Sep
7
Written by:
Richard Tooker
9/7/2011 8:44 AM
In an environment of competitive rivalry at the front-end and consumer engagement at the backend, data is the foundation that informs all marketing communications. Whether offline/online direct response lead generation or as the source of information enrichment behind analytical breakthroughs such as customer defection studies or micro- segmentation…data is at the heart of the process.
The strategic use of consumer database resources that track demographic, lifestyle, and psychographic characteristics for marketable individuals, delivers benefits far beyond the data’s traditional utility as a mailing list. For savvy marketers, here are the most common uses of consumer database resources:
Analyze markets and product mix. Having access to all consumers within a national or regional footprint can provide accurate penetration statistics of the real market in geographically-defined subsets. Rich data on who is buying existing products and who will buy new products can play an important role in your decision-making process. Understanding demographic and psychographic makeup of specific membership segments can help greatly in the development of new, customer-tailored products. And, analysis of claims data experience can lead to either a contraction of existing product mix, the introduction of new products configured differently, or both.
Drive sophisticated analytics. Robust modeling and analytics, enabled by continuous access to data for appending, can improve member communications by detecting common behavioral characteristics to identify and score those most likely to be interested in the message. The data becomes a source of understanding for assessment and refinement. After-the-fact experience will allow marketers to model for buyers, not just responders or interested consumers, and those buyers will be defined by dozens of weighted variables resulting in more precise targeting. Access to appended data can provide much better customer or member selectivity and segmentation.
Refine creative execution. Every agency creative director’s fondest wish is to have a clearer fix on the target. Data that sharpens and adds specificity to the definition of targeted segments can be invaluable for developing more effective creative and messaging. It also helps account for regional differences, both in terms of prospects needs as well as the diverse competitive landscape. Having access to the consumer data that defines those differences will facilitate an understanding of how deliver accountable creative.
Retain members. Data enhancement provides the core information needed to model for attrition, retention and loyalty. An investment in retaining existing members is always more cost-justifiable than the investment required to replace members who have disenrolled. It also allows for enhancing member records with appended data can help to identify and score members most likely to buy additional products and coverages.
Enhance real-time interaction. Member data enhancements linked to web portal or call center applications and made accessible in real time to decision engines can dramatically enhance the user experience (UX), for both the company and its members. Additionally, models that rely on real time data can be created to score prospects for specific product interests to provide guidance for the frontline efforts in selling or servicing. For digital applications, the result is dynamic assembly of creative elements on web portals and landing pages.
Segment by disease state. Ailment data (often self-reported) can identify members who are currently suffering from a specific disease state, allowing clinicians to design appropriate interventions. Use of the data in predictive modeling can identify segments of people who are risk for specific disease states, giving the company the ability to direct methods of engagement in a way that leads to prevention or early treatment. Lastly, designing clinical communications appropriate to the member’s socioeconomic status, education level and language preference can increase the effectiveness of clinical initiatives.
Understanding your members or customers is a game changer. Their purchasing habits, lifestyle attributes, health status and digital preferences provides an important competitive edge. Customer data mining, modeling, segmentation, response analysis and profiling are skills of today’s top marketers. Statistically sound, real-time consumer data can recognize and track buying patterns and help anticipate (rather than simply react to) customers’ needs. A narrowcasted view of target markets will define what messages and media are most effective in reaching your most profitable prospects—those to continue to spend marketing dollars on…and those you should not.