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Data Ireland: Essential Steps
This document discusses the importance of maintaining a customer database and provides tips for building, populating, and maintaining an effective customer database. It outlines 10 key reasons to have a customer database, including retaining existing customers, building loyalty, and increasing sales. It also discusses potential pitfalls to avoid when gathering customer data and provides an overview of data protection considerations. The overall message is that a well-managed customer database can help businesses improve marketing efforts, increase revenue, and enhance customer relationships.
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Data Ireland: Essential Steps
- 1. Making the mostof your customer data Morgan Nolan Account Director Data Ireland 30th May 2012
- 2. Sorting out mydata is just too big a challenge 30th May 2012
- 3. Importance of acustomer database • The better businesses manage their relationships with customers the more successful they will become and a good CRM database is the first stage in developing a these relationships. • In a shrinking economy there is less opportunity to win new business and the focus on maximising value from existing customers has become increasingly important for the survival and future growth of businesses. 30th May 2012
- 4. 10 reasons tohave a customer database So what are the reasons for having a customer database: 1. Retain existing customers 2. Build loyalty by providing personalised service and communication 3. Generate referrals from satisfied customers 4. Provide insight to growing your business from external sources 5. Analyse sales data and customers information 6. Focus your marketing activities more precisely 7. Target special offers to key groups of customers 8. Measure the effectiveness of your marketing activity 9. Increased sales to existing customers through cross-selling activity to analysed segments of your customer base showing the highest propensity to increase their purchases 10. Improved marketing communications 30th May 2012
- 5. Building your customerdatabase 1 • Define the database functions 2 • Define the information requirements 3 • Identify the information sources 4 • Select the database technology 5 • Populate the database 6 • Maintain the database 30th May 2012
- 6. Customer information fields CONTACTS Account Number 12345678 TRANSACTIONS Title Mr ADDRESSES Date Account Number Product Qty Value Account Number 12345678 01/02/2012 12345678 AW390-12 2 €1,000.00 Forename Joe Company Name ABC Ltd 01/05/2012 12345678 AW078-04 8 €400.00 Surname Duffy Address 1 19 Andrew Street Job Title Managing Director Address 2 Telephone +353 (0)1 8584864 COMMUNICATIONS Town Dublin 2 Account Number Type Code Date Response Mobile +353 (0)86 1234567 County 12345678 OBTM OC0112 01/2012 Sale Email Joe.duffy@abcltd.ie Country Ireland 12345678 DM DC0312 03/2012 Sale 00184786 DM DC0312 03/2012 00184786 IBTC 03/2012 Suppress 30th May 2012
- 7. Data information sources 30th May 2012
- 8. Data information sources • Purchase History • Contact Details • Buying Criteria Sales • Terms of Trade • Competitors Used Customer Information • Satisfaction Levels Customer • Payment History • Complaints Finance • Credit Rating • Communication History Services 30th May 2012
- 9. Gathering basic data– common pitfalls • Requiring a postcode on web application forms for Irish addresses. Fields Record 1 Record 2 Record 3 Record 4 Record 5 Address 1 12 The Mews 12 The Mews 12 The Mews 12 The Mews 12 The Mews Address 2 Clonsilla Rd Clonsilla Rd Clonsilla Rd Clonsilla Rd Clonsilla Rd County Dublin Dublin 15 Dublin 15 Dublin 15 Dublin 15 Postcode 15 D15 N/A 00000 Dublin 15 30th May 2012
- 10. Gathering data fromyour website 30th May 2012
- 11. Other common pitfalls • Not providing enough space for email addresses on paper forms. • Not requesting a street for business records. Company Name Data Ireland Data Ireland Address 1 Dublin 2 19-24 St Andrew Street Address 2 Dublin 2 • Recording age groups rather than dates of birth. In 2 years time someone categorised as 25-34yrs could anywhere between 27 and 36. 30th May 2012
- 12. Pitfalls in gatheringdata from paper forms • Allowing free entry of address data on paper forms. 30th May 2012
- 13. Some basic maintenancetips • Control the quality of data entering the database – especially name and address details. An Post - Business Customers • A hastily taken name & address can lead to duplicates, poor deliverability, damage to your business’ image and make it difficult to complete analysis. • Record privacy preferences. • Record changes in details such as applying changes of address both from customers and external sources. • Flag suppressions – e.g. record undelivered mail. 30th May 2012
- 14. Find the hotshots Recency Frequency Monetary 30th May 2012
- 15. Lifetime Value Best Customers Average Customers Purchase per year 2 2 Average order value €70 €50 Annual revenue €140 €100 Gross profit margin 10% 10% Gross profit €14 €10 Acquisition cost €8 €4 Net profit €6 €6 30th May 2012
- 16. Lifetime Value Best Customers Average Customers Life expectancy 3 years 2 years Year 1 revenue €140 €100 Year 2 revenue €110 €60 Year 3 revenue €85 €0 Lifetime revenue €335 €160 Gross profit margin 10% 10% Lifetime gross profit €33.50 €16 Acquisition costs €8 €4 Lifetime net profit €25.50 €12 It’s a bit like the difference between declaring success after a one night stand and a long term relationship. 30th May 2012
- 17. Prospecting – whereto find them • Armed with an in-depth understanding of your customers and market characteristics you are better placed to focus acquisition spend in the most profitable areas. • Buying or renting external lists is an easy way to target new customers. • There are several sources for these lists and many can be segmented to provide a finely tuned list of prospects. • When buying data you are not just buying a list. You’re buying an audience. 30th May 2012
- 18. Prospecting – whereto find them Business Lists Consumer Lists Industry sectors Lifestyle preferences Specific job titles Socio-economic groups Geographic location Age groups Company size Geographic location ~€250 per 1,000 records ~€170 per 1,000 records 30th May 2012
- 19. Some key questionsto ask your data supplier • Is the data for single or multiple use? • How recent is the data? • Has it been collected in a compliant manner? • Is there a returns policy? • Does the data need to be used by a particular date? 30th May 2012
- 20. Data Protection Considerations Text/Email Phone Marketing Phone Marketing Postal Marketing Fax Marketing Marketing to Landlines to Mobile Phones Opt-0ut (provided Individual Opt-Out similar product or Opt-Out Opt-Out Opt-Out Customer service) Individual Non- Opt-In if on NDD, Opt-Out Opt-In Opt-In Opt-In Customer Opt-Out otherwise Business Contacts Opt-In if on NDD, Opt-In if on NDD, (Customer & Non- Opt-out Opt-Out Opt-In Opt-Out otherwise Opt-Out otherwise Customer) www.dataprotection.ie 30th May 2012
- 21. Conclusion • The long term effectiveness of adopting a strategic approach to your customer database, analysis and understanding will be seen in increased revenue, lower costs, better insight and increased customer retention. • Set up correctly and well maintained, it will help deliver sustainable profitable customer marketing actions and will also provide confidence in using external resources to find new customers. • Questions? 30th May 2012
Editor's Notes
- #3 Explain – story – if you don’t have a customer DB what you can’t do – renewal dates, lapsed, ….
- #4 Explain – story – if you don’t have a customer DB what you can’t do – renewal dates, lapsed, ….
- #5 Explain – story – if you don’t have a customer DB what you can’t do – renewal dates, lapsed, ….
- #6 Give an example of what some knowledge of your customer base will deliver.E.g. general communication versus high value comms – small group of high value customers.
- #7 Give an example of what some knowledge of your customer base will deliver.E.g. general communication versus high value comms – small group of high value customers.
- #8 Give an example of what some knowledge of your customer base will deliver.E.g. general communication versus high value comms – small group of high value customers.
- #9 Give an example of what some knowledge of your customer base will deliver.E.g. general communication versus high value comms – small group of high value customers.
- #15 Give an example of what some knowledge of your customer base will deliver.E.g. general communication versus high value comms – small group of high value customers.
- #16 Give an example of what some knowledge of your customer base will deliver.E.g. general communication versus high value comms – small group of high value customers.
- #17 Give an example of what some knowledge of your customer base will deliver.E.g. general communication versus high value comms – small group of high value customers.
- #18 Mention business.ie here – how it can lead to more business. Story – identified homogenous group of profitable customers so target lookalikes..Consumer side – can target to very specific geographic locations (e.g. catchment area around cable network, people who are due to renew their car insurance next month, new young mothers who are going through a range of purchasing and switching decisions.
- #19 Mention business.ie here – how it can lead to more business. Story – identified homogenous group of profitable customers so target lookalikes..Consumer side – can target to very specific geographic locations (e.g. catchment area around cable network, people who are due to renew their car insurance next month, new young mothers who are going through a range of purchasing and switching decisions.
- #20 Mention business.ie here – how it can lead to more business. Story – identified homogenous group of profitable customers so target lookalikes..Consumer side – can target to very specific geographic locations (e.g. catchment area around cable network, people who are due to renew their car insurance next month, new young mothers who are going through a range of purchasing and switching decisions.