A data-driven customer engagement strategy

By Elisa Silverman

| Banking

Today’s marketers are in an optimal position to devise an effective customer engagement strategy. The volume and scope of consumer data now available help CMOs understand the full lifestyle picture of each individual customer.

The industry standard is moving past the simple persona to an era in which companies deploy their customer engagement strategy on hyper-personalized basis. Such personalization stands to take the already successful strategy of cross-selling to new heights, as Forbes notes.

The Online and Mobile Cross-Sell

Companies have long used consumers’ demographic and purchase history data to craft meaningful cross-sell promotions. For example, if a visitor to a retail website with a history of buying blazers and ties puts a navy blazer in his shopping cart, the website will start providing tie recommendations. But if the user’s history shows that he never clicks on or buys striped ties, the website will only recommend solid options.

Today’s consumers contribute a great deal more information through their social media activity and their mobile devices. When a user permits location-based tracking on their mobile device, a company learns so much more about that person’s lifestyle: where they go, the events they attend or which store branch locations are their favorite.

Combining this full complement of lifestyle data with the identification of key behavioral triggers indicating a need or interest provide marketers with the unprecedented ability to make the right offer at the right time.

The In-Store Cross-Sell

Let us first look at some cross-sell opportunities for consumers when they’re in the store — certainly a key behavioral trigger. Their mobile device signals their presence and depending on the sophistication of the in-store proximity marketing sensors, possibly exactly where in the store they are.

Let’s say this customer is Ms. White-Collar Professional. She’s looking at evening dresses. A real-time analysis of her social media activity indicates that that her 20th high school reunion is coming up fast; this isn’t random shopping to kill time. Now, personalized offers of in-stock evening shoes and handbags can be pushed to her mobile device.

Sound strange? The strategy isn’t as unusual as it might seem. In fact, major retailers have already utilized it with great success.

During its 2014 back-to-school campaign, Wal-Mart rolled out a multichannel advertising campaign to encourage mothers making a school supply run to also buy groceries while in the store. Wal-Mart discovered that its mobile advertising was responsible for 14 percent of the change in shopping intent, according to a Mobile Marketing Association survey, while only costing only seven percent of the spend.

Using Location Data as a Cross-Sell Trigger

In addition to using mobile location data to know when a consumer is in a store, knowing where else a consumer goes can trigger a personalized cross-sell campaign. In this case, let’s say that Mr. Suburban Family Man has stopped by two car dealerships in the past two weeks. His bank can now push personalized car loan ads to his mobile device when he’s checking his account.

Scotiabank has implemented a comprehensive mobile cross-sell strategy to users of its mobile banking app, according to Forrester. The bank reports an increase of 165 percent in year-over-year growth in unit sales via mobile banking.

Turning Data Into Revenue

Smart and innovative use of the full range of consumer data is an invaluable tool for CMOs that are pressured to show ROI their efforts, and to close the gap between data collection and data value.

At its core, cross-selling is the sweet spot between selling and customer service: Cross-selling done right meets the genuine needs and wants of the customer and results in revenue for the company. Using lifestyle data to craft highly personalized, relevant cross-sell offers serves the interests of both the seller and the buyer — as long as the customer remains the focus of the cross-sell customer engagement strategy.

Written By

Elisa Silverman

Technology Writer

Elisa Silverman is a freelance writer, with a professional background in law and technology. She writes for technology companies and professional service firms. In addition, Elisa writes other types of B2B marketing content that help them establish authority and foster relationships…

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