By Robin Cronan, 29th June 2015
Marketing datafication is about the increasing influence data collected about individuals now has on all marketing processes. In fact, marketing data is often the sole deciding factor in ‘to market or not to market’ to someone. In the online world, data completely determines the product propositions put in front of most customers.
Our goal in this series of articles is to help you understand what marketing datafication is and how to incorporate it into your marketing activities.
As technology improves and customer databases grow marketers are becoming ever more obsessed with data and the value its insights generate. The abundance of data means many of the world’s organisations are awash with data.
“Every interaction we have with an organisation, whether digital or not, whether transactional or not, enables that business to create new bits of data about that interaction,” says Rob Jones, Sales and Marketing Director at Qbase. “Most of us are now fully aware that companies gather this data and, most of the time, we do not mind because we expect the data to be used to improve our next experience with that organisation.”
The acquisition of personal data is sometimes viewed with great suspicion. However, as Rob Jones explains, the availability of data provides many great benefits: “Data is empowering to everyone. Customers can use it to find, choose, compare, share, wax lyrical about or savagely criticise products, services and brands. For customer centric organisations, data allows their customers to take ownership of the relationship they have with that business. They can customise their preferences so they only receive the products and offers that are most suitable to their needs.”
Data is not only a mechanism for empowering customers, it is a marketer’s goldmine. “With a rich, clean and accurate database, and a system like Apteco’s FastStats, we can learn about customer behaviour, perceptions, attitudes and buying habits. This enables marketers to understand more about their customers and segment their own customer data. By segmenting their customers they can identify the most engaged and profitable group and the least engaged and profitable group, along with all the levels and gradients in between. This means that marketers can devise sophisticated customer journeys to move people from least engaged through to most engaged,” commented Paresh Patel, Business Insight Direct at Qbase.
It is true that data is the goldmine from which marketers make their businesses fortunes. But how do you dig into this goldmine?
Nick Kelly, Technical Solutions Director at Qbase explains: “It can be quite overwhelming at first. Most businesses have their data scattered throughout their business in fragmented data sources. Pulling all of this together into a single customer view is the starting point. Once you have a single customer view you need to analyse your data and build statistical models to get to the insight you are looking for.”
“With powerful insights marketers can build personalised, one-to-one relationships with existing customers to improve their experience, which means better levels of engagement and response. The intelligence you gain from knowing your customers better means you can acquire new customers faster and with greatly reduced campaign costs,” said Mark Robinson, Vice President of Qbase.
In our next article we will look at behavioural data, such as clicks on an ad or browsing habits on a website, and how it can be used to improve targeting, message personalisation and customer experience and engagement.