Marketers, like businesses in general, find themselves awash in data. It is the savviest and most successful marketers who can utilize this data to the fullest to gain market share in an otherwise languid economy. Predictions that the economy will return to a robust growth mode are few and far between, which means sales are not going to benefit from economic trend. Sales and revenue growth will have to be earned the hard way – in the trenches.
A recent article in Quirk’s brought this thought back to life. The authors conducted a study comparing two forms of customer segmentation analysis and showed the benefit of incorporating multiple data sources. Market researchers have long used attitudes as a segmentation basis. This is a valid method and allows the marketers we partner with to develop a deeper level of customer insight and awareness. On the other side of the fence, if you have spent any time around database marketers, then you know there is a wealth of actual transactional data to be analyzed. Some would say who needs attitudes or demographics when you have actual behavioral data to segment.
I say you need both and then some!
Understanding the key drivers of behavior is critical, but then again so is knowing a thing or two about the behaviors themselves. In this world of data overload, we have to leverage all of our resources including survey data, transactional behaviors, media usage and geo-demographics. This is the key to successful acquisition and customer retention.
For practical application start by analyzing your transactional data with the goal of forming behavioral segments. This will provide you with a basis of understanding – who contributes most to profits, what is the behavior of new customers, what percentage of our customer base leaves the fold and are there clues to that exit. Follow this up with a behavior survey of these segments to uncover the reasons behind their actions. Make sure to include demographic components (either via survey or from your CRM) to allow for tying these attitudes and behaviors to the ground. Having a strong geo-demographic link allows you to purchase prospecting lists and link to data in syndicated surveys.
One can segment the data along a singular line, but in this day and age my question to you is why would you ignore the possibilities of a more robust solution?
Download 5 Steps for Driving Sales with Customer Insights for more tips on how to use data to drive revenue.