The retail industry has recognized that although consumers tend to be very loyal to their brands and their stores, critical events in the lives of their customers can shift those loyalties.
Event-driven marketing mines transactional data for signs that customers are, for example, buying a home, getting married or having a baby. Campaigns are then sprung into action to retain and upsell customers at those critical times.
The success of such programs, including the highly publicized instance of a leading retailer that inadvertently alerted a woman's father to her pregnancy, prompted us to examine the possibilities for event-driven marketing within the business-to-business (B2B) space. After all, businesses can also be pregnant with opportunities... for the savvy organizations that detect them first.
Types of Triggers
Here are three categories of events that your analytics shouldn't miss.
- Product-driven triggers include maintenance contract expirations, the availability of product upgrades, transactional buying signals (e.g., a company that purchases one product is likely to require a related product), and product end-of-life or replacements.
Those are typically the easiest triggers to track, because they are bound up in the product's lifecycle. Tracking this type of trigger requires maintaining installed-base records of customers for long periods while keeping the data as clean and current as possible.
- Organic triggers relate to the normal changes that happen in the lifecycle of a business. An expanding business will signal new needs for a vendor's products by way of real estate acquisition, revenue growth into new geographies, or a high rate of revenue growth overall. Merger and acquisition activity may drive consolidation to a single supplier. Understanding the customer's year-end and industry-specific seasonality will help a vendor anticipate seasonal selling opportunities. Executive leadership changes can also drive new purchasing strategies.
When companies assign a salesperson to an account, they are essentially making that person responsible for identifying the organic triggers in the account and positioning the right products to the right person at the right time. Advances in marketing analytics mean people, processes, and tools are now available to extend the number of accounts a company can monitor.
- "Black Swan" triggers are unpredictable events outside a company's control and alter its business in unexpected ways. Hurricane Sandy drove up demand for hotels and bottled water in the short-term, and construction materials long after the storm to repair the estimated $66 billion in damaged property. Because of the ash cloud from the 2011 Icelandic volcano eruption, and the 2002-2003 SARS epidemic, companies worldwide re-examined their business continuity plans and invested in telecommuting and virtual conferencing.
Less obvious, but still important, are changing tax incentives and subsidies that can be very specific drivers for new investment, if the marketer is paying attention.
Responding effectively to any of those types of triggers requires cooperation across many departments. A centralized marketing analytics team must monitor external conditions with accurate and timely data served up by IT or provided by Sales through CRM systems. The marketing campaigns team must be nimble and creative, collaborating closely with the sales team. Operations must be ready to fill the demand.
All of that needs cross-functional governance to ensure that customers are delighted and the company has a good rate of return.
Take the first step (it's free).
You may also like:
- 2020 CMO Predictions From Marketing Influencers [Infographic]
- How Small Businesses Can Hit a Home Run This Holiday Shopping Season
- The Formula for a Can't-Fail Message Strategy (And Why Creativity Isn't Enough)
- Customer Analytics and Data Privacy Laws: On a Collision Course?
- Three Marketing Mistakes That Are Costing E-Commerce Companies Revenue