Occam's Dougy Watt explains the invaluable need for insight in
One of Apteco’s partners, Occam, offers FastStats® clients advice
about using ‘Insight’ to improve marketing campaigns and activity
in 5 easy steps.
“Every consumer would like the brands that market to them to show
a better understanding of their needs. The problem is many people
remain reluctant to share the personal information that would
make this an easier task for brands. Meanwhile, the volume of
data that organisations can collect is growing so quickly that
it’s often hard to know how to firstly identify ideal customers
and, secondly, target them.
Insight is the key to unlocking better marketing practices. It
can help you understand and simplify the complexity of customer
journeys at all contact points and major life events. However,
just like the term Big Data, Insight is in danger of becoming an
overused – and undervalued – term.
There are many ways to develop an Insight strategy, many facets
to Insight and many possible outcomes. We think that if you set
out with five essential goals in mind, your approach to Insight
will be smooth and seamless, likewise creating a similar brand
experience for customers.
1: Work out which customers you want – and how to make them buy
Lots of brands have a ‘funnel problem’. They opt to send tons of
direct mail to a vast pool of people, resulting in many potential
customers dropping from the acquisition hopper thanks to poorly
targeted campaigns. Think of the ‘junk mail’ headlines of the
past and the credit card companies these accusations were
levelled at. Clearly, mass mailing can work for some brands with
almost universal target customer types, but others – high-end car
companies, for example – need a more restricted, probably
affluent group. The answer to this quandary is to take your own
or external data and use Insight to discover the right people to
talk to and the best channels to use to do that.
2: Delve deep into data to fully understand your customers
It’s one thing to tempt prospects into becoming customers. Smart
businesses don’t see a purchase as a one-off, though. It’s the
first of (hopefully) many opportunities to ‘know’ that person
better and ensure they keep coming back. Gaining deeper
customer-level Insight is vital. This granular understanding can
be gleaned from in-depth analysis of the wider customer database
but also databases for individual products. Profiling, mapping
and segmentation are the pillars of this Insight-driven quest for
3: Don’t stop at one product sale: cross- and upsell
Throughout any customer journey there are various chances to
highlight your wider product portfolio beyond what’s already been
bought. Amazon are the classic exponent of this “you might also
like” opportunism. Meanwhile, banks are another example of core
cross- and upselling strategy: limited product portfolios make a
good basis for a structured approach to contacting existing
customers offering more financial help. But really the concept
can apply to most businesses, think also of dealerships selling a
car then immediately offering a service plan, insurance etc.
4: Spot behaviour shifts and respond to those triggers
As we all know, life isn’t simple and every so often something
good or bad will come along to change the way we act – not just
in our personal relationships, but in brand relationships, too.
Clever organisations will be using Insight to spot these shifts
in behaviour and respond with relevant communications. For
example, banks can see via current accounts when someone is
having a bad month (have they lost their job?) or a good one (a
bonus seems to have been deposited). Meanwhile, the likes of
Tesco and Sainsbury’s with their masses of loyalty data can use
Insight to recognise when nappies and baby wipes suddenly become
a regular fixture of the weekly shop, and offer personalised
promotions on items for the new family member.
This step is not always easy if your organisation does not have
very regular contact with customers. But it could be possible to
achieve good results by using external data, using Bounty pack
information in the instance above, for example.
5: Ensure product and customer retention is maximised
All the data you have, and lots of information you don’t own but
could buy in, holds the key to a long-term relationship with your
customers. It’s cheaper to retain than acquire customers, so
using Insight to spot when and why someone might be looking
elsewhere for your product and service is vital, especially for
cyclical brands like insurance or breakdown cover.
Look at all your data, make sure you understand when renewal is
due and where you might have a problem with attrition. Target
customers with renewal offers almost from the moment they first
sign up, not two weeks before they’re due to say goodbye.
Constantly improve the relationship and give them a reason to
stay. Equally, this stage loops back to point 1: it’s a good
opportunity to assess the real and lifetime value of customers to
see which individuals or groups are truly worth having, and which
you would be wasting marketing budget trying to retain.
The vast number of channels and recorded interactions now in play
means so much more can be done with Insight to really understand
customers. Remember too that consumers’ knowledge of the
importance of their own data is constantly improving so the more
you can demonstrate you are thinking and acting wisely when using
their information, the more sales you will make.”
About Occam - Keeping Data Driven Marketing Simple
Occam is a leading UK engagement agency. Occam has 20 years’
experience in delivering data marketing solutions to their
clients. Occam aim’s to draw relevant and useful insight from
data to drive their clients to have a more profitable and
rewarding engagement with their customers.
With a full range of services available, Occam’s teams are built
around the client. The experienced analyst and insight teams help
clients to improve campaign response rates, build pictures of
client’s customers and spot trends in the data.