Three benefits of using propensity to drive customer engagement
by Nagesh K S
November 12, 2015
Did you know? Only about 25% of digital marketers are aggressively using big data insights, according to a recent study released by Seattle-based 2nd Watch. Segmenting the right audience and creating the right message goes only halfway into formulating the perfect marketing strategy. Imagine getting into a sword fight with an Excalibur but being blindfolded at the same time. You have to know when and where to target your audience as well. Let’s have a look at three areas where calculating propensity gives us insights into a better customer engagement strategy.
Know your customer better
Propensity is what gradually acquaints you with your customer. It helps you build your customer profiles and over time you have a real understanding of the personas who are part of your audience. If you know 35% of your base are social media addicts (responding to campaigns on social media), some 20% are ‘deal lovers’ (who open every offer communication on any channel) and 10% are ‘slow movers’ (who always react only after 3rd follow-up) wouldn’t you say you’re better equipped to make those conversions happen?
Plan campaign cadence
Now, say your first salvo misses, what do you do next? With knowledge, that propensity has now armed you with, you’d at least know the next best channel to leverage (remember those ‘slow movers’?). It could be that a young and fast audience react better to a direct targeting campaign, but more experienced and professional customers, might need a little warming up first. Also, now that you know the conversion time taken by your customers, you will wait for just about the right time before hitting ‘send’ on that follow up email. Your customers don’t have annoying reminders, you have a happy customer base plus sales, and it’s a win-win for all.
Most elementarily, but still critically, propensity helps you select the right target list for every campaign. So, if you are a QSR or an F&B company with a weekend offer, you’ll know your regulars like John and Sandra will be on Facebook on Friday evenings, while you should still be able to catch James and Sally on their emails. Quite simply, it’s about the right channel to best reach the right audiences-effective with propensity calculation your marketing strategy has become just that much more cost effective, impactful and generates a higher ROI. Happy marketing to you.