Data Distress Is Driving Spam [Insert Awkward, Superficial and Ineffective Message Here]
Nearly everyone has experienced superficial personalization before — a brand’s poor attempt to customize emails and marketing efforts based off basic identifiers, such as an individual’s name. While at the core, most marketers would admit that the “Dear Name” approach is flawed, few have access to the customer intelligence needed to overcome this problem. That presents a major dilemma, as ineffective communication tactics like this leave substantial revenue on the table and inhibit a company from effectively engaging with its customers.
More importantly: with consumers’ expectations for personalized communications expected to increase in 2016, organizations that continue to leverage superficial personaliztion put themselves at a significant disadvantage versus their competitors that are deploying contextual, one-to-one marketing personalization programs.
The Single Source of Truth Imperative for Marketers
Every second, consumers drop breadcrumbs of data when they turn on mobile apps, use social media, call customer service, open emails and scroll retail websites. Despite the data trail, more than 50 percent of consumers say three out of four sales offers received are irrelevant to their needs and preferences.
One of the biggest challenges brands face is analyzing and working with disparate, incomplete customer data sets. Typically, the data that marketers have access to is basic and often contradicts itself. In a typical organization, different subsets of crucial customer intelligence are stored in silos across the company — with fragments of data individually owned by the sales, e-commerce and customer experience teams. The data is rarely connected and almost always incomplete.
Keeping data in departmental silos is not only ineffective, but it impacts the accuracy of the intelligence and holds marketers back from acting on the data in a timely manner. The solution: Creating a single source of truth (SSOT).
SSOT is the practice of having one source of customer data that everyone in the company uses. It ensures every fragment of customer data — both transactional and behavioral — is stored only once, in a single system. Employing SSOT is the first step in creating actionable customer intelligence. The end result is smarter and more complete customer profiles, which enables marketers to go beyond superficial personalization and start marketing in a one-to-one, truly personalized manner.
Why SSOT Matters
Consumers feel like they are “just a number” when they skim messages from retailers in their inbox. In fact, only 2 percent of consumers believe that the brands they frequent and patronize know them extremely well. The problem: a lack of context.
When consumers receive multiple offers from a company that are irrelevant and don’t meet their needs, 40 percent are less likely to buy from that company moving forward. Even more damaging, when retailers inundate customers and prospects with irrelevant offers, they lose the opportunity to potentially ever market to that base again. In fact, after receiving numerous irrelevant offers, 59 percent of consumer said they would unsubscribe from that company’s content and 31 percent indicated they would delete that company’s mobile app.
Each customer has his or her own needs and preferences, which change depending on what they’re doing and where they are. For SSOT strategies to be effective, the intelligence needs to be contextual – smart enough to understand the behavioral and real-time needs of customers.
For example, some of the most effective outbound offers are those that add value to something the consumer is planning to do in the future or is currently doing. Another type of highly effective outbound communication is when an offer revisits an event or product the consumer has shown interest in before. Without understanding the context of a situation, this type of personalized marketing is nearly impossible.
Creating a highly-intelligent, robust customer profile through a SSOT strategy gives marketers the data they need to predict future habits, generate more sales and increase brand loyalty. Not only will it increase basket size at checkout but will also lead to repeat purchases and an improved customer experience.