Marketing technology is rapidly evolving as many say we’re in the midst of a tech renaissance but at the core of each marketing transformation is data. As a result of this rapid transformation, marketers are challenged to keep pace. There are now over 7,000 technology companies peering marketing advancements in automation, artificial intelligence, and machine-learning but at the core of all of this transformation is quality data. Just as technology is evolving, data especially customer data, compounds, changes and erodes at a rapid rate. ZoomInfo notes that customer and prospect databases double every 12-18 months. But here’s another number: $3.1 trillion is IBM estimate of the yearly cost of poor quality data in the US economy alone in 2016.
Fortunately, many of these data challenges can be overcome and interpreted with the technology that is available to businesses today. With a firm foundation of data quality management, these are some of the ways marketers can put their data to fuel transformative marketing campaigns in 2019 and beyond.
Customer Data Facilitates a Personalized Customer Experience
Personalization in marketing matters. When you offer people something that is tailored for them, they’re more likely to pay attention to it. Whether you’re comparing the human attention span shortened to that of a squirrel or a goldfish, the point is that consumers and prospects today are constantly being marketed to and you must offer content that is relevant enough to engage the intended audience seconds. This requires marketers to collect, maintain, and analyze the right data in order to gain contextual insights that will allow them to create relevant experiences for customers and prospects at the individual level. Based on research conducted by McKinsey, personalizing content has the power to reduce acquisition costs by 50%, and increase marketing efficiency spends by 30% in the process.
Effective Segmentation with Broad Data
Today most marketers are aware of the positive impact of segmentation. From an email marketing standpoint, MailChimp (2017) found that recipients are 75% more likely to click on emails from segmented campaigns than non-segmented campaigns. Segmentation is often based on demographics. However, the individual is unique and there are many other indicators utilizing a broad data set that could be useful in a segmenting your target market. For instance, you can target individuals who are likely to move with an invitation to apply for a new home loan or target individuals who share the same characteristics as your best customers with lookalike models.
Data Paves the Way
With limited, poor quality data, it will be extremely difficult for marketers to implement accurate personalized experiences across all channels successfully. Going forward, you’re going to need a deeper data set if you want to understand and anticipate the needs of your prospects and customers. Marketing to the right customers and prospects begins with a profiling process that incorporates 1) the rigor of risk assessment and 2) exploration of customer value. Enhanced data and analytics tools help you derive clearer insights on economic trajectory, purchase capacity, consumer behavior, reputation and more.