large farm silos

Got a silo problem? If you’re like most companies doing targeted and personalized marketing, you do. You may have plenty of customer data, but it might be in different places (silos), and these places often aren’t talking to each other. As a result, your marketing is less effective than it could be. 

Here are some risks to having siloed data: 

  • Unhappy customers. Whenever mail gets lost because you have the wrong address, whenever a mail piece arrives with a bad name, or you offer to sell a long-term customer a product they already own, you risk alienating that customer. 
  • High costs. The average price of every piece of returned mail is $3 (Source: Pitney Bowes). This is not just the postage and printing. It’s the cost of the piece coming back to you, figuring out what went wrong, and taking the time to fix it. 
  • Lost sales. How many marketing opportunities are lost because the data on customers’ preferences and behavior is siloed in different departments? That translates into lost revenue. 

Let’s look at five steps for getting rid of those silos. 

1. Connect inbound mail to outbound mail.

Build in tracking mechanisms that allow you to connect the incoming to outgoing mail. This can be as simple as adding a barcode unique to each participant. When the response envelope comes in, the barcode is scanned. This connects the incoming mail to the outbound file, linking the customer information together. 

2. Centralize data capture.

Centralize mail processing in one location. Capture mail coming in from marketing, sales, customer service, web forms, and anywhere else in your company. 

3. Extract what you need.

Your mail contains lots of essential details that can be useful to your print and digital marketing. Extract all of the insights you can, including names, addresses, channel preferences, transaction history, and customer surveys. Input it into a centralized database that can be accessed throughout the organization. 

4. Look and learn.

Assign someone with a marketing and data background to analyze your database to understand what it tells you. Contained in there are critical nuggets about customer behavior, channel preferences, and more. Need help? Just ask!

5. Put it to use.

With a closed-loop on your mail communications and a centralized, up-to-date database accessible by all departments, you have a powerful marketing tool at your disposal. Take what you can learn and use it to improve your targeted and personalized direct mail marketing or other customer communications. 

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people standing around

To create genuinely personal communications, you need to know your customers. This requires more than knowing basics like name, address, and gender. It requires knowing more about who your customers are

Let’s take an example from the world of sports. For example, when we think of hockey fans, we might think of demographics such as age, gender, and region of the country in which a fan lives. But did you know that National Hockey League (NHL) fans are the most affluent sports fans in the country? (Out of all major league sports, the NHL has the highest percentage of fans earning more than $100,000 per year.) Or that half of Major League Baseball fans are retirees? Or that 40% of NASCAR fans are women? 

The starting point for any targeted or personalized campaign is knowing the make-up of your audience. If you don’t have this information, make it one of your goals to find out. Send a direct mail or email survey or conduct a focus group. Add survey forms on your website or purchase additional data to fill in the gaps. 

Don’t stop there. Ask yourself what else you might not know about your target audience that would be helpful. When the NHL started personalizing its fan communications, for example, it asked them to fill out a survey that indicated where they lived and their favorite hockey team. The NHL discovered that 40% of its fan base lives outside their favorite team’s home market. Imagine the marketing opportunities for the league! 

Know your customers from the inside, too.

  • Consider investing in fundamental database analysis. Identify your top 10% of customers by frequency, volume, and revenue. 
  • What do those customers “look” like? Create a set of customer profiles.
  • What does each profile have in common (age, income, marital status, purchase habits)? In a B2B environment, you might look at the vertical market, employee size, and annual revenues. 
  • Get to know your bottom 10%, too. What do they look like? Are they customers you can woo back? 

There is an infinite number of questions you can ask, but they all start with knowing who your customers are in the first place. 

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wooden pegs

If you want to know what’s working, test it. Is this recipe better than that one? Is this pair of shoes more comfortable than those? Marketing is no different. By taking a portion of your list and testing one element at a time, you can find out what works best. Even if you’ve done testing in the past, things change. It’s essential to keep testing to make sure you know what is working now.

Unbounce, a service that allows marketers to build, publish, and test landing pages, has described the impact of testing on three different companies and the lessons learned from each. Let’s take a brief look at each one.

Test #1: Great ads can get better.

SafeSoft Solutions had a slick, professional ad that was doing well. The headline promoted productivity and efficiency. It used attention-grabbing, easy-to-read bullet points to outline the benefits of its services. But the ad did not contain pricing information. SafeSoft decided to test the addition of a green starburst with its pricing inside. The result? A 100% increase in conversions.

Test #2: Not all trial offers are created equal.

For some companies, a seven-day offer might be perfect. For others, customers might need a more extended test-out period. When HubSpot split tested its trial offer, it found that prospects required more time to make a decision. By testing a 30-day trial over a seven-day trial, it was found that it could boost conversions by 110%.

Test #3: Location matters.

Does the placement of the CTA make a difference? Inbound Strategy wanted to find out. It tweaked its site’s landing page, added more information, and played with the location of the CTA. The results? When the CTA was moved from the right-hand side of the page to the left, there was a 217% increase in conversions compared to the control.

These examples have lessons for us, as well. Whether you are working with print, email, landing pages, or any other channel, you’re missing opportunities if you’re not doing split testing regularly. What insights and higher conversion rates might you be missing?

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