Improving marketing performance
TANGUY LE NOUVEL,
CUSTOMER INTELLIGENCE AND DATA MINING CONSULTANT
Who are your clients? What profiles do they have? What’s their potential? With such a multitude of information sources, it can be difficult to obtain a general overview of your clients. But data analysis is the key to understanding them… and achieving commercial success.
According to the market research firm Gartner, the data quality market will be worth US$677 million in 2011, double its size in 2008. ''Companies are finally recognizing the importance of possessing quality data, for without it the diversity of information sources (decision-making and marketing information systems, call centres, websites, loyalty cards, third-party data, etc.) makes it difficult to obtain a single, homogenized informational overview: ‘360° client vision’.'' At the same time, companies do most of their targeting through industry intuition rather than predictive analysis of client behaviour. Consequently, marketing campaigns are poorly targeted, budgets are unbalanced and opportunities are squandered.
DATA MINING: AN ANALYTICAL APPROACH GUIDED BY BUSINESS NEEDS
Profitability and quality go hand in hand! According to Gartner once more, the cost of poor quality data can amount to over 10% of annual turnover, which begs the question of how much more could have been made if companies just knew their clients better… and data mining is the only way to translate raw, quality information into operational and strategic knowledge. As such, a quasi-scientific approach should be adopted to:
- Define business needs and challenges;
- Compile an inventory and audit available data, in accordance with defined needs;
- Develop client knowledge by setting up segmentations and design scorecard indicators to define each client in terms of opportunities (probability of buying individual products) and risks (probability of cancelling, becoming dormant, etc.);
- Distribute knowledge and implement campaign management solutions to ensure a better rollout of the marketing strategy;
- Provide support to define the new differentiated marketing strategy.
Micropole supports its clients throughout this process, providing consulting advice and guidance on integration and change management, all of which helps in obtaining better oversight of your clients!