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

Latest News

Western Australia Gets Its First Influencer Marketing Agency
  • Marketing

Western Australia Gets Its First Influencer Marketing Agency

Western Australia’s first dedicated social influencer marketing agency will launch next week to service the state’s new and rapidly growing digital industry. The Influencer Agency – TIA – brings strategy, accountability and measurement to influencer marketing for WA brands using WA influencers. TIA will also assist influencers wanting to grow their brand by developing new […]

One-on-one With Marie Claire Editor Nicky Briger
  • Media

One-on-one With Marie Claire Editor Nicky Briger

Following the launch of the revamped marieclaire.com.au, editor Nicky Briger spoke to Magazine Networks about all it can offer readers. In September, Pacific Magazines unveiled an all-new digital experience for Marie Claire. Led by design thinking, the new look marieclaire.com.au was crafted to provide a better reader experience across all devices. It’s a testament to […]

Women’s Health Unveils Its New Premium Digital Experience
  • Media

Women’s Health Unveils Its New Premium Digital Experience

Pac Mags’ Women’s Health has unveiled an all-new premium digital experience. With a faster, cleaner, more intuitive and visually consistent brand experience across all devices, the new look is designed to optimise the user’s journey with less clutter, discoverable content and seamless integration for commercial partners. Will Everitt, head of product and technology said: “The digital evolution of […]

Digital Agency Inlight Secures Two Key Client Wins
  • Marketing
  • Technology

Digital Agency Inlight Secures Two Key Client Wins

Independent agency Inlight has announced it has won the digital account for Benetas, a not-for-profit aged care provider in Victoria. Following a competitive pitch process, Inlight was chosen to handle Benetas’ new website design, build and ongoing optimisation. Richard Barker, marketing manager at Benetas, said: “We wanted an agency that could be our true digital […]

AMI Awards 2017 Winners Revealed!
  • Marketing

AMI Awards 2017 Winners Revealed!

With almost 30 awards handed out, B&T predicts plenty of numb bottoms at last night's AMI Awards in Melbourne.

Clems Sydney CEO Andy Pontin Quits
  • Advertising

Clems Sydney CEO Andy Pontin Quits

Sure, B&T flashed the news of Andy Pontin quitting this morning. White lies aside, he's actually still got six months.

by B&T Magazine

B&T Magazine
Adobe MAXes Most Creatives In A Room Record
  • Advertising
  • Media

Adobe MAXes Most Creatives In A Room Record

B&T's journo is reporting live from the annual Adobe Summit in Vegas. Although, "reporting" is somewhat of a stretch.

Opinion

by David Hovenden

David Hovenden
Digital Women’s Network & The Australian College Of Marketing Unveil Latest Short Courses
  • Marketing

Digital Women’s Network & The Australian College Of Marketing Unveil Latest Short Courses

The Australian College of Marketing is collaborating with the Digital Women’s Network to bring new short courses aimed to provide the latest skills across all aspects of the Digital landscape, kicking off in Melbourne and Sydney in 2018. Course content will focus around various topics related to the digital marketing landscape. All courses will run […]

Man working at office desk, looking at computer and scratching head
  • Technology

Where Are Digital & Tech Skills & Salaries Headed?

The rapid pace of technological change in the digital sector is seeing demand for those with the right skill sets outstrip availability, both locally and globally. The individuals who have kept their skills up to date are being well-rewarded financially. Now, Digital + Technology Collective’s expanded annual Skills and Salary Survey will put some numbers and context […]

Disney & ESPN Unify Sales & Partnerships Teams
  • Advertising
  • Marketing
  • Media

Disney & ESPN Unify Sales & Partnerships Teams

Disney and ESPN have formed an even closer bond, announcing a new alignment of the two properties through their media sales and partnerships teams. Instead of entering through three doors, Disney ESPN Media Sales & Partnerships will give media buyers and marketers a refined, singular point of entry for Disney, ESPN Digital and Maker. Nik […]

by B&T Magazine

B&T Magazine
Sydney Start-up Muzaara Partners With Commission Factory To Turbocharge Digital Ad Spends
  • Advertising
  • Marketing

Sydney Start-up Muzaara Partners With Commission Factory To Turbocharge Digital Ad Spends

Sydney-based adtech start-up Muzaara has announced a new strategic partnership with performance marketing platform Commission Factory. Together, Muzaara and Commision Factory are providing SMEs with a secret weapon to skyrocket their online brand visibility and effectively manage and maximise their online advertising campaigns. This partnership will allow both online marketing companies and their impressive roster […]

Kellogg’s Creates AR Halloween Trick Or Treat Experience Via Shazam & Orchard
  • Campaigns
  • Marketing
  • Technology

Kellogg’s Creates AR Halloween Trick Or Treat Experience Via Shazam & Orchard

Breakfast cereal manufacturer Kellogg’s has joined forces with Shazam and digital agency Orchard to deliver a first-of-its-kind augmented reality (AR) Halloween Trick or Treat experience for families. The campaign, which leverages Shazam’s visual recognition platform and recently-launched AR platform, sees Kellogg’s pilot the replacement of physical gifts in cereal packs with a digital experience that […]

Kraft Heinz Appoints Cummins&Partners As New Creative Agency
  • Advertising

Kraft Heinz Appoints Cummins&Partners As New Creative Agency

Kraft Heinz today confirmed the appointment of Cummins&Partners as its new Creative agency after an extensive pitch process. They will be responsible for brand strategy and integrated creative across the expanding Kraft Heinz portfolio including Kraft, Heinz and Golden Circle. A Kraft Heinz spokesperson said: “After an exhaustive search involving a competitive pitch, we have made […]

Patrick Delany (CEO, Fox Sports), Hugh Marks (CEO, Nine Entertainment Co), Miranda Devine (Columnist, News Corp), Michael Miller (Executive Chairman, News Corp Australasia), Grant Blackley (CEO & Managing Director, Southern Cross Austereo) at Radio Alive 2017
  • Media

Media Bosses Weigh In On Ten-CBS Deal

Do you enjoy articles featuring industry big-wigs? Well, it doesn't come much bigger and wiggier than this, we say.

by B&T Magazine

B&T Magazine
Kantar TNS’ Ali Dexter Joins T Garage As Director Of Insights & Strategy
  • Marketing

Kantar TNS’ Ali Dexter Joins T Garage As Director Of Insights & Strategy

Melbourne-based market research consulting agency T Garage has announced the appointment of Ali Dexter as its director of insights and strategy. Dexter joins T Garage from Kantar TNS, where she was the director of its Qualitative division. Prior to that, Dexter held a number of senior roles at Kantar TNS in the US and Vietnam.  “After […]

XXXX on Tuesday, March 21, 2017, in Las Vegas. (Jeff Bottari/AP Images for Adobe)
  • Advertising

Adobe Releases Advertising Cloud App

Not one, but two Adobe announcements. The tech elves have been busy this week, not that we're inferring Adobe is Santa.