Do you use a specialist CRM marketing tool in order to choose which customer to contact and which product and services to offer? This method of CRM marketing is based around pushing products to customers based on a statistical assessment of their likelihood to accept an offer (Product Push).
Research of over 247 different companies across Europe showed that response rates for campaigns using this approach range from 2% to a maximum of 5%.
A 2%-5% response rate means that at any one time over 95% of your targeted audience DON’T want to be contacted by you. Also if contacted, they are more likely to opt-out of any future communication.
If you think this is bad, have a look at some of the other measures and Key Performance Indicators for targeted Marketing (and look here for a the results from EDM). OK, so what can you do about this? The sad fact is that it doesn’t matter which CRM tool you use, the response rates are the same.
Traditional marketing is based around pushing products to customers based on a statistical assessment of their likelihood to accept such an offer (Product Push).
There are two key aspects of this approach; one is that it is based around products (not customers) and two, it is usually based on poor or variable data quality (have a look at aspects of data quality here).
The proliferation of channels, customer touch points, and product offerings is creating unprecedented marketing opportunities.
But at the same time, response rates are decreasing, government privacy regulations are tightening, consumers are looking for technologies to enhance their ability to filter marketing efforts and the attitude to protect their privacy is increasing.
The avenues for communicating with customers are reducing every day and Customers are sending a clear message about how marketing should be done. They want to decide when and how to be informed.