
Your data analytics technology stack is an enabler of your analytical capability – it alone is not your analytics capability. I’m not just saying this for philosophical reasons.
The fact is Big Data technology and software solutions are evolving so quickly that analytics leaders (regardless of industry) simply cannot depend on any past or current standard as a means to define their capability.
It brings to mind one of the most commonly asked questions I get these days: What technology are you using, or what analytics toolset do you recommend for doing the hardcore stuff?
Obviously, it’s far too circumstantial a question to answer intelligently without a much deeper conversation. But the first thing I usually ask ......[more]
24 April 2014 · By Patrick Glenisson
Editor’s note: Patrick Glenisson, manager/marketing analytics at Belgium’s KBC bank, is a guest blogger for Big Data for News Publishers this week.
When I attended last year’s edition of a Big Data in Retail Financial Services conference, everyone — speakers and participants alike — seemed to agree on one thing: We collectively hated the term “Big Data.”
Why? It’s too technical. It’s often misused by vendors. It creates confusion (especially with senior managers). It inflates expectations. And is often reminiscent of other failed “Big” IT implementations (data-warehousing, business intelligence, CRM …).
Moreover, for banks, collecting, storing and using customer data is not a new thing: Credit risk scoring is common practice since the ‘90s. And most banks have undertaken one or multiple customer segmentation exercises, and have been building up a portfolio or marketing response models through their in-house analytics units.
So, nothing new under the sun, right?
An opportunity to grab
Yet a lot has change during ......[more]
17 April 2014 · By John M. Lervik
If there’s a war in publishing, it’s the ongoing battle to increase reader engagement.
Most publishers enter the fray by engaging with a content recommendations vendor that promises to keep visitors on their sites longer, where presumably they will engage with more content.
But before ceding control over the content being promoted on their Web sites, publishers should ask themselves some important questions:
Is your content recommendations vendor driving your business or theirs?
Are you in control?
Who gains insights about your readers in this relationship?
Can the industry afford to commoditise content distribution in a similar way to how ad distribution has developed?
16 March 2014 · By Greg Doufas
Who are you? What do you like? And how will I know if we meet again?
If you want to talk about some of the most serious challenges facing the industry, these are the sorts of questions you are going need to come to terms with and understand the importance of. At their core, they are questions that hinge on the idea of identity.
By identity, I mean the ability to recognise, verify, and most importantly, establish a persistent one-to-one relationship with the reader, regardless of platform.
Unless you’re one of the few publishers that has implemented a “hard” registration wall as a gateway to your Web site/platform, chances are the majority of your readers are anonymous. Syndicated data and research studies are providing a more accurate picture of the uniqueness of your audience, but just at the aggregate level. They still lack the depth, dimension, and measurement necessary for a truly customer-centric view.
Simply put, regardless of how much behavioural or transactional data we collect, we often do not truly know who our readers are in a lasting and meaningful way. To be clear, I’m not just talking about having names in a database; I’m talking about a relationship based on trust, in which an identity is established in exchange for value.
This lack of direct connection is the sort of thing that should keep you up at night. I realise this is not exactly a new concept or an emerging phenomenon. But the consequences are now greater than just an inability to measure audiences accurately.
Before exploring further, let’s take a step back....[more]