Customers waiting for brands to get a better view

Data is a powerful force that drives the success of virtually every effective customer relationship management (CRM) and direct response initiative. Yet many organisations are failing to utilise the wealth of customer information that they have.

We have dubbed this “data wastage” and our recent research confirmed that businesses are failing to integrate and use the customer information they have to keep campaigns on target and tailor communications. We discovered that, despite handing over their personal details and preferences to companies, 65 per cent of UK consumers found that these firms still sent them marketing offers for products that they would never buy.

Furthermore, 58 per cent said that several firms did not even know that they were existing customers and were sending them offers aimed at new buyers, and 52 per cent said that companies have repeatedly tried to sell them products that they have already bought.

Data wastage is clearly a problem. Not only are many companies wasting spend on redundant or poorly-targeted offers, but consumers are taking note. This can have a hugely detrimental effect on an organisation’s overall reputation or brand. By eliminating data wastage, businesses could make more efficient use of their budgets and boost return on investment.

Not only are many companies wasting spend on redundant or poorly-targeted offers, but consumers are taking note.

What is vital for any company that is underutilising the data at its disposal is to pull together all the databases it holds, along with any third-party data it is buying, in order to create a central resource that provides a single customer view. It is essential to ensure that this information is effectively and accurately captured in the first place, and then stored on a flexible platform that allows for analysis, interpretation and action.

The advantages and capabilities presented by a central database that provides a single customer view are myriad. With such a platform a business can then make the most of the intelligence and insight a unified database can provide, helping the firm to track customer behaviour, create consumer profiles, spot market segments and personalise communications.

Turning data into a manageable and accessible asset that provides a single customer view is not necessarily an easy road for a company to take. But, for firms that embark upon the journey, it can pay long-term dividends, strengthening an organisation’s ability to build on its existing customer base.

By Richard Higginbotham, head of marketing, Transactis

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