In today’s world of ever-increasing data availability, volume and variety the challenge to know which data is valuable to you is a key step in starting to build a marketing solution. An often-cited response is that ‘all data is important’ and this may be true, but to help decide which elements are critical in the initial stages of building your solution a method to identify at the value of each type of customer data is key.
In this post, I will look at how to audit customer data based on its type and value. The examples will show why it’s important to be selective when reviewing customer data in CRM and Email marketing.
Over numerous implementations of Marketing Database solutions, I have seen many types of data, including ‘pet’s name’, ‘favourite colour’, ‘number of car doors’ which all have potential value to different markets:
When first considering each data element, the ability to classify it can help determine how valuable and which phase of a solution it should be delivered in, if at all. The following list provides examples of data elements and will help you quickly identify the critical pieces of information to your business and goals from the various different data sources. Typically the priority order of the data is as follows:
At the heart of database marketing is the individual, so knowing who the individual is and being able to build and maintain a Single Customer View provides the first type of data, Identity. This includes any information which enables an individual to be uniquely identified and includes:
Once you understand who the individual is the next key element is the measurable operational data, which enables you to understand how your customer has behaved, transacted or reacted with your business. This includes any information which describes activity completed between the customer and your business:
Understanding who the individual is and the type of activities they complete with you provides a good starting point for any marketing database. To gain a fuller perspective of your customer additional profile information is crucial. This provides additional information about your customer, beyond the identity and quantitative details, covering:
The final type of data you will come across provides further description of your customer and potential behaviour and is usually provided by questionnaire type information where an attitude, motivation and opinion is provided:
Using this simple classification process and relating them to your core business goals, will enable a quick identification of which data provides the information critical to the core success of your business. This can then be used to plan the appropriate delivery phases, with clear understanding of the value achieved from each data item included, enabling you to answer the question ‘How valuable is knowing my customer’s pet name?’ to your business.