1to1 - Spring 2009 - (Page 32) and offline data and to create a better system of warehousing data. “We noticed a significant improvement in the delivery and response immediately after we went live,” Befumo says. “Now we have a benchmark for our KPIs and we’ve seen increases in sales revenue, new customer conversion, and payment on our ‘bill me’ offers.” Since much of PCH’s business is billed later, the company closely tracks payment risk and open balances. Now that customer data is refreshed more frequently and customers are tracked across channels, the company is able to limit risk and better manage customer selection for certain offers. The biggest change, according to Befumo, is in retention. “We can identify lapses in customer engagement much quicker thanks to more accurate and efficient data systems,” he says. “Initially we had a database to identify potential win-back customers and target efforts appropriately, but going forward we’ll begin reactivation programs earlier to prevent them from getting to that point.” “It takes a long time for an organization to become analytical,” Cano says. “But at the end of the day our customers become more loyal to us because we’re relevant and we treat them like individuals.” six: Rethink Web Analytics More than 20 percent of marketers consider Web activity the least valuable data they collect, according to a recent survey by 1to1 Media. Although the reasons for this vary, many respondents said they haven’t yet mastered how best to use the information. Not surprisingly, some pundits say Web analytics is the biggest source of data companies aren’t taking advantage of. According to Akin Arikan, author of Multichannel Marketing: Metrics and Methods for on and Offline Success, companies that make Web analytics a higher priority will find additional ways to increase revenue and become more relevant to customers. He shares some advice here on how to get more from Web analytics. five: Link Channels When 1-800-Flowers.com plants a seed with a new customer, it aims to grow that relationship over time—not only within that brand, but also among it 11 other brands. One challenge the retailer faces in doing so is linking customer data across the brands, as well as across the four channels customers use to interact with the company: in stores, on the phone, through catalogs, and online. “Our enterprise data warehouse contains everything from order information to customer name and address to brand and channel IDs, occasions, demographic information from third-party sources, and recipient data,” says Aaron Cano, director of database marketing. “Basically, we know who buys what for what occasion for whom and where it’s sent.” According to Cano, it took years to build out the company’s comprehensive view of the customer through data mapping, identifying all the possible customer touchpoints, cleansing databases where customer information overlapped, and identifying customers as they move between sales channels. Partnering with SAS, 1-800Flowers.com developed the infrastructure in such a way that employees who need to access data have it at their fingertips using custom dashboards. Now, whenever the company launches a new brand beyond its traditional flower business, it goes through an integration process to share data with the rest of the enterprise. The brands also get the benefit of all the research 1-800-Flowers has done by developing the database. “We’re successful because it isn’t just marketing that buys into the processes,” Cano says. “Merchandising, fulfillment, operations, and finance all use the customer knowledge to make decisions, as well.” He says the proof of this success is in the company’s loyalty and retention rates, which show that the more times 1-800-Flowers engages customers during the year, the more of its sister brands they discover. A customer who receives a cross-promotional offer for Popcorn Factory after buying flowers, for example, may not have realized the two brands are part of the same company. 1-800-Flowers’ next move is to capture data from blogs, Twitter, and social networks. By doing so, the company can identify customers using online channels and take advantage of the unsolicited feedback about its products and service to improve its overall strategy. 1to1: Where are companies missing out when it comes to harnessing data from online sources? AA: The biggest gap I see is between Web analytics and marketing. More and more people are researching online before they make a purchase through any channel, but most direct marketers don’t speak to the Web divisions in their company. Web analytics is seen as a reporting tool that makes websites user-friendly, but not for learning about customers. 1to1: Why aren’t Web analytics being used for customer intelligence? AA: Part of it is cultural because the e-commerce guys grew up in a separate unit in many cases; they’re young, and they’re dealing with so much data that the focus is on visualizing it best and summarizing everything. Using Web analytics on an individual level would seem like drowning in quicksand to them. Relationship marketers think they’re integrating online and offline because they look at transactional data, but they don’t think about all the other data out there. They don’t own the data and share the misconception that Web analytics are only useful in a summary-level report. 1to1: What impact can changing that view have? AA: Right now Web analytics can be highly lucrative. With experimentation companies can make messages more relevant and track which are most effective. They do testing and segmentation so well now that they’ve neglected looking at the other data available. There’s only so much segmentation you can do; after a while there are decreasing returns on increased effort. Companies need to look at how customers are behaving online, connect that to behavior in other channels, and bridge the gap between the Web team and other marketers. ONLINE EXTRA: How do embracing master data management and eco-friendliness fit in with customer data? Find out at www.1to1media.com/links/ecodata.html For the complete results of 1to1 Media’s customer data survey, visit www.1to1media.com/links/datasurvey.html 32 1to1 magazine www.1to1media.com http://www.1-800-Flowers.com http://www.Flowers.com http://www.1to1media.com/links/ecodata.html http://www.1to1media.com/links/datasurvey.html http://www.1to1media.com
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