Tag: CLV

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Getting customer data to pay dividends

a hyper realistic photo style image of how consumer data contained in a saas cloud platform can generate value-based dividends to the business as a result of the high level of detail and data quality of the data in the saas cloud platform

Consumer data is a valuable asset for businesses. There is this concept of “data dividends” which are the benefits and value that organizations can derive from effectively managing and leveraging consumer data within their Customer Master Data Management (MDM) systems.

When you manage your consumer data optimally, your organization is able to harness the power of that data to drive business growth, enhance customer experiences, and gain a competitive edge.

The data dividend signifies the return on investment that organizations can achieve by utilizing consumer data in their MDM systems. With a robust and centralized Customer MDM platform, businesses are able to gather, consolidate, and analyze vast amounts of consumer data, including demographics, purchase behavior, preferences, and interactions.

This rich repository of consumer information unlocks several key benefits, such as improved decision-making, enhanced personalization, targeted marketing, and the ability to deliver seamless customer experiences.

Leveraging consumer data through a Customer MDM platform like the Pretectum CMDM can enable business growth by gaining insights into consumer behavior, preferences, and trends. By analyzing this data, organizations can identify new market opportunities, develop innovative products or services, and tailor their offerings to meet consumer demands.

The data dividend empowers the business to optimize marketing strategies by creating targeted campaigns, optimizing customer acquisition and retention efforts, and maximizing the return on marketing investments.

Data dividends are closely tied to improving customer experiences. With a comprehensive view of consumer data, businesses can deliver personalized experiences that resonate with individual customers. By analyzing preferences, purchase history, and interactions, organizations can offer relevant product recommendations, personalized promotions, and tailored customer support. This level of personalization creates a positive customer experience, fosters loyalty, and increases customer lifetime value.

While the data dividend presents opportunities, organizations need to also prioritize data privacy and security. It is essential to implement robust data governance practices and comply with data protection regulations to protect consumer data from unauthorized access or misuse. By ensuring data privacy, businesses can build trust with consumers, mitigate risks associated with data breaches, and maintain regulatory compliance.

Organizations that effectively leverage consumer data through a Customer MDM platform gain the potential of a competitive edge. By understanding customer preferences, market trends, and the competitive landscape, businesses can make informed decisions and stay ahead of the competitor and market pressure curve. The data dividend enables organizations to identify untapped market segments, develop personalized offerings, and deliver differentiated customer experiences that set them apart from competitors.

To maximize the data dividend within a Customer MDM framework, organizations should adopt best practices. This includes implementing data quality controls, ensuring data accuracy and completeness, regularly updating customer profiles, and leveraging advanced analytics techniques to uncover valuable insights. Organizations should also foster a culture of data-driven decision-making, invest in data governance frameworks, and foster collaboration between departments to fully exploit the potential of consumer data.

Data dividends within Customer MDM systems are there to be earned, and they represent the value that your organization can unlock by effectively managing and utilizing your hard-sought consumer data.

By harnessing consumer insights from within the Pretectum CMDM, your business can drive growth, enhance customer experiences, mitigate risks, and gain a competitive advantage. Embracing best practices and prioritizing data privacy and security are essential for organizations to leverage the data dividend and position themselves for success in today’s data-driven business landscape.

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Growing Customer Lifetime Value with data

Targeted marketing communications have been available for decades but have been rather exclusively available to only those organizations with the best of systems and most importantly, the best of data.

You’ll want to consider personalized communication to improve customer retention, augment and assure customer satisfaction, support and facilitate cross-selling, and ultimately drive greater customer lifetime value (CLV).

Plenty of market research evidence suggests that personalized communications materially cement and augment the opportunities for an organization to galvanize a strong long-term relationship with the customer and accordingly drive greater CLV.  

with augmented data, there is also now the possibility to identify who the lower and higher-value customers are and identify characteristics and traits that allow improved segmentation leading to greater value growth potential.

When these same augmented data sets are combined with tools like machine learning and artificial intelligence to build predictive models, one is able to formulate strategies to migrate members of lower-value segments or groups to the higher-value ones.

The important fact to consider here is that personalized communication may be the important key. Once you’ve singled out members of lower-value segmented groups, and then embarked on communicating with them in a highly personalized way through direct marketing campaigns, only then are you likely to be able to promote them to the higher groups.

The marketing campaigns of course are not limited to letters in the mail, or personalized emails. Your product marketing mix would also leverage the other elements in the marketing library, namely social media and personalized web experiences. The objective here is to leverage the data to hone the product or service marketing, promotion, and advertising messaging to be very distinctive and almost unique for each and every customer.

Now more so than ever before, the smallest organizations can start to consider the use of the same tools and methods that much greater and older organizations have had at their disposal. Globalization and ready accessibility to the web has meant that any product can be sold almost anywhere where delivery services are possible, further, transparency in pricing, internet search, and aggregators like Expedia, Amazon, Etsy, eBay, and the like mean that customers will do price comparison.

The same products can also be offered in price-differentiated marketplaces if you know who you’re targeting. These benefits also mean that the competitive environment is also greater. Steps need to be taken to differentiate on message and service rather than relying exclusively on the product itself and possibly the dependence on the brand.

In the end, the strength of the relationship that your organization has directly with the customer will provide the best possible predictor for the CLV.

There are many affordable customer relationship management tools available including SaaS-based pay-as-you-grow offerings. Using these together with aligned Master Data Management solutions you are able to analyze and target the right customers and prospects with the right offers.

CLV and in turn, the profitability of each customer leads to measures of value that will be different for different customer groups. The identification of efficiency in the way the value is produced helps to direct an organization’s efforts.  This in turn leads to the refinement of the exact kinds of customers and business partners that your organization wants to expend effort and energy on. The profitability of the customer is the revenue derived from that customer less the costs of identifying, securing, retaining, and growing them. The same approach needs to be used for campaigns. The more compelling the proposition with the greatest possible efficiency, the highest potential profit can be secured per customer.

At Pretectum we believe that these insights and decisions can only be obtained and undertaken from the presence of good and comprehensive master data and we present the Pretectum CMDM as one of the ways to achieve that good master data from origination through controlled curation and distribution. Reach out today to learn more.

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Customer data customization for personalization

I think we all appreciate that little touch of personalization or customization of an interaction with a company or brand as long as we think it was thoughtful, non-intrusive and not tacky.

The question, though is how do you do that exactly in a tasteful and respectful way?

In days past one of the things that certain kinds of retailers were very good at, was the concept of the “personal shopper” or the knowledgeable customer service consultant who knew something personal about you and your tastes.

Consider it somewhat akin to having a tailored shirt or suit, or a custom pair of shoes.

A fundamental question, is why do we like that personalized and custom experience? It’s not for everyone, and definitely not appropriate for every random retail engagement but the evidence suggests that customers are ready to pay more for customization.

Customers also recognize that customization services require dedicated resources in the realm of personalized product development with niche dedicated resources.

As a small or medium-sized business your vision for retention of customers and to draw them into coming back for more, you want to think about how you can strategically plan a customization engagement to maximize the customer experience. The benefits will often far outweigh the expenditure you make in support of personalization.

Nordstrom, Inc. is an American luxury department store chain. Founded in 1901 by John W. Nordstrom and Carl F. Wallin, it originated as a shoe store and evolved into a full-line retailer with departments for clothing, footwear, handbags, jewellery, accessories, cosmetics, and fragrances. Wikipedia

One of the distinguishing traits of Nordstrom Inc is that for their high-end customers they offer a Personal Stylist service. Despite the prevalence of “fast fashion” on the main street personal stylists are important as brand ambassadors and ensure that you maximize customer lifetime value (CLV).

“Customers are assets to be cared for and nurtured.” 

Jeanne Bliss – Founder and President of CustomerBliss

Armelle Ferguson is someone who should know. Armelle frames herself as “an Ethical Personal Stylist & Sustainability Coach for women with ethical values, who want to live a better, fulfilled life, and reach their goals while looking good in clothes that reflect them and their values. ” Armelle does this by working with clients on an 8-week program developing around what she calls a “6C Framework”. For certain kinds of consumers this is a perfect way to meet a number of objectives, namely, look good and feel good, and actually do good.

Not every consumer can afford a personal stylist though, and not every consumer has the patience, and indeed, there are probably not enough stylists to go around for all the consumers that are out there. At scale, your business probably also cannot afford to offer it as a service.

What Armelle is doing though, is through meetings and discussions and show and tell, and above all ‘listen’, is that she is able to formulate a vision of that customer that she can then leverage to personalize and customize the fashion acquisition statement around.

That gathering of data is likely the same for pretty much every customer but for scale, the trick is to maintain a centralized customer data repository that is continuously maintained and accessible to all the important parts of your business.

Older generations may be more familiar with personalization offers by merchants but that doesn’t mean it doesn’t hold appeal for Millenials too. In fact, if anything, if you work on personalizing the experience for this generation of customers you’re targeting longer-term retention and lifetime value growth.

This next generation will enjoy the personalization of goods and services but they’re savvy enough to see through the faux customization of you simply attaching a name to an email! You need to entice the millennial consumer, doing that requires data to inform your decisions.

Customer master data management is all about gathering the right data and the right levels of data to support business choices about how you are going to tackle the customization and personalization challenges.

Customer experience personalization has traditionally been a time-consuming process, the cycle involves understanding customers’ requirements, collecting samples, and sending them back and forth to the manufacturing team – chances are you are not going to do that, but what you can do is ask the customer what they like, what they prefer and all the vital statics that can drive an optimized eCommerce or in-store experience.

You could do this in a number of ways. But we think that the Pretectum approach to customer master data curation is one of the most flexible and affordable. Supporting many ways to gather, house, and maintain the data opportunities that personalization requires. Reach out today to learn more.