Based off of Aberdeen article: “ Towards Segments of One: Predictive Analytics for Marketing Delivers the Future of Offer Management, Today”
Personalized, one-to-one marketing. Everyone has heard about it yet few have seen it actually take action in their marketing departments. Tired of broken promises and eager to take the wheel, Aberdeen’s Trip Kucera and David White recently completed a study on the successes and failures of predictive analytics in marketing.
Abderdeen’s dynamic duo divided the predictive analytics users into two personas: the “Leaders” and the “Followers”. Using the same set of criteria for each, the Leaders were defined as the top 35% of aggregate performers, the Followers being the bottom 65%. Criteria used involved averaged response rates of marketing campaigns as well as year-over-year improvement in sales transactions and overall customer retention rates. Once split into two groups, Kucera and White were able to draw conclusions regarding what works, and what doesn’t work in terms of overall marketing success.
Customization Is Critical
Aberdeen found that Leaders are more likely to precisely target their customer base than Followers are. On average, Leaders are 50% more likely to customize their efforts toward individuals, while Followers continue to target market segments; a sector deemed much too broad to adequately resonate with potential clients. They also found that the Leader group had specific targeting-focused responsibilities for certain staff in order to ensure customer expectations were recognized and brought to light.
Stimulate Your Clients, and Avoid the Dreaded Status Quo
Aberdeen’s study also found that Leaders refresh their models and content three times as frequently as Followers, leaving their clients stimulated and constantly re-engaged in their products. For example, Leaders are 43% more likely to have a staff strictly devoted to analyzing advice, opinions, and insights about their customers. Although Followers utilize surveys more than Leaders, the study recommends against being stuck in “survey land”, and instead suggests that you identify specific comments and concerns through observation and person-to-person contact. In short, actively care more about your customers. As a result, your retention rates will continue to soar.
Teach Your Team How to Fish
Okay, not literally, but make sure your staff knows how to use the predictive analytics properties that are in place without assistance. Kucera and White explain that historically these resources have been hard to use, and thus deter businesses from using them properly, or even at all. Leaders are 70% more likely to have a staff able to operate these tools without the help of others, a theme responsible for a more proactive, versus reactive, staff. However, the good news for the technology-impaired is that data analytics programs are increasingly being built into enterprise marketing solutions.
Not to bully Followers, but this study listed loud and clear what separates winners from losers in the predictive analytics game. In order to be successful you have to not only understand your attributes, but understand your buyers as well. Channel your inner three year-old and repeat the question “ Why?”. Why is this working? Why isn’t it working? In addition, Aberdeen’s duo recommends the “divide and conquer method” when addressing customers needs. Make sure you have sufficient staff in place to understand your clients; smiles or frowns. Lastly, establish the expectation that your staff understand the analytics tools you have in place. Give your team a fish (or in this case set of data) and they thrive for a day, teach your team to fish and you’ll feed your marketing funnel for a lifetime.
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