As you may have known, customer data management has always been a hot issue. According to the CMO Survey conducted four years ago, making an investment into marketing analytics will increase by 66 percent within just three years. The areas in which the decisions will be affected by analytics are customer acquisition, retention as well as segmentation. Nevertheless, more than a half of companies do not adopt proper quantitative metrics to indicate marketing spending impact.
Also, many large companies in the world still do not have a good business strategy to compete with other rivals in a digital stage. Nevertheless, they often start to set up their data science capabilities.
Making marketing smarter
When taking customer data management into consideration, you may regard it as a collection of answers to a lot of requirements and questions about your clients. Some of those questions would be which customer has purchased the product or who has enjoyed the service from their companies, what might each segment buy next and how should they segment different clients in order to provide more customized services.
In this case, you had better slice and dice the data in a relevant manner. For instance, if you are a car manufacturer, you should gather sales data with credit scores and data about who is driving which vehicle in order to find out who your best car buying prospects would be. If you are a clothes shop, you should collect data about what kinds of clothes your customers often purchase or which colors they regularly go with.
Moving towards Nirvana
The final purpose is setting up a unified view of every client so that you can effectively interact with each person throughout your marketing campaigns and processes. As you know, every person’s habit, requirements and life with your company are different so that your marketing programs should be suitable for your targeted segments.
The most important step you should do now is to define which clients have the highest potential lifetime value. You had better then interact with them more often and in a different way in order to make sure that you find them before your rivals do.
Consider it to be your critical main competency
Because the client database would become your organization’s main source of value generation, everyone would like to get a piece of it, even a little amount. Thus you should keep your data in house securely in order to prevent it from being taken by other competitors.
The task may sound daunting and difficult, yet there are a lot of things that you can start right now while you are building something which is more integrated. In order to get started and evaluate your progress, you should take into consideration three types of customers.
The first type is current customers. There are some details you need to learn from this kind of customer, including identifiers, key profiles and their relationship with your company. unique identifiers here mean their email address, mobile phone number, mobile device ID as well as address. To get this data, you should create a unified profile for each client, expand your own data with third party data and target them with advertisements.
Key profiles here mean who your major customer groups are as well as what you know about them. This data can vary from the obvious information like age, sex, income and so on to other obscure ones but definitely useful insights such as which shops they have paid a visit last week or what apps they download on their smart devices. To conclude, you should profile your most potential clients and learn them from both sides.
Relationship with your company, as its title, means which products or services each customer has purchased and their credit score among other factors.
The next kind of customer is lapsed customers. You may suppose that those who stop using your services or products think that your price and product are not good enough for them. However, this case is not true. According to many surveys, above 80 percent of clients will leave you as they suppose that you are not caring for them as they would expect. When it comes to these clients, you should identify what their real reason motivating them to leave your services and which companies they are using their services.
The last kind of customer is potential ones. With this type, you should be clear about your most valuable customers and know how to look for more people like that.
Keep learning and building
If you have had your goal and known how to achieve it clearly, as well as prioritized your clients, you will find it easier to make effort and reach your target. This process may take a lot time. Thus, you should make sure that your team will never be satisfied and always keep on learning, testing and advancing your database and how you are taking advantage of it.
First of all, you should make sure your team always expands the data. They must continue adding more people as well as more data regarding those people. For example, if you are selling products to people in a clothing shop, you should take their email address or their phone numbers in order to send them discount information or marketing news.
Also, your team should test new marketing tactics. As soon as you have got clear customer segments with different requirements, you can begin with more accurate targeted communication. This will lead to a better ROI for your operation. Last but not least, your team should automate clunky processes right now. If you can interact with every client in a more customized experience, you will receive their trust and as a result, the rate of result of customer retention will be improved. Thus, you should make sure that everything is being carried out effectively and in an automatic manner in some tasks.