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Debunking the data myth
Whether you're using customer
segmentation or full one-to-one
marketing, you can use available customer
data to generate profitable behavior.
Though the more sophisticated your
customer knowledge, the better, you
can make an impact even with basic
information like name, address, products
used, anniversary/renewal date and
assigned representative when applicable.
The idea is to start using this information.
It's also easy to develop more robust
customer profiles using segmentation
systems (like those from marketing
research leader Claritas). An analysis of
your customer base can reveal detailed
demographic and psychographic
information that can be used to better
inform all areas of your communications
- including vehicle, copy, design and offer
strategy. As these customer insights are
combined with observed behavior,
like shopping patterns, you get closer to
an individual portrait that enables even
deeper relationship building.
RELEVANCY RULES
- The right offer – the right customer – the right time
- Reduce waste of mass mailings
- Increase response rates and decrease response time
- Apply to your most valued customers to reduce cost
- Test, test and retest
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Finding a balance
Using your customers' personal
information has its risks too. Effective
personalization can surprise and delight;
too much can be creepy and raise privacy
concerns. Follow these general principles
so you send the right message:
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Consider the intimacy of the relationship. |
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If this is the first contact, you may not want to use more than a simple name salutation. If you’ve been doing business for years, though, don’t act like a stranger. |
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Overtly apply data the customer volunteers. |
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If a customer has taken the time to share information with you, make sure you’re paying attention. |
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Subtly apply data the customer hasn’t provided. |
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Here’s where profiling comes in handy, ensuring the creative is representative of the customer’s lifestyle and demographic traits. |
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Leverage the power of permission. |
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The ideal situation is to have customers opt in to a one-to-one program where they expect a personal, ongoing exchange. |
When conducting any kind of personalization,
make sure you stay within your data
capabilities. If your content or timing is off
target, you risk alienating customers instead
of forging stronger relationships.
The future starts today
Using relevant communications creates
a win-win situation for marketer and
customer. Once you've formed a bond,
it will be even harder for that customer to
leave and establish trust with another. Over
the long term, your relationship - and
subsequently your bottom line - will profit
from a sincere knowledge and appreciation
of what makes the customer unique.
Even if they don't all look like Tom Cruise.
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