Customers are inundated with ads and offers all day long at work, at home, during leisure activities, while driving, etc. If you are not offering products and solutions that are relevant to their needs, you are wasting your advertising dollars. Data modeling not only identifies the best prospects for your business, but it gives you key insights, so you can personalize marketing campaigns and capture your audience’s attention.
Capture the Data
Before you can start curating customer experiences, you need to know who your clientele is. You might have a working knowledge, but in order to optimize your marketing efforts, you really need to collect customer data and analyze it. See what the numbers tell you. A customer analysis will confirm some of the things you already know, but it can bring to light a wealth of new information and how that data correlates. Knowing what impacts your customers buying behaviors and why is critical to creating and maintaining successful campaigns. Customer data is all around you, but it is of no benefit unless you capture it.
Popular data collection points are at the close of a sale, website visitor information, and social media interactions. You can collect data through loyalty programs, app interactions, customer surveys, online reviews, etc. Wherever you can harness data, setup systems to collect this valuable information. Always be mindful of how the data collection process impacts your customers’ experiences with your brand. You don’t want to create labor intensive or intrusive data collection processes that deter them from completing their transaction.
The most important information to collect are names and postal addresses. Emails and phone numbers are your next priority. If you are collecting transaction data, include what products or services they purchased. For website data collection, consider looking at what pages they viewed and for how long and what items they interacted with on your website. When collecting customer service data, look at what questions they asked and whether or not they moved forward with completing their purchase, etc. Gathering all of this data will give you an in-depth view of your customers, so you can personalize your marketing for them.
Customer Personas
When data scientists model your customers, they review thousands of data points and identify important similarities. Their findings will be compiled into a customer profile report, giving you all of the information you need to create customer personas for each major segment of your clientele.
The model enables data scientists to score your prospect list and locate which households on the file look most like your high-value customers. With these insights, you can choose the top prospects to target as well as identify which records you should trim from your marketing efforts.
Customer Behavior
Once you have your data collected and profiles in hand, it’s time to see how your high value customers behave. What products and services are they interested in most? How frequently do they buy? Is there a pattern to the sequence of products they buy? Who responded to your marketing? What channels were used to reach them and how did they interact with them?
Data modeling analyzes customer behavior and points out key insights into how your top consumers interact with your brand. Use this information to build strategic campaigns and personalize your marketing. Behavior analysis will also let you know which marketing channels to use in order to reach your selected audience.
Not only can you learn which marketing channels and sequences are most effective, but you can also know what products to offer. By analyzing buying behavior, data modeling can identify which products your customers are most likely to buy next. You can create special campaigns targeting those specific households.
Tailor Products and Services
As you review your customer profiles, look at the products and services you offer. Are you meeting all of your customers’ needs? Are there gaps in your product offering. Tailor your services for your customers. If you are not reaching the clients you want to, think about how to create marketing campaigns for your desired audience. What can you do differently to reach them?
Data modeling profiles will not only provide consumer demographics and geographical data points, but they will also include lifestyle information. Utilize what you’ve learned about your customers to create personalized marketing materials and offers that resonate with them.
Personalized Recommendations
It’s highly unlikely that your customers know all of the products and services you offer. Many times, customers will identify you as being the provider for their initial product purchase and fail to see what other solutions you offer. In order to grow your relationship with them, you need to introduce them to other services that can aid them. This is where a Next Most Likely Product model is beneficial. Once they’ve completed their first purchase, personalize your marketing and keep your brand in front of them by offering custom selected solutions for them.
Next Steps
If you want to see how MicroModeling can help you understand your customers better, give us a call. We are passionate about helping businesses create effective marketing that reaches the right audience for their business.