More customer information is always better, right? That depends. Customer information is essential, especially when looking to enhance insight and deliver more revenue. In fact, according to a recent Experian Data Quality study, 93 percent of companies feel data is essential to marketing success.
However, in today’s data-driven marketing environment, information can quickly become overwhelming and hard to decipher. When looking at leveraging data, be it first or third party information, marketers must ensure that each component is meaningful for the purpose at hand. Most likely, that purpose ties to customer acquisition and retention.
If too much information is available, it can distort meaningful insight and make it difficult to take action in a given situation. Therefore, I tell customers to start small. Find out what you know (and what you don’t know), and then look to enhance if there are any gaps.
To deliver effective insight, there are three key steps marketers should take to utilize data for a given purpose.
Step 1: Ensure customer contact information is accurate.
Contact information can start to build insight into the demographic breakdown of your customer base and can be useful when considering the online sales tax breakdown, shipping and physical storefront property opportunities.
Step 2: Link customer data
Once customer information is validated and standardized, a marketer can more easily link customer data stored across business databases. By linking customer transactions that have occurred across channels, the business can begin to understand purchase preferences and patterns. This information can also help showcase the lifetime value of each customer, which may impact loyalty member status, for example.
Step 3: Consider relevant data enhancements
At this point, the marketer can consider appending third party data that will improve the business’ ability to interact with each individual consumer. With a variety of information available, it’s critical that the business considers its existing insight and business objectives. Think about overlaying additional demographic, preference and attitudinal data to existing preference and transactional information.
The right data can help marketers better connect with consumers and increase their probability of success. Make sure to work with your analytics team to understand your customer profile. As holes are identified, find a third party vendor that can provide the necessary data to help complete the predictive model.
To see how this process can work in real time, as a consumer engages with your brand, watch this video. See how a call center associate can boost customer engagement and drive additional purchases.