IT'S ALL ABOUT THE RIGHT DATA
C3, with its innovative data warehouse, offers pioneering analytics and customer insights which help retail companies to better understand customer behaviour and needs and to use these more effectively.
More than 12,000 advertising messages on a daily average: Consumers are confronted with a real information overkill. Pitched against that you will find there is only a handful of messages that the consumers are really interested in. What’s more, due to the sheer number of advertising stimuli, consumers are rapidly becoming sated by and therefore less susceptible to relevant information. On the one hand, the digitalisation challenges retailers to prevail against the consumers’ ever shorter attention span under an increasing competitive pressure and in doing so win their interest. On the other hand, to minimise unnecessary wastages and the costs involved, advertising and communication measures no longer should be distributed according to the scattergun approach or via as many channels as possible (in the sense of “more is more”).
THE RIGHT CHANNEL FOR THE RIGHT MESSAGE
With efficient and innovative targeting and “channel fit marketing”, all this costly wastage can be avoided. Yet, this is something most retailers are often unable to do because they have little to no usable information on their customers’ individual preferences. Simply put: They may know who their customers are but they don’t know what they want. So, they promote their products to a too broadly defined target group and hope the fitting customers are among them – whoever they may be. But more important, still, is that stationary retailers cannot track who exactly is interested in their offers or even who has bought something.
FROM BIG TO RIGHT DATA
Getting consumers to buy products requires much more than simply targeting them according to the lowest price. In customer segmentation, it is more meaningful to address them according to more than the typical analytics criteria such as their age, income, location, or job. But these “classic” dimensions for analyses have lost their precision and discriminatory power because sociodemographic characteristics, among others, have become far more heterogeneous.
Existing CRM systems and loyalty programmes – so far – are often incapable of providing information beyond that. They generate a lot of big data; but they remain one-dimensional because they usually only track existing customers and thus provide no insight on the behaviour of their customers in other sectors. Also, these systems primarily differentiate on a product level and therefore track and consider the rational and utility-oriented customer behaviour most of all.
DATA-DRIVEN DECISION MAKING
What many programmes still neglect to overlook is a rather simple fact: Consumption is rarely solely a utilitarian decision and oftentimes simply irrational. Emotions, preferences, interests, and personal needs play a major role in purchasing decisions.
C3 has developed an analytics system that considers exactly these factors. By incorporating and attributing value to not only conventional customer data (sociodemographic data, geographic data, purchasing behaviour) but especially psychographic data, retail partners can make smarter business decisions and receive better outcomes.
Psychographic data – such as motives, values, interests, and preferences – tell us much more about who the customers are, what they want, how, when, and even why they want what they want. By additionally considering psychographic data and combing them with brand attributes (among others), customer needs are better understood and a more purposeful product range can be offered. But the most important and future-oriented added value is a personalised CRM and loyalty programme with which retailers reach consumers with tailor-made information and offers that they indeed care about. And in turn, because of this, these consumers become more susceptible to future messages.