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MICHAEL LUMMUS
SOCIAL DATA AT WORK

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MARKETING CHALLENGES AND
OPPORTUNITIES
The digital age continues to shift the relationship between
brands and their customers. Despite the potential of today’s
targeting methods and communication channels, marketers
find themselves challenged to maintain margins and content
relevancy among a hard-bargaining, informed, and always-
connected public. Harnessing social media to gain new
insights and deliver better experiences is now a necessity.
Thanks partly to the rise of social networks, more
information about consumer preferences, motivations,
and behaviors is available to brands than ever before –
Facebook alone has over 100 petabytes of it, estimated by
the MIT Technology Review to be “the most exhaustive data
set ever assembled on human social behavior.” 1
Facebook’s
influence on buying decisions has doubled in the past
year.2
Over 2.7 billion “Likes” and one million new Twitter
accounts are generated each day.3
Brands must embrace
this reality and adopt a social-empowered engagement
strategy to increase marketing efficiency and drive return
on investment.
Marketers who consistently win in today’s economy are
no longer focused only on crafting the catchiest slogan
and chasing media with the highest ratings, but rather
on understanding exactly who their customer is, sensing
when their customer is about to engage, and presenting
exceptionally relevant and compelling offers. It’s about
gathering insights and plugging them into multichannel
marketing campaigns that encompass owned, paid, and
earned advertising channels.
Leading marketers place social media as one of many
sources of customer intelligence that combine with offline,
purchase, and behavioral data to inform better audience
selection and a coordinated campaign strategy across all
channels.
COMPANIES START TO PULL IT
TOGETHER
Today’s enterprise has already adopted a number of
software tools to assist it in managing and harnessing the
social web. These typically take the form of:
-- Social Listening to identify marketplace trends and
sentiment
-- Social Publishing to disseminate and track content
via an ever-growing number of social accounts across
networks
-- Social Customer Service to identify and respond to
individual customer complaints expressed online
-- Social Advertising applications to place and target
paid ads on social sites
-- Social Plugins including share, like, tweet and follow
buttons, gaming elements, and reviews
-- Social Login to allow consumers to leverage social
accounts on third-party websites and applications
Companies have typically implemented these applications
on an ad hoc basis as their social needs have evolved. Like
many digital initiatives, social has grown up in isolation,
where teams are free to experiment and invest without the
rigidity of process and financial scrutiny typically imposed
on more established marketing functions. However, there
is plenty of evidence pointing to change. In a recent Chief
Marketer survey, marketers listed their greatest frustration
with social media as the difficulty in calculating ROI.4
Michael Lummus
SOCIAL DATA AT WORK
100,000,000,000,000,000
bytes of consumer data
1
Source: Tom Simonite, “What Facebook Knows,” MIT Technology Review, June 13, 2012 (http://www.technologyreview.com/featuredstory/428150/what-facebook-knows/).
2
Source: Edison Research, “The Social Habit,” The Social Habit, June 2012 (http://socialhabit.com/secure/wp-content/uploads/2012/07/The-Social-Habit-2012-by-Edison-Research.pdf).
3
Source: Jeff Bullas, “48 Significant Social Media Facts, Figures and Statistics Plus 7 Infographics,” jeffbullas.com, April 23, 2012
(http://socialhabit.com/secure/wp-content/uploads/2012/07/The-Social-Habit-2012-by-Edison-Research.pdf).
4
Source: Brian Quinton, “Chief Marketer 2012 Social Marketing Survey”, Chief Marketer, June 2012
(http://www.chiefmarketer.com/research/chief-marketer-2012-mobile-marketing-survey-mobile-goes-with-everything-05062012).

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And as the social customer care manager for a leading
automobile manufacturer recently stated, “This is the first
job I’ve ever had where I don’t have to prove the ROI of
what I’m doing. But I know that won’t last forever.” Just
as email marketing and eCommerce have integrated into
enterprise marketing structures in recent years, signs of
impending integration of social content management,
data, and analytics into the marketing and IT organization
are starting to appear, forcing marketers to rethink
the processes and tools they currently use in order to
achieve the overall vision of the social enterprise (many
of which were not built with enterprise-class features
such as security and governance controls and points for
customization and integration). Forrester Research recently
noted, “Savvy marketers will demand social measurement
tools that demonstrate how their social programs are
creating marketing and business success.” Rather than
today’s social listening vendors, the report predicted that
“those tools are likely to come from vendors with expertise
in tying marketing spend directly to business outcomes.”5
This attempt to integrate social into the enterprise has
coined the imprecise field of Social CRM. While some
include internal collaboration tools in this category, a more
focused definition is presented by Forrester as “connecting
social media to the customer database and informing
customer strategy through this information.” Forrester
goes on to say this focus makes Social CRM “the customer
intelligence professional’s mandate.”6
Gartner has clarified
this particular function under the moniker “Social for
Marketing.”
ORGANIZATIONAL CHALLENGES
Customer intelligence and CRM professionals, especially
those with a direct marketing background, know
segmentation well. However, they typically aren’t well
aligned with their digital marketing counterparts. Though
they know that social media will impact their job, they often
don’t yet understand how and may struggle to find their
footing in a converging digital world. 7
Conversely, digital marketers understand social media as
a promotional channel and perhaps are assembling some
aggregated insight from it, but they don’t truly grasp
it as a data source or fully leverage its use in targeted
campaigning. For many digital marketers, “targeting” and
“segmentation” are terms related to personalizing content
for anonymous site visitors. Digital marketers could learn
something from their direct marketing counterparts in the
way of building a comprehensive customer view, targeting
at an individual level, and evaluating multi-channel response
attribution. 8
Due to these organizational challenges , delivering on the
Social CRM vision has proven easier said than done – and
especially so in large-scale B2C marketing. Marketers have
also encountered technical challenges, discovering that
access to their social data in the cloud can be limited, and
the integration of the data is particularly difficult without
non-social personal identifiers. This requires marketers to
make some important realizations and adopt a methodical
approach to their social marketing program.
SOCIAL MARKETING HAS A ROLE IN
DATA DRIVEN MARKETING
Data driven marketing works in a digital and social world.
Socially-enabled marketing doesn’t require reinventing
direct-to-consumer marketing tactics from the ground up.
It’s still about creating an insightful view of the customer,
using analytics to understand behaviors and predictive
indicators, segmenting messages intelligently, and
delivering relevant content. Social is a rich – albeit unique –
data source that provides additional context and accuracy
to customer-centric marketing programs.
Social engagement drives social insight.
Just having a Facebook page or Twitter handle doesn’t
necessarily cut it. Social CRM is accelerated by permission-
based social data. Brands need to establish deeper
relationships with consumers to gain that permission.
Consumers expect value in exchange for sharing their data
with brands. This requires making the experience with your
brand a social one. Once permission has been granted,
brands must extract data via the social network’s API and
process it into a usable and standardized format.
Brands shouldn’t relegate
“social” to a silo but integrate
for a comprehensive
customer view.
5
Source: Nate Elliot, “The Four Social Marketing Tools You Need”, Forrester Research, February 2013 (http://www.forrester.com/The+Four+Social+Marketing+Tools+You+Need/fulltext/-/E-RES90461).
6
Source: Shar VanBoskirk, Sarah Glass and Elizabeth Komar, “U.S. Interactive Marketing Forecast”, Forrester Research, November 2011
(http://www.forrester.com/US+Interactive+Marketing+Forecast+By+Industry+2011+To+2016/fulltext/-/E-RES61089).
Source: Zach Hofer-Shall with Suresh Vittal, Allison Smith, “What Social CRM Means to Social Intelligence”, Forrester Research, January 2011
(http://www.forrester.com/What+Social+CRM+Means+To+Customer+Intelligence/fulltext/-/E-RES58455).
7
Source: “Marketers still confused over social media”, utalkmarketing.com, June 2009
(http://www.utalkmarketing.com/pages/article.aspx?articleid=14342&title=marketers_still_confused_over_social_media).
Source: “Direct Marketers Facing Longer Unemployment”, MarketingProfs, 2010 (http://www.marketingprofs.com/charts/2010/3868/direct-marketers-facing-longer-unemployment).
8
Source: Dave Chaffey, “Back to direct marketing basics: how digital marketers can learn from DM”, Smart Insights, April, 2010
(http://www.smartinsights.com/digital-marketing-strategy/digital-vs-direct-marketing/).
Source: Lois Gellar, “Social Media Marketing: What’s The Point?”, Forbes, April 2012 (http://www.forbes.com/sites/loisgeller/2012/09/04/social-media-marketing-whats-the-point/).

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Social data in and of itself is interesting; social data
integrated into a cross-channel, customer-centric
approach is impactful.
Social data is part of a customer-centric strategy that
yields better multichannel targeting and cadence. Brands
shouldn’t relegate “social” into yet another data silo but
rather integrate with other owned and partner data sources
for a more comprehensive customer view. There is some
value in looking at purely social data (i.e., social listening
platforms give marketers a view into what people are
saying about them in the social web), but in order to drive
true return on investment, social data must be part of a
broader customer-centric framework encompassing data
management, analytics, and engagement. By integrating
social and purchase information, marketers can begin to
understand the impact their social engagement strategy
has on sales and communicate with customers in a way
that drives future sales. Measurement is important across
all touch points. What is the lift on socially-enabled email
communications? How much do people who “Like” my
page spend in my stores? Social data integration answers
these questions and enables social insights to be applied
to outbound targeted campaigns. Without integration of
social insights into a centralized marketing database that
informs relevant communication programs, you can’t apply
the insight generated through social analytics.
UNDERSTANDING SOCIAL DATA
A fundamental part of delivering on the vision of Social
CRM is an understanding social data. Typical “big data
problems” around variety, volume, and velocity plague
companies wresting with social data management. While
there is much potential in its analysis and application,
additional unique challenges around access to customer
data, new data types related to behaviors and connections,
changing social network governance and API design, and
identifying a key that can be used to link social and other
customer data sources have limited marketers’ ability to
succeed. In fact, only 10% of organizations even have an
enterprise definition of social for CRM. 9
A framework characterizing data by its potential use,
availability, and data type helps to untangle the social
data bird’s nest and lays the groundwork for social data
management.
DATA QUALITY
Critics of social marketing often reference its data quality
perceptions. No data source is perfect, and all must be
evaluated relative to their strengths and weaknesses.
Third-party data aggregators typically imply preferences
or attributes based on non-related or aggregate source
data, limiting the accuracy of the elements they produce.10
And form-based data provided by customers in surveys
is the lowest quality data source according to Experian.
In fact, 88% of consumers readily admit to falsifying or
omitting information when completing forms online 11
. In
contrast, consumers completing a social profile (especially
those who leverage that profile as their online identity
on other sites) do so for their own benefit, increasing the
likelihood of genuine representation. While in the early
“wild west” days of the Internet, individuals were known by
anonymous handles and largely maintained obscurity, the
rise of eCommerce, online dating, and social networking –
along with a greater comfort level online – has increased
consumers’ willingness to represent their true identity,
despite the privacy implications. 87% of social network
users now share their real names, and 77% readily share
brand preferences.12
Facebook has championed this
trend, as evidenced by a recent initiative to proactively
disable 83 million accounts that were found to represent
false or misclassified identities. According to Facebook’s
Chief Security Officer, Joe Sullivan, the network’s “entire
platform is based on people using their real identities.”13
As with all data sources, a rigorous master data
management and data quality process can help ensure
decisions are made on the best data available.
9
Source: Michael Maoz, Jenny Sussin and Ed Thompson, “The Concise Social for CRM Vendor Guide, 2013”, Gartner, Inc., January 4, 2013.
10
Source: Savannah McClelland, “Half of What Advertisers Know About Us May Be Wrong”, BMI Elite Blog, March 2013
(http://www.bmielite.com/blog/half-of-what-advertisers-know-about-us-may-be-wrong/).
Source: Rebecca Lieb, “Why privacy isn’t the problem with online targeting”, iMedia Connection, December 2012 (http://www.imediaconnection.com/content/33251.asp).
Source: Deborah Pierce & Linda Ackerman, “Data Aggregators: A Study of Data Quality and Responsiveness”, CSUM, May 2005
(http://www.csun.edu/~dwm3265/IS312/DataAggregatorsStudy.pdf).
11
Source: Blue Research, “Consumer Perceptions of Online Registration and Social Login”, Blue Research, 2012.
12
Source: uSamp, “Social Media Habits and Privacy Concerns Study,” uSamp, 2012.
13
Source: Heather Kelly, “83 million Facebook accounts are fakes and dupes”, CNN, August 2, 2012 (http://www.cnn.com/2012/08/02/tech/social-media/facebook-fake-accounts).
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- 87% share real names on
social networks
- 77% share brand preferences

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PUTTING THE DATA TO USE
ANALYTICS
The logical first step to extracting value from integrated
social data is exploring it for analytical insight.
For example, once social preferences such as Facebook Likes
or Twitter Follows are available in the marketing database, a
company can answer questions such as:
-- Which products or competitors are most socially preferred
by the segments in a company’s customer base?
-- What effect does Liking a Facebook page have on
in-store spend?
-- What common social affinities represent potential
cross-sell opportunities?
-- Does the company’s media advertising plan compare
with the media brands for which its customers
express social preference?
This information enables marketers to make informed
decisions regarding marketing mix, offer design, and
campaign makeup. In addition, more advanced analytics
make use of big data technologies and the unique
behavioral and connection data generated by social
networks. These analytics can take the form of:
-- Attribution of online and in-store revenue to social
media alongside other marketing activities
-- Exploration of the network graph for “hidden
communities” of interconnected customers with
similar buying patterns
-- Scoring for influencers and influenced customers
that includes business factors like referral revenue in
addition to traditional influencer metrics like number
of connections and frequency of social activity
CAMPAIGN TARGETING
In addition to aggregated metrics and analytics, social
data provides a rich opportunity to ensure marketing
campaigns are relevant and well-targeted. Posts and
comments can be analyzed for campaign timing around
purchase intent, and attributes and preferences can be
used to target specific messages. For example, the NFL
leverages social data generated by social login (powered
by Gigya technology) to deliver personalized email
messages. Gigya’s CEO, Patrick Salyer, explained the
process to Destination CRM: “When someone logs into
Facebook [and has granted permissions], they can tell
who that user’s favorite team is and when their birthdate
is. Before their birthday, those customers will receive an
email that shows the jersey from their favorite team with
their name on the back, with an email saying something
like, ‘Hey come treat yourself for your birthday and
buy this Redskins jersey.’ You get a more customized
shopping experience that’s going to convert much higher
than say, [if a Redskins fan] gets a Raiders jersey.” 14
Early adopters are starting to reap the benefits of
these enhanced campaigns. When Samsung started
personalizing email campaigns with data collected as
part of a social login to their website, they found those
recipients were 34% more likely to open the email and
63% more likely to click on a link.16
In addition to elements crafted with social insights, other
integrated sources can – and should – be leveraged to
truly optimize the message. An individual’s lifetime value,
past response to discount or high value offers, availability
of inventory, and coordination with other channels come
together to produce an excellent customer experience
and optimized business results.
14
Source: “Social Data Redefines Marketing”, Destination CRM, September 2012 (http://www.infotoday.com/).
15
Image Source: Anand Patel, “The NFL Truly Personalizes Email Marketing”, Anand Patel Blog, January 2012
(http://www.anandmpatel.com/the-nfl-truly-personalizes-email-marketing/).
16
Source: Gina Rau, “Samsung Taps into a High Value Customer to Improve Email Marketability”, Janrain, January 2012
(http://janrain.com/blog/samsung-taps-into-a-high-value-customer-to-improve-email-marketability/).
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PERSONALIZED INTERACTIONS
While outbound marketing messages will continue to drive
brand response for the foreseeable future, consumers
are increasingly in control of the interactions that lead
to sales. This requires marketers to provide relevancy
in real-time on the web and on mobile devices. Gartner
estimates these customer-initiated, relationship-driven
interactions can drive up to ten times the response rate
as a marketing-initiated outbound message. Leveraging
Teradata technology, Travelocity personalizes customer-
centric home page offers with 7x more click-throughs and
4-5x more bookings than generic content.17
In order to
reach these levels of success, brands should leverage social
data along with other customer data sources to determine
the optimal content and offers to present in that moment
of truth.
Companies are already integrating their owned web
properties with the social web, through the use of
Share, Like, and Tweet buttons and social login. A 2011
benchmarking study found 16 of the top 20 socially-
engaging apparel retailers had Facebook/website
integration.18
Social login in particular is important for its
ability to capture consumer opt-in to sharing of social
data that can then be used to personalize the online
experience. Online retailers such as Sears, Wal-Mart, and
Smashbox by Estee Lauder have created social shopping
experiences that connect consumers to products that
their friends and peers endorse or simplify gift-giving
by presenting recommended gifts for friends based on
their social activity. One such retailer gained 47% more
spend per customer from those who opted in to this social
shopping experience 19
, and according to a recent Direct
Marketing Association study, 88% of marketers using social
data for web personalization claim it has a high impact
on their marketing returns and customer engagement. 20
Consumers value this personalized experience, with over
half viewing it attractively and 46% saying it makes them
more likely to purchase from the site.
Leading marketers not only incorporate social data
into social experiences, but leverage it to drive content
decisions across offers, product recommendations, and
on-site promotions as well. Take an example of a financial
services company that displays featured content on their
website in a sidebar. Instead of presenting a generic offer
to all visitors, it could take into account the various data
points about a specific visitor, including:
-- She is a 30-year-old female
-- She has an IRA account with the company
-- She Liked Baby Gap on Facebook
-- She is currently browsing 529 plans
This information could be used to determine that the
promotion for an upcoming educational webcast on “Your
Child’s Financial Future” is the optimal content to present
at that time, based on the comprehensive portrait of that
customer.
STEPS TO GET STARTED
1. Use social login and apps to gain permission and
access to social data.
The most rich and useful social data starts with gaining
consumer opt-in to its access. Offering social login as a
registration option on your website is the most common
and effective way to start collecting this permission, with
typical adoption of 30-40% among registering users. Be
sure to collect an email address or associate a customer
ID to enable the integration of this data with other insight
sources. In addition, consumer-facing applications that
reside on or integrate with social networks can gain the
opt-in needed.
2. Capture social data in a format that can be analyzed.
Requesting individual data elements from a social
network API is appropriate for certain applications, but to
17
Source: Source: Debbie Doran, “Travelocity: Being the Customer’s Champion with Teradata CRM”, Teradata
(http://www.teradata.com/podcasts/Travelocity-Teradata-CRM/).
18
Source: Jon Kubo and Libby Smith, “Social Commerce IQ: Retail”, 8th Bridge, December 10, 2012.
19
Source: Tom Quinn and Matt Subbulli, “Evolution of Social Commerce”, Merkle, July 18, 2012
(http://www.wbresearch.com/uploadedFiles/Events/USA/2012/10359_007/Download_Center_Content/Evolution of Social Commerce.pdf).
20
Source: DMA Neolane, “Big Data Impact on Marketing Organizations”, DMA Neolane, January 2013
(http://www.neolane.com/Assets/neolane.comAssets/us-Assets/resources/pdf/BigData_Report_Jan2013v2.pdf).
6
88% of marketers using social
data for web personalization
claim it has a high impact on
their marketing returns and
customer engagement

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enable integration of this data and to leverage it across
communication channels, pull it into a database where
it can be combined with other sources, mined for key
discoveries, and used for in-the-moment decisions.
3. Don’t stick social in a silo – it is one important facet in
a multi-sourced, multi-channel approach.
It is time to let social graduate from its infancy and
integrate it into enterprise business processes and
marketing systems. Tie data to purchases to analyze
campaign return on investment or to marketing
performance data to analyze its impact on response rates.
Align social campaign schedules with other direct, digital,
and advertising plans to deliver a consistent message to
customers and prospects.
4. Explore your social data to discover brand affinity,
product preferences, and buying indicators. Then
incorporate it into your existing cross-sell and upsell
campaigns or design new campaigns with this insight in
mind.
Social data lends itself to traditional data mining
techniques like clustering as well as emerging practices
such as network analysis, text analytics, and influencer
modeling. Upon uncovering an insight, incorporate the
finding into your existing cross-sell and upsell campaigns
to quickly increase targeting accuracy and ROI. Then test,
measure, and refine continuously to improve marketing
results. Finally, use the insight to develop innovative
new communication strategies that deliver a world-class
customer experience.
Instead of relying on derived or implied consumer
preferences, marketers can now pick up the bread crumbs
of self-declared interests in the social space. In a new
customer-focused culture, it is crucial for marketers to
cater to consumer needs. Customer-centric strategy
includes investing in the people, tools, and processes
needed to develop proprietary data sources (including
social) as competitive assets that can be combined to
inform audience selection, marketing optimization, and
product development. Marketers now have the tools to
make it happen and can deliver a customer experience
that will keep their customers coming back for more.