Building a Data-Driven Marketing Culture
Change isn’t necessarily easy. And for some, it can be downright hard. But a shift in mindset is in order. It’s simply not cost effective to approach marketing in the traditional manner anymore. Average response rates of 1% to 2% shouldn’t be acceptable, nor do they have to be.
You probably have multiple sources of information – Customers, prospects, other departments, third party data providers – you name it. First, integrate this disparate data into a cohesive, usable format. Information should be the basis of your marketing efforts, but it’s got to be easily accessible to be effective.
Now, segment the data into groups with similar characteristics and behaviors. Some detailed analysis will provide commonalities amongst your best (and worst) customers. Commonalities you can then use in your marketing efforts.
What’s In It for Me?
Using data to drive marketing will lead to response rates 3, 4 and even 5 times that of traditional campaigns because you’ll know who to target and what they really want. That translates to better ROI, a more efficient process and easier measurement of results.
Each successive targeted campaign will provide you with even more information for future efforts. What worked? What didn’t? What can be improved and what did you learn? Before long your data will be useful to the whole company, not just marketing.
Improve your retention rates, particularly for your most important customers. Your best customers share certain traits – maybe buying preferences, demographic or social behaviors. Knowing this will allow you to better serve this important group, and find others just like them.
Making the shift to a data-driven culture will take some work – most good things do. But the results will make you wonder why you didn’t do it years ago. Good question.