The meaning of marketing continues to evolve and how that changes the way we engage with our customers. Trends are emerging in customer engagement, how we integrate data, how we leverage marketing analytics. As marketers, we are also seeing social media usage mature, changes in mobile marketing and increased conversation about customer privacy. Customer touchpoint becomes a priority and understanding how all of these trends can work together will be the key to marketing success in 2011.
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The foundational concept of all database marketing is the Pareto Principle, that 80% of your sales and profitability will come from about 20% of your customers. When we have analyzed our clients’ customer bases to prove out this theory, we often find that the distribution is even more uneven– that 100% or more of customer profitability comes from an exceedingly small group—because clients are actually losing money from some part of their customer population. The 80/20 theory often holds true for product sales as well – 80% of sales often comes from just 20% of the products offered by a manufacturer. This concept has driven everything in database marketing from audience identification to campaign structure, sales strategy etc.
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