In asking this question, I’m not referring to the quotient of energy that you are committing on a daily basis to be successful in your business. I am however referring to your commitment to maximising the value of customer data within your business and thereafter being data driven.
We would all agree that the most valuable asset in our businesses are our customers and therefore the data that represents them. However from your interaction with businesses that you deal with, how evident is it that you are recognised and valued as a customer or potential customer?
While no one in business would dispute the importance of quality customer data, the acknowledgement of its importance and the profitable execution of database marketing initiatives is a different story.
Historically business structures dominated by centralized IT departments, overly ‘creative’ marketing departments, coupled with the lack of a coherent business wide customer retention and acquisition strategy has limited the percentage of budget most companies allocate to reinforcing the relationship with their most valuable asset - their potential, current or potentially forever customer who’s life time value to your business may surprise you.
The growth of digital technology, the transparency of competitive offerings and increased digital and data literacy means that what was once too hard, not glamorous enough, or just considered unimportant is now front and center of progressive business thinking. Customer interaction and feedback is now possible, cost effective and essential for even the smallest of companies.
In both product and service industries, parity is frequently the norm. This parity has become even more transparent to customers with the help of Mr Google. Therefore, smart marketers are now putting a greater emphasis on all aspects of the customer experience. However, this effort is largely wasted if the data emanating from every communication and every transaction is not appropriately captured, managed and leveraged.
In my spare time, I lecture MBA students on Integrated Marketing and one of the questions I am frequently asked is what is the difference between junk mail and direct mail (think the real thing or the email version or catalog in this context). The answer is simple. Whether or not this information is relevant to me determines its junk or non junk status without a commitment to data analysis, customer profiling and a real commitment to putting the customer first all direct marketing is junk.
The affordability of databases and CRM packages suitable for every level of business means that technology is no longer a barrier and with the appropriate integration of the digital component into the marketing mix with other tried and proven marketing initiatives means that being data driven is no longer a sentence but rather a commitment to the short and long term health of every business in New Zealand. Finally remember the proverb – “What gets measured gets done”.
In a marketing context how does your business measure up?
John Dawson
Managing Director
COO’EE
www.cooee.co.nz