CRM in Programmatic: Part One
The first article in a series aimed at helping marketers put their first-party customer data to use in digital display advertising
Good marketing is about dialogue. To know what a customer desires, companies must listen and understand each customer, as each one of his/her action is a word in the conversation. There’s only one way to do this: data. What someone buys on an advertiser’s website, how big their basket is, when was the last time they purchased – all of these (and more) are data assets crucial to a business understanding its customers. The objective in doing this? To create a long-lasting, loyal relationship.
CRM is this process through which companies use their data to adapt to their customers. It’s useful to keep in mind that customers don’t necessarily abandon companies because of price or products: they often do so because of service, as shown in the below graph.
Taken from SuperOffice.
And CRM is first-party data. It’s yours. It’s your customers. And that makes all the difference. And we don’t just mean online data: one of the beauties of CRM is the possibility to merge the offline with the online. Your customer used that coupon you sent him on the mailmore than once on that specific product? Then show him more of that on your website. It’s a possibility that can’t be underestimated.
Leveraging CRM data to improve marketing interactions is one way you can put customers at the center of your business. No-one’s on your website bought those green pants? Well, maybe stop selling them. Your customers keep searching for that specific shoe model? Well, maybe focus on getting more of those available. This personalized offering is an example of a customer experience which keeps them delighted with your brand.
These days, customer retention is just as important as customer acquisition, and CRM is a necessary tool for it.
Build Bridges, Not Walls
Siloed data is considered a barrier to the development of a healthy CRM program, mostly owing to the fact that CRM was originally a product of the offline world. While new digital and social channels have been added when necessary, often leading to the creation of fragmented datasets, in many organizations it happens no single department own the full view of the customer. However, we’re now seeing Chief Marketing officers (CMOs) and Chief Information Officers (CIOs) working more closely with sales and IT to end any existing silos.
Depending on how you look at it, CRM can be practiced in companies at different levels — ideally on an organizational level. However, it can also function at a customer-facing level, to include anything that has to do with interactions with customers, marketing, sales and service. Apart from that, it can even be practiced at a very functional level, such as in a call center.
CRM works best when used across the entire organization, as the following graph, taken from SuperOffice, shows:
CRM and Programmatic: The Ideal Marriage
It’s undeniable that marketing and technology are intrinsically linked today. Programmatic automates a lot of the ad buying process, based on how advertisers define their marketing goals. However, the data which enables the programmatic ad buying process might only scratch the surface of customers’ habits and behaviors— something that CRM can easily change. By marrying CRM with programmatic, advertisers are able to go more granular than vanilla retargeting. If this automated process feeds on the advertiser’s own CRM data, the ideal customer can be reached with personalized ads, in an efficient and precise manner.
When advertisers leverage their CRM data for programmatic technologies, they are able to reach specific customers with ads relevant to their very specific needs. For example, reaching a customer who had booked a last-minute redeye flight from London to New York, several times, is likely a regular business flyer. As such, she falls within a specific segment of an airline’s regular set of customers, and she would benefit from a specific type of marketing message from said airline, or any of its partners. Meanwhile, another regular customer with different booking habits — searching and purchasing flights for two, well ahead of the travel date — would receive different marketing messages, relevant for personal holiday planners.
This way, you’ll also know exactly where the data is coming from. When outsourced, you don’t fully know what data is being used and from where it comes from. With first-party, it’s immediately more trustworthy.
On the next article, we’ll focus on explaining the role CRM plays in cross-channel marketing, how does it allow for more segmentation and personalization, and how can CRM-driven marketing applied to different verticals?
Want to know more? Head over to the Econsultancy report, The Role of CRM in Data-Driven Advertising, which you can download here.