‘Rumpole of the Bailey’ DVD box set
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‘The Beatles’ Rock Band PS3
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‘Zulu’ on Blu-ray
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Freakonomics: A Rogue Economist Explores the Hidden Side of Everything
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Tomy Octopals Bath Toy
What is this? I’ll tell you, it’s a list of the last five things I bought from Amazon!
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Sirloin steak
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Mixed salad
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Kellogg’s Bran flakes
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The Times
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Nurofen
What is it? The contents of my shopping basket and I’m on my way to the checkout. It’s a simple process, I just hand over my Amex card, my reward card and the job is done. And just before I came in, I used the same cards to pay for my petrol.
So where’s the rub? Well, if we fast forward a month or so, I will get ‘recommendations’ from Amazon – based, not only on what I’ve previously bought, not only what I’ve ‘viewed’ but also based on what other people who bought what I bought, have then gone on to buy!! Clever isn’t it? And then the lovely supermarket sends me some money-off vouchers for – wait for it – Fillet steak, own label Bran Flakes and Australian red wine (well something must have caused the headaches!).
In the data world, there is no emotion, no judgements, simply a set of binary transactions that it needs humans to write business rules and interpretations around. Of course it’s a bit more than just knowing I’m a closet Barrister, how I probably vote or what my likely household income is. In both cases the Retailer has built up a profile of me through the choices I make (and don’t make). My newspaper may hint at who I’m likely to vote for in an election and what kind of social demographic I fall into. My nightly purchases may indicate I’m single and the lack of nappies and baby food means it’s a safe bet I’ve no children under four. But hold on a minute – you bought the ‘Tomy Octopals Bath Toy’?? True – but it was for my nephew (age two) and simply a ‘rogue or unusual’ transaction as far as data trending is concerned.
Great lessons in how to use customer data, gathered through transactions, and then used to generate relevant, compelling offers. It’s an example of data mining and it’s used by more and more companies across the world. I’ll bet your supermarket/garage/High Street retailer does it, and it’s something you’ve probably bought into. But how do I, as a small B2B organisation, apply these strategies to my business?
In marketing, data mining’s used for quite a few purposes. Amongst other things, it can help companies identify their best prospects and segment their markets to personalise communications between themselves and the prospect. It can produce timely, relevant campaigns – reminding you that we’ve got a new version of the product you bought/lease finance you needed/coffee beans you use. It can also increase their cross-selling opportunities among existing customers, and help retain them. And it really is as easy as that – you hold all the data within your organisation – in spreadsheets, in Accounting systems, in CRM platforms, in website databases. So you know what customers have previously bought, what prospects and customers have viewed on your website, you know what they’ve clicked in your emarketing campaigns. You just need to access that information, pull it together, then use the information to create dynamic, relevant communication strategies for all your customers, both existing and potential. Simple in reality and in practice – it just needs an organisation to fully appreciate the value that can be generated by using data to properly profile and communicate with audiences.
data•customer relationship management
