5 Right Ways to Use Dynamic DataJuly 14, 2014 By Lisa Ferry
The most predictive data—and traditionally the hardest to capture and organize—is how customers behave. This is dynamic data. It changes every week, day, hour and even minute. Behavioral data is the perfect fit for targeting. It also offers many more pieces to the puzzle than just online behavior.
Here's a roadmap for how to capture and use dynamic data:
1. Know Your Customers and Segment Them Religiously. This Is Your Baseline.
Everything starts with your current customers. You need all of them for this first step—the best, the worst and everything in between. The way to know and benchmark best behavior is to create a baseline for comparison. Some customers are loyal; they want your next product the minute you release it, pay their bills on time and refer you to friends. This is knowledge that only you hold about their behavior.
Most customers are in the middle. They bought your first product, called customer service to complain, you solved the issue and they went on to buy a minor product, but never interacted again. And some customers are thorns. They bought your product, returned it and complained loudly on Facebook and Twitter—and cost you some valuable new business. Segmentation algorithms are abundant; using a statistical software package and selecting a clustering algorithm is a great start. Grouping customers into segments is the first step in creating a customer contact strategy.
2. Know Where Customers Came From and Their Preferred Channel of Communication. (Did You Ask?)
A tremendous challenge today is the "opt out," and sadly it even comes from our existing customers. Email is cheap to send, but inboxes are full. Not all marketing touches require a response: however, increasing "unsubscribes" are likely a flag that the communication is too frequent or irrelevant.
As new customers are acquired, a wise strategy is to ask how they would like to be contacted: Direct mail? Email? Phone? Follow this up with uncovering how often they want to be contacted. Is daily too much? What about weekly or monthly? Let customers tell you what they want to hear about, how they would like you to communicate and how frequently. As each customer is acquired, keep track of the originating data source. This may be direct mail, email, a store walk-in or reference from a friend.