Know Your Buyers!
Everyone is collecting data on who is—or should be—buying their products or services. This data does not just consist of names and addresses. It includes buying history about what people bought, when they bought it, and how much they bought. It also includes birth dates, anniversary dates, marital status, the ages of any children, and personal preferences. This information opens up new ways to market more products and services for consumer and business-to-business marketers. Data about who you sent a message to, the specific offer, and the recipient’s response are critical in today’s competitive environment.
Cross-Selling, Up-Selling, and Reselling
The ultimate goal of marketers is to identify the very best prospects and then upgrading prospects and customers by strategic direct marketing using frequent and well-designed campaigns. You want to cross-sell, up-sell, and resell. This may include selling more of the same product or reactivating a dormant client relationship. If you buy supplies from Staples or OfficeMax but then don’t order again for a period of time, these retailers will send a direct mailer with a coupon enticing you to come back to the store and order more.
Up-selling is frequent in the auto industry. If you have a lease expiring on your Toyota Corolla, Toyota’s marketing department will provide you with the latest data on the Corolla. They might also forward information on the hottest model of the Toyota Camry.
If the product you offer is consumable, the objective is to create annuity buyers. Those of us who have been to Napa Valley know that every good marketer tries to get you to join their “wine club” before you leave the premises. That failing, they remind you of the wonderful experience you had by following up with marketing literature. The truly savvy marketers will ask for the birthdays and anniversaries of friends and family members so visitors can send them a wine gift for special occasions and then be reminded to do so again the following year.
Data-Driven Marketing… Make the Investment!
Top Ten, here are ten good reasons to make wise investments in data-driven marketing:
- It improves the efficiency and effectiveness of marketing expenditures.
- It increases the efficiency and effectiveness of marketing communications.
- It increases customers’ purchase of products and services through effective cross-selling and up-selling.
- It leverages customer feedback to identify new product and service offerings.
- It identifies new prospects for your products or services.
- It evaluates and ranks the value of customers and prospects/leads (i.e., “suspects”).
- It optimizes sales productivity by providing qualified leads.
- It builds customer loyalty to grow the existing customer base.
- It helps you measure and understand the metrics associated with various sales and marketing strategies, programs, functions, staff, etc.
- It simplifies your life and delivers ROI!
Today’s business market is changing rapidly. Those who properly master the understanding of how, what, and why customers purchase—and those who are able to influence buying decisions with highly targeted marketing efforts (mail, video, telemarketing, etc.)—are going to come out on top.