96% of consumers acknowledge having received mistargeted promotional information and 94% have taken steps to break their relationship with the brand or service, including automatically deleting emails (68%) and unsubscribing from lists (54%).
You know who they are: the ones who buy more, click through more, visit more. They’re your best customers. But how well do you really know your best customers? Do you know the last time they purchased from you? Do you know what motivates them to buy? Can you readily list off the challenges in their life that your company can solve?
Understanding your customer’s utmost needs and expectations, regardless of the channel you meet them on, is no longer a nice-to-have but a need-to-have. They - like you and I - want to be treated like people, expecting brands to deliver experiences with a human touch, at scale.
You can’t accomplish this on a first-name basis.
Many businesses think they know their customers but until you’ve done your homework, it’s all guesswork.
Introducing: Data Profiling
Leveraging data will not only verify your perceived notions about your best customers, it will also pinpoint important characteristics and demographical traits you may be unknowingly missing.
Data profiling can identify attributes that you can target for your customer acquisition efforts. It helps you as a marketer learn more about your database and confirm - or debunk - the customer traits you think you know to be true. This kind of information puts you in a better position to target leads that look like your current customers, and strengthen the relationships you hold with these customers.
The more you know about your customers and prospects, the more effective your marketing campaigns will be. It’s a very basic idea that can generate big results.
Using detailed audience segmentation data, you can create more targeted campaigns, maximize your overall ROI, and shift your marketing efforts away from a shotgun approach to a customer-tailored strategy.
How it Works
A data profiling tool, like Streamworks’ Stream Profile, profiles the demographic or firmographic attributes of your best customers, and gives a market penetration index of those attributes between your best customers and the overall population in the same geographic area.
Say that you’ve always thought your best customers were male golf enthusiasts between the ages of 40-50, and most likely married homeowners with children. A descriptive analytics tool will confirm if those truly are the most common demographic attributes of your best customers, and let you know if those attributes are more prevalent among your customers than the overall population in the same geographic area. If they are, you know what list to target for your customer acquisition efforts.
Benefits of Data Profiling
- A Statistically-Reliable Picture of Who Your Best Customers Really Are. You may think you know what demographic attributes your best customers have, but data profiling will tell you for sure.
- Improved Response Rates/Lower Marketing Costs. Data insights gained by profiling allow you to better segment your data, so you can target your marketing efforts on your most profitable customers and best prospects. Understanding your customer landscape is essential to the ROI of your marketing programs.
- Develop Cross-Sell & Up-Sell Opportunities. Improved data segmentation and insights can help you develop effective cross-sell campaigns, up-sell promotions, loyalty programs, and other customer-focused strategies.
- Customer Acquisition. Find prospects just like your best customers. Data profiling is an excellent tool for customer acquisition campaigns and for organizations exploring new market segments.
Keeping your database clean and lean can improve segmentation for more targeted offers, build a more accurate lead scoring program, and boost inbound conversion rates, and shorten the sales cycle. Find out the attributes of your best customers with a Stream Profile.
Editor’s Note: This article was originally published in January of 2015 and has been updated for comprehensiveness.