In our previous blog post, Emmy detailed the importance of having an SCV and the wide business impact this can have, namely, increasing customer engagement, loyalty, and ROI. I’m going to hone in on the relationship between data management and producing truly personalised marketing campaigns.
The value of Personalisation
True personalisation is better described as individualised insights according to Jean Barbour at AdWeek. She defines individualised insights as contextual, timely and relevant customer interactions, rather than mass personalisation, which is actually rather impersonal.
Only 14% of consumers said they would read a message because it contained their name (Economist, 2014), demonstrating that basic personalised messages have little value, rather, consumers are seeking a personal experience, which is tailored to their preferences and meaningful in their context.
“Over two thirds (67%) of consumers said that they would positively interact with a brand in response to a positive personalized experience.” – Marketing Blog
There is a growing level of expectation to receive a personalised service. Customers have a good awareness of companies using their data to tailor customer interactions, such as Sainsburys and the Nectar card scheme. The Nectar card offers benefits that are meaningful to the customer. The offers and recommendations are based on their transaction history. This is valued by customers who are receiving relevant and useful communications.
Take Amazon as another example. Amazon records the individual’s previous buys, couples it with search information, and with that data, provides the customer with tailored advertisements and deals. This isn’t intrusive to customers, but a valuable service, making online shopping more efficient and better value. It also leaves them with the impression of being known as an individual.
This infographic from fromstock.co.uk highlights that 45% of shoppers are more likely to shop on a site which offers them a personalized shopping experience. You can see the infographic in full here.
The infographic also indicates that a more tailored service, leads to direct increases in revenue.
Achieving individualised insight using data management
In an article on DBM, Ruth Gordon states, “The fragility of this vital customer relationship reinforces the need for a well-managed, well controlled personalisation strategy underpinned by individual customer data and technologies that enable the true level of individualisation that consumers increasingly expect.”
The customer relationship needs to be nurtured with appropriate personalisation and retained and strengthened through a precise understanding of the customer. Customer understanding is achieved through data management. Data management is organising and using all the available data, as Emmy described as the Single Customer View. Managaing data allows you to develop complete understanding of your customers as all the data is working together to give you an accurate picture of their transactions, demographic information and recency and frequency of buying. This is insight you can use.
Investing in data management provides the capabilities to possess and use individualised insights, which leads to increased customer loyalty, and enhanced ROI.
Explore our Data Management services which optimise a true personalisation strategy.