The Known Unknowns – Small Steps Big Gains with Watson Analytics

Reports that say that something hasn’t happened are always interesting to me, because as we know, there are known knowns; there are things we know we know. We also know there are known unknowns; that is to say we know there are some things we do not know. But there are also unknown unknowns – the ones we don’t know we don’t know.
Donald Rumsfeld

My morning starts with a river of data. First up, there is email – a quick run by the inbox alerts me to urgent issues, questions, client inquiries and news. Every email I open, every link that I click and every article that I read is marked, tagged, tracked and collated. And then it’s over to LinkedIn’s news feed to check what is happening in the industries I care about. Having built a substantial network of well-connected and insightful connections over the years, I get a very quick sense of what is trending globally, what is vital locally and what needs to be reported or responded to. Finally, I switch to Facebook. I am blessed with opinionated and smart friends who share and increasingly, the richness and quality of news and insight available through that network is out-pacing all other channels.

But what am I doing here? I am working with Donald Rumsfeld’s mantra. I am looking to these networks to tell me the things that I don’t know that I don’t know. Essentially, this data is helping me look beyond my radar.

The same approach can be applied to marketing. In fact, for marketers to remain relevant and responsive – we need to be looking beyond our own radar.

For as long as marketers have been marketing, we have used media to reach our customers. We’ve equipped our teams with megaphones and messages and marched them to the perimeter of the business compound. To reach our customers, we buy and create media – after all, as the adage says, “fish where the fish are”. But this is the inside-out marketing model from the 20th Century – and social media has turned it inside out.

Turning to sites like Twitter or Facebook – or even LinkedIn for the B2B marketer – can feel like facing a firehose. The torrent of information coming through is astounding. Just take a look at the recent social media statistics for Australian audiences:

  • Over 13 million using Facebook
  • 13.5 million using YouTube
  • 2.5 million using Twitter

But it’s really not the big numbers that are important here. It’s what you do with them.

The known unknowns of our customer data

Just as I do each morning, marketers need to be thinking selectively about their customers. Rather than aiming to speak – or “connect with” all 2.5 million Twitter users in Australia, why not start somewhere easier? Why not start with the “known unknowns”? Why not start by figuring out WHICH of our customers are using Twitter or Facebook (ie a lot of them), and improving our understanding of those people?

Most modern CRM platforms have fields that allow you to collect the Twitter handles or Facebook profiles of your customers. Why not start by understanding how many of your existing customers have this information included in their profile? This gives you your known unknowns:

  • Run a report on your completeness of social media profile data in your database
  • Use Facebook custom audiences to match Facebook profiles to your existing email database
  • Do some profile matching via Twitter to do the same
  • Run an email campaign asking for that one additional piece of information. Provide a useful incentive. Make it worthwhile.

For most organisations, taking these small steps would take less than a day. And it paves the way for much deeper exploration.

Combining Voice of the Customer and Analytics as your over the horizon radar

Once you know who your customers are on social networks, it opens the door to a much richer experience for both you as a marketer and your customers as consumers. And what you’ll find on social networks is not the well-manicured conversation of corporate marketing – you’ll find the very direct “voice of the customer”. Generally, however, our “social listening” platforms are built around our own keywords. Our products. Brands. They are only sometimes built around understanding our customers pain points, needs and expectations. This means we are again working from the inside-out – working with the known knowns.

Thankfully, powerful natural language processing is beginning to provide the analytics horsepower we need to decipher social streams. I have explained previously about the way that IBM and AusOpen collaborate to transform customer experience at the Australian Open Tennis events – but analytics is no longer the domain of big business. With platforms like IBM Watson now available at an affordable rate (starting at around $50 per user), you don’t need to be “Tennis Australia” nor a data scientist to understand what’s going on with your market. You just need to understand your business.

Take a look at this video to see how you can use Watson and Twitter data to analyse retail sales. Look at the way that the language in the real time reports is structured around the way that marketers work. Rules are setup and then data populates accordingly. But most interestingly, because Watson works with natural language – it works with the language of the marketer as well as working with the language of the customer.

For marketers, this means that Watson does the hard work of identifying the most interesting facts contained within your data sets, letting you focus on making the right decisions about what happens next. For example (at 2:13), “sales by state” is flagged. Watson chooses the best representation of the data (in this case, a map) but also provides a “ribbon of data” that can be used to interrogate and analyse at a deeper level. Typing in a search related to what you need to know (eg “tweets by hashtag”) turns that data into a report that lets you see immediately what happened to your sales data and why.

Suddenly that river of Twitter data becomes understandable. A connection can be made between your business results and the social media data coming from a particular channel in a particular location.

And in case you need to tell the story of your digital marketing and your analytics to your executive team – or to your customers – with a few clicks, the visualised data can be compiled into ready made infographics. Now you not only have a custom radar to understand your customer – you can link your customer and business value together. Will this make you a better marketer? It will certainly make you more relevant to your customer – and that is a win all around.

By the Numbers: Facebook in Australia

Screenshot 2015-04-17 09.09.23No doubt you’ve seen them huddling around the bottoms of buildings, near the entrances and exits. On the benches and in the cafes. Their eyes are downcast, their heads bent, shoulders hunched. A decade ago you’d be right to think that these people were spending their morning or afternoon break smoking. These days, the crowds are revolutionaries. But they are not “card carrying” – their weapon of choice is the smartphone – and every status update, share and connection is laying waste to the traditional models of business, networking, socialising and culture. In fact, these changes are impacting almost every aspect of the way we live – in what we call the 5 Cs of Digital Disruption.

The digital revolution is a different style of transformation. It is not a revolution of technology but one of behaviour. Certainly, the technology has had an impact on our lives – and will continue to do so – but the profound changes are in the the WAY that we think, act and behave. And increasingly this includes a technology component.

In Australia – the facts and figures tell the story of pervasive behaviour change. The Australian Social Media Cheat Sheet shows – as at February 2015 – just how much time (and attention) is being spent online. But it’s not just “online” – there are so many ways in which we can consume “online” content and engagement these days – from smartphones and tablets to PCs, smart TVs and Internet of Things devices.

Diving deeper into the statistics, Facebook Australia advise that there is more to the numbers (and that the numbers are larger):

  • 1 out of every 3 minutes on mobile is spent with Facebook properties – messenger, Facebook and Instagram
  • More than 13 million Australians use Facebook every MONTH
  • More than 10 million Australians use Facebook every DAY
  • On average, more than 9 million Australians access Facebook via mobile
  • 32% growth in the last 12 months

Facebook shared some slides you might find useful for your next presentation:

Screenshot 2015-04-17 09.08.23Screenshot 2015-04-17 09.08.58Screenshot 2015-04-17 09.09.07Screenshot 2015-04-17 09.09.14Screenshot 2015-04-17 09.09.23

Australian Social Media Cheat Sheet

Update: High quality image here. PLUS check out the update to the Facebook stats.

Detailed statistics and information on social media in Australia continues to be a challenge. While there are pockets of data here and there – we rarely see a side-by-side comparison of user data and benchmarking information. So it is great to see this cheat sheet available. Shared by the folks from Reinventure (over on LinkedIn), it compiles (mostly) Australian data from Facebook, YouTube, Instagram, LinkedIn and Twitter – with Pinterest data pulled from global data.

The infographic provides some great high level stats, pros and cons for each of the platforms and some useful comparison benchmark data. The data appears to be current as at February 2015 and includes sources like Social Media News, YouTube press statistics and DirectTarget.

ReinventureStats

Decyphering Bitcoin and the Blockchain

No doubt you’ll have heard about Bitcoin by now. It’s that disruptive technology that is keeping Financial Services CEOs awake at night. JP Morgan CEO, Jamie Dimon, in his annual letter to shareholders warned investors and the banking industry that “Silicon Valley is coming” – suggesting that there are hundreds of startups focusing on the financial services technology space (“fintech”) and that traditional banking will need to double down on its innovation efforts.

[Startups] … are very good at reducing the ‘pain points’ in that they can make loans in minutes, which might take banks weeks. We are going to work hard to make our services as seamless and competitive as theirs. And we also are completely comfortable with partnering where it makes sense.

But his particular focus on next generation payments systems like PayPal and Bitcoin were called out for special attention.

Here in Australia, these new systems have been the subject of a Senate Hearing Committee investigating digital currencies.

But how does Bitcoin work? Sean Carmody, Head of Credit Risk at Westpac put together this presentation that explains the technical underpinnings of Bitcoin – the blockchain. It explains:

  • Why virtual currencies are a happening thing – the perfect match for a virtual world
  • The problem with virtual currencies – how to prevent people simply “copying” a digital currency
  • The innovation in the “blockchain”

And while the presentation does get technical, it is also eye-opening. Technology may be transforming the way that currencies can operate (now and into the future) – but TRUST remains a vital ingredient in currency transactions. And as Sean suggests, Bitcoin may not be the winner in the digital currency race – but it has fired the starter’s gun.

Why Digital Disruption Sneaks Up On You

Digital disruption is a popular theme in any business discussion. No matter whether I am speaking with technology companies, startups, industrial product manufacturers, professional service firms or pharmaceutical companies, eventually the topic arises. But it is hardly ever a direct conversation. More often than not, we approach “disruption” from the side.

You see, when we think of disruption we are thinking of some big change that temporarily suspends the way that we work – forcing us to change. But digital disruption doesn’t necessarily work this way. It’s more like wave after wave of small changes. Like a tide rolling in way past the high tide mark. But the REAL problem of disruption is that we don’t see if for what it is. Put simply:

We treat disruption’s symptoms but not its root cause.

And this means the threat of digital disruption is all the more dangerous for business.

Marketers have been at the forefront of digital disruption partly because they have (or should have) a good ear for the voice of the customer. They should understand the accelerating pace of change that consumers are adopting and incorporating into their everyday behaviours. But digital disruption is not JUST a marketing challenge. It is a challenge that faces almost every aspect of our businesses.

To understand the wide ranging impact of disruption, we put together a framework – the Five Cs of Digital Disruption. It’s a framework that we use with clients to map, understand and address digital disruption in a programmatic way. It helps us and our clients determine priorities – how to CREATE value in an age of disruption, how to CONNECT socially, engage CULTURALLY, CONDUCT business and CONSTRUCT our thinking.

5 Cs of Digital Disruption

But more than this – the Five Cs provides a focus for action. After all, if you are sitting still, you’re a sitting duck. Choose one of the Five Cs, analyse your situation and begin a PROCESS of attack (note I don’t say “plan of attack”). Don’t let digital disruption sneak up on you – act and iterate. For in a world where disruption is the new “business as usual” you really MUST find a place to start.