Data is the new ammunition to conquer & prosper!
Every organisation can explore their customer data to determine how best to transform it in a way to create actionable insights that can support and direct the organisation’s marketing strategy and decision making…
Customer segmentation is the starting point as not all customers are the same. Different segments of your customers have different needs and wants. It is important for an organisation to understand their customer’s needs and wants so that they can segment their customers according to their needs and wants and thereby use target marketing, which will improve the return on investment as the response rate is likely to be much higher compared to mass marketing.
Of course, before we even start to segment our customer’s, we must ensure that the data is of good quality as ‘Garbage in, Garbage out’ (GIGO). We also need to know the current status in terms of our customer behaviour, how frequent do they buy, how much money do they usually spend, what is our usual response rates to our mass marketing campaigns, etc. The reason why this is important, is because we need to have a baseline (benchmark) so that once we start analysing our customer data, and using it for decision making, we need to know whether we are improving in response rates, improving in return on investment, customers are buying more often and spending more, etc.
After about 3 months, we need to compare our baseline metrics with our new targeted marketing response results to know whether
our customer segments and data analysis are delivering results. Communicate these quick wins to the rest of the organisation and continue to deliver results every week after that.
Does your organisation analyse its customer data? Do they obtain actionable insights from their customer data analysis? Are the right techniques being used? Share with me…