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End the Scourge of Wasted Data

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Customer and prospect data is the fuel that runs your Customer Relationship Management (CRM) and direct marketing campaigns, and the internet has enabled marketers to gather far more data than ever before. The problem is that most of that data currently gets wasted.

I suppress a groan every time I hear a client or vendor crow about all the customer data they have collected while showing me a long, unstructured list of web page visits, promotions sent, and even products bought. 9 times out of 10 they cannot tell me what all the files mean or how they are going to use that data. This represents a lost opportunity. You have to plan ahead and know what you want to do with customer related data so that you can classify and structure the data to best meet those needs.

The goal of a CRM program is to enable your database to replicate what is intuitively obvious to a human. When working with a client, I encourage marketers to picture themselves as watching a person explore their store or office and imagine each page visited, or email responded to as a customer picking up a product or brochure. For example, let's say one prospect came into a travel store, stopped to look at brochures for a cruise, resort, and airfare for the Caribbean. The prospect took information about economy trips and discounts whenever possible. In another case, a prospect looked at a brochure for a cruise in the Caribbean, a cruise in Hawaii and a cruise in the Mediterranean. The second prospect took information about how to upgrade to first class cabins whenever possible.

If you were a sales person sitting in that store and had the ability to send a follow-up direct mail piece to each customer, you would have a good idea of what you wanted to send. You would probably send a discount Caribbean focused promotion to the first and a luxury cruise-focused promotion to the second (preferably in tropical climates) to the other. If you structure your data correctly, your database can make the same conclusion you would if you were able to watch each interaction of each of your customers/ prospects.

How to Structure Data Correctly


The first step in enabling your database to make the same conclusions you would is to create a category structure for every communication with customers/prospects. The goal of the category structure should be to enable the marketer to speak to each customer as an individual. The structure should be focused on the interests of the customer and should also apply to your products, content, and promotions. Note that the customer focus of the categories of interest usually prevents using the existing structure of product SKUs, which are grouped by brand, product group, or structured specifically for inventory management. However, the interest categories should be mapped to your SKU database or any other pre-existing product or transactional database.


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