This real-life example of poor data use shows just why it is so important for you to gather the right information to win over your customers.
I'm a sincere believer in the rise of Left Brain Marketing as the preeminent form of marketing, and I think this will be a great thing -- for marketers and consumers alike. Analytical strategies grounded in deep audience knowledge need to be the starting point of a customer-centric marketing approach, and data, used and gathered appropriately, is the foundation for this.
Data allows us to engage in dialogue, and to build relationships -- and deeper relationships will translate into greater customer satisfaction and value to you. It also helps you build competitive advantage over time.
This doesn't need to be abstract, and it doesn't need to be complicated. Simple steps can reap great rewards. A friend of mine told me her experience with two banks after moving to Singapore that illustrated this perfectly.
She moved here in 2000 from Australia and got a credit card from both Bank A and B. With a salary of about $5000 she started at roughly the same credit level with both banks.
But as with all of us, she grew over the years. Her career flourished, she got married, had a child and bought many things. Her salary more than tripled, and with her husband's income they had over $400,000 in annual household income. They moved from a small condo, to a terraced home, and eventually to a bungalow.
Bank A was her primary card, in large part because she preferred their customer service. Her Bank B card was a backup, which rarely had more than a few hundred dollars of purchases on it, and was paid off fully every month. The two banks took very different approaches, with very different results over the years.
Bank A reached out to her regularly offering her credit increases. At no extra cost to her, why not? She simply had to make the request and show a pay slip. Seeing her salary increasing year after year, Bank A proactively marketed to her, signed her up for a savings account, an investment account, won her mortgage when she bought her house, and was eventually considered by her for her new small business she was launching.
In contrast Bank B did nothing. You may think they had no data to go on, but that wasn't true. Like Bank A they could have produced data through engagement and dialogue, even simple dialogue of asking whether she wanted a credit increase. They could have inferred information about her -- an expat living in Singapore for over eight years. If she weren't growing in her career she likely would have gone home. And speaking of home, what's to make of the fact that she has moved from a condominium, to a slightly bigger terraced home, to a large bungalow?
Late last year, after a particularly bad customer service experience with Bank B, she received a letter that indicated after a "periodic review" her credit rating, which had been unchanged at $6000 for over eight years, was being reduced to $800. It was a computer generated letter, gave no justification for why this was being done, and effectively destroyed their relationship. She called immediately and cancelled her card and won't consider them for any products ever again. What a loss for the bank.
This may have been a one-off incident, and is completely anecdotal. Nevertheless, in this case data developed a fantastic relationship for one bank, while ignoring data destroyed the relationship for another.
And don't get me started about the word-of-mouth impact!
Rob Stanley is managing director, Asia-Pacific, for Responsys.