Event Driven Marketing (EDM) has been proven to be the single most effective technique in marketing. Traditional segment, model, score, campaign marketing gives response rates of 1-3% whereas using EDM results in average response rates of 20-50%!
Why? Well simply put, customers respond positively to you and buy things when they need them, NOT when you want them to. So, the trick is to find out “when”, and the best signal for this is to monitor a customer’s actions/behaviour for signs of when something significant has happened – an Event – and to contact them at this time.
If a customer has just received a windfall, started a job, moved house or had a baby, their financial needs change. In these situations, if you can recognise this, they respond very positively to your approach and communications. Conversely, they do not respond well if nothing has changed in their lives.
The graphic below illustrates the level of customer interest and responsiveness in relation to the timing of an Event.
Here you can see the phases of an Event mapped to their level of interest. First of all we have the Status Quo, where nothing has happened and the customer is happy. Next we see the Window of Opportunity where an Event has occurred but the customer has not yet decided to act. Then we see the Actively looking phase, where the Customer decides they need to act and starts to look for a solution. Interestingly, the transition point from thinking to actively looking is called the “Zero Moment of Truth” by Google. Finally we see the post purchase phase where the customer slips back into Status Quo.
As you can see the customer is only interested in the Window of Opportunity and Actively Looking phases. But these can be very short from as little as a few minutes up to a few days. For the rest of the time, they are not interested – but typically this is the period when your ‘traditional’ campaign communication arrives – which explains the low response/interest to such contacts.
So, in a little more detail, Event Driven Marketing (EDM) analyses each customer’s needs and actions in order to determine when they need something (Customer pull) not when you want to sell them something (Product Push).
EDM is the discipline within marketing, where communication is based upon relevant and identified changes in a customer’s individual needs .
In this context, an “Event” is defined as a detectable change in an Individual’s circumstances, today, which is relevant and significant, either in fact or in their mind.
To see an infographic which highlights the key benefits and results obtained from EDM, click here.
Significant Events are major happenings in a customer’s life. They can lead to a measurable change in a customer’s behaviour, state of mind, circumstances, or interaction pattern. A Significant Event offers a reason to communicate with the customer, with a relevant proposal, at the right time.
Events increase the knowledge, understanding and information about a customer that enables you to make better, more intelligent and informed decisions. Customers feel that you know and understand them better. This is a more authentic and natural way to communicate, which is more likely to receive a positive response.
Event Driven Marketing (EDM) is exactly the same as Event Based Marketing (EBM) and ‘Trigger based’ marketing. The definition above is consistent for all these terms.
Instead of conducting a campaign based on the marketer’s sales objectives, an Event Driven approach is focused more on the customer’s needs and how the Bank can satisfy these.
The beauty of this approach is that each message is optimal. There’s little waste. Customers receive relevant promotional offers and service messages that are of interest to them at the right moment, and marketers avoid the shotgun approach and cost typical of most campaigns.
Events determine when Customers need something, not when you want to sell them something.
There is a lot of talk about Event Driven Marketing (EDM) in the marketplace. It is a key topic in marketing conferences and seminars.
Whilst figures vary, the research done on EDM showed that the average positive response rates for Event Driven campaigns typically range from 20%-50%! Imagine having those results for your campaigns.
The results of EDM are often spectacular; including response rates of 20%-50%
All of the Banks which have implemented an EDM approach report that Events provide between a 5 and 10 times increase over their previous response rates along with an associated increase in sales.
They also report changes in other Key Performance Indicators such as increased customer satisfaction, lower attrition rates and lower marketing costs.
The results of EDM are often spectacular, yet there are still only a tiny handful of banks in the world that seem to have implemented this successfully.
Why isn’t everyone doing it? Because implementing EDM is expensive, difficult and requires specialised expertise in order to be successful – until now.
Using our Event Driven Marketing technology, we can link to to any existing CRM solution achieving up to 10 times better response rates.
If you want to find out more, then please feel free to explore this site. You can find details of our approach and the solutions and services that we offer answers to Frequently Asked Questions, the Key Performance Indicators influenced by EDM and an overview of our Products.