Winterberry Group White Paper -- Marketing Data Governance

8/12/2019 Winterberry Group White Paper -- Marketing Data Governance

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2013 Winterberry Group LLC. 2

ACKNOWLEDGEMENTS

This white paper would not have been possible without the significant contributions of more than

130 executive-level thought leadersincluding sponsors, contributors, panelists and reviewersrepresenting all segments of the advertising, marketing, technology and regulatory sectors.

In particular, Winterberry Group is grateful to our research partner, the Direct Marketing

Association, as well as the following sponsors for their generous support of this research initiative

Premier Sponsors:

Supporting Sponsors:

Additionally, we extend our deepest appreciation to the marketers, technology developers,

solution providers and policy experts who contributed their time, insights and enthusiasm

in support of our research. Though their individual names are not mentioned in this paper,

they represent some of the most respected companies in the data-driven marketing world

including Duke Energy, First San Francisco Partners, JCPenney, Lilly, Meredith, Microsoft, TJX,

Turner Broadcasting, Western Union and many others. We are grateful for their contributions.

NOTICE

This report contains brief, selected information and analysis pertaining to data-driven

marketing and has been prepared by Winterberry Group LLC in partnership with the Direct

Marketing Association. It does not purport to be all-inclusive or to contain all of the information

that a prospective manager, investor or lender may require. Projections and opinions in

this report have been prepared based on information provided by third parties. Neither

Winterberry Group, the Direct Marketing Association nor their respective sponsors make any

representations or assurances that this information is complete or completely accurate, as it

relies on self-reported data from industry leadersincluding advertisers, marketing service

providers, publishers, technology developers, agencies and regulators. Neither Winterberry

Group, the Direct Marketing Association nor any of their officers, employees, representatives

or controlling persons make any representation as to the accuracy or completeness of this

report or any of its contents, nor shall any of the forgoing have any liability resulting from the

use of the information contained herein or otherwise supplied.


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Year after year, all across the country, the headlines reinforce a vexing message: Big Data

can be a risky business.

SAN FRANCISCO, Calif., 2007An unnamed contractor is being blamed for a majordata breach that has compromised the names, addresses and social security numbers of

about 800,000 people who applied for jobs with a major apparel retailer. According to the

company, the data had been stored on two unencrypted laptop computers that were stolen

from the vendors office...

BOSTON, Mass., 2010The ringleader of an international band of cyberthieves has been

convicted and sentenced to 20 years in prison for his role in a massive data theft that

revealed the credit and debit card numbers of more than 90 million customers from several

prominent U.S. retailers. The largest among the affected companies estimated the crime

caused $171.5 million in total losses

IRVING, Texas, 2011Risk management experts say that a recent data breach at one of

the worlds largest marketing service providerswhich compromised, via unknown means,

the names and email addresses of the customers of more than 100 client brandscould

lead to aggregate losses of $4 bill ion, not including the diminished faith that marketers may

place in the email marketing channel

With stories like these on the desk of every CEO, its no wonder that companies around the

world have awakened to a new mandate: Big Data brings with it Big Responsibility. Whether

they result from malicious or inadvertent actions, though, enterprise-scale data breaches tell

only part of the story about the power of information. They remind us that data is an intenselyvaluable asset, a symbol of the fundamental trust that undergirds the relationship between

marketer and consumer. But they say little about the power of data to drive transformative

valuefor both of those partiesand even less about how marketers are standing up enterprise

strategies to manage, safeguard and capitalize on their information resources.

As technology plays an increasingly critical role in driving both marketing and transactional

communications, marketers say that such strategiesproviding a means to improve the

customer experience across a range of touchpointsare now a must-have element of their

go-to-market plan. But while many have made great strides in advancing the notion of data

governance (the collective practices, policies and procedures that guide how an organization

collects, manages and uses customer information), few have expanded the scope of that

exercise beyondreactiveapproaches to ensuring the protection of those assets.

Tomorrows savvy marketers, by contrast, will requireproactiveapproaches to using

information in a way that is secure, responsible and aligned with the long-term interests

of all enterprise stakeholders. Most importantly, these holistic strategies must be aimed at

maximizing datas value and contribution across various functionsexpanding the scope of

INTRODUCTION

AND EXECUTIVE

SUMMARY


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what we now call data governance beyond privacy and security to ensure that information

and insightare recognized as the critical business drivers they are.

This white paper, produced in partnership with the Direct Marketing Association, will explorethe current state and likely future evolution of those marketing data governance strategies

that enterprises are deploying to maximize the contribution, value and integrity of their

customer information assets. Based on an intensive primary research effort, it will illustrate the

emergingproactivedata governance imperative and demonstrate that:

Marketers are extremely bullish about the role of data in driving positive value to their

organizations (with 93 percent of panelists expecting that customer information will drive a

significant contribution in the future), and believe the maximization of that value to be the

most considerable benefit of an effective marketing data governance strategy

With overwhelming agreement79 percent of panelists, in factmarketers say thattheir organizations would benefit from more sophisticated, strategic data governance

approaches. But most organizations have been reluctant to back up that need with the

necessary institutional support, as only 32 percent of panelists strongly agree that data

governance is currently a clear priority within their companies; and

Internal process challenges and misaligned organizational structures, more than any other

factors, are conspiring to limit marketers abilities to develop and implement strategic data

governance approaches.

Finally, the paper will outline five key actions that marketers should undertake as they build a

strategic data governance capability. They include:

Maintain an evolving map of your customer information breaking down the taxonomy

of each marketing data asset at a deeply granular level

Develop a unified data strategy that considers (and incorporates, over time) a multitude

of inputs, supporting use cases, deployment technologies, regulatory and best-practice

guidelines and other operating parameters

Build an underlying infrastructure to support marketing data utilization with an eye on

optimizing the roles of people, platforms, processes and partners in unlocking the inherent

value of those assets

Consider the needs of all constituent stakeholders in the development and continuous

refinement of data governance guidelines, leveraging information to optimize the value (and

protect the interests) of customers, employees, shareholders, partners and other parties; and

Develop a data culture grounded in continuous learning and improvement leveraging

information to help drive product and customer innovations (and reinforcing the need to

safeguard those critical corporate assets).


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This white paper will explore the current state and likely future evolution of those marketing

data governance strategies that enterprises are deploying to maximize the contribution, value

and integrity of their customer information assets.

Published in partnership with the Direct Marketing Associationand with the sponsorship of

Equifax, Experian, MediaMath, Harte-Hanks and KBM Groupthe papers findings are based

on the results of an intensive research effort that included phone, online and in-person surveys

of more than 130 marketers, publishers, marketing service providers, technology developers

and policy experts. These interviews were conducted predominately with contacts in the

United States between April and June 2013.

Per their request, the names and companies of individual contributors have been blinded so as

to allow them the freedom to speak with maximum candor.

Panelists: Which of the Following Best Describes YourJob Title/Level of Responsibility?

METHODOLOGY

N=138 Panelists

Vertical Categories Included

Automotive

Business Services

Consumer Packaged Goods

Financial Services

Healthcare

Insurance

Media and Entertainment

Not-for-Profit

Retail (including e-commerce

TechnologyTelecommunications

Travel and Hospitality

Executive

Management /

C-Suite,

20%

Senior Vice

President / VP,

28%

Analyst or Associate, 8% Other, 2%

Director,

23%

Manager,

20%


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How Marketers Are Practicing Data Governance Today

Mention data governance to 100 marketers, and youre likely to get at least that many

interpretations of the practice and opinions on how well their company protects its critical

marketing data resources. Today, though, four essential themes define how marketers are

deploying data governance principles in their business-as-usualand provide a glimpse into

how such strategies are evolving to tackle future challenges.

Data is emerging as the centerpiece of the customer engagement effortand its only

growing in importance.

WHY?

A confluence of factorsincluding widespread buzz around the potential of Big Data,rapid advances in technology and media optimized for targeted advertising, growing

consumer sophistication (leading to new demand for relevant marketing interactions)

and expanding awareness that data-driven insight canand oughtto drive more impactful

business decisionshas focused attention on the power of marketing data

The collection and effective utilization of customer information supports three

fundamental missions: it provides a rich source ofinsightinto consumer audiences

(and their interactions with a given brand), powers more timely, relevant and impactful

marketing executionand provides a continuous, self-perpetuating means ofmeasuring

(and optimizing) the impact of various customer interactionsproviding a platform for

continuous business improvement; and

More marketers, in hoping to apply the same brand of science to their own efforts, are

learning from the successful precedent established by their peers in vertical markets

and functions that have traditionally been considered data-driven. Inspiration is being

drawn from both macroeconomic examples (as in the case of the financial services and

insurance sectors, which have leveraged information to help perpetuate their stability and

growth even in the face of daunting economic headwinds) and more specific case studies

(such as the electoral success of President Obama, whose election and re-election were

powered by the development of a voter analytics capability widely considered to be the

most sophisticated of all time).

WHY DOES IT MATTER?

Elevating the role of marketing dataespecially in organizations that have been driven

by the brand and other factors that were once considered largely independent from

its influencewill substantially affect how enterprises invest in tools, talent, internal

processes and other resources that are core to their customer interaction effort; and

A FOUNDATION TO

BUILD UPON


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A heightened focus on customer insight will ultimately require businesses to evolve their

thinking about data and its responsible, effective utilization. In particular, perspectives

on data as a single, amorphous resource will have to give way to more granular

optimization effort that recognizes the complex variations of information that, collectively,

paint a picture of a given customer audience. Depending on the source and use case, for

example, marketing data can:

Empowertargeted messagingat the individual,

household or segment level

Represent one or more digital sourcesoften

with little or no direct linkage to an individual

consumer identity

Present insights into an audience segment that

are wholly anonymoustypically presenting

a view into a givensegmentof the audience

without disclosing who, specifically and

individually, is a member of that segment

Beinferredthrough the analysis of multiple

corresponding data pointswith the intent of

informing a deeper understanding of an audience

and its habits, needs and purchase propensity

Be derived from one or more unstructured

sourcesthus requiring processing through a

central management taxonomy in order to be

useful for future analysis.

Drive aggregated insights(as in the case of

gross rating points, market research, etc.)

Be derived exclusively from traditional sources

(often with a customers name and postal

address as the centerpiece characteristic)

Reflect one or more personally identifiable

information (PII)elementsproviding direct

insight into an individual consumer and their

background and/or purchase behavior

Be collected through direct expressionfrom

an individual (through direct marketer interaction,

participation in a survey or other means)

Represent a firm collection and management

structure, backed by an underlying data

management taxonomy geared to supporting

marketing use cases.

OR...

Everything we do is rooted in data. I dont know what marketing means if its not data-driven. Its just

fundamental for targeting, measurement, testing and control and optimizing the marketing mix.

VICE PRESIDENT OF CONSUMER MARKETING, LARGE TELECOMMUNICATIONS COMPANY

Data drives most of our business decisions. We use data to determine where my team and budget

should focus. We use it to align resources to the right level of investment in digital tactics. We use it

to run comparisons across the marketing mix and we use it to define our targets in different countries

and markets.

DIRECTOR OF DIGITAL MARKETING AND E-COMMERCE, TECHNOLOGY DEVELOPER

IN THEIR OWN

WORDS


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Everything we do is informed by data and analysis on different segments and populations. We use data

to understand the most we can about our consumers to enable right member, right message, right

channel, right time marketing.

VICE PRESIDENT OF CONSUMER SOLUTIONS, HEALTHCARE PROVIDER

For us, data-driven marketing is about using the data that we get about our consumers and their

behavior to drive more personalized and relevant offers. Following that, we also use data to drive the

measurement and optimization process which helps us see how weve been performing and decide

how to move forward.

DIRECTOR OF DIGITAL STRATEGY, TOP 10 CONSUMER PACKAGED GOODS COMPANY

Data-driven marketing is the centerpiece of our marketing and without it, our business would come to

a screeching halt.

SENIOR VICE PRESIDENT OF CONSUMER MARKETING, INSURANCE PROVIDER

We use data to create the most relevant experience for our customers...Were looking at bringing in

statisticians to help us model and predict customers future behavior to help us better serve them

because when our customers are successful, we are successful.

DIRECTOR OF CUSTOMER MARKETING, TECHNOLOGY DEVELOPER

How dependent on consumer data is your companys marketingefforts and performance?

89%

Not at all

dependent

Not very

dependent

Somewhat

dependent

Very dependent Not sure

4%7%

30%

59%

1%


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To what extent does data-driven marketing drive positive value toyour company today? To what extent is it likely to drive positive value

in the future?

Today In the Future

2% 3%

28%

66%

1% 0%2%

4%

93%

1%

Not at all Not very much Somewhat A great deal Not Sure


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Though theyre bullish about the potential of Big Data, few enterprises are managing

customer information strategically.

WHY?

In many organizations, the use of data has evolved organically from roots that were

considered specialized and/or unique, to roles that depended on that information to

drive product applications and customer marketing. Departments that customarily license

external mailing lists to power direct response campaigns, for example (or, in a more

digital context: those who tap into third-party behavioral data to power display retargeting)

typically own data and the expertise to work with iteven though those functions are

usually managed at a very tactical level in the marketing organization. Not surprisingly,

large enterprises typically struggle to reconcile parallel data storage silos and operating

structures that are not geared to useall available information to inform a uniform

customer viewpoint; and

Though data can reflect many different origins, structures and applicable use cases, it

remains largely misunderstoodand often characterized as a single element, not subject

to significant change. Likewise, only a few companies deploy chief data officers (or other

executives of equivalent seniority) to oversee information investments, innovation and

internal utilization.

WHY DOES IT MATTER?

If information is to ultimately fulfill the promise of Big Data (by growing customer

relationships and improving business practices, for example), then it must be managed

and optimizedas a strategic resource, with the appropriate management oversight,

budgetary allocation and performance targets. In a large consumer organization,

that means marketing data must beprotectedbut it also requires development and

maintenance of an infrastructure geared to leverage the information in the most beneficial

way for all enterprise stakeholders.

We dont really have a proactive data stewardship practice. Unless a problem comes up no one is

really looking at our data strategically, but if we did that, I think we could really get to the next level in

terms of using our information to drive value.

DIRECTOR OF STRATEGIC MARKETING, NATIONAL RETAIL CHAIN

Until this point, weve done a great job managing our own world and resources but were trying to get

to this Big Data environment where we have everything in one place and access and enablement can

be expanded across the organization.

DATA MANAGEMENT DIRECTOR, PAYMENT PROCESSING FIRM

IN THEIR OWN

WORDS


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How much would your organization benefit from developing andimplementing more sophisticated practices and policies with respect

to data governance?

Do you agree or disagree with the following statement?Marketing data governance has been identified as a priorityfor my organization.

79%

Would not

benefit at all

Would not

benefit much

Would benefit

some

Would benefit a

great deal

Not sure

2%

12%

48%

31%

7%

Strongly

disagree

Somewhat

disagree

Somewhat

agree

Strongly agree Not at all sure

7%

14%

41%

32%

7%


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What is inhibiting your ability to implement a holistic marketingdata governance strategy?

55%

46%

45%

41%

39%

36%

33%

12%

10%

5%

18%

Internal process/marketing ops challenges

No clear internal owner to lead efforts

Cost considerations

Lack of appropriate tools/technologies

Lack of executive level support

Not understanding the requirements

Insufficient in-house talent to support efforts

Insufficient support from our supply chain

Lack of addressable data sources

Something else

Nothing


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In most organizations, data governance represents a reactive approach to risk

management, focused primarily on ensuring adherence to privacy and security standards.

WHY?

For good reason, ensuring the security of a large and sensitive customer data resource

and providing the tools to deliver a measure of privacy to individual consumers, however

that may be definedhave traditionally been the most pressing data-oriented concerns

facing the enterprise marketer. Much of that can be attributed to the stark visibility of the

associated costs and benefits; marketers are (and perhaps ought to be) more concerned

aboutavoidingthe substantial costs associated with a data breach than capitalizingon the

opportunities that may be inherent in new, strategic approaches to data utilization (which

may also be difficult and expensive to achieve)

A large and sophisticated industry has emerged around privacy, responsible customer

engagement and the development of best practices to provide consumers with both

transparency and choice in their marketing interactions. Much of this expertise has

evolved from legacy privacy teamsvery often managed by legal professionals, rather

than marketersfirmly establishing that priority as the focal point of the broader effort; and

The external market threats bearing down on the users of customer data right now are

tremendousnecessitating an aggressive industry-wide effort to substantiate the steps

that marketers are taking to safeguard consumer interests. Threats include deeper

regulatory scrutiny of established data aggregation practices (including the recent

Federal Trade Commission inquiry into the practices of data brokers), expanding

global restrictions on the use of anonymous browser cookies to track online behaviors

and the movement of some browser developers to establish do-not-track as a default

settingeffectively barring the collection of data that may be used to enhance consumer

experiences on the Internet.

WHY DOES IT MATTER?

While security, privacy and regulatory compliance are absolutely critical prerequisites for

standing up a viable marketing data infrastructure, an exclusive focus on those concerns

is acting, in some cases, to actuallyinhibitinnovation with respect to marketing data

and its addressable use cases. Some marketers complain that senior management

has become effectively gun shy about testing new data applications, even when a

compelling business case exists to do so, because they fear they may ultimately be

subject to a costly and unavoidable breach that would irreparably harm consumer trust in

their brand. In these cases, data governance can act to actually hinder the work of the

marketers it supportsrather than helping bolster the role information plays in supporting

all enterprise constituencies; and


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Ultimately, that threat stands to negatively impact customers as well as marketers

inhibiting the potential for data to be used as a powerful force for customer good (for

example, by powering relevant content and valuable offers, ensuring that communication

preferences are honored and providing a safeguard against the interference of

bad actors.)

Following our breach were hyper-cautious. In terms of marketing, theres always stuff that we

could be doing better, but the company now feels at what cost? Were not willing to take the chance

or risk the customer data or those relationships. It may be to the extreme, but now were all about

the customer.

CUSTOMER MARKETING MANAGER, MAJOR RETAIL NETWORK

I would say were sophisticated with respect to data privacy and the appropriate use of data now.

But, were totally not sophisticated in using all the data we have to drive marketing and customer

engagement. Right now we choose not to use that. We could be doing a whole lot more, but now were

just very conservative following our previous incident.

MARKETING OPERATIONS ADVISOR, PHARMACEUTICALS MANUFACTURER

Our [goal with data governance] is maintaining the integrity of our customer base and maintaining

privacy and security. It falls into the protection arena of providing the info needed to do our business

and also securing the data that customers provide. We spend a lot of time making sure were following

best practices.

MAJOR RETAIL MARKETER

I dont think [at the corporate level] they think too much about data governance. I think there are

privacy and protection protocols, but I dont think theres a universal approach to data.

MAJOR INSURANCE MARKETER

What keeps me up at night is regulatory interferenceif someone requires you fly blind to things that

actually matter. If you are forced to mail everybody, nobodys program works. Regulation would change

the very fundamental nature of our business and those fears are what we engineer around.

SENIOR VICE PRESIDENT OF CONSUMER MARKETING, INSURANCE PROVIDER

IN THEIR OWN

WORDS


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Over time, the inherent value of data governance can be unlocked only by elevating

its role as a proactive strategic competencywith a focus on optimizing the value and

contribution of information across the enterprise.

WHY?

In order to ensure its long-term viability, any critical strategic asset (like customer data)

must be managed with an eye on maximizing its contribution across various enterprise

functionswith specific focus on optimizing efficient deployment and effectivelong-term

returns to the business; and

The organizations ability to stand up best-in-class capabilities (that are responsive to both

current and future potential market demands) requires a holistic approach to marketing

data and its downstream applications. This requires equal, but coordinated, emphases on:

o Information Security: defensive measures to guard against both malicious and

inadvertent data leakage and/or theft that can hurt the organization by eroding

consumer trust and necessitating costly restorative measures

o Transparency and Choice: ensuring that measures are in place to help consumers

understand how data is used to inform marketing communicationsand providing

them with a say in how personal information is used (even when that information is

wholly inferred and/or anonymized)

o Stewardship: assuring that the organization maintains a constant focus onand

commitment to adhere toevolving regulatory guidelines and industry best practices; and

o Provenance:providing the internal infrastructure that defines how data is collected,

managed, shared, segmented, valued and deployed in support of strategic and

tactical business use cases. Also guarantees that those use cases are developed and

validated with the right level of cross-function institutional guidance.

WHY DOES IT MATTER?

Strategic, multidisciplinary data governancemanaged at an appropriately senior level

in the organizationwill instill an institutional respect for the power of information, and

reinforce the critical importance of bothsafeguarding and optimizingthose resources

over the long term; and

Cross-disciplinary engagementthrough, say, the development of a central steering

committee infrastructurewill ensure that the long-term interests of all potential

stakeholders are protected and nurtured (while driving innovation across functions that

have not traditionally been considered data-driven).


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People think a strategic, enterprise-wide data stewardship plan creates unnecessary overhead, but

thats not true. In reality it creates a valuable data service for the whole organization; it creates a high-

quality asset that others can use.

MANAGING PARTNER, DATA GOVERNANCE CONSULTANCY

We want to be true to the spirit of being responsible with data in a way that protects customers and

aligns with governance requirements. But, we dont want the terms of governance to be so onerous

that it impairs our ability to successfully do what we are paid to doMarketers need to actively

contribute to the dialoguewe need to contribute to that process so we strike the right balance.

CHIEF MARKETING OFFICER, DIGITAL PUBLISHER

IN THEIR OWN

WORDS

Maximize the ability to use data to drive value to our company

Minimize the threat of data leakage

Minimize the threat of a data security breach

Improve the quality of insights generated by addressable data

A more secure /pri vate cust omer experience

Not a benefit A considerable benefit

1 2 3 4

3.47

3.41

3.40

3.36

3.32

To what extent would you say each of the following is a benefit ofimplementing a data governance strategy?


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Maintain a centralized, permanent and continuously evolving catalog of all customer data resources across the

enterprise, referenced according to a master taxonomy that aligns with industry classification practices and provides

internal stakeholders with insight into the background and potential contributions of each asset. Potential classification

categories may include:

Type(i.e. aggregate audience insights vs. targeting data; expressed vs. inferred; etc.)

Source(i.e. first-party/proprietary vs. second-party/partner-provided vs. third-party/externally sourced; etc.)

Use Guidelines(i.e. consumer-facing standards that dictatehowthe information was originally collected and

what restrictions, if any, govern how it may be further applied)

Internal Owner(i.e. which manager or department has ultimate responsibility for the informationand has the

power to approve/disapprove of downstream business use cases that seek to leverage it)

Prevailing Regulations/Best Practices(i.e. external standards that dictate how the information must,

or should, be used)

Sensitivity(i.e. extent to which data asset includes unique, personally-identifiable and/or materially sensitive

informationthus necessitating higher standards with respect to information security and management of

transparency and consumer choice)

To ensure that the organization maintains a continuous awareness of its own assets, allowing for optimization of their

utilization (for proactive business purposes) and management of the strongest data management infrastructure (for

reactive protection/security purposes)

Identify one or more internal process managers to own the data classi fication and mapping effortideally

in concert with a cross-functional team that will be tasked with driving the broader transformation of the data

governance function to support the maximization of datas contribution to the enterprise

Complete a data discovery process focused on identifying, classifying and maintaining an ongoing

understanding of information assets across the enterprise

The Evolving Marketing Data Governance Imperative

As more companies pursue active strategies for unlocking the inherent (but often difficult-to-

tap) power of customer information, data governance is steadily emerging as a need-to-have

discipline at the most senior levels of the marketing organization. But moving from a capability

that is fundamentally reactive to one focused on driving transformative business results isnt easy.

Companies looking to make the move should consider pursuing the following five steps as core

elements of their go-forward approach.

Maintain an evolving map of your customer informationbreaking down the taxonomy of

each marketing data asset at a deeply granular level

WHAT TO DO?

WHY DO IT?

HOW?

BEYOND

PRIVACY AND

SECURITY


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One of the big concerns right now is how to use data governance to help us sort through all of our data. We have

certain data streams that cannot be mixed, for example, and we need to know what data we have and what we can

use on campaigns.

DATABASE CONSULTANT, LARGE CONSUMER BANK

We have a central data warehouse thats comprised of four different customer systems. All of our data is fed into the

central data hub, where we can evaluate it and then export to the appropriate business cube for marketing, or other

business leaders, to use.

DATA MANAGEMENT MANAGER, ENERGY PROVIDER

Data is complicatedit can be at the individual level, the household level, and the account levelso we have a

massive data suite where we can see the big picture for any given individual. But then to use it, we define how we

want to look at the data for different purposes or campaignswe architect these tables and then another team builds

a system for us.

SENIOR VICE PRESIDENT OF DATABASE MARKETING, TOP 5 FINANCIAL SERVICES COMPANY

IN THEIR OWN WORDS:

Somewhat.Though most large companies maintain good documentation on their addressable customer data,

centralized ownership of these records is relatively rareinhibiting the marketers ability to gain a unified view of all the

information assets at her disposal

IS THIS COMMON

TODAY?


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Identify a long-term strategy for how customer information will be sourced, compiled, managed, segmented, deployed

and safeguarded to suit a variety of business needsbeginning with the articulation of concrete use casestied to

available data inputs and known marketing applications

In order to drive maximum value to the enterprise, data must be managed like all other critical raw materialssubject to

the basic economic parameters of supply and demand (as well as internal scrutiny with respect to its cost, performance

and alignment with the needs of the company)

Complete the data discovery process, identifying the background and potential contribution of all enterprise

data assets

Outline, at the most granular level possible, a detailed set of data use cases that dictate how information will be

used to support a variety of customer marketing functions

Create rules for access and use, guiding business use cases and personnel requirements, building in

transparency and flexibility so that the processes are easily understood and can be adjusted quickly as needed

Ensure data for various objectives (and types of data) are managed according to its particular level of sensitivity

and needaggregated audience insights (used, for example, to drive product development-focused analytics)

do not need to adhere to the same strictures as PII data

Enable an attribution process to measure, evaluate and adjust tactics on an ongoing basis

Develop a unified data strategythat considers (and incorporates, over time) a multitude of

inputs, supporting use cases, deployment technologies, regulatory and best-practice guidelines

and other operating parameters

WHAT TO DO?

WHY DO IT?

HOW?

Increasingly, yes.The rising influence of digital data sourcesand the broader move to deploy Big Data strategies

has driven many organizations to begin thinking about the holistic contribution of customer information. Most of these

efforts have been driven by enterprises in verticals (like financial services and publishing) that have been traditionally

reliant on direct marketing and data-focused product development, though other organizationsnamely those in the

retail sectorare beginning to focus on data strategy as a key pillar of their omnichannel customer engagement efforts

IS THIS COMMON

TODAY?

Its been a challenge working off silos. Right now were trying to bring all of our data together and create an

environment that allows everyone to work off a single source of data to drive consistent use, consistent application of

business rules and consistent understanding of the data so that it can be leveraged to drive value across

our organization.

DATA MANAGEMENT DIRECTOR, LARGE PAYMENTS FIRM

For enterprise-level clients, at the very least you have to have a way to rationalize some of the data categories.You need a consolidated environment to begin managing this.


IN THEIR OWN WORDS:


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Develop a unified cross-functional infrastructure (geared to the responsible, scalable use of customer information)

to support the deployment of the enterprise-wide data strategy. Examine and optimize marketing workflows,

database structure and access requirements (processes), evaluate supply chain and vendor partnerships, identify

optimal toolsets and supporting technologies (platforms) and align professional development, staff allocation and

corresponding performance compensation structures (people) in support of strategic data governance objectives

Despite their beststrategicplanning efforts, many organizations fail to tap into the substantial value of marketing data

because they fail to do the hard work of aligning the downstream pillars of marketing operationsnamely, their talent

and human resource capacity, deployment technologies, supply chain expertise/support and the overarching processes

that define how they all work together. Collectively, these elements constitute the infrastructure that will govern the

deployment of all marketing resourcesand they must be managed as a cohesive unit if the organization is to benefitfrom their application

Define enterprise objectives (including implementing a unified data strategy) and outline a phased implementation

plan with key project managers

Assess existing resources (including technology tools and platforms, third-party partners and current job roles

and existing skills) to determine effectiveness and current need

Engage new vendors for required services and solutions as needed to deliver on identi fied objectives and

use cases

Work to socialize new processes throughout the organization, including through employee training and a system

where regular updates are communicated

Build an underlying infrastructure to support marketing data utilizationwith an eye on

optimizing the roles of people, platforms, processes and partners in unlocking the inherent value

of those assets

WHAT TO DO?

WHY DO IT?

HOW?

No.Though more organizations are moving to elevate the role and contribution of the data governance function in

support of enterprise business needs, few have begun thedownstreamoptimization work necessary to align strategy

and execution (with performance-driven datagovernanceas a defining objective). For many, though, this evolution

may ultimately come down to a question of when, rather thanifotherwise, well-designed strategies will lack the right

supporting execution platforms

IS THIS COMMON

TODAY?

The first step is that we need to focus some people that are truly dedicated to looking at data governance from an

enterprise level. Having someone try to do that while 80 percent of their focus is elsewhere doesnt cut it.

DATA MANAGEMENT DIRECTOR, LARGE PAYMENTS FIRM

I wouldnt say we have a permanent, ongoing steering committee. One was pulled together before we started, but it

hasnt stayed together as an ongoing function. That will be a key step for us, forming an organization like that.

DATA GOVERNANCE MANAGER, MAJOR PUBLISHER

Technology is a huge asset here. If you have a lot of information you should be able to choose what you expose to

who, and when. And the only way to erect those barriers and execute quickly and at scale, is with technology.

SENIOR PRODUCT MANAGER, TECHNOLOGY PROVIDER

IN THEIR OWN WORDS:


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What are important organizational prerequisites to implementing acomprehensive marketing data governance strategy?

Technology platforms that support objectives

Broad organizational education

Unified systems and centralized solutions

Better cooperation across departments

Dedicated personnel working across departments

Specially trained personnel

Coordination of supply-chain partners

Dedicated data governance budgets

Not at all sure

Something else

64%

64%

61%

58%

54%

53%

40%

26%

6%

3%


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Rather than building an infrastructure to support the amorphous needs of the company, engineer the data

governance effort to support the granular needs, interests and long-term engagement of all constituencies who

are affected by the use of consumer data. This includes business and functional units within the organization (who

will benefit from the identification of actionable data use cases), shareholders (who will better understand how the

enterprise is investing in information as a driver of its own growth), business partners (who will better understand they

may collaborate to generate insights that benefit both parties) and customers themselves (who will learn more about

how the organization uses information to improve the relevance of their interactionsand enjoy a heightened measure

of control over the content, cadence and channel of those communications)

A proactive approach to data governance is one that anticipates and responds to the potential needs of all parties.

Engendering the involvement, buy-in and engagement of the same constituentsincluding customers, most notably,whose direct contributions will help bolster the underlying data setandbuild trust in the approach to information capture

and utilizationwill be critical to building a defensible data infrastructure

Explicitly address the needs of each identifiable data governance constituency when considering strategic and

tactical opinions

Consider identifying internal parties to serve as ombudsmenproactively representing the interests of these

various stakeholders on an ongoing basis

Communicate the measures that the organization is taking to deliver transparency and choice (in support of

customers as well as other parties) to all stakeholders

Consider the needs of all constituent stakeholdersin the development and continuous

refinement of data governance guidelines, leveraging information to optimize the value (and

protect the interests) of customers, employees, shareholders, partners and other parties

WHAT TO DO?

WHY DO IT?

HOW?

Somewhat.The broad trend to unlock Big Data business opportunities has been paralleled in fervor by perhaps only

one other development: the desire to build a culture of customer-centrism, with companies working to support the

needs of their most important constituency as an overarching guideline for how business should be done. With respect

to data utilization, this development often drives customer advocacy efforts as part of the tactical consideration process,

though few organizations have expanded the effort to considerother enterprise stakeholders

IS THIS COMMON

TODAY?

Its important to govern data departmentally, but also important to have a broad strategy with various stakeholders

involved. You have to ensure that you dont end up with conflicting strategies by department.


Its really important to have the users of the data on your side. When we create new policies, we go to them and

make sure everything makes sense for them; the best way to get compliance and engagement is involving everyonein the process, making sure it serves their needs.


We put the consumer at the forefront of our data management systemjust because we have permission to use

certain information, doesnt mean we will. We want the focus to be what is right for the consumerwhat they want

and have expressed to usrather than what is right for the bottom line.

SENIOR PRODUCT MANAGER, TECHNOLOGY PROVIDER

IN THEIR OWN WORDS:


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Develop and reinforce an institutional mindset built around the power of insight, with the goal of imbuing data

applicationsand the responsible, growth-focused management of the information that drives theminto virtually all

customer-centered functions across the enterprise

Because datamanaged in silos or without a foundational strategic approach to generating actionable business

insightswill drive few incremental contributions worthy of enterprise-level investment. Because data is an inherently

perishable resource, and organizations must evolve, grow and adapt their utilization of the same if they are to succeed in

unlocking its inherent value. Because organizations that are responsive to observation-driven insightand are adept at

applying such insight to improve the quality and relevance of their brand, products and customer interactionsare likely

to enjoy defensible competitive advantage

Leverage the cross-function steering committee (as well as a series of tactical data governance sub-committees)

to assess use cases and data management practices, air challenges and exchange ideas which can be elevated,

when necessary, to senior management in an effort to initiate positive organizational change

Educate all employees regarding data use, access and acceptable activitiesand mandate recurrent training for

employees in mission-critical functions

Use regular audits to benchmark your organization against others and con firm compliance with respect to

regulatory norms, best practices and enterprise business objectives.

Develop a data culture grounded in continuous learning and improvement leveraging

information to help drive product and customer innovations (and reinforcing the need to safeguard

those critical corporate assets)

WHAT TO DO?

WHY DO IT?

HOW?

Not yet. More highly regulated industries (such as the life sciences, healthcare and financial services sectors) have

taken assertive steps to maintain an ongoing data governance monitoring capabilitycarried out, often, by armies of

specialists and legal professionals who are charged with relaying new requirements back to particular business units.

Many individual companies, likewise, have successfully built insight cultures as a means of achieving differentiation

in traditional and/or commoditized markets. As a whole, though, most companies see the science of data as a

philosophical foundation mostly distinct from the art of brand management, product development and customer

servicerather than seeing the two as complementary pillars that ought to reinforce the companys commitment to

growth and innovation

IS THIS COMMON

TODAY?

How do you educate your employees and get them to be invested for the long-term? For one, dont call it data

governance. Call it the best way to do business and the best way to protect our information and our customers.


A lot of data governance is, number one, raising awareness among employees. Socializing the importance of thepractices is critical.


Our legal department definitely keeps us informed, but additionally we have cross-functional groups that get together

on a monthly basis to talk through these issues. If we hear rumblings of new changes or best practices or challenges,

well tell everyone and then do more research to figure it out.

CUSTOMER DATA MANAGER, NATIONAL RETAIL CHAIN

IN THEIR OWN WORDS:


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Once considered a specialty functionmore closely associated with the general counsels

office than that of the CMOthe role of data governance is fundamentally changing within

the enterprise.

Privacy, security and the safeguarding of trustin consumer engagement are still centerpiece

priorities. But as more marketers come to see data as a fundamental driver of real and

lasting business advantage, it is necessarily changing in form and functionmoving to

advance a series ofproactive commercial goals, just as it continues to support a range of

reactive compliance needs.

As information and technology grow to occupy even more critical roles at the center of

marketing execution, this evolution will grow increasingly rapid (and increasingly critical,

especially for those organizations that are slower to embrace the power and potential of

responsible data deployment) in the years ahead. Ultimately, the pace and scale of necessary

transformation will vary across companies, geographies and operating units. But at its

centerpiece, the same fundamental driver: a new imperative to leverage information as a

vehicle for unique insight that may power breakthrough growthand breakthrough value

for the marketer, company and customer alike.

IN CONCLUSION


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WINTERBERRY GROUP is a unique strategic consulting firm that supports the growth of advertising,

marketing, media and information organizations. Our services include:

CORPORATE STRATEGY:The Opportunity Mappingstrategic development process helps clients

prioritize their available customer, channel and capability growth options, informed by a synthesis of

market insights and intensive internal analysis.

MARKET INTELLIGENCE: Comprehensive industry trend, vertical market and value chain research

provides in-depth analysis of customers, market developments and potential opportunities as a

precursor to any growth or transaction strategy.

MARKETING SYSTEM OPTIMIZATION AND ALIGNMENT: Process mapping, marketplace benchmarking and

holistic system engineering efforts are grounded in deep industry insights and real-world understandings

with a focus on helping advertisers, marketers and publishers better leverage their core assets.

MERGERS & ACQUISITIONS DUE DILIGENCE SUPPORT SERVICES: Company assessments

and industry landscape reports provide insight into trends, forecasts and comparative transaction data

needed for reliable financial model inputs, supporting the needs of strategic and financial acquirers to

make informed investment decisions and lay the foundation for value-focused ownership.

Additional ly, Winterberry Group is differentiated through its affiliation with Petsky Prunier LLC, the

leading investment bank serving the technology, media, marketing, e-commerce and healthcare

industries. Together, the two firms provide one of the largest and most experienced sources of strategic

and transactional services in their addressable markets.

For more information, please visit www.winterberrygroup.com.

The DIRECT MARKETING ASSOCIATIONis the worlds largest trade association dedicated to advancing and

protecting responsible data-driven marketing. Founded in 1917, DMA represents thousands of companies

and nonprofit organizations that use and support data-driven marketing practices and techniques.

In 2012, marketerscommercial and nonprofitspent $168.5 billion on direct marketing, which accounts

for 52.7 percent of all ad expenditures in the United States. Measured against total US sales, these

advertising expenditures generated approximately $2.05 trillion in incremental sales. In 2012, direct

marketing accounted for 8.7 percent of total US gross domestic product and supported 1.3 million direct

marketing employees in the US. Their collective sales efforts directly support 7.9 million other jobs,

accounting for a total of 9.2 million US jobs.

For more information, please visit www.the-dma.org.

IN PARTNERSHIP

WITH:


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EQUIFAXis a global leader in consumer, commercial and workforce information solutions, that provides businesses of all

sizes and consumers with insight and information they can trust. Equifax organizes and assimilates data on more than 500million consumers and 81 million businesses worldwide, and uses advanced analytics and proprietary technology to create

and deliver customized insights that enrich both the performance of businesses and the lives of consumers.

Headquartered in Atlanta, Equifax operates or has investments in 18 countries and is a member of Standard & Poors (S&P)

500 Index. Its common stock is traded on the New York Stock Exchange (NYSE) under the symbol EFX.

For more information, please visit www.equifax.com.

EXPERIANis the leading global information services company, providing data and analytical tools to clients around the world.

The Group helps businesses to manage credit risk, prevent fraud, target marketing offers and automate decision making.

Experian also helps individuals to check their credit report and credit score, and protect against identity theft. Experian plc is

listed on the London Stock Exchange and is a constituent of the FTSE 100 index. Total revenue for the year ended March 31,

2013, was US$4.7 billion. Experian employs approximately 17,000 people in 40 countries and has its corporate headquarters

in Dublin, Ireland, with operational headquarters in Nottingham, UK; California, US; and So Paulo, Brazil.

For more information, please visit www.experianplc.com.

MEDIAMATHprovides an industry leading marketing operating system, TerminalOne, which connects global brands with

their customers individually and at scale. Built as an open platform, TerminalOne integrates with leading technology, data

and services companies to provide a seamless media planning, data management, and performance optimization solution.

TerminalOne powers the marketing operations of more than 3,500 brands, including 55% of the Fortune 500, enabling them

to drive transformative business results across display, video, mobile, and social channels.

For more information, please visit www.mediamath.com.

PREMIER

SPONSORS:


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HARTE-HANKS, INC.is a worldwide, direct and targeted marketing company that provides direct marketing services and

shopper advertising opportunities to local, regional, national and international consumer and business-to-business marketers.

For more information, please visit www.harte-hanks.com.

KBM GROUPhelps companies create meaningful and mutually beneficial engagements with their customers through

data-driven insights. We combine data, sophisticated analytics, actionable insights, and marketing technology to optimizemulti-channel engagement throughout the customer lifecycle. KBM Groups world-class marketing services include strategic

marketing consulting, data integration and database management, analytics, digital services, outsourcing, creative services,

and response services. Our parent company, Wunderman, is part of the Young & Rubicam Group and a member

of WPP.

For more information, please visit www.kbmg.com.

SUPPORTING

SPONSORS:

Documents

Winterberry Group White Paper -- Marketing Data Governance