No One Is One-Dimensional
Imagine having assigned scores for these “personas” for everyone. I may score nine out of nine in “frequent flyer” (and that is for certain, as I am writing this on a plane again), score six out of nine in “luxury vacation,” and score two out of nine in “family vacationers” (as my kids are not young anymore). If you have one chance to show me something that resonates with me this second, what would be the offer? Even a machine can decide the outcome with a scoring system like this. Now imagine doing it for millions of people, all customized.
Last month, I wrote that personalization is not an option anymore, and further, marketers should aspire to personalize their messages for most people, most times, through all channels, instead of personalizing only for some people sometimes through some channels (refer to “Road to Personalization”). Because “personas” based on statistical models will not have any missing values, we can achieve that ambitious goal with this technique.
With new modeling techniques and software, this is just a matter of commitment now. We are not operating in the 80s anymore, and it is time to move ahead from simple segmentation methods. Yes, using segments would be much better than no targeting at all. But with a few more tweaks, we can build more than 20 personas in the same time that we would spend for developing segments using a clustering technique, which isn’t exactly cheap even nowadays.
Another downside of a clustering technique is that, once the statistical work is done, it is very difficult to update the formula without changing existing marketing schemas. By nature, segments are very static. It is no secret that even some data compilers chose to stay with old models, as they are afraid of creating inconsistencies with newly updated ones. Some are more than a decade old.
Stephen H. Yu is a world-class database marketer. He has a proven track record in comprehensive strategic planning and tactical execution, effectively bridging the gap between the marketing and technology world with a balanced view obtained from more than 30 years of experience in best practices of database marketing. Currently, Yu is president and chief consultant at Willow Data Strategy. Previously, he was the head of analytics and insights at eClerx, and VP, Data Strategy & Analytics at Infogroup. Prior to that, Yu was the founding CTO of I-Behavior Inc., which pioneered the use of SKU-level behavioral data. “As a long-time data player with plenty of battle experiences, I would like to share my thoughts and knowledge that I obtained from being a bridge person between the marketing world and the technology world. In the end, data and analytics are just tools for decision-makers; let’s think about what we should be (or shouldn’t be) doing with them first. And the tools must be wielded properly to meet the goals, so let me share some useful tricks in database design, data refinement process and analytics.” Reach him at firstname.lastname@example.org.