How Data is Helping Marketers See Customers As Individuals

How Data is Helping Marketers See Customers As Individuals
SHARE
THIS



From a strategy standpoint, data holds the key to business transformation says Shikhar Vaibhav, engagement manager at analytics firm Mu Sigma.

Much has been said about the demise of traditional media with the new kids on the online block successfully attracting a growing and loyal audience.

Digital media has taken the market by storm, gathered unprecedented fan-following over the years with no signs of taking a breather yet. With so much happening within such a short span of time, the question that looms large in the minds of digital marketers is how to enhance their customers’ digital experience so that they keep coming back for more.

Mu Sigma

Consumers are increasingly ditching traditional sources of information such as newspapers and magazines in favour of news aggregator sites such as Google News, peer recommended niche sites and blogs. The spurt in multi-device ownership such as smart phones, tablets and phablets in addition to the choice of personal programming using disc players, recording devices, gaming boxes, streaming services, cable pay-per-view, etc. has resulted in consumers being perpetually online.

But all is not rosy for digital media companies. In order to stay competent and competitive in the ‘Information Age’, they have to battle a number of problems ranging from well-informed customers who are spoilt for choice to competitors who vie for the attention of customers. An online buyer will invariably browse through all possible online platforms and evaluate his/her options in terms of pricing, quality and range of products, thoroughness of service, peer reviews and competitor offerings before arriving at a decision. Customers today are on the look-out for deals that work best for them. They favour the medium that provides them the most viable, personalized brand experience. They don’t shy away from voicing their opinions on a range of platforms such as social media, blog sites and consumer forums, leaving digital footprints all over the Internet. To overcome these challenges, digital marketers are focusing on certain key areas to provide customers with the ultimate brand experience.

Customer retention is the key

Digital media companies need to prioritize customer retention keeping in mind the high cost of acquisition and impact of attrition on revenue. Organizations need to be attuned to key drivers that impact customer behavior and formulate strategies that are proactive in nature rather than resorting to reactive measures. They need to be equally cognizant of Customer Lifetime Value and their propensity to churn, in order to excel at customer relations. With more and more start-ups joining the digital media bandwagon, it is crucial for organizations to garner the right talent, tools and richness of data in order to gain a 360-degree understanding of customers not just in terms of their behavior, needs and priority areas but more importantly, of drivers of “delight”.

One size doesn’t fit all

Since customers are people with different needs, preferences, income types, mindsets, personas and demographics, the “one size fits all” maxim does not hold good for everyone. Customers are far more likely to opt for a platform that caters to their specific needs and remain loyal to the brand if they are treated as individuals. In order to provide a personalized experience, digital media companies need to identify key drivers that impact customers’ churn behavior. Companies such as Netflix are experimenting with more efficient recommendation lists and improving their algorithms to obtain better insights into viewer preferences and interests instead of just offering suggestions based on genre or actor. The company recently introduced ‘Max’, a recommendation assistant that singles out movies for its users after they answer a few questions.

Deep-diving into the customer life cycle

The relationship between customers and service providers needs to be more than just a one-time transaction or a pre-defined process. A customer goes through a typical life cycle starting from pre-sales engagement and going through sales, fulfillment, consultation and renewal, underpinned by exceptional customer service support. The needs of customers differ at various touch-points.

Big data analytics to the rescue

Smarter customers and a hyper-competitive landscape have resulted in innovative approaches towards satisfying, acquiring and retaining customers in the digital marketing sphere. Armed with the right tools, platforms and talent, digital media companies can leverage this ever-burgeoning, plethora of structured and unstructured data – popularly known as ‘Big data’ – to derive valuable customer insights needed to boost their business.

Big data helps marketers see their customers as individuals and cater to them uniquely. From the strategy standpoint, big data holds the key to business transformation. Digital marketers need to see the writing on the wall and create a strategic roadmap to monetize big data opportunities and internalize data driven decision making. To stay ahead of the race, companies need to actively listen, analyze and respond to the onslaught of customer data, incessantly pouring in from all forms of online and on-ground channels. They can delve into their customers’ historic data by leveraging multiple data sources such as surveys, customers’ reviews and comments, interactions with customer service personnel to understand their level of satisfaction and willingness to recommend the services to their peers. Additionally, it is crucial to keep pace with real-time feeds of customer click-streams, social posts, call center interactions, geospatial coordinates, and other behavioral data that change by the second.

Multiple analytical solutions and processes can be developed to achieve viable interactions throughout the customer life cycle. Discrete choice regression models can be developed to identify drivers of satisfaction and predict their propensity to churn. This information can be used by companies to identify which customers need to be targeted. Furthermore, predictive modeling techniques can be used to decipher what kind of personalization needs to be delivered during renewal. In the digital space, click rate, traffic, bounce rate, etc. could be some of the aspects that need to be monitored throughout a customer’s lifecycle in order to evaluate the overall ROI and also the propensity to churn or stay loyal. Exception analytics should be set up to monitor the way customer service interactions are conducted and also to identify which outliers need attention. Text analytics solutions can be applied to identify customer sentiments. Omni channel strategies can show the preferred path taken by consumers that result in a sale.

In addition to the tried and tested methods of data analytics, digital marketers can be benefited tremendously by the cross-pollination of ideas, learnings and best practices from other industries. For instance, telecoms, media, online ads companies can learn customer affinity bucketing from the banking and credit cards sector by analyzing customer loyalty gaps, prevalent switching patterns, etc. They can implement best practices of price optimization by studying customer price elasticity techniques from the travel and hospitality industry. Survival modeling can be improved by focusing on uncertain lifetime of entities, patterns of behavior differences by age and sudden losses as seen in the biological sciences industry. By finding adjacencies in other industries, digital media enterprises can find new solutions to old problems, thereby innovating as they grow.

Fierce competition, dynamic nature of business problems, and pervasiveness of big data demands that Digital marketing companies be willing to test and fail fast. Agility is the need of the hour and constant innovation is the way forward. Organizations need to embrace the right man-machine combination or bionics – the augmentation of the right technology platforms and human intelligence along with intuition – to bolster a culture of data driven decision-making within their ecosystem. They must integrate decision sciences into their DNA to stay relevant not only within the digital marketing industry but also in relation to the landscape of their customers.

Please login with linkedin to comment

Consumer markets Ella Bache

Latest News

M&C Saatchi Launches THIS Film Studio
  • Advertising
  • Marketing
  • Media

M&C Saatchi Launches THIS Film Studio

M&C Saatchi Group has partnered with documentary makers, writers, producers and digital content pioneers Michael Lawrence (left in photo) and Nicholas Cook (right in photo) to launch film and television production studio THIS. Lawrence and Cook have established an enviable track record creating story-driven content and feature documentaries based on The Human Indomitable Spirit (THIS) […]

The ‘Business Of Busyness’: How Productivity Keeps Us From Preparing For The Future
  • Opinion

The ‘Business Of Busyness’: How Productivity Keeps Us From Preparing For The Future

Jeff Schwisow is a Melbourne-based strategy specialist, speaker and the author of Projectify – How to use projects to engage your people in strategy that evolves your business. In this guest post, he argues that our obsession with being busy right now is what’s holding us back from planning our futures tomorrow… To survive in today’s […]

Opinion

by B&T Magazine

B&T Magazine
Host/Havas Creative Chief Darren Spiller To Depart
  • Advertising

Host/Havas Creative Chief Darren Spiller To Depart

Creative agency Host/Havas has announced that its chief creative officer, Darren Spiller, will be leaving the agency. Spiller joined Host as its chief creative officer in January last year and then assumed the same role when the agency merged with Havas in October 2017. Host/Havas has received of a long list of creative accolades this […]

by B&T Magazine

B&T Magazine
Creative Agency Launch Project Management Tool Hassl
  • Media
  • Technology

Creative Agency Launch Project Management Tool Hassl

Yesterday at TedX Melbourne the team behind award-winning Melbourne based agency Your Creative launched their new tech venture Hassl, the project management platform taking on Trello and the likes. With the belief there was a better design solution to project management, the platform has been developed over the last two years in collaboration with their […]

ABC Axes Tom Ballard’s Tonightly
  • Media

ABC Axes Tom Ballard’s Tonightly

It's one of the ABC's edgier, controversial shows, but Tom Ballard's proven too edgy and controversial for ABC chiefs.

Taboola Strengthens APAC Programmatic Offering With New Partnership
  • Advertising
  • Media

Taboola Strengthens APAC Programmatic Offering With New Partnership

Global discovery platform Taboola has announced a strategic partnership with Wider Planet, Korea’s largest demand-side and data management platform. The partnership builds on Taboola’s programmatic efforts in Asia-Pacific, and will bring together Korea’s largest demand platform for agencies and brands to provide access to Taboola’s global audience through premium publisher placements. The partnership means advertisers […]

The Haus Picks Up Two New Clients
  • Marketing

The Haus Picks Up Two New Clients

The Haus announces two new client wins. Admittedly, not as good as winning three, but far better than losing four.

businessman using tablet PC and information communication technology concept. IoT(Internet of Things). GUI(graphical user interface). paperless office.
  • Marketing
  • Technology

Smartly: The Future Of Martech Is Automated

Automated ad buying platform, Smartly was at the centre of the tech innovation stage at the Online Retailer conference 2018. Smartly head of ANZ Marta Bonzanini (pictured below) discussed the integral role automation plays in the future of marketers and creatives. “If an ad is not performing as well as planned, you probably have some […]

Messenger Launches Video Chat AR Games
  • Technology

Messenger Launches Video Chat AR Games

For the moments when we can’t be together IRL, Messenger video chat helps you connect in real-time with the people you care about most. Chatting face-to-face live makes all the difference when you have exciting news to share, you need a study buddy for a big test, or you simply want to pass the time […]

Sphere Wins Stockdale And Leggo
  • Media

Sphere Wins Stockdale And Leggo

Sphere snares Stockdale & Leggo business, which is a real estate group & not a simmer sauce as first reported on B&T.

Aussie AgTech Start-Up Leads Global Farming Innovation
  • Technology

Aussie AgTech Start-Up Leads Global Farming Innovation

With Aussie farmers facing so many challenges, could the answer be Blockchain technology? Ranking top 10 at this year’s Overseas Talent Entrepreneurial Conference (OTEC), pitching against 32 other start-ups from around the world, Aussie start-up Agunity are leading AgTech innovation. Having won the right to represent Australia during Investible’s nation-wide pitch competition, AgUnity took to […]

Women In Media Profile: Carolyn Bollaci
  • Media

Women In Media Profile: Carolyn Bollaci

Facebook's Carolyn Bollaci is the latest to sup at B&T's truth serum we prefer to call our Women in Media profiles.

by B&T Magazine

B&T Magazine
Vic Govt Unveils ‘Tafe + Jobs’ Via Fuel Agency
  • Advertising
  • Campaigns

Vic Govt Unveils ‘Tafe + Jobs’ Via Fuel Agency

The Fuel Agency has launched the new ‘TAFE + Jobs’ campaign, aimed to promote and drive applications and enrolments for courses starting in 2019 There’s a lot happening in Victoria, with record investment in road and rail projects, and in the health, community and disability sectors. As a result, there’s greater demand for skilled workers. […]

Rakuten Marketing Appoints New CEO
  • Marketing
  • Technology

Rakuten Marketing Appoints New CEO

Rakuten has a new CEO. However, judging by the tired handshake photo, B&T doesn't have any new ways of illustrating it.

Why Consumers Block Your Advertising
  • Advertising
  • Opinion

Why Consumers Block Your Advertising

Who better to explain why your ads are getting blocked than a real ad blocking expert. As B&T has done right here.

Opinion

by B&T Magazine

B&T Magazine
Women In Media Profile: Jackie Crossman
  • Media

Women In Media Profile: Jackie Crossman

B&T has spared no expense with today's top Women in Media profile, save for suit hire, corsage and dry-cleaning.

by B&T Magazine

B&T Magazine
Kantar certified by Google as a verified Measurement Partner
  • Technology

Kantar certified by Google as a verified Measurement Partner

The announcement designates Kantar as an approved third-party measurement provider for brands looking to verify their media spend performance on Google owned platforms. Kantar is approved globally to provide both Brand Lift Insights for evaluation of brand impact from campaigns and for independent measurement of audience reach from campaigns on Google properties. Kantar CEO Eric […]

THIS
  • Advertising
  • Marketing
  • Media

Final Call! B&T Late Entries Close Today!

B&T Award entries officially close at 5pm today! Good news if you've almost finished, bad news if you haven't started.

by B&T Magazine

B&T Magazine
Australian Women’s 15s World Cup Bid Kicks Off
  • Campaigns

Australian Women’s 15s World Cup Bid Kicks Off

“It’s 2018”, is something you hear a lot when you talk to the players, coaching staff and fans involved in Rugby AU’s bid for the ‘Rugby World Cup Women’s 2021’ tournament. There is this sense that they are not only ready for a greater stage, but raring to go. As one player said “Ready?! We’re […]

Aussie Silk Brand Harnesses Kardashian Marketing Power
  • Marketing

Aussie Silk Brand Harnesses Kardashian Marketing Power

Shhh Silk is an Australian brand that quickly grew in popularity among celebrities like Gisele Bündchen and Kim Kardashian West. Shhh Silk has just received a $1.8 million order from a very large brand in the US, and CEO Olivia Carr’s projections is for this to be a $50 million business in five years’ time. […]

SaaS Player Taps oOh!media Chairman Tony Faure To Lead Its Board
  • Media
  • Technology

SaaS Player Taps oOh!media Chairman Tony Faure To Lead Its Board

Software-as-a-service (SaaS) company ReadyTech has announced the appointment of Tony Faure as its new chairman. Faure is the chairman of outdoor giant oOh!media and data intelligence platform PredictHQ. He is also a non-executive director of digital mortgage company Uno Homeloans, content platform Stackla and specialised media company Medical Media. Faure is regarded as being one […]