Want to understand how much each one of your customers is worth? Or perhaps, how you can use existing customer data to grow your audience?
In my previous post, I introduced the idea of Umbel’s Atomic Audience Model as a way to help understand the atomic structure of your customer data. It’s a useful framework for understanding the Lifetime Value (LTV) of your audience and how the customer data you have can be used to grow the size and LTV of that audience.
For a quick refresher, there are three different layers (a.k.a. orbitals) that make up the Atomic Audience Model. As you pull customers closer to the center, the LTV of these individuals increases significantly.
- At the broadest view are your Potential Customers. Unless you are in the enviable position of controlling a majority of your market, you don’t know or interact with most of these people.
- Within your addressable market is your Brand Audience. These are people who interact with your brand in some way, but most of them are unknown users. You likely don’t know much about them, and you can’t prove that they’ve spent any money with you.
- At the center of the atomic model are your Registered Users. These are people that you know. You have at least an email address because they’ve created an account or digitally raised their hand in some other way. These are your most valuable customers, not only because they are the most accessible, but also because these are the people that you can tie historical transactions to.
This post will focus on Registered Users.
I’ll describe a few ways that a Customer Data Platform can help you leverage your existing marketing infrastructure to increase the size and LTV of your known customer base. This is by no means an exhaustive list, and different teams across a marketing organization will simultaneously use a CDP for their own purposes. Consider this food for thought.
More Buck For Your Email Bang
Direct marketing teams understand that their email list is an invaluable resource for encouraging repeat business. Companies that have invested in an Email Service Provider (ESP) know that putting content directly in front of a captive audience translates to revenue dollars.
I’ll get into personalization later on, but first let’s talk about targeting. One place where the Customer Data Platform can profoundly inform email marketing efforts is by targeting customers ready for the upsell.
Let’s look at the Indiana Pacers, for example. Together, we’ve unified and analyzed an enormous amount of valuable data on their fans. By unifying disparate data points around their fans like behaviors, demographics, and social graph, the Pacers have a deep look at any segment of fans they want to. One of their highest LTV fan segments is, of course — season ticket holders. Even if the fans don’t show up to the game, a paid seat is one they don’t have to worry about filling.
By using custom segments, the Pacers have been able to define which of their fans look like a season ticket holder, but haven’t yet bought season tickets. I’ll let you guess what special offers they put in those fans’ inboxes.
Supercharging Your CRM
When used properly, a CRM system can do wonders for customer satisfaction, and is often the center point of customer facing outreach efforts. While CRMs have evolved in their own right and can house a variety of data points about a customer, one data point is almost always guaranteed to be there: Phone Number.
While the telephone is antiquated as far as “technology” goes, it remains a powerful tool.
Take the insurance industry as an example. Imagine a scenario where a customer’s auto policy is up for renewal. By syncing segments from your Customer Data Platform with your CRM, the agent can know more about a customer than they otherwise would before picking up the phone. Maybe the customer’s social data shows an interest in fishing gear, but they don’t have a boat policy with you. Sounds like an opportunity, or at least a conversation starter.
Better yet, let’s say you sell home security and you have a call center setup to offer people a free home security system if they agree to stick your sign in their yard. By segmenting out prospects that are unlikely to own a home, you can better spend that call time elsewhere. Seriously people, leave me alone!
Phone is just one example. Many companies use a CRM to manage other outreach efforts like direct mail. In combination with a Customer Data Platform, possibilities start to pile up (like unread junk mail sent out by the other guys).
Let’s Face It, Facebook Rules
In the eyes of most digital marketers, social data is a bright and shiny object. With tools like social sign-on and activator campaigns, it’s getting easier to access those customer data points.
But once you’ve got it, what do you do with it?
That’s where the Customer Data Platform comes in. By relating that social data to other customer data points, Umbel has seen amazing results through Facebook Ads. You can certainly use brand affinities and demographic data to do very effective look alike modeling through Facebook, but that story is better left for a post about your unknown users. This post is about Registered Users.
Front Gate Tickets has seen a 10x return on ad spend, and part of that success is due to a very direct approach. Through social authentication, Front Gate has Facebook IDs on people that bought tickets to see the hippest new indie act the last time they were in town. These are the people that they put Facebook impressions in front of when the band comes through town again.
Just because you’re working with data, doesn’t mean things can’t be simple.
1:1 Personalization At Scale
For anybody who’s paying attention, this is the holy grail. Imagine a world where every website provided a different experience for every user. This is where digital marketing as a whole is headed.
Using technologies like Monetate and Optimizely, this future is becoming reality. Integrating systems like these with a Customer Data Platform allows brands to provide a unique personalized on-site experience for each individual customer, based on as many data points as they have unified.
Social data, behavioral data, demographic data, geo data, purchase data, attribution data, cookie data, beacon data, biometric data…bring it all. The future of data is bright, and Umbel will be there alongside brands willing to innovate in parallel with consumers’ evolving expectations.
Ready to try Umbel’s Customer Data Platform? Request a demo today.