Targeted marketing communications have been available for decades but have been rather exclusively available to only those organizations with the best of systems and most importantly, the best of data.
You’ll want to consider personalized communication to improve customer retention, augment and assure customer satisfaction, support and facilitate cross-selling, and ultimately drive greater customer lifetime value (CLV).
Plenty of market research evidence suggests that personalized communications materially cement and augment the opportunities for an organization to galvanize a strong long-term relationship with the customer and accordingly drive greater CLV.
with augmented data, there is also now the possibility to identify who the lower and higher-value customers are and identify characteristics and traits that allow improved segmentation leading to greater value growth potential.
When these same augmented data sets are combined with tools like machine learning and artificial intelligence to build predictive models, one is able to formulate strategies to migrate members of lower-value segments or groups to the higher-value ones.
The important fact to consider here is that personalized communication may be the important key. Once you’ve singled out members of lower-value segmented groups, and then embarked on communicating with them in a highly personalized way through direct marketing campaigns, only then are you likely to be able to promote them to the higher groups.
The marketing campaigns of course are not limited to letters in the mail, or personalized emails. Your product marketing mix would also leverage the other elements in the marketing library, namely social media and personalized web experiences. The objective here is to leverage the data to hone the product or service marketing, promotion, and advertising messaging to be very distinctive and almost unique for each and every customer.
Now more so than ever before, the smallest organizations can start to consider the use of the same tools and methods that much greater and older organizations have had at their disposal. Globalization and ready accessibility to the web has meant that any product can be sold almost anywhere where delivery services are possible, further, transparency in pricing, internet search, and aggregators like Expedia, Amazon, Etsy, eBay, and the like mean that customers will do price comparison.
The same products can also be offered in price-differentiated marketplaces if you know who you’re targeting. These benefits also mean that the competitive environment is also greater. Steps need to be taken to differentiate on message and service rather than relying exclusively on the product itself and possibly the dependence on the brand.
In the end, the strength of the relationship that your organization has directly with the customer will provide the best possible predictor for the CLV.
There are many affordable customer relationship management tools available including SaaS-based pay-as-you-grow offerings. Using these together with aligned Master Data Management solutions you are able to analyze and target the right customers and prospects with the right offers.
CLV and in turn, the profitability of each customer leads to measures of value that will be different for different customer groups. The identification of efficiency in the way the value is produced helps to direct an organization’s efforts. This in turn leads to the refinement of the exact kinds of customers and business partners that your organization wants to expend effort and energy on. The profitability of the customer is the revenue derived from that customer less the costs of identifying, securing, retaining, and growing them. The same approach needs to be used for campaigns. The more compelling the proposition with the greatest possible efficiency, the highest potential profit can be secured per customer.
At Pretectum we believe that these insights and decisions can only be obtained and undertaken from the presence of good and comprehensive master data and we present the Pretectum CMDM as one of the ways to achieve that good master data from origination through controlled curation and distribution. Reach out today to learn more.