Make good use of data to improve the performance of marketing campaigns

Today, as brands know, efficient use of its database leads to improved business performance and a significant increase in turnover. Currently, only 27% of retailers say they systematically use data analysis to make their decisions. In this context, how to define a data-driven CRM strategy to achieve its objectives?

Implementing a marketing strategy based on the analysis of the data collected is one of the keys to better identifying its strategic issues, prioritizing its actions, and ultimately generating 25 to 85% additional profits.

Analyze your database to identify your strategic levers

To better identify its strategic levers, it is necessary to analyze what already exists. The first thing to do is to segment your database in order to try to understand the different profiles that make it up. Indeed, customers have very different behaviors in terms of value: properly segmenting your base makes it possible to better direct actions towards the customers who have the most value.

For example, a limited number of customers representing 5% of the base, can represent a significant share of the turnover of the order of 25% over a year (A study carried out by Harvard Business Review indeed shows that increasing the 5% retention rate can yield 25-85% more profit). If this is your case, it will therefore be important to focus on retaining the best customers.

Once the structuring is done, it is necessary to analyze the evolution of the KPIs of your database globally and by segment (contactability, mix of the purchasing channel, average basket, etc.). Two tools are used to refine this examination. The first corresponds to the renewal balance, which allows you to see if the company manages to maintain or even increase its base of active customers. Then, the passage matrices: they will allow you to analyze the movements of your customers over time, from one segment to another, and to understand your main points of attention. Finally, it is necessary to establish, through these data analyses, hypotheses based on past observations of your strategic levers. These projections will help to determine what are the priority issues (acquisition of new customers, retention of the best customers, reactivation of liabilities, etc.) according to the costs for the company, what they bring in, and how often (over a year , over a season…).

From there, it is possible to establish an action plan which responds to these challenges and which makes it possible to direct resources towards the CRM marketing levers that generate the most value for the brands.

Implement and manage its data-driven CRM strategy

A CRM strategy guided by the analysis of its database and the identification of its strategic levers has an immediate impact on turnover. For its implementation and management to be optimized, the action plan must play on all of the following activation levers: omnichannel, automation, personalization, artificial intelligence and creativity. For this, it is necessary to exploit the various digital levers: the email channel actually only reaches 10% to 20% of customers and if we exploit all the digital levers, we can multiply its visibility by 5. This allows increase the reach of its communications and create a seamless customer journey. And to gain in efficiency by automating its activations and by exploiting the different customer moments (purchase journey, customer life cycle, moment of life, etc.).

This automation is only effective if it is correlated with very precise anticipation and response to the needs of each consumer. It is by personalizing its marketing actions and product recommendations that a company builds customer loyalty.

Define very fine audiences

Then, it is by using a platform that relies on artificial intelligence that we can define very fine audiences and make personalized product recommendations at the right frequency. Indeed, it makes it possible to increase its productivity and the relevance of its marketing actions thanks to its action of enrichment and valorization of its data.

Finally, it is by varying the scenarios and pretexts of communications that we manage to stimulate and inspire consumers looking for an authentic relationship with the brand. Finally, it is necessary to continuously evaluate its strategy to be sure that it is optimized to the maximum and effective. To achieve this, short-term objectives are necessary to check if we are on the right trend. In the medium and long term, we must continue to make observations over more significant periods (season/year), comparing them to the past to see if these actions have had any effects.

About the Author

After 8 years spent with the Beaumanoir Group as a data CRM manager, Antoine Bouchard joined Advalo in 2018 to bring his Data Marketing Digital expertise to the service of the platform and its users. He has been helping companies understand and use their customer data for several years now to develop efficient data-driven strategies. In September 2021, Advalo joined the Skeepers group to put AI and one-to-one marketing at the heart of the customer experience.