Understanding true barriers
The first and most common problem is fixating on an ambitious one-to-one marketing strategy that has insurmountable barriers to success. Again, the problem is too much imagination in one area (outcomes) and not enough in another (processes), so my advice is to assess the benefit-to-barrier ratio but emphasize the barriers.
You will realize zero benefits if you can't overcome the obstacles to implementing your strategy, so let me catalog a few common barriers that are often underestimated:
- Multiple technologies need to be integrated for execution of the plan to begin. If more than two platforms are involved, expect failure or, at best, a very long implementation timeline. I always recommend going to the broadest denominator, such as your fulfillment software or your e-commerce application. Either will likely have some basic data export capability and that's all you need.
- Passing complex data between systems. Related to the multiple technologies problem, I recommend starting with basic data in comma-separated values (unique customer id, purchase amount, and purchase date). Next, draw purchase info from the fulfillment software or directly from the website via web beacons. So far so good, but then the product metadata (descriptions, specifications, related products, etc.) come from a separate merchandising technology, and now the two need to be combined.
- Multiple internal departments are involved, not all share the marketing objectives. IT departments infamously march to their own drum. This is why the first two bullets above are so important. The IT group is much less resistant when asked for basic data in a simple format.
Use objective data for all customers
While agreeing with the theory, many marketers would love to do this, but lack behavioral data for all customers. Another problem is the literal torrent of behavioral data pouring out of web analytics, seemingly without a system to drink from the proverbial fire hose. Ironically, both problems may be overcome by the same solution: seeking out the lowest and simplest denominator. Just look at the purchase basics in a recency, frequency, monetary (RFM) analysis. If you are working with a good vendor, they may be able to incorporate other online metrics such as clicks and views into your assessment of engagement.
In any event, the analysis will provide data for all your contacts because knowing which customers have never (or very infrequently) made a purchase from you is critical insight for guiding your marketing. Unlike the one-to-one model, what we are looking for here is high-level measurements of engagement and groupings of similarly engaged customers. With this approach, the numbers problem -- too many people, products, potential behaviors, etc. -- which is the key difficulty behind one-to-one marketing, works in your favor and allows you to leverage customer insight for larger segments.
Surveys, questionnaires, preference forms, and the like can be an important part of developing and maintaining customer loyalty, especially in industries like travel or hospitality. However, these feedback devices offer limited incentive and incomplete value for gauging a customer's relationship with retailers. So, with exceptions, avoid making questionnaires or surveys your first step at creating a data-driven marketing plan.
Implement in steps
Actual, demonstrable increases in your revenue are the goal and getting there typically means many small wins, not one giant game changer. Pick a modest goal (you'll inevitably find it less modest than anticipated when you're waist-deep in implementation) and work it until you've got it down cold. Then build on that firm foundation.
Even with a cautious, incremental approach, you will need a helpful and responsive vendor to achieve optimal results. Many companies have tools and consulting services that facilitate data-driven marketing strategy and execution. Still, you shouldn't try to leapfrog the competition with a seductive, yet hard to achieve one-to-one marketing plan. While many online marketing companies may claim that one-to-one is effective and easy to accomplish, savvy marketers would be wise to question providers that don't demonstrate knowledge of and respect for the difficulties of data-driven marketing strategies.
Your email marketing efforts will shine with a strategy and solution that keeps the implementation barrier low, provides data ubiquity, and starts with a broad focus that enables you to improve results with your entire customer base, not just the customer with a fetish for red high heels.
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Craig Kerr is the VP of marketing at iPost.
