When starting a new data transformation, you need clear goals. This may sound obvious, but even some of the world’s biggest companies have stumbled by embarking on data transformation without clear goals in place. Even more, companies have mistakenly assumed that simply licensing a CDP will create tangible transformation.
Once a big company signs a licensing deal with a CDP vendor and announces a grand digital modernization strategy, other companies may find it tempting to follow with new technology investments of their own. The world moves fast, and no CMO wants to be left behind or miss a key trend.
To make sure you’re ahead of the curve, establish clear goals, a KPI framework, and data alignment. This ensures your new digital transformation will be off to a great start.
Establish clear goals
We’ve all seen it too many times: a big company jumps on the technology bandwagon, expecting their new software investment to result in an immediate transformation. But it’s never that easy. Technology provides companies with great new tools, but these great tools need to be deployed with measurable goals and tied directly to the company’s business strategy.
Any company can say they’re licensing a CDP because they “need better tools for targeting online consumers.” That’s not a specific or measurable goal.
Clear goals like these will put you on the path to success:
- We want to increase the amount of time customers spend on our website by 20%
- We want to increase our video ad conversion rates by 30% through more granular customer segmentation
- We want to serve personalized content to 100% of visitors we can match to an audience segment to drive 50% more conversions.
Consult the right stakeholders
As you develop your strategy, make sure:
- You can count or list all of your data transformation goals — this way, you can keep them organized and specific
- Your goals are aligned to use cases or examples that have worked for others
- Each of your goals has a statistic or measurable quantity associated with it
- Everyone understands which goals are most-and-less important
Track performance to meet goals
Once you’ve established clear goals with measurable outcomes, you’ll need to consistently track your company’s performance as it works to meet those goals. To track the effectiveness of your data transformation, you’ll need a clear performance framework and KPIs to align with.
Sample KPIs include:
- Expand addressable customer segments from 10 to 100 in three months
- Reduce non-human digital ad traffic from 35% to 5% in six months to save $1.5M
- Reduce website bounce rate by 25% by delivering personalized content
- Suppress known buyers of specific SKUs from being exposed to cross-channel messaging for those products to save $X in addressable media spending
Your team needs clear benchmarks for what success really looks like. This will allow them to align their work to precise metrics that prove your data transformation is working — which will let your investment continue.
It’s also essential to tie the success of your data transformation to your company’s overall business success. Vague goals like “better segmentation” aren’t relevant to your executive team’s success metrics. When you link data goals with higher-order business goals, you’ll increase the effectiveness of your data transformation project and garner more executive alignment and budget support.
An example of a clear data goal aligned with business success is:
- We’ll increase marketing effectiveness by 15% by driving customer acquisition through more efficient digital channels (like Instagram) instead of expensive traditional channels (like television)
Make sure your executive team knows which use cases you’ve based your goals on, and understands the value of your data transformation goals. It’s essential for your data transformation to be fully aligned with your company’s overall goals.
In our next post, we’ll discuss how people fit into the data transformation process. Once you’ve built a compelling business case for a CDP, you’ll need to identify key stakeholders to work with. This all starts with creating a Data Center of Excellence.
To learn more about CDP for modern marketers, visit Trailhead.