Daily Tip – Precision Marketing
Chuck Schaeffer
Before The Sale
Retail success begins well before a sale with customer strategy and effective marketing.
Precision Marketing. Batch and blast offers produce poor conversions and harm future marketing efforts as consumers unsubscribe or blacklist irrelevant promotions. Instead, retailers must deliver relevant, personalized and contextual promotional offers using consumer insights and marketing automation software. Consumer insights are gathered from historical data such as POS, e-commerce, secondary systems, loyalty programs, contact centers and supply chain or fulfillment systems. When centrally managed in a CRM software system, and integrated with marketing software that tracks online customer behaviors, retailers are afforded the opportunity to design narrow customer segments and create highly relevant offers based on demographics, psychographics and behaviors, all of which can significantly grow customer acquisitions, retention and re-activation.
Effective customer segmentation may be based on customer demographics, customer behavioral patterns, customer preferences for known brands or into tiers based on Recency-Frequency-Monetary (RFM) values. The bottom line is that the more narrow the segmentation, the higher the conversions and the lower the opt-outs or unsubscribes. My experience has found that deep customer profiles combined with marketing automation software provide a particularly powerful combination for specialty, apparel, hard goods and luxury goods retailers. I’ve also found that promotional events and new product introductions deliver the highest marketing campaign conversions for these retailers.
Link – CRM Search
