Most communications and digital media companies already follow some sort of segmentation strategy, taking their existing data sets and analyzing them to identify which customers provide high value, and predict which prospects have a potentially high lifetime customer value. Advanced analytics are powering segmentation, customer acquisition, and churn prevention. But in today’s all-too-competitive environment, where the next best deal may lure customers away, it is even more critical to leverage analytics for insights that drive your marketing.
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If your analytics capabilities are not up to the task of providing substantial insights and revealing high-value, highly loyal consumers, you may be missing lucrative opportunities while spending money on unprofitable activities. Here are three signs that you may need to up your analytics game.
1. Your analytics are hampered by limited, siloed data sources.
Effectively using data means linking disparate data sources across your organization. For example, you may have customer service data, transaction data, and other customer information in databases scattered across business units or different lines of business, such as mobile services, cable or satellite TV, internet services, and other products. When this data is not connected, it cannot be used to power the kind of insights that drive the acquisition of your best customers.
However, when you link these data sources and add insights derived from direct-measured household economic data, your predictive analytics models will have better output. This, in turn, can help you identify prospective customers and what they are likely to buy based on existing customer actions.
2. Your current database is lacking in high-value customers.
A critical step for getting the most out of marketing dollars while mitigating churn is to thoroughly identify and prequalify potentially high-value customers. Breakdowns in targeting strategy and database enrichment lead to inefficient campaign spend. They also prevent you from engaging with the most profitable customers, who will not only stay with you for the long term, but will also be likely to purchase add-on services.
If your data includes only transaction data and does not include more robust economic capacity information, it may not be comprehensive enough to effectively power segmentation models — and you need these models to identify prospects with a high propensity to buy. The result is that you may not be attracting the best new customers.
By upgrading to more robust analytics models powered by linked, unique differentiated data, you’re able to pinpoint existing high-value customers for upsell and cross-sell offers. Add secure third-party data, and advanced analytics models can identify lookalike prospects for acquisition efforts. You can also identify high-potential customers by applying data that estimates their financial capacity and ability to afford certain products or services.
3. Your segmentation is insufficient in helping you reach the right consumers through the right channels with consistent, personalized messaging.
Good marketers know, when customers or prospects receive a relevant offer that is personalized to their needs, they’re more likely to act on it. Robust segmentation not only allows you to better target consumers with customized offers, but also helps you reach those customers through their preferred channels. Whether it’s digital, mobile, addressable TV, email, or even direct mail or point-of-sale, working with the right provider can help you target more effectively and provide a consistent omnichannel experience.
The best way to do this is by using a provider that can onboard an offline list of your segmented, best customers for digital use with the same target segments. This helps you create messaging that works in every channel where your customers are. The idea is to present multiple, consistent messages across different online and offline channels, and you can’t do that if you don’t know where to find your customers or how they interact with you. A provider that can find your segmented customers online can be key to marketing success.
Effective analytics powered by linked, reliable data are critical to your customer acquisition strategy. Without them, leveraging data and identifying potentially high-value customers, and presenting consistent omnichannel messages that convert, is difficult. To run robust predictive analytics models, you need the right kind of data and the insights to power actionable models. This information may also help you maximize your marketing budget and reduce potential attrition.
To learn more about how data, analytics, and insights can help improve your customer acquisition efforts, download the new eBook, “6 Ways to Acquire Customers With Above-Average Loyalty and Lifetime Value.”
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