Helpful Analytics Tips Archives - Omnichannel Personalization SaaS Solution

22 Oct
2018

How To Measure the Effectiveness Of Your Personalization Campaigns

3 steps to selecting the right KPIs to measure the effectiveness of your campaigns

is that well-known saying we all keep hearing? What gets measured gets done.

To optimize your marketing personalization campaigns, you need to make sure you’re measuring the effectiveness of your efforts.

Measurements help inform key decisions, align everyone in the organization with a common goal, and indicate that you’re making meaningful progress.

The question is, what should you be measuring?

Gathering and analyzing the wrong metrics is not only a waste of time and resources but it may also paint a wrong picture of the performance of your campaigns, preventing you from making the right adjustments.

Here’s how to make sure you’re gathering and analyzing the right metrics and key performance indicators (KPIs):

How to define personalization KPIs and measure the effectiveness of your campaigns

Step 1: Identify your objectives

Marketing personalization is a powerful strategy that can deliver a lot of benefits to a business.

However, you should limit the number of goals so you can focus your efforts and gather meaningful data.

Your objectives will depend on your industry, your business model, and the stage of growth of the business. Here are some examples:

Improve sales performance
Increase repeat purchases and brand loyalty (e.g., customer lifetime value)
Drive traffic that converts
Strengthen brand recognition and engagement
Increase the number and quality of generated leads
Increase content ROI
Increase average order value
Increase customer lifetime value

Step 2: Define your KPIs

Based on your marketing objectives, you must define which metrics can best indicate the progress of these goals.

Your metrics need to be quantifiable. In addition, you must also distinguish between leading KPIs and lagging KPIs so that you can extract appropriate insights from the metrics.

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For most marketing personalization campaigns, KPIs often measure the performance of the sales funnels or the effectiveness of the customized content or offers. Some of these include:

Conversion rate
New vs. returning visitors
Customer/visitor loyalty
Bounce rate
Website traffic to lead ratio
Top traffic sources
Click-through rate
Engagement score
Average session duration
Average page views per visit
Average order value
Revenue per visit

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Make sure to select metrics from which you can extract actionable insights. Otherwise, you’ll be crunching a lot of numbers without being able to take impactful actions.

Step 3: Measure and analyze

Before you start any campaign, establish benchmarks so you know whether you’re indeed making improvements. These are your baseline metrics from which to start the personalization efforts.

Make sure you’re integrating metrics from all the systems you use, such as eCommerce and CRM platforms. Whenever possible, send all information to one centralized dashboard so that you can gain a holistic view of your personalization campaign performance.

Last but not least, metrics need to be measured consistently over time and across segments so you can extract accurate and meaningful insights.

I’ve got the insights, now what?

The ability to gather and analyze customer data to extract insights is the first step to running effective personalization campaigns.

Next, you have to put the information into action by applying the insights to improve your personalization strategies.

NectarOm’s Decision Engine helps you identify individual customers who are most likely to respond to a particular strategy or campaign, so you can increase your marketing ROI by matching your content and offers to each customer’s preferences, brand interactions, and habits.

24 Feb
2017

Engaging High-Value Customers for High-Value Results

Many companies are shifting their focus to engage customers with higher value and profitability. The goal of engaging high-value customers (HVCs) is to nurture them into becoming loyal power shoppers. Increasing loyalty to a brand this way ensures retention and lifetime value of customers.

HVCs drive a significant portion of a company’s revenues. These customers are not only intensely loyal to a brand, but help promote the brand and its influence as well. Engaging and satisfying these high-value customers will put a company on a path toward greater success.

What Is a High-Value Customer?

Confusing high volume and high-value customers can be easy. However, high volume customers and high-value customers are two different target markets.

High volume customers are those who interact with a brand frequently. Although they may engage with the brand often, it doesn’t necessarily mean that these customers are the most valuable. Often with high volume customers, a brand will see a surge in activity for short periods of time. However, once the excitement fades, so does customer engagement.

High-value customers are those who buy for a reason. These customers look at products, services, and brands as a way to meet a need and satisfy a drive such as status, health or lifestyle. HVCs are customers who are loyal to a brand or company, even in times of financial duress. They will return to a brand and product even when a cheaper alternative is available. For HVCs, the cost is not a priority, and are more focused on having their unique needs addressed. HVCs are also brand promoters and influencers. These are the customers who will share the brand within their social networks.

Focusing specifically on high VALUE customers reflects an understanding of the power that these consumers have. Identifying who the high value customers are and tailoring marketing schemes to satiate these consumers, keeps them happy and ensures the brands’ profit margins.

Evolve With Customers

Customer habits change and evolve. In turn, the way consumers interact with brands has evolved as well. Instead of fighting this evolution, brands should adapt and keep up with their customers. Part of this evolution includes the introduction of new goods and services and outlets, like online shopping. This development means customers are interested in a wide variety of items at all times. A shift towards items outside a consumer’s regular purchase pattern can indicate consumers are turning into HVCs. Dramatic changes in how customers buy items and spend money can also indicate greater trust and loyalty with a brand. Once the customer has extended the olive branch toward a brand, it is very likely they will shift into the high-value customer category.

Pay Attention

The data provided by a customer’s recent activity can predict if a customer is high value or becoming high value. Data points such as high clickthrough rate, frequent site visits, and large purchases can indicate a customer as a high-value customer. One way to monitor customer involvement and identify high-value customers is through a triggered marketing campaign. Triggered marketing includes a continuous stream of messages sent to customers based on their shopping activity, browsing history, purchases, etc. Triggered marketing indicates to customers that a brand knows its customers.

Loyalty Rewards

Loyalty programs are teeming with information about members. Everything from brand preferences and item category to price sensitivity can be found in loyalty member data. Harnessing loyalty data helps brands personalize more towards HVCs. Knowing where, when, why, and how customers engage with a brand, can empower companies to create personalized experiences across multiple channels.

Loyalty programs also remove the barrier between customers and their next purchase. These loyalty programs make customers feel like “power users.” Their actions directly correlate to the experience found with a brand and company.

High-value customers make up the untapped bread and butter for many businesses. Understanding the behavior patterns of high-value customers enables brands to engage and target this niche group of customers. Providing high-value customers with the attention they desire keeps them engaged with the brand and propels companies to further success.

19 Jul
2016

6 Types of Data To Collect From Customers And How to Grow Your Marketing Strategy With It

Personalization has hit the mainstream as the best marketing strategy for growing your business. It’s used by niche companies and conglomerates alike in order to create an experience that entices customers to buy. There’s no denying it’s power.

Have you ever found yourself shopping for a new shirt online, only to be bombarded with matching ads later in the day. The ads may even be the exact products your were looking at from the same sites. They’re remarketing based off information you provided. Someone else who shopped for pants will see a completely different set of ads.

The idea is to use a one-on-one marketing strategy to develop a closer relationship with your customer. Omni-channel personalization, with a focus on these data points, can create a thorough approach to tailoring your recommendations based on what you know about the individual. Levels of use will vary, but the goal is clear:

Marketing is no longer about whose ad is seen the most. It’s about who can be more personal.

1. Name

Names have been called the ‘customer’s favorite word’ and for good reason. Would you rather I address you as “Appreciated Customer”, or can we take it to a more personal level? Well Greg, we’ve got a deal for you.

Businesses have been using customer names since people started peddling wares in Mesopotamian markets. When Greg bought that suit, the owner had already learned his name. The next time he walked in, he was welcomed with it. It made Greg feel more appreciated than when he visited other shops. It created a brand loyalty and he’s significantly less likely to take his business elsewhere.

Knowing your customer’s name is easy when you’re talking face to face with her, but how can you do it when thousands of people are browsing your digital store?

Web developers solved this problem long ago. Membership and e-mail sign ups require a name. Even websites that only share your username have begun using your real first name rather than the word ‘profile’ on your browser. It creates a more personalized experience when the web page displays your name in the corner, even if you know it’s an automated system.

By e-mail lists having this information, subject lines can be constructed to appear like personal messages. Seeing their own name elicits a reaction from the brain, forcing them to slow down and read the text. Campaign Monitor found that working personalization into an e-mail subject line increased open rates by 14.68%. With a list of 1,000, that translates to nearly 150 more people opening your message. That’s 150 more potential sales just because you directed the letter at Greg. Talk about a great ROI on personalization.

2. Location

Where using a name is great, MailChimp would argue that city names are even better.

Locations can be used to expose customers to events in a given area. Is there an expo or event that you want to share with your fans. Directed messages at their location can be the quickest way to do it.

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Sending e-mails about a race in Seattle to people who live in New York City will cause your open rate to drop drastically. Meanwhile, your audience in the greater Seattle area may now attend, increasing engagement with your brand.

Gathering this information can be done through two key methods. You can have customers provide their location when signing up for different features, or you can have them grant permission using a geo-location enabled app.

Marketing Land claims mobile brand ads are seeing a 20% increase in conversions when coupled with location data. Need more reasons? They also found that “69% of Google searches include a specific location.” That’s more data you can use in your marketing strategy.

A study by White Horse Productions, Inc. showed that 8% of the users of social apps running geo-location systems believe “savings in discounts and merchant rewards” are the most important benefit. Though this number seems low, given the sheer volume of traffic that social media receives on a daily basis, this number is astounding. Since 60% of that poll thinks the social aspects are most important, it could be argued that discounts and deals would play a larger secondary role for most.

Businesses like Yelp allow their customers to ‘check-in’ to different establishments. Later, they’re reminded to review the places they visited. This creates more interaction with their site and app, as well as customer pride because they’ve contributed to the product. The ‘check-in’ strategy also brings more engagement on social media, showing up on the newsfeeds for everyone to see.

The largest battle with tracking a customer’s location is the concern for privacy. Many smartphone users will disable the GPS feature because of a fear that the information will be used inappropriately. Unfortunately for the honorable business, this leaves the ability to track location to user sign ups and invoices. Still, it’s better than comprising your integrity.

3. Gender

The purple elephant in the room, gender, has become a touchy subject in today’s social climate. Still, for a business, knowing someone’s gender can translate into better targeting and profit.

A study by G+ proved that targeting genders can be more than efficient. They found that females make more of the buying decisions, including everything home furnishings to cars. They also saw that women are more likely to use a specific brand if it supports a cause.

Using this information alone, you could develop a strategy to target your female customers with ads. Select the cause you’re most affiliated with, expressing a cause, and have better luck at winning them over. Even better is that if it’s a large purchase, you know to focus more attention on that gender.

Learning your customer’s gender also gives you the ability to tailor recommendations on page. If you’re a clothing company that sells to everyone, ads offering skirts will be better directed at women, while men’s products are better with them. This technique would still require a Facebook pixel or local account, but it could pay dividends in the long run.

4. Previous Purchases

Along with the gender focused advertising, many sites will tap your previous purchases to target you. Amazon is excellent at this strategy.

When you’re comparing items, say a sleeping bag, you can go through dozens of pages without making a purchase. Don’t worry, when you open your Facebook later, you’ll find that Amazon has a kindly reminder waiting for you. They’ll use sponsored posts to keep your mental shopping cart alive and even offer recommendations for some of the sleeping bags you were looking at earlier.

You can follow this same approach, or target on a finer scale. When a customer purchases a sleeping bag from your site, launch an automated email chain that offers them related products, like lamps or walking sticks. The odds of a customer buying from you again are higher than the chances of that initial purchase. It’s marketing done easy.

On the other side of the spectrum is the abandoned shopping cart. Maybe a customer became distracted. Maybe they found your prices too steep. By knowing that they didn’t make a purchase, but had intended to, you can attempt to reengage the customer. Remind them of the cart or make new offers. There are a lot of possibilities just by identifying their cart status and it can all be crafted into an automated system.

In the same sense, send emails when discounts appear on items they’ve expressed interest in, be it from a wishlist or deleted cart items. Study everything about a customer’s purchase history and you can learn some specific ways to target the individual.

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5. Interests

If interests aren’t part of your personalization marketing strategy, you’re doing it wrong. They can tell us everything we need to know in order to interact with customers.

Interest marketing is especially effective on social media platforms. Sites like Facebook and Twitter build profiles on all of their users, including everything they like. These likes translate into marketing channels.

By applying ads to social media, you can automatically engage those who prefer the niche you’re addressing without having to sort them out. A billboard is a shot in the dark. Social media advertising, thanks to the ability to target interests, is a point blank shot.

6. Web Behavior

A customer’s behavior on the web can lead to a lot of profitable information. Everything from web content to e-mail interaction can be tracked in order to improve your marketing strategy. Using omni-channel personalization with knowledge of their trends can be even better.

To start, figure out what the most popular key words for your business are. Once you have them, develop landing pages for each. Highlight those keywords as many times as you can in the page to be sure that’s the one they find and let the personalized experience begin. Depending on how many keywords you want, you can continue to develop new pages, offering a deeper connection to your audience.

Those keywords can say a lot in themselves by defining where the customer is in the purchasing stages. If they’re searching for a specific knife review, odds are that they’re looking to purchase that knife. If they’re looking for the 7 best survival knives, they may be a little further away. Through personalization, you can recommend products and advertisements based off where they are in that process.

Tracking behavior is where your content marketing can pay off. Everyone who has run a business with an online presence understands that cookies can be pivotal in your marketing strategy. By tracking which pages your customers are viewing, you can tailor content specifically to their interest. This can be a recommendation to other articles and products based off the category or focused bonus material.

Content upgrades that are directly related to the topic of the page can provide a great window for opportunity. If a customer is reading about repairing chainsaws, a guide to felling trees with one may be enough to get his e-mail. From there, he’s entered your sales funnel, leaving him open to more e-mails and potentially other personalization tactics from you.

Along with getting those messages out, you need to pay attention to how your customers interact with your e-mails. Spot which links are getting the most use and place the customers into a segmented list. Send them more emails that focus on the topic they’re interested in. Reduce the size of your segments if you can, creating various targeted sub-lists while still sending them e-mails from the main subscription.

Collecting data to grow your marketing strategy is as simple as opening a few analytics accounts and paying attention to customer behavior. Run as many tests as you can to learn what works and what doesn’t to maximize your potential.

The information you gather can be the difference between a year of growth or another twelve months of your peers passing you by. Develop a strategy for personalization and take the lead.

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28 Jun
2016

What Do Google, Netflix, Amazon, And Best Buy Have In Common?

These 4 Billion-Dollar Companies Are Leaving the Competition In the Dust…

The customer is always right, right? Well, it all depends on what kind of experience customers have with your brand. Their experience will not only dictate how often they’ll complain, but how successful your company will be. Think of some of the biggest new brands – ones like Google, Facebook, Netflix, Amazon. All started within 15-20 years, but all have seen incredible success. Want to know why? Because they spent a lot of time and money making the customer experience the best it can be.

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Recently, taking the customer experience to the next level is possible through personalizing the content. It’s been an important cornerstone of successful marketing for some time now.

Think back to how this got done before the web. Companies were talking to customers, giving them surveys to try and find out as much as they could about them.

These days companies have a wealth of knowledge at their fingertips, and are embracing data to make it work for them. This article will explore how four companies (Amazon, Netflix, Google, and Best Buy) adapted over the past five years to see amazing growth, largely because of personalization.

Google

This company needs no introduction, and I bet you can already start to connect the dots on how they’ve managed to leverage personalization to great success. First, we need to take a step back and understand how Google makes its money. 89% of it comes from ad revenues, so for all intents and purposes, we’re only going to focus on that. So the question is, how do they leverage personalization to see the 66-billion-dollar revenue they pulled in last year.

Personalized Search

Google works best as a profile-based service, which means that to get the most out of it, you’ll need to sign into an account. From Gmail to YouTube, Google accounts work with a lot of services that people use regularly. Sure, you can still use it without signing in, but that is where the real personalization begins. This first point is pretty obvious. Depending on what you search for, and what your browsing history is, Google will serve you different sites.

Despite this fact, most people still don’t mind using it. By knowing what you’re searching for, they can offer products they think you’ll want to see. Yes, they are skewing the data. If you want a completely unbiased web search, consider using something like duckduckgo.com. Google is banking on a complex algorithm that takes sites you’ve visited and continues to show similar ones. If they know the type of sites you enjoy, why not show you more of the same?

Personalized Ads

This takes the first point to the next level and is made obviously clear after searching for a specific topic that you wouldn’t usually search. As an interesting experiment to illustrate this, I changed up my searches for a week. I love cars and do a lot of car-related searches. Understandably, most of my ads (when ad blocker was turned off) were for car-related products. I tried searching for something completely unrelated to cars: bird watching. Google noticed and then started showing me tranquil ads for bird watching equipment. Anyone can run this experiment, and it’s interesting to see how your search affects everything around you.

Though this may come off as creepy to some, it makes sense. If I am genuinely interested in all this bird watching stuff, maybe a company is offering a sale on those killer binoculars that I was looking for; so, I’ll click an ad, Google will get paid, and I’ll have some nice binoculars. Thanks, Google!

Personalized Videos

This last example is the natural progression from search and ad personalization. Since Google owns YouTube, it’s already happening. Depending on what you usually watch, it will curate your content to show you related videos.

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Though most, or all, of us, hate video ads, they know it’s a numbers game. Sure, you may close an ad every time, but 1 in 100 people might click it, and 1 in 1,000 might go on to buy the product. With these ads being served to millions of people every day, there is a lot of money to be made.

Google has mastered personalization to try and give you what you’re looking for before you even look, and the numbers speak for themselves. If this approach weren’t working, they wouldn’t be doing it.

Next, let’s look at everyone’s favorite streaming site: Netflix.

Netflix

“Netflix and chill,” may be a popular saying, but they are not chill about their dedication to providing you with shows you want to watch. Unlike Google, Netflix doesn’t make their money through ads, but through subscriptions, so their main focus is retention and keeping existing customers happy. They do this by filtering through their sea of available content to give you only what you want to watch.

Let’s look at how they’ve managed to leverage personalization to create a unique experience for all of their 81.5 million subscribers.

Recommendations

The “Recommended Shows” sections of Netflix aren’t new. In fact, they were working on improving their recommendation algorithm when they were still mailing out DVDs. Way back in 2006, they announced a $1 million prize to any team who could help improve their recommendation algorithm by just 10%. It’s clear they’re serious about constantly improving recommendations, and things have only gotten better for them since they made the jump to streaming in 2007.

Compared to a DVD watch list, instantly streaming content gave them a lot more data about people’s viewing habits. While they only had a list to work with in the past, now they can see what shows you watch, how much of each show you watch, what time you watch, and a lot more. This knowledge about your viewing habits helps them keep you engaged by ensuring you always have something new to watch.

Multiple Devices

Once Netflix made the jump to streaming, it opened up a whole new platform to reach new potential users. The thing is, not everyone’s the same, and different people prefer to watch movies or TV on different media. Netflix quickly understood this dilemma and saw the potential to have their service on different platforms. Rather than just being available through their site on a PC, they opened it up to Roku, Xbox, Apple TV and many others.

Netflix has one thing down: they are available to personalize content wherever and however their customers want it. From laptops, to phones, and even gaming consoles, Netflix is available wherever you want to use it.

Breaking The 4th Wall

The last piece of personalization that helps Netflix deliver a seamless customer experience is by now bringing recommendations right to your inbox. They knew people spent a lot of time just browsing for something to new watch, so now they help out by emailing suggestions directly to you. By using all of the data from your account, if a new show or movie that they think you’ll like comes out, they’ll let you know. You can even add it to your list from your phone!

Delivering useful content and recommendations is the type of omni channel personalization that has separated Netflix from the competition. They’re able to deliver a seamless experience from start to finish.

Amazon

You may have heard of this company. They used to sell books online, but are now the largest marketplace in the world, and are a perfect e-commerce example for how personalization helped them dominate the marketplace. As an e-commerce site, they make their money by selling products, and make even more money by recommending other items.

The motivation for recommendation is getting you to purchase more items. As the web grew, and more data points became available about their users, they were able to track more and more information, and make appropriate recommendations.

Frequently Bought Together

If you’ve ever used Amazon, you’ve seen this section, and it’s an ingenious piece of personalization. These recommendations are not serendipitous or a fluke. They are cold and calculated. Fortune describes it pretty well:

The company reported a 29% sales increase to $12.83 billion during its second fiscal quarter, up from $9.9 billion during the same time last year. A lot of that growth arguably has to do with the way Amazon has integrated recommendations into nearly every part of the purchasing process from product discovery to checkout.

Not only does this work, but they have multiple areas, each offering different suggestions: frequently bought together, customers who bought this item also bought, sponsored products relating to this item, and what other items do customers buy after viewing this item.

Those are four other suggestions to upsell and get you to buy more products. It’s no wonder why Amazon is the leader in the marketplace. This alone shows their understanding and value of customer data.

Follow Up Emails

If you’re running an e-commerce business, then you know that it’s a fact that a certain percentage of people will abandon their carts before purchasing. It doesn’t mean that they hate your brand or don’t want the product; life is complicated, and lots of things are vying for our attention.

With nearly 44% of cart abandonment emails being opened, a good percentage of those result in sales. This kind of personalization and customer experience isn’t hard to achieve, and any e-commerce business should be doing it. All it takes is a simple email with the items they left in the cart to try and rekindle the relationship and emotion felt in the first place.

Amazon Dash

This last product of Amazon’s takes personalization from the digital into the real world. If you’ve been following along, then you understand that people like to interact with brands on their terms, and that repeat business is key for a successful brand.

Amazon took their one-click checkout feature and made it into a real button. They realized that certain people would buy the same staples like Tide, Gatorade, or razors, so they made it even easier for you to buy them with one touch. Going from multiple steps to one press of a button is the next step in personalization and takes the customer experience to the next level. I’m excited to see what else they have up their sleeves.

Exclusive Bonus: Download the free cheat sheet of tactics big brands use to create a personal experience, and software to do it on a budget.

Not mentioned in the title, but equally as interesting is Best Buy, and they’re the last example of how a brick-and-mortar company can also adapt to the online data revolution and go toe-to-toe with the best of them. Worldwide, they have a 22% hold in the electronics market and are trying to close the gap with Amazon. To do so, they’re implementing similar tactics as Amazon and capitalizing on the shift to personalization.

Catching Up With The Rest

If you’ve bought something at Best Buy recently, you’ll notice that they too are sending recommendation emails. If you bought an Xbox and they have your email address, you might get emails suggesting new game titles you might like.

Of course, Best Buy stores benefit from the ability to offer instant gratification, but they also separate themselves from other online retailers by offering store-exclusive content. That means if you preorder a game at Best Buy, you’ll get exclusive access to limited-edition content, not available to anyone else. With prices being pretty consistent for video games, offering the bonus of additional content is an interesting approach to helping close the gap with online retailers.

Price Match

Around 70% of Best Buy’s inventory is available cheaper elsewhere online (Amazon, eBay), so how do they still manage to compete? To combat this, they’ve implemented a pretty liberal price-match policy for brick-and-mortar as well as online retailers. This policy is a pretty bold statement and makes a strong case for those who prefer to buy all of their electronics at once to do it all at Best Buy. If online retailers can’t compete with price, then they’ll have to get creative to compete with Best Buy moving forward.

Personal Contact

Though brick-and-mortar can seem like an excessive overhead in our digital society, Best Buy uses it to leverage their “blue shirt” experts and staff, who give a real personal touch. This is something an online store just can’t do on the same level. Sure, they could have a pop-up live chat window, but it just can’t replace actual face-to-face, human contact. Their staff is well versed in what they’re selling (sometimes that’s because they are actually employees of the brands they are recommending, instead of being Best Buy employees), and can usually understand your concerns and make real-time recommendations.

Though large businesses are generally not known for their speed in implementing change, all of these companies have done a great job of using data to their advantage to keep things personal for their customers and deliver an amazing overall experience. And as far as it looks, the customers have returned the favor by staying loyal to them and purchasing time after time.

09 Nov
2015

3 Ways to Evaluate and Engage High-Value Customers

You’ve heard of the Pareto Principle: the rule of thumb that 20% of the work drives 80% of the results. In sales and marketing, we can observe that this principle holds true across all industries, and understand that a huge amount of sales, revenue, and brand interaction can be directly traced back to a few high-value customers, or HVCs.

If you haven’t put much thought into CRM, it’s a good policy to prioritize the creation and retention of HVCs who will give you the most return on your investment. Though the majority of all sales transactions are likely to be one-offs or from occasional buyers, a significant amount of your revenue will be driven by intensely loyal HVCs, who will not only stick by your brand but help promote it. To put it simply: you should keep your HVCs happy because when they buy, they buy big.

What makes a customer high value?

HVCs buy for a reason: HVCs look to your products, services, and brand to meet a fundamental need. Whether it’s health, wealth, or status, identifying your business’s raison d’etre will help you serve your best customers more efficiently.
They are interested in the next big thing. HVCs will keep checking your website, app, and social media pages for updates and new products. If you make customer loyalty a priority, you can create positive feedback loops that pay off huge in the long run.
HVCs are less sensitive to price changes. High-value customers will return to your brand even if they can find similar products for cheaper. It’s not about the cost: it’s about how your business addresses their specific needs in a relevant and personalized way.
HVCs will promote your brand. Your most loyal customers will promote your goods and services to friends, colleagues, and even strangers, if they believe in your products and customer service. HVCs bring with them a large social network of potential new clients, so pay it forward!

High-value customers are your business’s Golden Geese: keep them happy, and you’ll set yourself up for huge successes in the long run. And the truth is, doing so is actually pretty simple once you adopt the mindset of putting the customer first and personalizing your services to give each individual the VIP treatment.

3 Ways to Engage High-Value Customers

Reward HVCs for their loyalty. By integrating loyalty data into your delivery providers and personalization tools, you’ll be able to understand when, how and why high-value customers access your site and design useful, personalized touches to interact with them across multiple channels. When done right, loyalty programs remove barriers between your customer and their purchases and streamline their shopping experience. Doing so can empower the customer with a sense of agency when they realize that their actions have a direct impact on their experiences with you and what services you can offer them.
Pay attention to their recent activity. This information can be used to identify a customer as high value based on metrics such as: frequent site visits, a high clickthrough rate on email and website, and big recent purchases. Someone who can’t get enough of your content will respond well to an increase in messages, especially the triggered marketing that corresponds to important life events or interactions with your brand. When done right, this will prove to customers that you really understand what makes them tick. One appropriate example for a triggered message: if a certain HVC has a record of high overall spend but for the last several months they have not been interacting or buying, you might send them a re-engagement email with a big discount attached.
Evolve with your customers. Changes in customers’ habits which point to increased interest in categories outside of their normal purchase pattern can indicate someone’s shift into becoming a high-value customer. A significant change in what they buy and how much they spend could be a signal that this individual has extended their product trust into brand trust for you, prompting their movement into the HVC bucket.

There are many ways you can use data to help determine who is an HVC by using your personalization tools, and from there it’s a matter of providing your high-value customers with the service and attention that they deserve. In the process, you’ll develop the infrastructure, habits, and mindset that’ll attract and engage new customers at each step of their journey.

26 Oct
2015

When Big Data Analytics Hurts Innovation

Making use of Big Data is a staple of every digital marketer’s playbook, especially those in the retail sector who will use it to measure such things as transaction and customer loyalty. There is a lot of potential to be found in Big Data analytics, but it’s lost when retailers grow too comfortable with a “proven” approach and fail to keep testing and discovering new viable marketing strategies. Ultimately, realizing the limits of Big Data analytics and becoming comfortable with experimentation is the key to making sure your business stays in touch with the demands of its environment and its customers.

Analytics are Impressive, but Incomplete

Current trade promotion optimization (TPO) solutions simply weren’t designed to extract signal from the large volume of noisy data that modern retailers generate, and analytics is still unable to specifically measure the effect of qualitative factors like ad design, layout, and wording on ROI. This means that, for better or worse, the current limitations of our technology mean that Big Data can only give us a partial look at what worked and what did not.

Don’t get me wrong. Data analytics provides marketers with an incredible degree of insight, but we must remember to use it as a tool with defined goals and a good understanding of what it can and cannot accomplish.

For instance, analytics is much better at explaining the past than predicting the future. This means that you can’t predict with certainty the effect that a certain kind of discount, pricing structure, or cross-merchandising tactic will play out: you need to run an experiment. This can be scary, but an unwillingness to try new things could leave your business wading in the shallow end of success, perhaps losing very little but not making much either.

Offer Innovation: A Better Way

As a rule, the best way to experiment in this field is to maximize your exposure to positive (beneficial) risks while minimizing your exposure to negative risk. The best way to do so in the omnichannel age is to experiment with offer innovation, a series of micro-tests that you can use to analyze the small-scale performance of diverse offers and messages across channels. Instead of shifting your entire marketing campaign in one great, lurching motion, you’ll be testing many ideas at once and keeping an eye on any promising developments without risking the bulk of your business. The gamble you’re taking is absorbing little failures (i.e., a particular method falls flat) in hopes that you’ll stumble upon a new, reliable way to connect with a certain kind of customer.

Ironically, realizing the limitations of data analytics will help you make better decisions and make more calculated risks. Don’t be afraid to make small mistakes, especially when there’s a large potential payoff at the end.

29 Aug
2013

5 Tips for Building an Omni-Channel Customer Profile

Creating an Omni-Channel Customer Profile can be Easy, if you Start with the End in Mind

With all the clutter of marketing messages, customers are demanding relevance. At the same time, marketing teams are struggling with some of the basic foundational components because of all the disparate sources of data available both internally and externally { there I stayed away from saying big data } …The ability to communicate with your customers in an individual manner is becoming table stakes in both online and offline marketing, what we at Nectar Online Media like to call Hyper-Personalization. Whether you use the term 360-degree customer profile or omni-channel customer profile, the goal of creating a unified picture of your customer’s data is foundational for accurate customer analytics and also hyper-personalizing your interactions with your customers.

In this post, we thought we’d provide some of our tips for how to build an omni-channel customer profile. If you start with the end in mind (i.e., your marketing or business objective), it will be a lot easier.

# 1 Know Your Goal — It sounds simple and we’ve heard the same tip for many other areas, both in business and personal life. As it relates to customer analytics and hyper-personalization, the goal is based on how you want to use the customer data and, therefore, impacts the data sets you really need vs ideally want to have. By selecting the right data sets for building your omni-channel customer profile, your internal business partners and external providers can be much more focused (and efficient).

For example, Nectar works with an online ecommerce retailer, hipcycle.com, to help personalize their digital communications { if you’ve not checked out Hipcycle before, I strongly encourage you — you won’t be disappointed }.

Based on understanding Hipcycle’s marketing business objectives, we were able to hone in on the right data sets to integrate. These data sets were primarily based on transaction, crm, and behavior on hipcycle.com. While data sets like social media and household data provide an interesting lens, these data sets were not going to add incremental benefit & results that outweighed the effort.

# 2 Marketing & IT Need to Collaborate — While the marketing team can help define business objectives and outcomes based on using the omni-channel customer profile, the marketer’s technology counterparts are pivotal in articulating in identifying road blocks ahead of time and developing the right data streams.

If the marketing group is defining the customer analytics and hyper-personalization needs, involve the technology teams early on in the process to be better informed on constraints, timelines, and the ‘art of the possible.’

# 3 Choose the Right Technology — Different technologies are appropriate for different business objectives. If you are aiming to build an omni-channel customer profile, our experience has found a traditional SQL (row & records) environment is not optimal. Why? In a nutshell, because of all the different data sources and likely millions of records, there is a fair amount of processing a system needs to do before you can see the results (analysis, reports, recommendations, etc.) that you are looking.

At Nectar Online, we’ve found a noSQL environment is much better suited for storing data records for the purpose of utilizing that 360-degree view of the customer. The primary benefit is that data is stored in an array … so at the instance when data needs to be processed for an individual customer, information is ready.

# 4 Relevant Refreshes — An important component to evaluate is the frequency of your omni-channel customer profile refreshes. Depending on your goal { see how knowing your objective comes back in }, a different refresh or re-scoring frequency may be needed potentially at a data set level.

For example, if you are using social data to identify key life events of your individual customers, a weekly refresh might be sufficient. However, if your goal is to create a trigger event based on an abandoned cart, having this behavior refreshed in real-time is important.

# 5 Test & Learn — In the same way that a customer’s behaviors, habits, and interactions change over time, so do requirements on how you are using the customer profile data. By having a specific testing and learning plan identified prior to embarking on building your initial omni-channel views, the marketing and technology teams can better determine what elements are important for consideration.

In addition, as the customer profiles continue to be refreshed, you will be able to identify additional revenue and engagement driving opportunities. The testing and learning plan establishes the right set of performance indicators for what you are looking to accomplish.

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I’d love to hear from you and learn about your experience building omni-channel customer profiles. What other tips have you seen be helpful?

Drop us a note or share a comment below.

12 Aug
2013

5 Reasons You Know You’re Ready for a Data Management Platform (DMP)

And, Just Because You Have ‘Big Data’ is Not One of The Reasons to Get a DMP

Wondering where I’m going with this post because I said having Big Data is not one of the reasons to get a Data Management Platform (or DMP)? Read on …

The term Big Data is now like consultant — it means different things to different. { I’m in that group of folks that uses the term big data to describe our company … so, guilty as charged }. During a number of our meetings, the topics of data almost always comes up, whether it is about clean, dirty, big, small, or no data.

So, I thought in this post, I’d write about what a data management platform is and why many companies are moving from thinking about big data to data management.

Before I go much further, let me provide a brief description about what a data management platform is. To provide a perspective: a DMP is a system of processes and technologies that manages (or normalizes) your data to allow the business user to extract value / information easily from that aggregated data set.

Said another way: a DMP allows you to actually get your job as a marketer done (whether that is finding an insight, generating a report, building a model or executing a campaign).

How do you know your company needs a DMP? Here are the top five ways { Letterman countdown style }:

# 5 … You’ve Got More than 1 Data Source that is Updated Frequently — AT&T has Big Data because it has records about millions of us and every one of our calls logged … but so does MOOYAH Burgers (a fast-growing restaurant chain based right here in Dallas where we’re located). An important trait about the data, though, is that the information is updated frequently creating a need to continually process & normalize the data.

I’ve yet to come across a business that only has 1 data source … this particular reason means there are lots of companies out there that need DMPs.

# 4 … Your Data is Sitting With More Than 1 Vendor — Heard of the story from a marketing colleague where they say, “Well, I have to wait for agency X or company Y to give me a flat file so I can run my analysis”? Well, if you have more than 1 vendor you work with that produces data for you { think agency, social media platform, media buying, email operations, etc. } then maintaining a centralized data management platform is a strategic imperative to both ensure you have data that is well-connected but that you can also readily enable cross-channel or cross-data source analysis.

# 3 … You Have Marketing Operations that Rely on “Real-Time” Customer Data — Basically, if you have a need for ‘production analytics’, the customer data management platform ensures that your data sources are loaded, processed, and normalized. The normalized data can then be readily used for analysis, reporting, or modeling to serve as inputs for a variety of activities & functions.

Example of marketing activities that require product analytics include:

> 1:1 mobile app recommendations

> Populating executive dashboards

> Churn or attrition modeling

> Customer life cycle behavioral triggers

# 2 … You are Focused on Marketing Objectives that Drive Revenue, Engagement, and Loyalty — { This would be our # 1 except that I have an even better # 1 in our top five reasons countdown. } There are so many different data sources, lots of different tools, and more data than you can have easily tied up into a pretty little package.

The problem is, as marketers we’re spending more & more of our time getting information ready for decision making and NOT enough time evaluating the data for decision making. Consequently, our role as a marketer is changing rapidly to spend valuable resources on data vs traditional marketing tactics.

Implementing a robust customer data management platform allows marketers to focus on marketing again.

# 1 … You’re a Data Rock Star and Don’t Have a Programming / Analytics or Related Degree — You are the go to person in your team just because you were able to build that awesome analysis { in Excel } by mashing together those 3 data sets about the product, customer, and behaviors. Everyone else is in awe and you were up for multiple nights in a row cleaning and doing all of those Lookups! { You know who you are! }

Going back to # 2 above, while you are a rock star for trudging through the data and likely getting hi-fives for having a reputation of getting things done, how much of a bigger rock star would you be if you were able to spend time devising that new campaign that grew engagement 15% or innovating on an existing promotional offer set, reducing costs 10%?

It’s time for that DMP.

Have any other reasons you’d add to the list? Drop me a comment below.