people based marketing - target data · leverage their own data to drive marketing effectiveness....
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Top 5 Reasons Mid-Market Companies Have the Advantage
PEOPLE BASED MARKETING:
People Based Marketing: Mid-Market Companies Have the Advantage www.targetdatacorp.com | 2
In order to compete effectively companies must leverage their own data to drive marketing effectiveness. Marketers that use data to deeply understand their current customers have a distinct competitive advantage. Using these insights in an efficient, cost-effective manner is a challenge for most organizations. Large enterprises are typically burdened with millions of customer records, multiple complex systems, siloed marketing organizations, and a multitude of AdTech solutions. It is often very difficult to simply collect all of the necessary data. The complexity
The following themes should guide any organization’s marketing journey.
often warrants large custom marketing databases and precludes a simple approach to even data management.
This is where mid-market organizations have an enormous advantage. Unencumbered by complexity, mid-market organizations have the ability to leapfrog even Fortune 500 organizations in their approach to data-driven marketing. A true People Based approach is possible when simplicity trumps complexity and the consumer is at the center of every decision.
People Based Marketing: Mid-Market Companies Have the Advantage www.targetdatacorp.com | 3
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The single most valuable marketing tool any organization possesses is their own customer data. Deeply understanding who your customers are and how they engage with you is crucial. The good news is that mid-market organizations do not have tens of millions of customer records or global databases. In most cases the data exists in one or two systems and can quickly be centralized for marketing purposes.
It is important to recognize that understanding current customers is not a segmentation. The key difference is that a segmentation places consumers into large buckets and, given the data available today, is too broad. Customer data should be leveraged to understand customers at the individual consumer level (hence the term “People Based”). Consumers today move in and out of various segments, in some cases, daily. Market modeling must be done at the individual level to be effective.
Key Recommendations:
Customer data should be your starting point.
Remember the difference between segmentation and modeling at the individual level.
Don’t confuse understanding your customers with CRM. This is about driving marketing effectiveness, NOT an enterprise system to manage customer data.
Everything Starts with Your Customer Data
People Based Marketing: Mid-Market Companies Have the Advantage www.targetdatacorp.com | 4
AdTech was and is billed as the utopian solution that will solve all marketers problems. Sadly this is a myth, and in many cases the technology falls drastically short.
Mid-Market organizations need to be very careful about their investment in marketing technology, as the resources required are enormous. No matter what software or technology vendors will tell you, technology does not run itself. The same principle applies to sophisticated marketing databases. Even if a database were to magically appear, mid-market companies often do not have the resources to harness the insights. In addition, technology is also commonly focused on one channel such as digital or social.
Key Recommendations:
Technology in a vacuum will not succeed.
Be honest with yourself on the internal resources required.
Focus on technology that allows insights into all customers and channels.
It’s Not About Technology2
People Based Marketing: Mid-Market Companies Have the Advantage www.targetdatacorp.com | 5
In today’s world, media is a commodity. This is the single most important concept for mid-marketers to embrace. All too often, conversations center around specific media channels such as direct mail, catalog, email, digital, outdoor, etc. Conversations need to start and end with people. How you reach specific people i.e. media is simply a vehicle. When data is appropriately used, mid-market companies have the ability to rank order the entire population based on their propensity to purchase and engage.
Conversations can shift from CPM’s and coupon redemption to penetration analysis. Reaching specific people for a specific reasons has never been easier. More and more media channels are becoming addressable (i.e., able to be utilized to reach specific individual with unique physical and online “addresses”). Mid-market companies, given their size and complexity, are again at an advantage. Deeply understanding every consumer and household around retail stores is something that can be accomplished in a matter of months. It is for this reason that mid-market companies can stop talking about media and start talking about their best customers and prospects.
Key Recommendations:
Understand that media is a commodity.
Given the scope and size of mid-market companies, a highly sophisticated strategy is within reach.
Focus on addressable media that reaches specific consumers with specific intent.
3 Media is a Commodity
People Based Marketing: Mid-Market Companies Have the Advantage www.targetdatacorp.com | 6
Marketing seemed simpler before the advent of digital advertising. What is interesting is that it was still complex, and in many cases highly People Based. Sophisticated database marketers were able to have one-to-one communication with consumers by leveraging lists and triggers.
As consumers moved through various life events, communications were tailored. Databases allowed revenue to be tracked at the transaction level, which allowed highly precise campaign measurement. Digital marketing added enormous complexity. The direct path to the individual consumer was impossible for the longest time. Marketing began measuring success by online behavior. A race to the bottom occurred by measuring success with CPM’s. Today, when customer data is used strategically, it is possible to go back to basics. Identity resolution allows offline data to be used online. The simple yet complex ways of traditional database marketing is back.
Key Recommendations:
Think like an old school database marketer.
Your customer data unlocks the ability to rank order every consumer.
Focus on high value best prospects both online and offline.
Measure success in the data and tie marketing spend to revenue.
4 ROI is Back in Vogue
People Based Marketing: Mid-Market Companies Have the Advantage www.targetdatacorp.com | 7
As mentioned above, only a few short years ago data did not exist to link consumers’ online and offline identities. Consequently, digital and offline marketing were two disciplines and it was almost impossible to link the two. This has rapidly changed and continues to do so at a pace that is not slowing down. Mid-market companies who realize this and get ahead of the change will be light years ahead of their competition.
More and more media is becoming addressable. Television is the next frontier. Addressable television allows communication to a specific household. The consumer that received a highly tailored direct mail piece in combination with relevant digital advertising can now also be reached via television.
It is still early but rapidly this landscape will evolve rapidly. Mid-market companies have the agility to evolve with it. It is crucial that organizations understand where the market is headed and begin to prepare.
Key Recommendations:
The market is becoming more and more addressable.
Those who evolve appropriately will have a competitive advantage.
Your data should become the center of every marketing conversation.
5 In An Addressable World, Speed Matters
People Based Marketing: Mid-Market Companies Have the Advantage www.targetdatacorp.com | 8
People Based Marketing:Top 5 Reasons Mid-Market Furniture Companies Have the Advantage
1Customer data should be your starting point.
Remember the difference between segmentation and modeling at the individual level.
Don’t confuse understanding your customers with CRM. This is about driving marketing effectiveness, NOT an enterprise system to manage customer data.
2Technology in a vacuum will not succeed.
Be honest with yourself on the internal resources required.
Focus on technology that allows insights into all customers and channels.
3Understand that media is a commodity.
Given the scope and size of mid-market companies, a highly sophisticated strategy is within reach.
Focus on addressable media that reaches specific consumers with specific intent.
Everything Starts with Customer Data
It’s Not About Technology
Media is aCommodity
4Think like an old school database marketer.
Your customer data unlocks the ability to rank order every consumer.
Focus on high value best prospects both online and offline.
Measure success in the data and tie marketing spend to revenue.
5The market is becoming more and more addressable.
Those who evolve appropriately will have a competitive advantage.
Your data should become the center of every marketing conversation.
ROI is Back in Vogue
In An Addressable World, Speed Matters
KEY RECOMMENDATIONS:
People Based Marketing: Mid-Market Companies Have the Advantage www.targetdatacorp.com | 9
ABOUT TARGET DATA:
Based in Chicago, Target Data is a leader in people-based marketing, driving our client’s revenue through addressable online and offline marketing execution. Using customer and transaction data, Target Data creates cross-channel campaigns that target actual people, not segments or audiences. Marketing is tied directly to revenue enabling precise measurement and refinement. Target Data is committed to partnering with clients to help them spend their marketing dollars smarter.
People Based Marketing:Top 5 Reasons Mid-Market Furniture Companies Have the Advantage
People Based Marketing:Top 5 Reasons Mid-Market Companies Have the Advantage