As the practice of marketing analytics is making a name for itself, and businesses are starting to catch on that they’ve been capturing all this great customer information. These same businesses are now starting to realize they should consider using it! If you are using predictive analytics to target your marketing campaigns, you should be seeing improvement in response rate from versus older campaigns where no predictive analytics were available. It is still common practice to send email campaigns or direct mail pieces to every contact in your list, hoping that mass distribution will lead to higher volume of responses.
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As marketers, we have heard about it for years: It is important to understand the total value of your customers over the “lifetime” of their relationship with your brand, product or service. Makes sense, right? Why would you not want to understand the total impact a loyal customer can have on your acquisition and retention efforts based on this calculation? However, a great number of marketers we speak to still overlook future revenue opportunities by not recognizing the true lifetime value of current customers. Even though quite a number of companies can recognize differences among customers’ loyalty over a lifetime, they are often unable to quantify or act on those differences.
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