Robert Schumacher (1969) is one of Switzerland's leading pioneers in the fields of data-driven marketing and CRM.In the wake of the hype surrounding big data, it is slowly becoming clear among innovative marketing managers that it doesn't matter whether we talk about big, small, large, thin or smart data. The key point is that marketing effectiveness can be increased with the help of data and completely new business models and value chains can be defined on the basis of data, which is where the new hype concept of digital transformation comes into play, which often goes hand in hand with disruptive developments. Such far-reaching innovations are mainly achieved by new market players that use data to challenge established companies' customer relationships. Airbnb, Uber and Instacart are well-known examples of this, but what is digital transformation anyway? It's not about simply copying analog functions into the digital world. For example, simply sending emails instead of letters. This is not a digital transformation, but a simple optimization of functions. Only when new processes and new behavioral patterns are mapped and completely new business models are generated through the intelligent use of data do we speak of digital transformation.The term digital marketing - i.e. email marketing, Facebook, Twitter or social marketing - therefore falls far too short as a term to describe what is currently happening in marketing: The new digital technologies, especially smartphones, are opening up new opportunities in marketing, primarily thanks to the intelligent use of data. In the new world of digitalization, it is therefore not simply a matter of transferring the traditional from analogue to digital. So what are the five most important requirements for marketing in this new world of informed, hybrid customers, the omnichannel campaign world and mobile, "always-on consumers"?
1. have a customer relationshipThis is probably one of the most important prerequisites: Because if your company does not have a relationship with the customer, it cannot do business. The prerequisite for a customer relationship is that you know the customer. This is the only way to be relevant and retain the customer. And age and gender are definitely no longer sufficient customer attributes for effective customer management. Instead, granular, behavior-based detailed knowledge of the customer is required in order to generate added value. This is where the adequate use of appropriate tools that analyse and visualize customer data using statistical methods becomes eminently important.
2. centralize decision-making authorityCustomers today are "omnichannel" - without knowing it: they do not make an explicit decision about which channel they want to use to communicate with the company today, but do so based on the respective context. The company must therefore realize that it is always the same person - regardless of which channel the customer uses to make contact. The company must therefore move away from the silo view and also manage all customer contacts internally with a central decision-making authority using a set of rules. In addition to all planned marketing measures, these also include all available data, all customer contact rules (e.g. no sales letters for two weeks after a personal contact), channel restrictions (e.g. maximum number of outbound calls by the call center per day) and strategic guidelines (e.g. at least 200,000 web views of a specific product). Based on all this information, the best possible next action is played out in real time if necessary. And this is done with optimal budget allocation. And that brings us to the next point.
3. optimally distribute the budgetToday's marketing budget remains the same at best, but is coming under increasing pressure. However, the number of possible customer contact points seems to increase every month: After Facebook and Twitter have been integrated, then comes Whatsapp, then Instagram, then Snapchat, then ... This means that the challenge for the marketer is to optimally distribute the available budget across the available channels, depending on the customer journey, the respective goal of the contact channel and the respective channel costs. This requires knowledge of the contribution of each channel to the optimal customer journey.
4. consistently automateThe demand for relevance when addressing customers creates the need for individualization. Addressing a large number of customers individually, i.e. addressing them differently via various channels, at specific times and with relevant content, requires systematic automation. Only in this way can the step from "one size fits all" marketing (i.e. the same letter for all customers) towards "one to one" marketing succeed.
5. measure transparentlyThe change process, digital transformation and operational campaign management all require systematic measurement in order to achieve improvements. KPIs, measures, reactions and results can only have an impact within the company if they can be visualized, as this provides a common basis for discussion. This is usually done with an intuitive and interactive marketing dashboard, which in turn enables measures to be optimized based on the insights gained. This is the only way to initiate an ongoing learning process that keeps the company competitive on the market in these fast-moving times.Author: Robert Schumacher, Director at gateB, is one of Switzerland's leading pioneers in the fields of data-driven marketing and CRM. He has worked in various roles in the field of direct marketing for over 20 years.website:
https://www.gateb.com/de/