Mining customer data to help guide future behavior (“if you bought this, you’ll probably like that”) is one way to enrich the customer experience; savvy marketers also use data to create targeted marketing campaigns, make real-time offers online and provide customers with self-service tools that resonate with customers and lead to increased satisfaction ratings.
The first step in making the move to data-driven marketing is to invest in a CRM system that provides you with foundational data analytics tools. To capitalize fully on your CRM system, you then need to:
Keep an inventory of your customer data and scour it regularly for any quality issues, supplementing the data you have gathered with third-party data sources (demographics, lifestyle, behavioral, etc.).
Analyze the data for meaningful insights into your customers’ behavior. This includes customer segmentation, acquisition and retention modeling, lifetime value models, next-best-offer models, etc.
Train your managers to use the data enhancing their decision-making and instill fact-based decision-making as a core value.
Continuously measure and monitor your data models using transactional data as well as insights from qualitative data like customer surveys to get deeper insights into your customers and their purchase motivations.