Data-Driven Marketing

Well utilised data allows marketers to:

– successfully acquire new customers (Customer Acquisition)
– identify and retain high value existing customers (Customer Loyalty and Retention)
increase value of less valuable customers (Customer Value Management)

Marketers can use past and present customer behaviour to predict future actions (e.g. customer cancelling a subscription, customer making another purchase and so on). An action or even lack of it can be a sign of some sort of future behaviour. A good marketer will then see the signs and react in an appropriate and timely manner.

Typically you will achieve highest impact (highest MROI) when you act as soon as you see that the customer is changing his or hers behaviour (either accelerating or churning). Customers whose behaviour remains unchanged (but active), should be left alone till the moment when their behaviour starts to change as well. Really there is no point in spending your marketing budget on customers who seem to be happy with the current state of things. Focus your marketing initiatives on the changing behaviour.

Data-Driven Marketing

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