Direct Mail: Finding Lift in Your Data
→ What are your target customer profiles? Are you going after your usual suspects, or are you looking carefully at customer spending patterns? Can you identify your top spenders and your non-spenders? Start with three segments: 1) customers who do not spend regularly or in high enough dollar amounts, 2) customers who spend regularly and in high dollar amounts, and 3) everyone else.
→ What offers can you make to each of these groups? What is likely to intrigue each individual group enough to respond?
Most organizations build basic profiles of their customers based on their spending patterns with the company, as just outlined. But if that is all you use, you could be making big mistakes.
Consider a customer who has four primary credit cards. In many cases, that customer uses different cards to manage specific expenses—one might be used to manage school expenses for children, one might be for household expenses and another for items related to a hobby. There might also be a corporate credit card for business entertainment and travel. If you profile this customer using the data from any single set of transactions, you will miss key attributes that could give you insight into better ways to market to that customer.
That is where a variety of data enhancement methods can come into play—talk to your vendors about what kind of data they have available to append to your file.
One of the easiest data enhancement methods to access is based on taking ZIP+4 postcodes and drilling down into the socio-geodemographic data available from a variety of sources to build an overlay to the data that you maintain in your transaction database.
For example, for the customer with four primary credit cards—where each provides a specific view based on the available transactions—the deeper view provided by overlaying this socio-geodemographic data may show a new opportunity to market to that customer. You might learn that the customer in question lives near a golf course, on a lake or in an urban enclave. You can purchase data that will help you zero in on those with larger disposable incomes or new home owners. Every additional data point overlaid helps you to build a better profile to target your offers.
Pat McGrew, M-EDP, CMP is the Director and Evangelist for the Production Workflow Service at InfoTrends. As an analyst and industry educator, McGrew works with InfoTrends customers and its clients to promote workflow effectiveness. She also has a background in data-driven customer communication, and production printing with offset, inkjet, and toner. Co-author of eight industry books, editor of "A Guide to the Electronic Document Body of Knowledge," and regular writer in the industry trade press, McGrew won the 2014 #GirlsWhoPrint Girlie Award for her dedication to education and communication in the industry, and the 2016 Brian Platte Lifetime Achievement Award from Xplor International. Find Pat on Twitter as @PatMcGrew and LinkedIn.