Effective precision marketing techniques lead to improved customer retention rates, greater revenues from up-sell and cross-sell marketing campaigns, and enhanced levels of customer satisfaction, according to research from Aberdeen Group.
The research also noted that top performers in precision marketing tend to enjoy a greater share of each customer's wallet. Aberdeen's benchmark data revealed that more than 50% of top performers' customers purchase multiple products or services from them annually - twice the rate of all other benchmarked survey respondents.
This latest benchmark research was compiled and published with support from the Customer Management Community, CRM Magazine, and DM Review.
Three key priorities
Corporate investment in precision marketing techniques, processes, services and enabling technologies is driven by three priorities:
- Need to grow revenues;
- Need to optimize budgets and resources;
- Pressure to identify and invest in high value customers.
Characteristics of best-practice leaders
According to the report, Precision Marketing: How Leaders Turbo-Charge Their Investments, companies that exemplify best-in-class practices also exemplify the following competencies and characteristics:
- They use 'real-time customer intelligence' and rules-based interactions with their customers;
- They profile and/or segment customers using more than 20 attributes or criteria per marketing campaign;
- They measure and leverage customer value metrics in campaign planning and execution;
- They automate and centralise precision marketing processes at the enterprise level.
Benefits of precision
According to Leslie Ament, practice leader and director of customer intelligence research at Aberdeen Group, "Effective precision marketing techniques lead to improved customer retention rates (greater than 70%), higher revenues from up-sell and cross-sell campaigns (more than 16%), and enhanced levels of customer satisfaction (over 70%) on an annual basis. Not surprisingly, then, our research demonstrated that enterprises deploying precision marketing techniques also enjoy a greater share of each customer's wallet."
Until 30th November 2006, the full report has been made available as a free download from Aberdeen Group's web site - click here (free registration required).