Marketing ROI still lagging without data analysis
Many companies are failing to integrate and use their customer data to keep their marketing campaigns on target, according to research by database marketing firm Transactis.
The study found that many marketers are missing valuable targeting opportunities and could even be putting some of their customers off due to 'data wastage' (the failure to make use of the different pieces of customer data that various parts of the company collects).
In fact, despite handing over their personal details and preferences to companies they deal with, 65% of consumers said that these firms were still sending them marketing offers for products that they would clearly never buy.
More than half (58%) also said that several firms did not even know that they were existing customers, and were sending them offers aimed at new buyers, while 52% said that companies have repeatedly tried to sell them products that they have already bought.
The study's results suggest that companies are either lacking, or failing to make use of, the "single customer view" that has been the object of so many concepts, technology and initiatives since the earliest days of CRM (customer relationship management).
According to Richard Higginbotham, head of marketing for Transactis, "Many businesses are failing to rationalise and make use of the full range of information available to them, to enhance marketing and CRM initiatives. We have dubbed this 'data wastage', and it represents a significant opportunity for marketers who gather and rely on huge amounts of customer data in their daily operations."
In fact, Higginbotham warned, not only are many marketers wasting money on redundant or poorly targeted offers but their customers are taking note, and neither of these situations can be good for the long-term health of a brand. By eliminating data wastage, marketers can make much more efficient use of their budgets and boost their return on marketing investment.
Higginbotham concluded: "Turning customer data into a manageable and accessible asset is not necessarily an easy road but, for those who do so, it pays dividends, strengthening the company's ability to interact with and build upon its existing customer base."