News

How CPG Brands Can Harness Personalization To Engage Consumers

Xignite

Article by Diaz Nesamoney

AdotasI have recently spoken to many CMOs and Chief Digital Officers of CPG companies (our friends in the UK and elsewhere call them FMCG). They are fascinated by the concept of data-driven dynamic creative and personalization.

After decades of blasting consumers with one size fits all messaging—not just on TV and print (where you had little choice but to do so)—but also on digital channels. The mantra was “maximum reach for the lowest cost” or, in other words, blast ads to every man, woman and child whether or not they will ever be consumers of the product.

A lot of this kind of thinking was perhaps a holdover from the days when there was really only one Claritin, one Colgate toothpaste and one Coke. Brand managers later figured out that some level of product customization was necessary and important, as different sub groups of the target audience were likely to have different requirements. Then, different products were born: Claritin for Kids, Chewable Claritin, Liquid Claritin, Claritin Grape Flavor (both liquid and chewables), Claritin for 12 hours, 24 hours, and so on. This was a brilliant move because this kind of personalization really got consumers to purchase the products tailored for them.

When Ads Subtract

Advertising, however, stayed the same. So we saw one ad for Coke – the same message to everyone in the world. It was the same advertising approach for almost every big brand out there. As consumer engagement started to fade due to advertising fatigue, the response to boosting more engagement was always “hit them with more ads” – in the name of “reach.”

Along came re-targeting, which many retailers (with strong online sales) realized was a way to offer some degree of relevance by retargeting site visitors with products they had browsed but not purchased. Soon, this evolved into the dynamic creative optimization technology (DCO) that would optimally select products and messaging for the individual.

Now, DCO has evolved into true personalization. Combining first-party data from the brand sites, CRM systems, along with other contextual and third-party demographic data, brands leverage the rich data to build a holistic view of the individual and market to them with precise and relevant messaging and products.

Many CPG brands have only been watching enviously as retailers continue to exert more and more influence on the purchase decision, thanks to treasure troves of data they hold about the consumers and the use of personalized marketing platforms to engage them.

Personalization Strategies

As I work with several large CPG companies on personalization strategies, it has become clear that a critical kind of data that has tremendous capacity to engage consumers is often being ignored—contextual data. Many marketers who have access to first-party or third-party behavioral data flock to it, while often ignoring data about the user’s context: i.e. where they are, what they are doing, what’s happening around them. One of the nice things about contextual data is that it does not require identifying the user personally, which these days is a good thing with the increase in scrutiny around the collection and use of user data. Contextual data is mostly determined without having to identify the user.

Contextual data like weather and location are the most common and easy-to-get, but increasingly there is a lot more out there assembled by specialist vendors. For example, Grapeshot is a tech company that scours websites across the globe and gleans contextual meaning about each site, such as determining whether a website that describes footwear is a fashion site or a site on mountain climbing gear. Such context gathered in real-time enables DCO platforms to change the ad messaging in real-time, and change products and creative designs of an ad based on the context of the site.

This sort of technology is a great boon to CPG marketers, since it does not rely on visits by consumers to their own websites, which are minimal, or to their stores, which are also minimal or non-existent. Having the ability to determine the context of the web page or mobile site the user is on while viewing the brand’s advertisement can enable DCO platforms to precisely fine tune messaging for the optimal outcome.

Several other valuable sources of contextual data include pollen (for allergy medications), UV data such as WeatherAlpha (for skin care products), sports data like SportRadar (many consumer brands like beverages correlate well to sports data), events and holidays (for consumer gift items), or financial data from the likes of Xignite (product messaging based on financial market trends). Even time of day, which doesn’t seem like it would make a big difference, is proving to be a valuable source of user context and can be used to drive messaging—a breakfast food item in the morning, beer just before happy hour, you get the idea.

Personalization, once a tool considered to be only for retailers and brands with rich consumer data, is now showing tremendous benefits in user engagement to CPG brands that have harnessed the power of contextual data. Consumers will appreciate brands delivering advertisements that are tailored to their needs intelligently, rewarding them with consideration, purchase and loyalty. Isn’t that what marketers are supposed to do?

RECENT NEWS

Xignite, Inc., a provider of market data distribution and management solutions for financial services and technology companies, announced it has been named to the WealthTech 100 list of the world’s most innovative technology solution providers for asset managers, private banks and financial advisors. Xignite also had 8 wealthtech clients on the list, including BUX, CFRA, Harvest Savings & Wealth Technologies, Kristal.ai, Prive Technologies, Nucoro, Sharesight and YCharts.

The wealthtech industry has seen substantial growth over the last four years, as total funding to the sector grew to almost $8 billion at the end of 2019, according to FinTech Global.

Most of Xignite’s clients who are on the WealthTech 100 list work with financial institutions and RIAs, including Harvest Savings & Wealth Technologies and Nucoro, who provide client advisory tools for financial institutions; and CRFA, Prive Technologies and YCharts, who empower investment professionals, advisors and risk managers to make smarter investment decisions on behalf of their clients. Several Xignite retail investing clients, including BUX, Kristal.ai and Sharesight, who focus on making trading accessible for all investors, also made the list.

“Xignite is thrilled to be named to the WealthTech 100 list for the second year in a row,” said Stephane Dubois, CEO and Founder of Xignite. “We are proud to play a leading role in the wealthtech industry at a time when digital wealth has grown in prevalence – a trend that has been accelerated by the coronavirus pandemic. Enabling solutions that allow individuals and families to make the most of their assets is one of the more gratifying parts of what we do. Despite current market volatility, the Xignite team is leveraging our technology to aid our clients’ digital transformation in the most efficient ways possible.”

The 2020 WealthTech 100 list recognizes the pioneering companies transforming the global investment and banking industries. To select the winners, a panel of analysts and industry experts voted from a list of over 1,200 companies produced by FinTech Global. The finalists were recognized for their innovative use of technology to solve a significant industry problem or generate cost savings or efficiency improvements across the investment value chain. A full list of the WealthTech 100 can be found at www.WealthTech100.com

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Xignite retail wealthtech clients include leading digital asset management, robo-advisors and digital brokerages, including Betterment, FutureAdvisor, ElleInvest, Robinhood, MoneyFarm, Personal Capital, SoFi, Wealthfront and WealthSimple. Xignite clients also include leading institutional investment providers developing portfolio management, analytics tools and financial planning software, including Advizr, Envestnet, Invesco, Optima Fund Management, Orion Advisor Services, SigFig, Solovis and Stifel Financial Services.

About Xignite
Xignite Makes Market Data Easy. Xignite is leading the disruption of the market data industry with its AWS-based financial data distribution and market data management solutions. Xignite’s Market Data Cloud Platform provides market data managers full transparency on the usage of a firm's first-level real-time and reference data - making it easy for data owners to entitle, control consumption, comply with licensing requirements, allocate costs, and resolve vendor audits or invoice discrepancies. Xignite also powers financial data-driven robo-advisors, online brokerages, and investing apps with its real-time, delayed and historical pricing data offered via 500+ REST Cloud APIs. Visit http://www.xignite.com or follow on Twitter @xignite.

04/29/2020

Original Blog Post

Efi Pylarinou is the founder of Efi Pylarinou Advisory and a Fintech/Blockchain influencer – No.3 influencer in the finance sector by Refinitiv Global Social Media 2019. 

Stock Exchanges are data and software businesses. Nasdaq specifically, has had a significant software infrastructure business that provides technology solutions to over 100 organizations, like exchanges, clearinghouses, Central securities depositories, and regulators in over 50 countries.

This past week Nasdaq announced that they have partnered with AWS to offer real-time market data via the Cloud. So, why is this important in the 3rd decade of the 21st century? Wasn’t Nasdaq and other exchanges delivering market data via the cloud already?

My research released that Cloud adoption for primary market data from the source, is decent But like often is the case, the devil is in the details.

First, it seems that cloud adoption of market data directly from the source is about 2-3yrs old. Fintech Xignite always comes to my mind when I think of the early disruption in this market as a classic example of a Thomson Reuters disruptor (now Refinitiv).

Xignite – a wind intensifying the Fintech fireworks was one of my blog posts during my first quarter writing on Daily Fintech in May 2015! I am getting close to 270 blog posts as we speak.

Only in late 2018, did Refinitiv start offering historical tick data to its clients via the Cloud in partnership with Google. They had to spend resources to convince their customers to stop deploying trucks full of tapes with the valuable historical tick data and storage rooms to process the data on the tapes. Their selling points included cost savings and efficiency gains in the Search for Alpha. See details here

Nasdaq has been offering historical market data of all sorts much earlier always in collaboration with AWS. Their collaborations started in 2008 with certain data-on-demand offerings! Since then, they have also collaborated with Xignite for certain on-demand data sets (as early as 2011 see here).

Their recent cloud offering, the Nasdaq Cloud Data Service (NCDS), is bringing real-time data (not delayed or historical) via the cloud. It starts with real-time data for Nasdaq TotalViewNasdaq BasicNasdaq Last SaleNasdaq Global Index Data Service (GIDS) and Nasdaq Fund Network.

One would think that real-time data via the cloud would only benefit HFT trading businesses that profit from latencies in market data. But that is not actually the case. There are several benefits to access real-time data via cloud beyond the obvious cost optimization (reduction in costs and paying for what you consume). These include real-time risk management and search for alpha, as there is not `hoping on and off` the cloud between all the departments that collaborate to monitor portfolios and the markets. Traders, middle office, and back office, can attain real-time sync with real-time access via the cloud and into the variety of applications each one of them uses.

To make this simple and clear: A trader usually has access to real-time market data (if not via the cloud, then he-she is overpaying because no one uses all the data since a trader will be focused in one area or instrument). The middle, back office and risk management do not have access to real-time data and therefore, they run their dozens of applications out of sync.

This market is clearly behind.

A recent report by Xignite and Greenwich Associates quantifies the market appetite for market data feeds via the cloud.

Screen Shot 2020-04-27 at 11.18.45

The survey shows that the market for accessing market data via cloud is ripe. However, the misconception that real-time data is not so suitable for the Cloud and for those trading (but not HFT) has not been overcome. The way I see this evolving is through realizing the benefits of Stream processing. Technologies that allow us to compute directly on data, are here and their adoption will unlock more benefits and value.

04/28/2020

New white paper makes the case for moving market data management to the cloud and provides advice for evaluating market data cloud vendors

Xignite, Inc., a provider of market data distribution and management solutions for financial services and technology companies, today published a new white paper using data provided by Greenwich Associates, a leading global provider of data and analysis to the financial services industry.

Entitled Cut the Cord on Market Data: Embrace the Power of the Cloud, this nine-page white paper includes research from Greenwich Associates on current trends in the financial industry regarding market data spending and planned adoption of the cloud for market data management as a replacement for on-premise legacy technology.

Additionally, the white paper dispels the myth that the cloud cannot handle real-time market data, provides a list of key questions that should be asked of any market data cloud vendor and identifies numerous benefits of moving market data management to the cloud including:

  • Controlling real-time and reference market data from a central hub
  • Eliminating paying for duplicate data requests
  • Allocating costs to the correct department based on individual usage
  • Ensuring compliance with data provider licensing agreements
  • Analyzing data usage patterns to unearth and eliminate unused data
  • Shifting spending from CapEx to OpEx

“93% of market data professionals we interviewed said they plan to use the cloud to manage their market data,” said Dan Connell, Managing Director, Market Structure and Technology at Greenwich Associates. “This comes as no surprise to us as financial institutions are focusing more now on profitability than revenue and the cloud has proven its ability to lower costs and bring firms gains in operational efficiency.”

“We’ve been in the public cloud since 2007, so it’s taken a long time for the industry to catch on to the trend. But now, the benefits are clear and even the largest financial institutions are not holding back. Moving market data onto a single platform in the cloud provides transparency, control and drastically reduces costs,” said Stephane Dubois, Founder and Chief Executive Officer of Xignite. “By 2025, nobody will want to still operate on-premise market data infrastructure and we expect most of it to have migrated to the public cloud by then.”

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The white paper can be downloaded at https://www.xignite.com/resources/cut-the-cord-on-market-data/

About Xignite
Xignite Makes Market Data Easy. Xignite is leading the disruption of the market data industry with its AWS-based financial data distribution and market data management solutions. Xignite’s Market Data Cloud Platform provides market data managers full transparency on the usage of a firm's first-level real-time and reference data - making it easy for data owners to entitle, control consumption, comply with licensing requirements, allocate costs, and resolve vendor audits or invoice discrepancies. Xignite also powers financial data-driven robo-advisors, online brokerages, and investing apps with its real-time, delayed and historical pricing data offered via 500+ REST Cloud APIs. Visit http://www.xignite.com or follow on Twitter @xignite.

04/14/2020

Xignite’s Market Data Cloud Platform Named Finalist in Best Financial Management Solution and Best Financial & Market Data Solution Categories

Xignite, Inc., a provider of market data distribution and management solutions for financial services and technology companies, today announced its Market Data Cloud Platform was named a finalist for Best Financial Management Solution and Best Financial & Market Data Solution as part of the 2020 SIIA CODiE Awards.

The Xignite Market Data Cloud is a single platform that unifies financial data consumption and market data management — all delivered as a service in the cloud. The solution provides financial institutions and technology companies a scalable way to manage, control and optimize their real-time and reference data across traditional systems and cloud applications. The infrastructure enables institutions to reliably migrate their market data infrastructure to the cloud, which will be needed more than ever before in a post-pandemic world, and to create new products and services for their clients that are unrestricted by legacy technology.

“It’s amazing to see how far Xignite has come since 2008 when we launched the industry’s first market data platform built natively to run in AWS,” said Stephane Dubois, Founder and Chief Executive Officer of Xignite. “Twelve years later not only has our all-cloud strategy been overwhelmingly vindicated by the industry, but to have our platform recognized by the SIIA is a testament to our commitment to innovation and high-touch client service.”

Acknowledged as the premier awards program for the software and information industries for 35 years, the SIIA CODiE Awards are produced by the Software & Information Industry Association (SIIA). SIIA is also the parent company of Financial Information Services Association (FISD), the global forum of choice for industry participants to facilitate the evolution of financial information for the key players in the value chain including consumer firms, third party groups and data providers.

More information about the CODiE Awards is available at http://siia.net/CODiE.

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About Xignite
Xignite Makes Market Data Easy. Xignite is leading the disruption of the market data industry with its AWS-based financial data distribution and market data management solutions. Xignite’s Market Data Cloud Platform provides market data managers full transparency on the usage of a firm's first-level real-time and reference data - making it easy for data owners to entitle, control consumption, comply with licensing requirements, allocate costs, and resolve vendor audits or invoice discrepancies. Xignite also powers financial data-driven robo-advisors, online brokerages, and investing apps with its real-time, delayed and historical pricing data offered via 500+ REST Cloud APIs. Visit http://www.xignite.com or follow on Twitter @xignite.

04/09/2020