For obvious reasons, companies are constantly looking for the best bang for their buck. What’s catching their eye? What is of interest to them?
It’s a marketer’s responsibility to not only share a deal or their latest product with their audiences, but they must determine what is most appealing to this individual potential customer to increase the chance that they will act on the offer presented.
The time has come to stop wasting time on irrelevant recommendations.
This is where precision marketing comes into play, which can help to facilitate customer needs as well as present new opportunities for their consideration. Going beyond simply adding personalized promotions onto bills, this concept requires a more precise, customized solution for existing and potential customers.
So how exactly does this work and why is it important?
It goes unsaid that marketers want their customers to be pleased with their offerings and to come back for more. They are constantly seeking guidance on ways to improve revenue and increase company value. Precision marketing analyzes the customer data and provides recommendations to the marketer for ways to more accurately promote a product to the intended recipient.
The first step to get to know a customer’s history is to take a look at past purchases. Loyalty clubs and rewards programs are one ideal way for companies to obtain purchase history information. InfoPrint recently sponsored a campaign from the Chief Marketing Officer (CMO) Council titled “Getting a Lift from Loyalty.” Research from the study found that loyalty club membership has an annual growth rate of 25 percent, and 75 percent of consumers are members of loyalty or rewards programs. Unfortunately, only 13 percent of marketers questioned believe they have been highly effective in leveraging loyalty and brand preference among club members, and nearly 20 percent don’t even have a strategy for this.
The increase in membership with loyalty clubs is a great sign, but these statistics just go to show that the full potential of the programs has not been reached. In this case, precision marketing campaigns could incorporate customized data, providing customers with feedback and coupons for future purchases relating to what they’ve bought in the past. This will help companies to map out what customers’ spending habits are and how they can make changes to save money. Directly pointing out specific alternatives is an effective way to enhance a customer’s brand awareness and increase the percentage of marketers who feel they are strongly taking advantage of their loyalty programs.
We as consumers all hate to find out that we could have saved a bundle of money on a product of similar caliber, and precision marketing could help us avoid any wasteful spending and increase our loyalty to a brand.
InfoPrint surveyed 1,000 US men and women regarding loyalty programs and marketing campaigns to see if they agreed. Four out of five respondents said they’d consider using coupons through these rewards programs with their purchases, and more than 60 percent said they might even stop purchasing from a company who marketed irrelevant materials to them.
Based on these above stats, could your company benefit from these customized promotions and recommendations?
Here are a few more supporting figures that could provide further food for thought – http://www.cmocouncil.org/news/pr/2010/012510.asp
Let’s keep this conversation going! Feel free to send in comments and visit www.TransPromo-live.com for additional commentary.
Best,
Lee Gallagher
Manager, Global Marketing Solutions
Tags: Precision Marketing, TransPromo