Al Diguido, CEO of Zeta Interactive grabbed my attention with the title of his recent article in DM News, “Be Stupid”…It’s all about ROI. I had compiled a list of essential questions marketers should be able to answer before asking customers for their personal data; and these questions were intended as the framework for this blog. While Al’s article didn’t enter into the questions themselves, his framework seemed to be the same as mine.
Al’s argument is that “marketing professionals need to more stupidly focused on ROI, [and that this] carries over into the e-mail arena”.
My argument is that often the right questions aren’t asked at the outset when compiling a database, or revisited during the process of data collection and use, and as a result the data and dollars aren’t used to their best advantage.
So what are my questions? What did Al say? And are we stupid?
In my opinion, the first question should always be: “Why are we collecting this data?”
Without a clear purpose the opportunity for effective communication and therefore the marketing dollars spent are wasted. Lazy marketers might choose to just ask for as much information as possible, but when strategic thinking isn’t used at the outset you run the risk of becoming data rich and information poor – A well thought out approach has a flow on effect that means communication stays relevant and customers don’t feel interrogated. Al discusses one possible outcome of lazy marketing which he terms the “spray and pray school of thought”. He makes the point that consumers are tired of inbox clutter, are quick to recognize this type of communication as SPAM, and points out to get the best value for money you need to smarter than this.
My next question is so logical; it could be described as stupid. It is: “What do we intend to use the data for?”
Collection without action again results in waste. I love Al’s term: “analysis paralysis marketers”, which he gives to the data crunchers who spend time and dollars focused only “on the data itself, rather than on data driven campaign strategy and execution”. Execution; I’ll say it again, stupid – Execution.
Also necessary to consider are the expectations of the consumer who is giving us the information. Data may come in the form of letters and numbers, but the marketer who is interested in getting more bang for their buck by way of a relationship needs to ask the question: What does the consumer expect in return for this information?
The Wikipedia definition is a good place to get an overview of the capabilities of database marketing, but interestingly I also think the information contained in the Wiki definition is relevant when the question of consumer expectations comes up.
Reading the Wikipedia entry with this in mind, in the digital space it is realistic for consumers to expect a personalized experience that goes past a “Dear…[fill in the blank]” in the opening address. For consumers today, real-time business intelligence is also a bottom line. A basic example might be: You just bought a tent – Do you need a portable bbq? As opposed to: You just bought a tent – Do you want to buy a tent? Which in turns begs the question: What am I? – Stupid?? Current technology also makes it possible to tailor make a newsletter that makes sense with pictures or without – so arguably, it should. However Al makes a good point in his article that often simple Web site integration isn’t even up to scratch. Weakness in design and wavering strategy means a link from an e-mail might lead somewhere completely unexpected – The result: A potential customer let off the hook. A simple thing like poor navigation can lead to buyer abandonment and more wasted dollars.
…And still on expectations…What about missed opportunity! Here is a customer/ potential customer who is expecting to be contacted – And tragically this brings me to my next, often stupidly unasked, question: “When are we intending to use the data?”
A timeline is crucial. The longer data goes unused the more likely it will be past its use by date. If you are intending to have a considerable lag time between communications – have the courtesy to manage that expectation too.
A good illustration of how the questions of purpose, expectation and timing come together to enhance sales strategy, brings me back to Al Diguido’s article. Al makes a good point here about order confirmation and shipping emails. Here are pieces of expected communication that perversely are underutilized. More often than not automated – the customer waits and opens this vital piece of information. A good communication strategy should see these as another opportunity for further up-selling or cross-selling. By answering the earlier questions “What do we intend to use the data for?”, “What are the consumer expectations?” and “When will it be used?” this opportunity could be identified and used to add value to the sale.
Finally and simply, asking: “What method of collection and communication will we be using?” will help to inform the data gathered. If the answer is e-mail, mobile or online then an experienced interactive team can help to streamline this process. Data that is presented in digital format delivers information that can be quickly filtered to produce targeted and personalized communication. Automated services can shave man-hours and dollars off marketing budgets.
The questions that are asked at the outset of any Database Marketing campaign are an important part of achieving good value for money. Today the opportunities exist to form lasting direct communication with customers and potential customers – to reward and inform – and ultimately sell product.
Did I say SELL product? I’d be stupid if I didn’t.
Magnet designs and manages database and email marketing in-house
Please find the links to Al Diguido’s article and the Wikipedia definition of Database Marketing below.
http://www.dmnews.com/be-stupid-its-all-about-roi/article/167828/