The result of this mixed bag of messages is that marketers are missing the opportunity to drive loyalty and affect purchase intentions. In this regard, 30 percent of consumers stated they are inspired to do business with a company after receiving personalized communication. As target marketers, a potential 30 percent response rate is gold, pure gold.
So what should marketers do?
First, touch your customers with information precisely tailored for them when sending must-read documents, such as statements and invoices—which are opened by 90 percent of consumers. Targeted messaging leverages data-driven customer insights for relevant, engaging messages that appeal rather than irritate. Precision marketing turns sure-to-be-read documents into a new channel of communication by cutting through promotional and direct mail noise to positively impact customer loyalty and engagement.
Secondly, complement data-driven marketing messages with visual appeal-such as color instead of black-and-white print-and with an attention-grabbing design that drives action after the addressee opens the envelope.
Using this power duo, marketers can turn each step of an integrated marketing campaign into an opportunity to strengthen and grow customer relationships. Instead of plain statements and messages, create personalized, customer-centric communications that can help:
- Strengthen brand image and create competitive distinction;
- Improve bill clarity and reduce call center traffic,
- Use special offers to up-sell, cross sell and drive business results;
- Generate revenue by selling advertising space;
- Use personal messaging to build brand loyalty; and
- Strengthen and expand multi-channel marketing
Would 1,000% ROI Lift Matter to Your Company?
A large international hotel chain sought to gain insight into its inactive customer base and for recommendations on how to make the most valuable use of its data. Specifically, the challenge was to reactivate dormant customers who had not done business with the brand in one year. The job would obviously entail more than just sending a "we haven't heard from you lately" message.
The hotelier marketing and IT teams met with Ricoh to garner a greater understanding of the project. The team then analyzed the hotel's database in order to understand how existing, active customers responded to current and past offers.
Next, the team developed a new data-driven marketing model based on five quarters of data. The data was used to select inactive members who had a high propensity to re-engage with the hotel. After identifying the large inactive opportunity, they divided the initial test quantity into a subset of 18,000 members. This inactive test segment would be extended the same offer that the active members received. In the past, this "inactive" segment would have been ignored because of campaign criteria and a desire to save on mail expense.
Targeted messaging spoke directly to the audience the hotel wanted to attract. The precision marketing campaign results astonished the chain. In less than eight weeks, the campaign delivered an ROI of 1,090 percent.
Results like these validate the claim that data-driven marketing can be a game-changer for businesses wanting to not only retain their active customers, but also bring back dormant, non-responsive clients.
Marketers spend thousands of dollars each year marketing to customer bases that are engaged, making sure every promotion goes to every active customer. But when looking closer at the buying behaviors, only a small subset of these active members responds to such offers. By leveraging data analytics, marketers can still target the engaged, active members while redirecting spend toward their inactive audiences to increase revenue production. Marketers who know their audience can speak softly in the midst of today's marketing din and move readers to respond to relevant offers that will drive profits and retain them as loyal customers.