True one-to-one customer engagement has long been the goal of many marketers. Today, most companies are already taking advantage of customer data to make one-to-one marketing a reality.
It’s important to note the distinction between personalized messages such as “Paul, welcome back!” and individualized marketing that delivers targeted and meaningful offers based on individual behaviors. Fueled by robust data insights, individualized marketing is one of the most vital drivers of customer loyalty and profitability.
Here are three tips to becoming a world-class, one-to-one marketer.
1. Jump Aboard, or Be Left Behind
Marketers now have access to a diverse range of data sources from which to create the most mutually beneficial relationship with their customers. Delivering relevant offers replaces a transaction-only model with an engagement-driven model that strengthens over the lifecycle of the relationship. Companies that don’t tap into these rich data sources and turn it into action will be left trailing behind those that do.
2. A One-to-One Solution: What it Takes to Succeed
Those looking to capitalize with a one-to-one marketing strategy need expertise in three areas: Collecting and aggregating customer data, turning data into actionable intelligence, and in-market execution.
Data Collection and Aggregation
Any good marketing solution has its foundation firmly rooted in customer data. Multiple data sources can be used to develop a complete picture of each customer, including historical activities and real-time interaction data. This data can be accessed through many sources, including in real-time via the web, mobile, point of sale, or existing data collection tools.
Turning Real-time Data into Action
Being able to efficiently drill into the data, in real-time, to gain insight into each and every customer’s interaction at an individual level is at the core of a one-to-one solution. This analysis is what will help determine how to deliver the right offer to the right customer, at the right time, in the right channel, with the right amount of incentive, in order to drive the most valuable behaviors.
Messaging capabilities need to ensure a seamless real-time interaction within any given channel. Engaging with your customers in the moment is critical. It is far more effective than trying to re-engage them after they have concluded their transaction (or interaction) with you.
It’s also important to remain agile. Customers are not static beings — they change their preferences, their behaviors, their needs and wants constantly. Companies must be ready to meet those challenges head-on, with a proactive, not reactive approach, allowing for nimble responses in an ever-evolving marketplace.
3. Individualized Incentives and True One-to-One Marketing
It’s important to identify the existing behavior gaps of your customers and evaluate the profitability potential of closing them. The illustration below depicts how to evaluate customer behavior gaps, when to present an offer, and how much incentive is required to close the gap.
Marketing to each of your customers on a one-to-one basis with individualized incentives allows you to increase their lifetime value, deepen customer engagement and loyalty — all without wasting your marketing spend on customers who would have performed those behaviors anyway.
To learn more about individualized loyalty programs and how they can benefit your business, check out the full article.