A Perspective on 360 Degree Consumer View and Orchestration of Data Driven Marketing
Organizations understand the burning need to know their consumers better to be fully aware of their preferences, likes & dislikes and purchase behaviors. However, not many understand how to establish the enabling CRM framework and utilize the data & insights for making informed decisions. Marketers look constantly for better tools to refine their Marketing Strategies and a Data Driven Marketing approach will be key to unravel the needed consumer insights. As a follow-up to the earlier blog, this one talks about the key ingredients of a 360 degree consumer view, its usage and benefits.
Constructing a 360 degree view of Consumers
Centralized Data Lake
It all starts with the data. Data can be categorized into the following data sources
- First Party Data – Information collected directly from consumers like registrations on brand website
- Second Party Data – Someone else’s first party data, coming from a source other than your audience like consumer surveys
- Third Party Data – Information sourced from large data aggregators like Nielsen Panel Data
Organizations strive to own the first-party data generated from the multi-touch interactions with the consumer. Ownership of the consumer data is key to understand the end-to-end consumer journey consisting of identity, transactional, behavioral, and interactions data. Second and third party data enables organizations to enrich their own consumer data as well as to reach newer audiences.
A sample view of the kind of sources and consumer data available is as follows:
Figure 1: Data Sources and Consumer Data
The foundation of a Consumer 360 is to bring in all the individual consumer data into a centralized data lake using which brands can design their marketing strategies to activate consumers through personalized campaigns, cross and omni-channel campaign attribution and personalized recommendations. In addition, brands can also perform advanced analytics to mine insights and knowledge for a continuous optimization of their marketing strategies.
The centralized data lake essentially forms the backbone of a Consumer 360 and enables organizations to overlay past behavior on current interaction context to be able to predict future relationship with the brand.
It’s only half the battle won upon organizing consumer information across multiple touchpoints in a central place. The marketing organization needs to derive meaningful insights from the wealth of consumer information. Some of the ways in which this is done is as follows:
Defining micro segments is a key benefit from a Consumer 360 platform. Instead of the traditional demographically defined segmentation, marketers now have a tool to refine the segments into micro-segments based on multiple factors like behavior, interaction, psychographics, preferences, geo-location etc.
2. Analytical Models
Marketers can define and build their own models to score consumers based on their brand engagement, product affinity, product engagement, etc. This scoring attribute is appended to each individual consumer which would allow brands to devise their marketing strategies for each consumer segment. For e.g. Consumers highly engaged with the brand can be encouraged to become brand advocates while consumers having a low brand engagement can be reached out with specific promotions to bring them back into the fold.
3. Intelligent Reporting
Brands can build custom reports specific to their own needs and analyze consumer data from multiple perspectives. This intelligent reporting is ideally aligned to the brands objectives to give them an unparalleled view of their consumers. Brands can analyze consumer growth within a segment, sales from consumers who like sports, consumers who bought a specific product within a 50 mile radius of a store, consumers who are engaged with the brand on website, store and mobile app etc. The possibilities are endless.
4. Campaign Analytics
Brands can retrieve the campaign response metrics for campaigns sent to the consumers and analyze the data to understand campaign performance. These are key metrics which are directly used for Media Spend Optimization. Interpreting campaign performance helps brands to understand
- Which are the best performing campaigns
- Which are the best performing channels for communication
- What media provides the best ROI
The third component of a Consumer 360 is consumer activation based on the data and knowledge unearthed about consumers. Marketers need to devise and refine their marketing and advertising strategies to reach out to consumers. Traditional route has been a typical mass market emails or mailers sent out to consumers, mostly segmented by demography. However, with a Consumer 360, much more detailed data can be leveraged to create micro-segments and a communication is possible at an individual name basis. Some of the ways in which Consumer Activation is done is as follows:
1. Omni-channel experience
Consumers can be reached out to on multiple devices and platforms, irrespective of where the last communication was. For e.g. An advertisement displayed to a consumer on a mobile can be followed up in the store on next consumer visit.
2. Journey based Campaigns
Consumer communication can be done based on where the Consumer is in the Journey instead of a disjointed one-off communication. For e.g. tracking a consumer from registration through the loyalty conversion process
- New Registrations – Once a new consumer registers with the brand
- Profile Completion – Encouraging the consumer to add more profile details
- Subscriptions – Motivate consumer to sign up to newsletters etc.
- Referrals – Motivate the consumer to bring in friends to the brand
- Loyalty sign-up – Converting the consumer to a brand advocate
3. Trigger campaigns
Consumer communication based on the trigger of certain events in the consumer lifecycle
4. Multi-channel Campaigns
Consumers can be reached out to on multiple preferred modes of communication like Email, Mobile Notifications, SMS, Direct Mails, and Social Media etc. The choice of communication mode generally depends on the preferred medium by consumers and the channels providing the best ROI
Business Outcomes and Benefits
1. Personalization: This is the cornerstone of a 360 degree consumer view, where brands are able to communicate with its consumers on an individual level, and provide a customized experience through the right offer, at the right time and location within the right context. Some examples of personalization are as follows
- Product recommendations
- Personalized offers / promotions tailored for consumer
- Content recommendations
- Dynamic content optimization
2. Analytics led Engagement and Conversion: The overall marketing approach is transformed with a better understanding of consumer preferences and interactions. Organizations can quantify the success rates of their marketing efforts in terms of gain in conversions and new customer acquisitions. Gartner estimates that there is likely a 10X improvement in response rates for offers that are timely, relevant and convenient over those that aren’t.
3. Multi-touch attribution: With newer technologies in play, it is now possible to answer the age old question of which marketing effort and campaign led to an actual consumer conversion. Traditionally, marketers used to attribute a successful conversion to the last consumer touchpoint. In a real world scenario, a consumer may have been engaged through multiple touchpoints through multiple channels before make a purchase. For e.g.
- Consumer views an ad for a product online
- Consumer goes to the brand website and subscribes to the newsletter
- Brand sends an email to the consumer with some coupons
- Consumer decides to redeem the coupon in a store
In the above example, traditional attribution models will depict the email campaign as the channel through the consumer was converted overlooking the contribution of the banner ad, which drove the consumer to the brand website. With new age digital marketing, it is feasible to attribute the conversion to include all the previous touchpoints as well.
4. Predictive Analytics: Having an ownership of the data on every touchpoint within the user journey enables organizations to stitch together a single consumer view. This view can be leveraged to develop custom analytical models to predict consumer actions and their behavior patterns. For e.g. Brands may gain insights into the next set of product categories consumers may be interested in looking at their past behavior
5. Consumer Loyalty: With relevant and targeted marketing, consumers have the benefit of engaging with the brands in a meaningful way which in turn drives consumers towards loyalty since the brands understand their consumer needs.
6. Marketing Spend Optimization: With targeted marketing, it is no longer necessary to invest in large mass market campaigns and hope for consumer conversion. With a focus on a smaller but interested audience, marketers are able to plan for their campaign spends better with a much larger ROI.
To know more about this topic and talk to our experts, click here.