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Why Unified, Cross-Channel Customer Data Is Essential for Marketers

 

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customerWhen asked about the effectiveness of their social media campaigns, most marketers will point to their latest Facebook Insights report or the size of their company’s Twitter following. When asked whether Facebook or Twitter influenced their customers’ decisions to purchase however, the data gets a bit fuzzier. Your company’s fan Page may get a lot of comments, but what exactly does that mean for your marketing strategy? 

A 2011 report released by Experian on digital marketing trends highlights the gap between the multi-channel data that most companies have and the insights they need to improve their marketing.  

“Even though most companies are doing multichannel marketing, very few are truly integrating their cross-channel initiatives. Gaps include the lack of a unified customer segmentation framework across channels as well as incomplete measurement of the impact of each marketing touch on customer behaviors.”

Furthermore, a Forrester study of U.S. interactive marketing professionals puts numbers to that statement. According to Forrester, 57 percent of marketers measure each of their channels, but only 28 percent measure the influence of one interactive channel on another.

A Multi-Channel View Is Not Enough

Customers do not use channels in isolation. A customer using Twitter is likely to have a Facebook account and may even cross-post content to each network. Real interaction with your company or brand is much more tangled, and different channels are influential at different points. Here’s some marketing research food for thought:

  • 28 percent of customers perform shopping activities from their phone while inside brick-and-mortar retail stores.
  • The Experian Report found that combining social media and email significantly increases consumer response to that email.
  • In a survey by Pricegrabber, half of online shoppers in the winter of 2010 said they used social networks to share great deals on products.

Why You Need a Unified View of Customers

Brands should be focused on viewing the complete customer experience across channels and over time. Time is a key aspect here. In other words, if you could look at the individual experiences of your best customers over the long-term, you would begin to see commonalities and trends that would clarify which channels are really working. With this analysis comes answers to marketing questions that better inform your strategy, such as:

  • Which channels are most effective at initially bringing your best customers to your brand?
  • Which ones are strongest at delivering a conversion?
  • Which channels or platforms are customers using conjointly?
  • What path did customers take to conversion, and when did each of those interactions occur?

When marketers are able to pull together these data points and access a more unified view of the customer experience over time, they can begin to see the true lifetime value of each marketing channel and optimize the experiences that work.

What challenges have you had with connecting multi-channel data to your bottom line? How have you addressed them?

Image Credit: rachaelvorhees

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Posted by Meghan Keaney Anderson on Fri, Aug 05, 2011 @ 08:00 AM

COMMENTS

This is all 100% true -- marketers would absolutely love to have a cross-channel view of their contacts. Unfortunately, it's 1000 times easier to talk about how awesome this would be than it is to actually click our heals and get to this point.  
 
Two *major* obstacles (and they're related):  
 
1) There isn't a natural common key to tie that data together (email address is as close as you'll get...and that isn't a data point that is widely available to brands from their Facebook fans or their Twitter followers), and  
 
2) Consumers get *really* antsy about having brands recognize them across channels. Privacy and data security are huge issues that the analytics industry is grappling with -- a debate that is being carried out in the court of public opinion with minimally informed media and politicians involved. These issues simply can't be ignored (which, in my opinion, is what this article does).

posted on Friday, August 05, 2011 at 8:48 AM by Tim Wilson


Tim's right on the money. And to underline his points, just review the impact of the latest update to the EU privacy directive. On the UKs government site where they implemented opt-in for cookie tracking, only about 10% of their site visitors have opted in. If this trend continues it will make even single-channel data difficult to get.

posted on Sunday, August 07, 2011 at 12:58 AM by Micah Beals


Tim and Micah -- You're right, as brands work to deliver a more tailored experience for customers, the conversation around privacy is going to become more and more critical. I think the privacy question comes down to user control. Website visitors need to have the ability to control how private or personalized their browsing experience is. The challenge is on companies to offer real value in exchange for customers opting in. As a personal example, I give some sites, like Hunch, access to my social media accounts because I get useful personalization and recommendations in return. But it's my choice. That choice is key.

posted on Tuesday, August 09, 2011 at 9:21 AM by Meghan Keaney Anderson


Comments have been closed for this article.