Data integration can make you a star

Data integration tools offer online marketers a powerful way to leverage the rich data they have available in their system and use it to drive revenues and profitability.

The daunting challenges that once scared marketers off from using data integration technologies have been overcome with arrival of many powerful new tools that make it simpler to integrate data from a range of underlying channel systems.

That's not to say that it's easy. Establishing the technical capability needed for successful data integration requires persistence and commitment. But I believe the mental energy, minor headaches and set-up budget needed are worthwhile, and I'd like to offer some tips on getting started.

Know where you are heading

The most important criterion for success is to establish the marketing objective that will be enabled by data integration. This will drive the budget, team and results of your data integration project. With a clear marketing objective - and a few months of preparation - you will be able to generate incremental revenue and profits for your company.

In our experience, the most impressive payback has come from two types of programmes:

• remarketing via email, based on web behaviour
• advanced insight into media results; leading to adjustment in budget allocation

I'll describe an example for each of these types of programmes.

Remarketing via email, based on web behaviour

Strategy: intervene at a critical success milestone in your sales funnel. Pinpoint the fall-out of a specific desired behaviour - such as an abandoned shopping cart - which represents a purchase (desired behaviour) that began but was never completed (fall-out). Examine the timing and characteristics of the completed behaviour. The insight from the data will reveal the typical cycle time of shopping cart behaviour and the web visit patterns that correlate with the positive, completed orders. Your remarketing programme can be timed and crafted to address these conditions.

Results: often a relevant, timely follow-up message to the abandoned shopping cart visitors will generate a 5-10% response rate, and can increase the revenue of a campaign by 25%.

Performance measurement: if possible, set up a control group that represents your customer segments, including the 'Big Spenders'. With the control group performance available for comparison, you will be able to continually measure the incremental value of your remarketing programme.

Data integration requirement: such a remarketing programme is technically enabled through the integration of data in both directions between your email service provider and your web analytics.

Apply advanced insight into media results

Strategy: shift your media budget to the source of your Big Spenders. Take a different approach with your budget considerations. Do not reduce your media budget; rather reallocate it according to the behaviour of your customers. Here's how: segment your customers according to their average order size. The top 20% of your customers probably contribute 80% of revenue. With your data integrated, you can examine the customers with the highest average order size, and understand which campaigns and placements performed the best. Investigate the options to increase your spending for online advertising with the sources that generated more sales to your Big Spenders. Reduce your spending with the sources that generated lower-value orders with your 'Lightweight Shoppers' and the 'Cancellation Crowd'.

Results: assuming you have not saturated the audience of potential Big Spenders, your average order sizes will increase because you will reach and convert a higher proportion of big spenders. Remember to record the before-and-after metrics: you'll want to promote your success internally (and at your next performance review)!

Data integration requirement: this performance measurement requires that you integrate your ad server information with your e-commerce customer segment data.

Partner for experience and know-how

During times of budget-cutting it's worth remembering that hiring specialist expertise is more cost-effective in the long run. Delays are minimised, and the project is more likely to get off on right foot and provide faster payback.

During initial planning, it is important to include the firm you select to help you create a business case that includes the investment and estimated revenue.

A strong data integration partner should have:

• knowledge of your digital marketing technology platforms
• a combination of technical and marketing skills
• experience of your category or business model
• data integration experience with remarketing programs and media budget evaluations
• evidence of applying patience, a strong work ethic and good humour - in other words, the ability to pursue your initiative to its completion!

The tools are now ready to make data integration a reality - and there's never been a better time to turn them to your advantage and become an online marketing star performer.