There is no shortage of great reasons for businesses to transition from traditional, brick-and-mortar storefronts to e-commerce outlets. The reduced need for physical store space, greater convenience for customers who can shop at any time from any location, increased reach – these are just a selection of the valuable benefits to becoming a digital business.
Perhaps less well-known, however, are the ways in which you can leverage customer data to improve service and give your organisation a competitive advantage. While it has always been an important element of business strategy, marketing is now more important than ever. As digital technology has opened up the retail landscape and allowed competition to seep in from all corners of the globe, making your presence known to customers in an engaging and meaningful way can vastly improve overall performance.
To access these improvements, however, businesses need to know their marketing spend is effective. Squeezing every dollar for all its worth is key, so how can analysis of your customer data help ensure your marketing is optimised?
The trouble with marketing
In both the pre- and post-digital era, there has always been a ‘war of attrition’ element to marketing strategy. The general idea is to spread your message far and wide – mail drops, billboards or broadcast advertising for example – and rely on the fact that a percentage of the people who encounter your materials will feel some connection.
It’s never been the most cost-efficient strategy, however – research from UK procurement services provider Proxima suggests as much as 60 per cent of global digital marketing spend is wasted. Figures like that can make it seem like devoting a large portion of your financial resources towards marketing is akin to shouting into the wind, crossing your fingers in the hopes that someone picks up on your message.
As much as 60 per cent of global digital marketing spend is wasted.
If only there was a way to more effectively target your marketing materials to an audience where they will have much greater impact. With improved data management solutions, there just might be.
Infuse your marketing with customer data
Implementing data analysis solutions into your business can unlock a host of benefits, improvements to productivity and efficiency that culminate in a better overall experience for the people who matter most – your customers. Unfortunately, research has shown that many organisations are struggling with their analytics capabilities, meaning deriving any relevant insight is a constant challenge.
According to Forrester, 70 per cent of marketing executives are not confident in their organisation’s analytics capability, hampering their ability to clearly understand of what initiatives are working and where their strategies are in need of refinement. For many businesses, the most immediately achievable goal is to bring all of their customer information into alignment through better data management.
Customer address data is a good example – a piece of the overall puzzle that may seem relatively inconsequential, but when managed correctly can yield all sorts of useful insight for marketers.
How can address validation help?
Having a solution in place to streamline customer data can make life easier for marketers in several ways, but addresses in particular contain significant detail for structuring a campaign. Much of that wasted spending mentioned above is simply a case of poor targeting – directing marketing materials towards potential customers unlikely to be interested.
Verifying all of your customer addresses will provide marketing teams with a much clearer understanding of where your primary customers are located, helping them to distribute the right materials to the areas where they will have the greatest impact. Get in touch with Mastersoft today, and learn more about how your marketing spend can be optimised.