3 Keys for Gaining a Bigger Picture of Your Marketplace
Direct marketing methodologies at your service.
A goal of a direct marketing strategy is to deliver a relevant message to a single customer from the total list of contacts in the CRM. In theory its possible but it will just not happen.
If your company practices a form of data-driven marketing, you understand the importance having a CRM. Data analytics, with a CRM and Google Analytics for determining channel penetration, is another key for gaining a bigger picture of your marketplace.
So what are the methodologies you need to put in place for better marketing results?
Start with data management.
Here is a simple explanation of the process to accept using data management in your direct marketing strategy: it is how you collect, store, clean, access and effectively use data. This statement probably scared a few readers, but once you have a data plan in place within your direct marketing strategy, you’ll see the value.
As you begin to accept the challenge of better data, and moving away from the bigger picture after a data detox, the path you took is littered with contacts which are ready to be jettisoned back to where they came from. Quite possibly, the recycling bin for others to enjoy.
They’ll find their way back to the bigger picture. The goal was to remove the waste and maintain a universe of contacts that have a good propensity to become a customer. Now comes the challenge.
Next use segmentation with RFM.
Segmentation is a process for categorizing your customers and prospects into smaller groups, where those within the group exhibit the similar set of unique attributes. Such “segments” are distinguishable by demographics, type of business, financial behavior, product or service, etc.
Segmentation connecting with prospects and customers in a meaningful way is on the customer’s terms. Marketers desire to create one-to-one relationships with each of their customers, and in some ways that’s possible, but in many cases, it’s impractical. Because buyers may share many similar demographics, the challenge is for small business marketers to make sense of the data hand you were dealt.
Small businesses can leverage simple segmenting options such as the tried-and-true RFM method. RFM, simply put, takes into account how recently a customer has purchased or interacted (Recency), how often they purchase (Frequency), and how much the customer spends (Monetary). With analytical marketing metrics and analytical data processing, you have more valuable data to work with when using the RFM method.
Give frequency and relevancy some acclaim to data-driven marketing.
The next time you prepare your email newsletter, direct mail, a promotional offer, or something in the social space, ask yourself this simple question. How many contacts does it take for a prospect to buy a product, service or a customer to make another purchase?
In the B2B industry of small companies, it could be seven, ten, or fifteen contacts. That’s not only a lot of contacts but also takes a lot of perseverance, money, time, and analysis.
Start using the three meaningful methodologies, practice good data management and you’ll wind up one happy go lucky person as you reap from the data management seeds you sowed.
Use your time and money wisely because the payoff is greater than you think.
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