Why does Marketing ignore Operational Data more than Social Media Data?

In many of my engagements (and what led to me to start my business), I find the marketing departments are reluctant to engage operations for things they can learn and apply to their campaigns.

The scientist in me knows that lagging and coincident indicators are capable of creating a leading indicator.  John Hussman recently showed this in a weekly economic update here.

Operational data that your customer provides you can also do this.  I have seen this in banking, utilities, and telecomm.  I have always been baffled by why it hasn't been used more.

However, marketing types have been fast to embrace social media data.  Why is this?

Then I read this today from Psychology today.  Three excerpts that are worth discussing.

"The human mind hates uncertainty. Uncertainty implies volatility, randomness, and danger. When we notice information is missing, our brain raises a metaphorical red flag and says, "Pay attention. This could be important."

Everyone is afraid that if they are left behind in the social media world, they will fall behind in market share.  This may be true, but the value within their own operational data carries far more value than social media.

"When data is missing, we overestimate its value. Our mind assumes that since we are expending resource locating information, it must be useful."

This implies that when data isn't missing, we may be underestimating its value.  I find this to be the consensus among marketing types.  They have the data available, but they don't pursue it.

One interesting take within this article is that more information disables your information.  I am a strong believer in the equation ambiguity + choice = decision paralysis.  So, why I can understand that selective indifference, it doesn't explain why that doesn't exist with social media.  Let's face it social media is sexier than operational data, but which one drives more value.  Which leads to the conclusion at the end of this article.

"In a world where every click brings the promise of a discovery, we are all at risk of becoming addicts. The challenge lies in differentiating between questions worth exploring and questions best left unasked."

Random Stock Behavior Illustrated and the Worthless Pursuit of Alpha

If you need another reason to not waste your time chasing individual stocks and analyst ratings, look no further.

S&P500 Stock Performance based on analyst rankings

Source:  Bespoke

This pursuit leads to having fewer great experiences, so why do Wealth Managers choose to reduce the numbers of great experiences for their clients?

More on the Predictable Experience

Steven Walden at Beyond Philosophy recently placed on their blog a comment that I felt was very compelling.  He stated that it is up to the company to "evoke and control" customer emotions.

I found this to be a very profound insight and yet it is so simple.  The question becomes how do you evoke and control customer emotions and channel them in a positive direction for your company?

In several earlier posts, we discussed the value of a Predictable experience.  We feel that on thing you must have present to "evoke and control" the customer experience is to make it predictable.

Variation in the experience and the outcomes is your "red flag" that your customers are not receiving a predictable experience - this has several associated costs with it.  Does one agent give two customers with the same situation the same treatment?  Would one customer get the same treatment from 10 different agents?

If your process and your experience isn't repeatable and reproducible, it's not predictable.  It's time to take action.

If you can develop a predictable experience, you can evoke and control customer emotions.

You can read all of Steven's entry here.