The latest research by insight and database marketing firm Transactis reveals that companies are missing valuable targeting opportunities and could actually be putting some consumers off due to ‘data wastage’ – the failure to make use of the different pieces of customer data that various parts of the company hold.
Transactis’ survey of 1,000 consumers revealed that, despite handing over their personal details and preferences to companies, 65% found that these firms still sent them marketing offers for products that they would never buy.
The study showed that 58% said that several firms did not even know that they were existing customers and were sending them offers aimed at new buyers. The Transactis survey also found that 52% of consumers say that companies have repeatedly tried to sell them products that they have already bought.
The research pointed to the conclusion that organisations are either lacking, or failing to make use of, a single customer view, which is an essential step towards avoiding data wastage and creating a platform for better targeting, more efficient marketing communications and improved capabilities for other activities critical to business success.
Richard Higginbotham, Head of Marketing, Transactis, comments, “Many businesses are failing to rationalise and make use of the full range of information resources available to them, which can inform and enhance marketing and CRM initiatives. We have dubbed this as ‘data wastage’. It represents a major opportunity cost for organisations that gather and rely on huge amounts of customer data in their daily business.
“Not only are many companies wasting money on redundant or poorly targeted offers, but consumers are taking note – and neither of these is good for the long-term health of a brand. By eliminating data wastage, these organisations could make more efficient use of their budgets and boost return on investment.”
The report notes that initiatives aimed at cross-selling and up-selling, prospecting for new business, launching effective promotions, forecasting, extending customer service and developing loyalty programmes could all benefit from more integrated data systems that pull together information from disparate parts of an organisation.
Higginbotham notes, “Turning data into a manageable and accessible asset is not necessarily an easy road for a company to take. But for firms that embark upon the journey, it will pay long-term dividends, strengthening an organisation’s ability to interact with and build upon its existing customer base. This is evidenced across all industry sectors, where the highest performing companies are consistently those who are able to use a deep understanding of their customers to align their activities to their customers’ needs and desires. “
"For many companies, the most straightforward solution is to bring in a managed service provider with the knowledge, experience, technology and data resources to turn diverse and often disconnected databases scattered throughout an organisation into a unified platform for actionable insight – a single database that can then be tapped by all the departments and business units that could benefit.”
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