In a recent publication by The Retail Bulletin, our Planning Director, Danny Crowe, discusses the new definition of CRM...
Today’s consumers engage with and remain loyal to brands that show they listen, understand and act accordingly. They expect an integrated experience across all devices, with every transaction and event syncing in real time.
So, while marketers are trying to use data to build relationships, consumers just want seamless, modern service. That’s why across all sectors, we’re now seeing old-fashioned brand loyalty give way to loyalty based on functionality, service and convenience.
They are seeking a conversation that is about them, or put another way, relevancy.
However, whether you’re in retail or leisure, the finance sector or the property market, data is everywhere, and its sources and uses are becoming more and more diverse. The days of one simple data set sitting neatly in one central system, being managed by one team are fast becoming extinct. In fact, it could be argued that Big Data is lots of Small Data dispersed around an organisation.
Choose context for relevant, measurable marketing
Bringing context into marketing decision-making brings a new spin to CRM. Instead of Customer Relationship Marketing, a better definition in today’s data-rich, always-on and connected world is ‘Conversations that are Relevant and Measurable’.
By understanding the motivation behind the behaviour, brands can move beyond tactical offers to deeper ongoing relationships where communications are not just about eliciting sales, but about giving consumers what they need according to a bigger picture of their life events. It’s looking beyond one transaction or online search and playing a longer game.
Marketers instinctively know that acting on consumer insight is essential, with many rightly obsessed with finding patterns of consumer behaviour to help inform and implement personalised marketing campaigns. This kind of analysis puts customers and prospects into specific segments so they can then receive communications that are collectively fairly relevant to that group of customers. It is highly logical to identify a customer whose spend has dropped and then put them into a lapse programme, but not if you knew why they had changed behaviour. It lacks one essential element – context.
One of the best ways he/she can add context to their customer knowledge is to use life event data. Whether it is moving home, having a baby, going to university or retiring, these are an opportunity for the consumer to reassess products and choices.
For example, using homemover data we have found that there is an interesting observed correlation between moving home and wine purchasing. Many people run down their wine supplies for several months before they move. Then, post move, they stock up again. They haven’t lapsed, they have simply changed their behaviour. So, instead of sending a series of discount offers while someone is planning to move (which will be seen as irrelevant and, perhaps, annoying), the retailer can wind down communications until the customer moves. At that point a bulk buy offer or even a celebratory bottle of fizz is likely to do far more to stimulate sales.