Credit Card Companies Are Our Role Models
Data makes the modern marketing world go round. More data, however, doesn't automatically translate into more insights. Even with the tetrabytes of data collected each day, a lot of it remains atomized and difficult to turn into insights because of gaps between marketing and purchase information. Now credit card companies have begun to fill this void.
Direct marketers have long lacked the glamor of brand marketers. There's no show about them on AMC and they don't lead at Cannes. But, by way of solace, direct marketers have always had numbers-cold, hard support that their advertising works.
Turns out, it can be very hard to determine which channel was pivotal when marketers pepper consumers with ads from all directions. The effect of a given advertisement, if any, gets lost. At the same time, consumers have a myriad of sales portals. A person can see an online ad while browsing her desktop at work, then buy later from home or the next day from her phone after finding it on Google-or walking down the street to a shop and buying it.
For direct marketers accustomed to a neat closed loop, this uncertainty gnaws at them. Finding a way to cleanly close the loop is a priority.
It turns out, another industry facing challenges from data and technology has been exploring ways to close the loop. Credit cards have a tremendous amount of data on purchase behavior. But, until now, they haven't done a lot with it. In the last couple of years, however, they've woken up to the potential.
A few months ago, Mastercard bought Mu Sigma, a data analytics company. Although privacy concerns prevent Mastercard from offering transactional information about individuals, it can provide aggregated data about shopping behavior. Mu Sigma gives Mastercard to identify relationships between different purchases, how they relate to each other, and how they might relate to other bits of information, such as location or demographics. It's not a large leap from there to provide aggregated information about the performance of marketing campaigns.
Yblog identifies emerging trends in the fast-changing landscape of media and marketing and finds fun and often surprising connections—with real-time implications for direct marketers.
Yory Wurmser currently writes and consults on marketing and media trends for clients interested in innovating through new media and the data it produces. This is an extension of what he did for six years at the Direct Marketing Association, ultimately as the head of the Research Department. As director of marketing and media insights, he revamped DMA's publications to focus more on digital media and developed partnerships with leading research companies, including Econsultancy, Ipsos and Winterberry Group. He also developed internal strategic research and recommendations to help DMA adapt to the new marketing world. Prior to DMA, Wurmser ran a boutique management consulting and coaching firm and, in an earlier lifetime, earned a Ph.D. in political science from Columbia University. He lives near New York City with his wife and three daughters.
Reach him at Ywurmser@gmail.com.