At YouCom Media, we know that the secret to the highest ROI is data. A database is more than just a list of personal detail. A brand will gather quality informative data on each prospect/customer for tailored data-marketing communications.
The letter you receive in the post with your name on, the gardening catalogue where on page 27 a tea-towel has your name engraved on it, the vouchers for your name sent by Tesco for the type of toothpaste you like, these are all signs of good personalisation that drive ROI for a brand over their competitors.
There are two types of data stored on a database which a mailing list cannot provide.
Historic data will include transactional data such as NAP (Name, Address, Phone Number), recency, Frequency, RR, open rate, average purchase value etc.
Predictive data examines historic data to identify behavioural trends such as which group of consumers are more likely to respond to an offer sent by direct mail rather than those sent an offer by email etc.
Propensity modelling, as conducted by our Direct Response department will then help the marketer to give scores based on consumer attributes which can be used to indicate future behaviour.
Data-marketing will enable marketers to develop a long-term relationship with the consumer. Customers can then be contacted with relevant offers and messaging at the right time in the buying cycle.
Why not have a mailing segment for customers who have purchased some of the products your brand offers and who are due this month to buy or renew another product similar to one your brand offers?
How about a mailing segment for customers at risk of attrition, to send them relevant tailored messaging to ensure they remain a customer?
The possibilities are endless and are the key to successful ROI.
Data analytics will enable more personalised marketing communications that will break through the ‘noise’ from competitors and PEST factors.
Books that analyse performance to identify suitable strategies are many and arguably the greatest of these is the Art of War written 2,500 years ago. The Art of War is a Chinese military document attributed to the Chinese military strategist Sun Tzu and discusses how wars are won by data intelligence.
The better the analysis, the easier the marketing staff can make decisions. The book proposes the premise that we should know our client’s customers better than they know themselves and data marketing is the key to that.
Data Marketing will reduce costs, increase profits, reduce customer attrition and maximise ROI. It can offer a new distribution channel allowing for delivery direct to the customer from your supplier.
Those margins that previously went to your distributors or retailers can then go as cost savings to your customers (to further increase sales, reduce attrition or reward loyalty) and of course to increase your profits.
Follow the YouCom Media news posts to see the next developments.
NAP – Name, Address, Phone Number
Recency – How recent the customer made a purchase
Frequency – How often the customer made a purchase
RR – Response rate (how many customers respond to a data-mailing)
Open Rate – How many people open an email direct mail
PEST – Political, Economic, Social, Technological
DM – Direct Mail
YouCom Media News, Jan 2018, London, ‘Data Marketing.’