I met a fabulous new friend last week, Sandra Zoratti. Sandra is a writer, speaker, VP Marketing at Ricoh — and an overall great marketer. Like me, she believes in using a very precise methodology in regard to direct marketing. In fact, Sandra (along with her colleague Lee Gallagher) just published a book called “Precision Marketing.” I’ve bought it and have been voraciously reading it — and it is fabulous. I highly recommend it for anyone wanting to improve the effectiveness of their marketing campaigns.
Sandra also authored a post recently that really resonated with me about how data — and the right data — can really help to drive your direct marketing efforts. So much so . . . that I thought I’d share it with my readers, too. I hope you enjoy this as much as I did! Here it is . . .
Every day, we see 5,000 messages.
In a single day, 294 billion emails are sent, 534 million Facebook updates are posted, 400 million tweets are tweeted, and 2 million blog posts are written.
Over-the-top? By a loooooong shot.
For a marketing professional trying to reach the customer, cutting through this cacophony with traditional marketing methods is simply not possible.
What’s the solution?
It starts with relevance and content marketing. Becoming credible in a post-social media world requires prescriptive content. Attempts to communicate generically are swallowed whole by the vast and ever-growing channels of digital communication that exist today. Precision Marketing –using data-driven insights to find the relevant targets, create relevant messaging and measure relevant metrics – equips the marketing professional to deliver the right message, to the right person, at the right time via the right channel(s).
Let’s take a look at RapidRacking.com to demonstrate Precision Marketing in action:
Rapid Racking Ltd is a B2B company located in the UK. They sell racking solutions to other businesses and acquire new customers primarily via print catalogs. However, printing and distributing catalogs can be a costly way to acquire new customers if it is not precise and targeted. Here is an excerpt of Rapid Racking’s story from the book “Precision Marketing: Maximizing Revenue Through Relevance”:
Business Problem: Rapid Racking, a UK-based maker of shelving and racking for businesses, blasted out millions of copies of their 160-page product catalogs to any potential B2B shelving buyer. The company needed to REDUCE the customer acquisition costs while maintaining a stream of new customers.
Data-Driven Solution: Rapid Racking gathered all data on hand to determine how to use data to reduce costs by creating better relevance for prospective customers. The company’s marketers looked at the data they could collect on the prospects –such as job title and job responsibility –and then used current in-house data on existing customers to predict which prospects were the most promising
Results: Rapid Racking now mails more targeted, much smaller and less expensive mini-catalogs vs. mailing 4 million massive catalogs to an entire list of “untargeted” prospects. A 47% decrease in the cost per acquired customer has been achieved while maintaining an 8% rate of revenue growth. All this while Rapid Racking reduced pieces mailed by 25%.
Data is the gold mine that can transform marketing. Data drives Insights, Insights drive Relevance and Relevance drives Revenue. -Sandra