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Integrating Customer Intelligence for Audience Optimization

January 5, 2011 By Jim Harenchar
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While many aspects of multichannel measured media remain elusive, advanced advertising and addressable household-level targeting appear imminent in 2011. Clearly, marketers want to enhance the targeting and interactivity of their ads. They also want cross-platform simplicity and consistent measurement; ideally including large-scale audiences where available. Addressable, interactive marketing promises that capability. And from all accounts, it will be mainstream in five years, likely accounting for 20 percent to 30 percent of all spend.

With 80 percent of US businesses saying they plan to shift some part of their budgets into social media in 2011—nearly double the percentage doing so in 2008, according to an eMarketer study announced on Dec. 9—and with other digital investments increasing, the new advertising paradigm is upon us. Marketers will be able to observe longer-term cross-media behavior as vendors and agencies integrate solutions and dashboards. We will continue to see the combination of advertising and marketing interactivity with addressability, thus enabling near real-time campaign optimization in television and online. Audience optimization of your customer portfolio to maximize revenue and profit is mission critical, making an in-depth understanding of current and potential customer value a basic requirement.

Audience Optimization
We all know that 1 percent to 5 percent of current customers drive 40 percent or more of revenue for most organizations, creating an elite customer group. (This is a compiled statistic based upon our own internal research of more than 65 analyses.) Under your current database marketing structure, are you prepared to translate behavioral, attitudinal, demographic and value measures into actionable intelligence from these groups?  

What I call "audience optimization" is about combining the intelligence within your customer relationship management (CRM), point of sale (POS), e-commerce or enterprise data warehouse applications to create meaningful customer intelligence (CI). By integrating behavioral data that is automatically captured during site visits, search engine marketing (SEM) keyword searches, and interaction with email, social and mobile campaigns, marketers will be able to provide customer insight that drives smarter media spending and channel allocation. Ultimately, audience optimization is about delivering the most relevant and valuable experiences possible in order to drive more conversions or customer interaction across a diverse set of audiences and channels.

Marketing measurement evolution demands performance measurement capabilities across multiple channels, including social, mobile, Web and the emerging targeted TV and Internet video advertising area. CI is the key driver to building a foundation to leverage data assets and introduce Audience Optimization within your organization. Our CMO clients are searching for tools to empower them, and they need a single platform to drive consistent, customer-centric messaging, a powerful suite of reporting and analysis tools and expert resources available to support hosted or onsite solutions. The circular graphic highlights the key areas of focus and details a possible approach to closed-loop integrated multichannel marketing communications.
 

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The Research Division of the Target Marketing Group, DirectMarketingIQ (www.directmarketingiq.com) is the marketers’ go-to resource. Publishing books, special reports, case studies and how-to-guides, it opens up a new world to those who seek more information, more ideas and more success stories in order to boost their own marketing efforts. DirectMarketingIQ has unparalleled access to direct marketing data – including the world’s most complete library of direct mail as well as a massive library of promotional emails across hundreds of categories – and producly produces content from the most experienced editors and practitioners in the industry.

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