3 Top Benefits of Data Driven Marketing and CRM

The world of business is experiencing a phase of continuous and game changing alterations. With major economies facing the heat of bloated fiscal deficits and the looming prospect of a global economic slowdown, the phenomenon of cost cutting is seen as a discreet organizational policy transcending industries and geographies. With continuously shrinking revenues, the major brunt of this cost cutting is being borne by the marketing department. Contemporary market conditions are not offering the same results to the various marketing efforts as they did in the past. Now, marketers are required to focus on reaching out to prospective customers with limited budgets and stay ahead of fierce competition too.

Data driven marketing and CRM are coming across as one of the most pursued strategies of modern day marketers. It is a form of marketing based on data analysis through which insights are generated and accurate decision making is facilitated. This approach is targeted towards customer retention through satisfaction and delight by meticulously determining the targeting, timing and content of marketing communications.

Not only does this form of marketing warrant the maintenance of imperative data like customer activity, buying behavior, prospective customers, competitors’ numbers and much more, it relies heavily on how effectively are these numbers made use of.

The data, that is put to use for the same, can be primary or secondary. Its entire objective, though, circumvents around assisting the development of such knowledge as knowing the best media for targeted visitors, areas where customers are lost and the destinations which work as the goldmines of business. This will help make marketing efforts more targeted and precise.

Moreover, marketers can also derive many benefits from this form of marketing. While some of them endeavor to maintain impregnable relations with their customers to build patronage, some others use these marketing tools to cross sell their products and even develop better service standards with the knowledge that they have garnered. Finally, by relying more on maintaining strong customer relations and on data driven marketing, marketers can ensure that all their activities are being held accountable and the amount spent on them is being weighed against the revenue that they manage to generate.

What one has to understand and appreciate is that data driven marketing is no more an option but a necessity to exist. “Accountability” is the buzz word and your marketing efforts are not spared of its loom. The smallest of activities today are evaluated on ‘return on investment’ that they generate and that is possible only with the help of data driven marketing. Let all your marketing activities be comprehensively evaluated against the generated results and see how your marketing department converts from a cost centre to an investment centre, one which generates substantial returns.

Three critical benefits of data driven marketing and CRM in marketing:

Customer Knowledge: The starting point of any customer relationship management effort is the knowledge about the customer. Not only does a marketer collect data about the names and addresses of the customers, but details like buying history, quantities purchased, personal preferences, size of the family, key dates and much more also makes its way into the database. This data is extensive enough to initiate an exhaustive customer relationship management vigil. Without spending a fortune on marketing, the marketers can utilize this database and establish a strong sense of loyalty among the customers. The same data could also be collected about the company’s prospective customers. This data would help in finding out the most fruitful and result generating ways of converting prospective customers faster and cost effectively.

In addition, analyzing details of converted and dormant leads greatly helps in improving marketing strategies and increasing conversions. Demographics play an important part in designing effective campaigns, data driven marketing provides the most pertinent details for marketing teams.

Cross Selling & Up Selling: An organization, today, cannot survive through pure ‘sales’. One has to explore newer avenues of escalating the revenue generated from a customer. That is what CRM and data driven marketing can ensure for organizations. The available data could expose those areas where the same products can be sold more frequently to existing customers. However, this is not all, marketers could also sell new and different products to the same customers. This could give an exponential rise to the revenue of the company. By understanding what the customers have been buying from competitors, marketers can explore untapped opportunities.

If customers are satisfied and their experience with an organization is positive, then marketers can sell them more products their company offers. Offering products that are the most relevant to a customers needs at the right time is facilitated by effective use of a CRM solution. The CRM interface displays best-fit products based on existing and real-time information for each individual’s records.

Ultimately, the objective of any organization is to improve its sales without compromising ‘customer experience’ and thus bring about sustainable growth in their revenues. From past research, there are numbers which suggest a direct association between the effective utilization of data driven marketing and the sales of an organization. There is a clear indication that companies dedicatedly makes use of data driven marketing and CRM solutions, they can considerably accentuate their sales numbers.

Accountability: Each activity that the member of a company’s marketing team performs, should be evaluated against the results that it generates. Therefore, adopting the lean approach of accommodating only the best and most beneficial is appropriate. Monitoring all activities based on assorted criteria is simplified through a CRM solution’s reporting and analytics tools, allowing senior management to slice-and-dice report data for studying marketing related activities.

While all of these benefits are alluring and might incite a large number of organisations to initiate a data driven marketing campaign, one has to understand that its success depends on ‘attitude’ more than anything else. One has to continuously be on the prowl to find insights from the data that is available, collecting raw numbers has no value. CRM or data driven marketing, a perspective has to be developed and cut through the organizational hierarchy to make it an organization-wide culture, rather than just a single department or a few people’s strategy.

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