How To Boost ROI With Data-Driven Marketing

Are you ready to harness the power of big data in your marketing?

“Big Data” is everywhere and corporations are taking advantage of it to improve different aspects of their businesses and operations.

This includes extracting insights from a large amount of consumer data to drive marketing initiatives in the relatively new discipline of “data-driven marketing,” which is becoming increasingly popular among businesses because of its effectiveness.

What’s data-driven marketing

Data-driven marketers extract marketing insights to analyze customer data and make decisions. They use consumer information to target media purchases and refine creative messaging which can further optimize the effects of their campaigns.

Such practice is made possible by the increasing the quality and quantity of the marketing data available through a variety of digital touch points and marketing channels and the personalization, distribution, and automation technologies that can help lower cost and increase efficiency.

The use of consumer data helps marketers deliver the right message to the right audience at the right stage of their buyer’s journey through the right channel to maximize the ROI of their marketing budget.

The collection of data from these marketing campaigns also allows marketers to understand what works and what doesn’t – creating a virtuous cycle so they can further refine their strategies to optimize results.

The benefits of data-driven marketing

The initial effort of collecting data and setting up the technologies can seem daunting if you’re new to data-driven marketing.

However, once the systems are set up, you will be able to reap the myriad advantages of data-driven marketing in no time:

1. Deliver the relevant marketing message

If you’re delivering irrelevant marketing messages to your customers, you could be doing more harm than good. 74% of online consumers get frustrated with websites when the content doesn’t reflect their interests.

In addition, email campaigns with personalized content tailored to the recipients’ preferences and habits result in 6 times higher transaction rate, 29% higher unique open rates, and 41% higher unique click rates.

Being relevant is the key to standing out in today’s cluttered market because it allows you to deliver the right message to the right audience at the right time to maximize engagement and conversion.

2. Monitor campaign performance

John Wanamaker once said, “Half the money I spend on advertising is wasted; the trouble is I don’t know which half.”

With data-driven marketing, this quote will become a thing of the past.

Technologies that make data-driven marketing feasible also allow you to collect detailed metrics on the performance of your campaigns and measure them against key performance indicators (KPIs) to ensure that your marketing strategies are meeting your business objectives.

Data-driven marketers can track their marketing dollars along the customer journey “all the way to the bank.” This information can help them quantify the effectiveness of their strategies and get leadership support for their initiatives.

3. Optimize marketing strategy

By collecting real-time data from multiple customer touch points, marketers can easily point out what works and what doesn’t and make adjustments to respond quickly to the audience reaction and sentiment.

Data analysis allows marketers to fine-tune their messaging, distribution channels, or offers while a campaign is in progress to optimize results.

The foundation of data-driven marketing

Data-driven marketing strategies are only as good as your ability to collect and utilize your customer data.

A robust customer data management platform (DMP) allows you to gather customer information from a variety of touch points and manage all the data in one centralized location.

From there, you can create highly targeted marketing campaigns based on each individual customers’ preferences and collect the necessary data to further hone your strategies.

I’ve Got the Customer Data…. Now What?

Leverage big data for your omnichannel marketing strategies

Big data is everywhere, but do you know what to do with it?

Marketers are tapping into customer data to generate insights that have never been available before.

If you aren’t leveraging this gold mine of information, you’re missing out on a vast opportunity to surprise and delight your prospects and customers.

The problem for most marketers isn’t the lack of such data.

In fact, you’re probably sitting on a large amount of information gathered from various customer touch points—website, email, social media, call center, live chat, or in-store interactions.

All this information can be very overwhelming if you don’t have a plan to utilize it for your business.

What can you do with this data to advance your marketing and sales efforts?

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Optimize Pricing at Customer-Product Level

McKinsey has found that on average, a 1 percent price increase translates into an 8.7 percent rise in operating profits.

Yet up to 30 percent of all pricing decisions made by companies fail to deliver the best price.

The ability to analyze customer preferences and behaviors can help you fine-tune pricing of each product for individual customers to maximize profit.

Attain Greater Customer Responsiveness With Relationship-Driven Strategies

A Forrester study found that 36% of B2C marketers are actively using analytics and data mining to plan relationship-driven strategies.

These strategies have been found to increase customer acquisition, reduce customer churn, and improve existing products for more sales.

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You can leverage data and implement the insights with a robust customer relationship management (CRM) platform to build relationships with your customers. The key is to give them what they want when they want it to increase engagement, loyalty, and customer lifetime value.

Embed Intelligence Into Contextual Marketing

By bringing together evolving customer preferences and interactions across channels, marketers can now take contextual marketing to the next level.

When a customer enters a search term on your website or app, you can combine the search term with the customer’s purchasing history to improve the relevance of the search results and product recommendations.

Develop Customer-Centric Strategies

The use of customer data and single customer view  turns the focus from executing discrete campaigns to managing customer lifecycle.

Through improving customer experience across all touch points, companies are better positioned to cultivate long-term relationships that lead to greater customer loyalty and lifetime value.

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Optimize Go-To Market Plans Using Geoanalytics

Customer data can show you how demand differs across geographic regions.

Using this insight, you can align your sales and go-to-market strategies with territories that have the greatest sales potential to increase sales, improve supply chain efficiency, and reduce cost.

Identify VIP Buyers To Increase Sales

By analyzing average purchase amount, lifetime value, acquisition cost, and retention, you can identify your “VIP” customers that are of highest value to your business.

You can then focus your customer care efforts to nurture relationships with this segment with a personalized shopping experience and targeted content or offers to increase engagement and loyalty.

Deliver Consistent Omnichannel Customer Experience

The use of robust Customer Data Management (CDM) technologies is making it possible for businesses to orchestrate excellent omnichannel customer experiences across a selling network.

This allows you to effectively move prospects along the buyer’s journey to engage with and purchase from your brand.

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The technologies for tapping into the power of customer data are now available at your fingertips.

You can finally collect data, collate information, generate insights, and turn them into implementable strategies that will dramatically increase your marketing ROI.

Discover how NectarOm’s suite of tools can help you leverage customer data and take your marketing to the next level.

How Omnichannel Retail Is Changing the Grocery Industry

Amazon’s acquisition of Whole Foods in June 2017 sent a shockwave through the grocery industry. What does it really mean for retailers in the grocery business?

The merger highlights the symbiotic relationship between online and physical stores. Consumers no longer consider them as two distinct experiences but two sides of the same coin that work together to provide a seamless service.

For most grocery retailers doing business at a physical location, the idea of adding an online component can be intimidating.

However, omnichannel retailing has become an essential strategy if you want to stay relevant and competitive in the market.

There’s no question that online shopping is rapidly gaining market share – 51% of Americans prefer to shop online while eCommerce is growing by 23% year-over-year.

Not to mention, consumers are demanding a seamless shopping experience between brick-and-mortar stores and digital channels so they can shop whenever they want, get the best price possible, and have the merchandise delivered to their doorsteps when they want it.

In a recent study of 46,000 shoppers published by Harvard Business Review, 73% of them use multiple channels during their shopping journey. In addition, these customers tend to be more loyal and spend more.

Within the context of the grocery industry, a survey conducted by Unata, 31% of US consumers are likely to shop for groceries online and 80% who have done so will do it again. Meanwhile, 68% who have shopped online are likely to switch to a grocer that provides a better digital experience.

Omnichannel Personalization

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Even though online grocery retail is gaining market share, there are some inherent challenge in the business model. eGrocers often face the challenge of missing out on attracting customers with a tactile, personal experience. They also need to address the “last mile” of distribution while staying profitable.

The convergence of online ordering and offline shopping is emerging as the solution, as Amazon’s acquisition of Whole Foods demonstrates.

This merger has solidified omnichannel retail as the strategy for grocery retailers who want to stay competitive and profitable.

Omnichannel retailing is a tantalizing opportunity for many grocery retailers, reinforced by the technology now available to create a seamless and personal customer experience without breaking the bank.

For instance, the logistics of same-day delivery is now economically feasible while the technology to deliver an omnichannel personalized shopping experience is available to retailers at an affordable cost.

An omnichannel strategy meets your customers’ demand for having the personal experience of shopping in a physical store while enjoying the convenience of managing their orders online and getting groceries delivered to their doorsteps when they need them.

To stay competitive and relevant, grocery retailers need to cater to their omnichannel customers. Here are a few key strategies to keep in mind:

  • Offer Multiple Touch points: Omnichannel customers like using a variety of touchpoints in different locations and combinations. Every component – whether it’s a smartphone app, an in-store interactive catalog, or the retailer’s eCommerce website – has to deliver a coherent and seamless customer experience.

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  • Encourage Customers to Use More Channels: The Harvard Business Review study revealed that omnichannel customers are more valuable. They spent an average of 4% more in-store and 10% more online when compared to single-channel customers. In addition, customers who use 4 or more channels spent an average of 9% more in-store compared to those who use only one channel.
  • Build Loyalty With Personalization: Online channel allows retailers to gain valuable insights into individual shopper’s preferences, habits, and personalities. To make the most out of this goldmine of data, use a Customer Data Management platform. This will allow you to construct 360° customer profiles based on real-time interactions across all channels so you can deliver the most timely and relevant services, information, and product recommendations to your customers to build relationships and increase sales.

As a grocery retailer in this digital era, you’re competing not only with local grocery stores but also national chain retailers.Implementing an omnichannel personalization strategy not only helps you better serve your customers and increase sales but also contributes to better inventory management, improved demand sensing, and streamlined customer support so you can stay competitive and profitable.

Building an Omnipresent Restaurant Experience

THE RESTAURANT ECOSYSTEM HAS CHANGED AROUND YOU

Customers interact with your brand long after they walk through the door or finish their last bite at your restaurant. Now customers experience your brand in more ways than ever – online, in-app, in-person and at home. The question is how do you capitalize on all those interactions to increase sales?

Easy powerful personalization makes it easy for restaurants to build, operate and scale their omnichannel personalization capability.

Click HERE to learn more 

Three Reasons Why Email Marketing Really Works

Benefits of Email Marketing

In a world where social media, blogging, and SEO take precedence, email seems like it would be on its way out the door. However, with the business world obsessed with acquiring consumer data, email marketing is not only useful but essential to companies.

Email marketing is one of the most effective and reliable channels for marketers to interact with customers. Here are three reasons why email marketing really works.

1.Easy Way to Reach Mobile Customers

Email marketing is an easy way to reach consumers on mobile without investing in new technology or software. Email channels already exist and are a traditional medium of connection, making it simple to reach consumers. According to a report by Pew Research Center, 52% of cellphone users in the U.S. access their emails via mobile phones. With many consumers constantly on the go, email marketing offers companies a way to send a greater volume of content to consumers in a quick and efficient manner.

Email is also accessible on devices other than mobile phones. According to a study done by Forrester Research, consumers opened 42% of retailers’ emails on smartphones and 17% on tablets. Essentially, nearly 60% of email marketing messages also double as mobile marketing messages. This versatility puts email at an advantage in comparison to text messages and SMS messaging. Consumers are more inclined to open email messages because emails are more accessible. Texting, on the other hand, is only available on mobile devices. Email is also free for the consumer and company while texting risks the chance of an incurred charge on the customer’s end. This diminishes the satisfaction of customer experience and can drive customers away. Also, email marketing is an easier access point for consumers and conveys more content that is useful to consumers.

2. Email is a Transactional Medium

Consumers see emails as a way to get offers, coupons, promotions, and in-stores sales. Email marketing deals drive in-store sales, making product emails key to getting consumers to engage with a product. A study performed by Nielsen found that 27% of online shoppers subscribe to emails in order to save money. 64% of consumers have printed out coupons found on email marketing campaigns.

Since customers expect to see offers and promotions in product emails, they are more likely to be in a buying state of mind. In turn, this can turn into increased revenue opportunity for companies. E-coupons are becoming a huge business with the growth of online sales, and email marketing is at the heart of it. Email marketing reaches out to online bargain hunters and provides consumers with a way to save online and in store. The transactional framework that email marketing provides also allows companies to personalize more toward consumers, engaging them more and further increasing sales opportunities.  

3. Tells You What Works

Email marketing allows companies to see what works and what doesn’t. The data obtained from email marketing provides metrics to see how emails are performing and what companies can do to improve email strategies. These insights allow companies to market their products smarter and better. Learning what works because of email marketing also gives companies a better understanding of the needs, interests, and desires of the consumer base. Companies can see the clickthrough rate of an email, which can then provide data as to how shoppers interact with the online shopping platform. Companies use the information provided by email marketing to not only cater to what consumers are looking for, but to better improve the interaction between consumer and company. By using email marketing, companies can track customer activity and better serve their interests.

Some say email marketing is dead. However, email marketing works. It keeps customers engaged and opens channels of communication between the company and its customers. With email marketing, companies can be in the right place at the right time.

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.

  1. 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.

  1. 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.

  1. 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.

 

Nordstrom’s Omnichannel Success

Culture of Innovation

Innovation is risky business, but not innovating is even riskier. In a world where technologies are rapidly changing, companies must be willing to evolve in stride. Several companies are doing so by shifting to an omnichannel marketing strategy. Omnichannel approaches are synchronizing the shopping experience across mediums for retailers.

Some retailers have successfully incorporated omnichannel strategy into their marketing strategy. Over the next few weeks, we will examine a trilogy of retailers and the wins they have achieved through an omnichannel approach.  Today, we are going to focus on one of the most popular luxury retailers- Nordstrom.

Part I: Nordstrom

Nordstrom worked to reinvent itself around the omnichannel shopper. According to the President of Stores, James Nordstrom, retailers need to focus more on the total experience than strategy for specific channels; “[At Nordstrom, we] don’t think the customer is loyal to channels. We don’t hear customers talk about channels very much. Customers value experiences.” Consequently, this belief is guiding Nordstrom’s omnichannel strategy towards creating a synchronized and seamless customer experience.

Rewards Program

The omnichannel focus of the Nordstrom Rewards loyalty program gives customers a chance to gain points regardless of which channel they purchase items.These loyalty members can also then track their activity from anywhere. Shoppers can use their mobile number as identification instead of memorizing a loyalty account number. An omnichannel approach to the rewards program has given Nordstrom a more open policy focus. The open policy focus allows shoppers to pay in whichever method they choose, shop whichever way suits them and still gain more loyalty points and rewards. Nordstrom shoppers are winning more, ensuring customer loyalty.

Social Media Influence

The luxury retailer is also approaching shopping from a multichannel perspective, and one of their innovative initiatives has been integrating with the mobile application, Instagram, and social media/organization platform, Pinterest. Nordstrom has made it possible to buy items from Instagram and find items based on Pinterest favorites. Instagram has been a modeling platform for retail items. However, a grievance shoppers have, is the inability to locate and buy the items presented on Nordstrom’s Instagram account. The retailer’s Instagram account now features a link which directs customers to Like2Buy, a platform that makes Instagram shopping easy. All of the items available for sale from the retailer’s feed are displayed as an elegant grid of photos. Shoppers can then scroll and “like” items, which are curated into a personal wishlist or shopping cart. 

Pinterest is a social media platform which allows users to “pin” things they like or want to “boards” for later reference. It indexes all the different items, ideas, and interests we come across online. Pinterest gives Nordstrom insight of which items are popular among shoppers. Nordstrom has brought these “pinned” items to their physical stores. Stores display commonly tagged or “pinned” items from Pinterest. The luxury retailer also adopted that feature on their website. Shoppers can now see a “Top Pinned” landing page on the site. Nordstrom doesn’t limit themselves to a single channel. The retailer has effectively leveraged their social media user base to enhance the shoppers’ experience by including the favorite and trendy items on Instagram and Pinterest in their stores.  Not only do customers see more products, but they are buying more at one time and are coming back for more of the items they love.

Nordstrom had experienced success by understanding that customers value an enhanced experience. Nordstrom has provided its customers with a retail experience that spans online, offline, and social media outlets. Shopping has become a synchronized and seamless experience – Customers can easily find the products they love and find them from anywhere. Tune in next week as we take a closer look at Neiman Marcus and how they are using omnichannel marketing to benefit their shoppers.

 

Serving Up Omnichannel Success

Lessons Learned From Omnichannel Dynamo Chili’s

With different mediums of shopping, companies have to create a seamless shopping experience across the board. As a result, every aspect of the consumer journey, from browsing to purchasing, has to be a smooth transition, both online and offline. People demand an omnichannel experience that is social, quick, easy to use, and valuable to the consumer.

Technological creativity seems to have more of an impact than a brand name. Customers are no longer impressed by a shiny new app of their name being personalized in an email. The 21st-century customer expects brands to create an omnichannel shopping experience that encompasses all online and offline interactions. 

Let’s take a look at how Chili’s is using omnichannel and a little technical creativity to create the ultimate dining experience

Wait in line….from home

Gone are the days of waiting in line at Chili’s to get a table. The casual dining restaurant has partnered with NoWait to power their new mobile waitlisting feature on the Chili’s app.  Through the use of the app, Chili’s can provide an enhanced dining experience. For diners who wish to enjoy their favorite menu items during peak hours. With the waitlisting feature, diners can reserve a spot in line and check up on wait times from any location or mobile device.

The waitlisting capability has given Chili’s an advantage in restaurant-diner relations. By combining the mobile and in-restaurant experience, diners have convenience and speed at their fingertips. The wait listing feature allows Chili’s to have faster table turnover and accurate estimates for wait times.  Guests can not only check up on wait times but can also go ahead and order what they would like while still “waiting in line” while in the app. With combo offers and other special menu offers, Chili’s now gives diners a way to get their food without waiting in line and with little preparation time. Chili’s use of the waitlisting feature creativity uses mobile to optimizing the in-store dining experience.

 

Social Media Embrace Social Media 

Across social media platforms, food and beverage mentions are the most popular. The way customers review restaurants on social media fundamentally changes the way restaurants are approaching social media. According to a Netbase report , Chili’s is one of the most popular brands on social media.

So what did Chili’s do right to make them among the top 15 most popular social media brands?

Chili’s embraces the way food and beverages are consumed from a social media perspective. It is no longer enough for a restaurant to have great written reviews. Presentation and picture quality is the new buzz in food reviews. Because of this shift, Chili’s has made changes to the brick and mortar restaurant to garner positivity on the digital landscape. Even the way food is prepared is being changed to be more appealing in photos. For example, French fries are served in stainless steel bins, ribs are neatly placed on plates, and even the plates themselves have been revamped to be prettier in photos.

The goal is to make menu items look more tempting in pictures, increasing the number of mentions and shares online. This improves Chili’s online presence and visibility on high traffic platforms like Instagram.

Tabletop tablets 

Smartphones and tablets have made access to information and services available at our fingertips. The demand for convenience and speed has started shaping the way restaurants are tackling food service. While online ordering and delivery have made the eating-out experience easier, customers lose the dining experience. As a result, sit down restaurants are now introducing the tabletop tablet. This system allows diners to place food and drink orders through a provided tablet. Diners now have control of their dining experience. These tablets streamline food service without replacing the personal interactions with servers. With the tap of the finger, dinner guests can now input orders and requests such as waiter service, beverage refills, and chats with the chef.

This year, Chili’s implemented over 70,000 tablets across its restaurants to provide a smooth, reliable dining experience. The smart table top option is tightly integrated with the Chili’s ordering system, ensuring that everything is up to date. The tablet displays the most relevant and updated menu items, prices, and descriptions and can even show customized consumer reviews of the items that you have ordered.

The ability to omnichannel approach to ordering and paying for food through a tablet has boosted the volume of orders. The speed with which customers can pay with the tablet has also increased table turnover. As a result, Chili’s can seat more customers than before.

Chili’s has done a fantastic job of leveraging technological creativity to create omnichannel success.  Have you seen other restaurant brands using omnichannel to enhance their customer experience? Let me know in the comment section below.

How Much Can You Know About Digital If You’ve Never Been In A Fight?

The first rule of Fight Club… you don’t talk about Fight Club.

The first rule of Digital Fight Club… you tweet, Snapchat, Instagram, Vine, Facebook, live stream, and email about fight club (Oh, and don’t forget to use the hashtag #DDFightClub & #DigitalDallas).

Last week the NectarOM team grabbed ringside seats to Digital Dallas’s Digital Fight Club and watched ten digital dynamos go head-to-head in five “fights” putting on the ropes some of the hottest undecided topics in technology today.  In other words, providing the ultimate panel experience.

The Fighters 

 

“Well, what do you want me to do? You just want me to hit you?” 

 

The Referees

 

Project Mayhem – The Fight Format

The fighters didn’t hold back, for one minute each fighter stepped into the ring and presented their argument, followed by a 30-second rebuttal, and answered a question from the referees. This sparring format highlighted each fighter’s verbal communication expertise and how events can use digital to interact with the audience. After punches had been thrown, the audience and judges used a web app to place their votes to crown the winner.

 

The Winners & Losers

Fight Club Digital Dallas Winners

 

For all you marketers that couldn’t attend, you’re in luck.  Digital Dallas plans to release a video of the event so you can see the fighters in action.

 

Until then get the blow-by-blow recount.

 

5 Insurance Companies Crushing It With Omni-Channel Personalization

 

As omni-channel personalization moves to center stage in the retail markets, insurance companies are forced to join them. The switch is less about staying afloat with the market trends, it’s become essential for remaining as a business.

Some insurance companies do this right, growing their consumer base through targeted advertisements, appeal of their support, and personalized interfaces. Others are still trying to play catch up in the fast paced digital market.

 

The Consumer Journey

The battle starts here. So many fronts have opened, thanks to an online world, that reach consumers at various levels. Social media, advertisements, and search engines all attract potential clients and start them on their journey.

Where many companies fail is guiding them through that trip. While customers view every interaction with a business as a collective path, leading them to their desired end-state, insurance companies continue to see each event as singular. The agent is in a different department than the IT team, so how would that affect the customer?

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The insurance companies that are dominating the market and continue to grow understand how to integrate their different branches into a unified front. They see the IT guy as part of the journey rather than a separate road the consumer can travel.

More so, in a market where empathy can breed success, customers are starting that journey with well defined interests. Life insurance to help their family after a death. Vehicle insurance to get them back on the road after an accident. Whatever type of insurance they’re requesting is important to them. Identifying this and being able to track it through each of these departments can better assist the customer.

McKinsey reports that “more than 80 percent of shoppers now touch a digital channel at least once throughout their shopping journey”. Try to say the IT guy isn’t an important part of that path now.

More than 80 percent means it’s not only important to be segmenting the audience for personalization, it’s become vital. In the same report, McKinsey stated that, “satisfied customers are 80 percent more likely to renew their policies than unsatisfied customers.”

Through the collection of data points, insurance companies can personalize their approach to the individual, building a crucial sense of trust by tending specifically to the customer’s needs.

 

Personalization for Insurance

A study by Accenture found that “78 percent of customers say they would share personal information with their insurers to obtain personalized services.” Over a third also claimed they’d willingly pay more for those services.

Personalization isn’t the way in, it’s the way up.

Accenture accurately breaks down the method for personalized interaction with their “4 R’s of Personalization” .

Recognize, Remember, Reach, Relevance.

All personalization starts with the collection of data and insurance companies are no different. The hard part is turning the data into actionable content.

Insurance companies have the opportunity to easily acquire implicit and explicit data. Offering a free quote can be a window to more information than you can use at once, but it’s openly granted by the customer. Through social media engagement and web behavior, insurance companies can study interactions to further develop a marketing strategy and grow their reach.

What’s unique about the insurance market is the agent’s “face to face” interaction with the customer. Emails can be sent from the business’ distribution list to engage a customer, but an agent is able to follow through. They can collect information from the emails and store it under the individual account so any other agent can quickly treat the customer as though they’ve worked together all along.

Exclusive Bonus: Download the FREE overview of the Top 5 Insurance Companies that are Crushing It with Omni-Channel Personalization

Other techniques involve custom 800 numbers that are specific to a page. When the customer uses that number, insurance companies can identify where the customer found it and tailor the interaction to fit their needs.

 

Personalization for Customer Service

The opportunity to create a more wholesome interaction with the customer is becoming the spear that many companies use to impale themselves. McKinsey saw that the leading insurance companies were the ones delivering better customer experiences and gaining clients who’d grown unhappy with their current provider.

Rapport with the customer grows more important every year as society moves towards a larger digital presence. It’s easier than ever for individuals to find better rates and promotions with other companies, forcing insurance agencies to monitor competition and focus a more direct approach to keeping the customer.

Through personalization, companies can increase brand loyalty and make it harder for other companies to sweep up their client base. Creating that awesome experience can pay for itself, sometimes more so than advertisements and events.

Emails should offer help to the customer’s specific problem, not generic sales. If a customer repeatedly calls rather than using messaging systems, an actual conversation should be held.

These are just a few examples, but when you link them together, they become even stronger.

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Omni-channel Personalization

Every personalization technique is wasted if they’re not integrated into a single system. Knowing a customer’s name does nothing unless you track his issues and engage them. With tools like linked Facebook sign-ins, it’s easier to track customer likes and status updates.

Through requests for information or quotes, social media, or browsing history, insurance companies are able to develop a plan for each customer. As customers travel along their journey towards a purchase, companies are using all of these to collect information to engage with them.

With the data collected, they’re able to increase conversions, brand loyalty, and customer satisfaction, while lowering wasted quotes and negative feedback.

All of the companies listed below have an omni-channel personalization strategy. But additionally, they study market trends to see where advertisements and introductions to their business can be made. You’ll be surprised with how some of the companies collect data and put it to work.

Check out these other ways the top dogs in the insurance market have added channels to their business’s personalization.

 

1. State Farm Group

On their mission page, State Farm acknowledges their customers want a personalized experience. It’s not surprising they achieve it. Their collection of information is best seen through some well developed applications.

State Farm constantly pulls data through their personalized mobile app. The app offers driving routes, weather reports, and reminders for things like A/C filter changes. When it is time for a filter to be swapped, they’ll provide you with a list of the closest stores to purchase one.

When a customer opens the app, they’re seeing a page unique to them, but still connected with the State Farm name.

They also maintain a website called ChaosInYourTown.com where users can enter their actual home address and watch a robot destroy it. This was done as a different way to demonstrate that they’ll always be there for you.

Both of these gather data and put it to immediate use, improving the customer’s experience. Although the latter is more entertaining, it’s a unique technique that has paid off, driving them traffic to other sources and increasing brand awareness. It’s helped to assist them in leading the insurance market by billions of dollars.

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2. Allstate Insurance Group

Allstate uses applications in their own way. Using their mobile app can use the geo-location feature to request assistance after having car trouble. They can also log all of their maintenance requirements and details which can help diagnose the problem.

Along with the geo-location features, if you’re waiting for a flight at an airport, you may get an offer for travel insurance.

While the location data is essential to a lot of their market, they still use other points to recommend different products. Their ‘Personalized Insurance Proposal’ uses and collects data on customers in order to give them a plan that meets the needs unique to them.

These tactics have helped with customer satisfaction overall, allowing Allstate to maintain their enormous client base.

 

3. Progressive Insurance Group

In 2007, Progressive was proud to offer a personalized experience for their customers. They identified early that treating each customer individually would take them far.

In the same manner, they’re well known for their ’Name Your Price’ program. It pioneered the idea, giving customers a personalized plan based solely off what they wanted to pay.

If leading the way on those fronts wasn’t enough, Progressive, was one of the first to use telematics. This long distance digital information allowed them to see actual driver behavior and reward customers based off their proven records. Discounts were granted for safe driving and, according the a case study by J.D. Power it increased customer satisfaction as a whole.

These, along with their ’Snapshot’, have kept the company growing at a significant rate and it continues to look for ways to improve.

 

4. Farmers Insurance Group

Farmers Insurance took a very different approach to omni-channel personalization. They partnered with the developers of the FarmVille Facebook game. Through this method, they were able to increase brand awareness and prove they could reach out to customers in various ways.

The strategy allowed them to collect data that users offered by having open social media accounts and connect on a different level. Because they were trying to engage those specific people, it was easy for them to interact. Through a sweepstakes, they were able to show people from the game to their website, offering more chances for conversions.

By coupling the game with a sweepstakes, Farmers more than doubled the amount of likes on their page and was able to gather beneficial information about their fans.

Farmers also became the first company to put a hashtag on a vehicle in a NASCAR race, branching out in a very different way.

 

5. GEICO

If anyone isn’t familiar with the company that in “15 minutes could save you 15% or more on car insurance” hasn’t turned on a television or radio for years. GEICO, through more than a descriptive slogan, has become a frontrunner in the auto insurance market.

GEICO quickly understood that personalization was the key to their marketing strategy. Through systems within their app, they are able to maintain user information and cut the undesirable wait times from customer interactions.

With their Quick Messaging addition, customers can leave messages for representatives and leave the app. When an agent has a reply, they receive an app push notification. This allows customers to take care of the things they want to, rather than acknowledging hour waits.

More prominently, GEICO’s spokes-character was spawned from their data collection and became one of the best known characters in advertising. After running an initial series of ads, they were able to correlate a growth in customers.

All of these businesses use omni-channel personalization in similar and different ways. The goal for insurance companies is to create a better experience for their customers. Because rates can only drop so low, the best way do this is with exceptional service. Using data, they can tailor interactions to specific individuals and do just that.

Exclusive Bonus: Download the FREE overview of the Top 5 Insurance Companies that are Crushing It with Omni-Channel Personalization