The theory is simple: properly prepared and executed 1:1 marketing campaign can increase the value of your customers. It is important what you know about your customers and what you want to tell them about your business.
The practice, however, shows that matching an offer to the individual needs is something more than a procedure for customer service staff to be empathetic, nice and asking relevant questions as to the customer’s needs.
So how do you prepare your company for this kind of communication? Depending on whether you want to proceed in small steps or are planning to implement company-wide organizational change, the answers may be different.
To implement personalized marketing program, you have to take four basic steps.
- Step 1 – identification of your customers.
To launch a program, you have to be able to locate and contact your clients. It is critical to learn as many details about them as possible – not only address details, but also their habits, preferences etc. You must also identify the customer at each and every contact point, location and department of your company.
- Step 2 – differentiating your customers.
Broadly speaking, you can split your customers into two main groups – they represent different levels of value and they have different needs. You will then be able to focus on customers that could bring the most value with the least effort.
- Step 3 – interacting with your customers.
Improving both the cost efficiency and the effectiveness of the campaign is a critical component to the success of a 1:1 strategy. Cost efficiency improves by using a more efficient and thus cheaper method of communication. Effectiveness improves by generating timely and relevant information. Every interaction with a customer should take into account the results of previous interactions and be their continuation.
- Step 4 – customizing your company’s behaviour
In the end, to retain or to acquire a client requires adopting certain aspects of the company’s behaviour to match clients’ expectations and needs. This might mean implementation of new features in the product, or even designing a new product to offer, changing the call centre mode of operation or introducing new terms of service.
These four steps can overlap. Nevertheless, fulfilling all four conditions will lead to increased profitability of each customer.