In a recent webinar at App Promotion Summit, London, Brooke Fergusen, senior customer success manager at Leanplum and Becky Percival, head of CRM at Popsa discussed the evolution of data-driven marketing and how mobile-first companies can optimize their customer engagement, customer experience, and revenue.
What is true customer engagement?
When thinking of customer engagement, most of us think of our favorite coffee shop, where we feel most welcome and taken care of. The barista knows our name and our favorite beverage. She greets us and starts making our coffee as we walk in.
While ideal, this level of service and attention is only attainable when you’re servicing a small group of customers. If we scan customer engagement tactics through the years, we see that there is a clear evolution in data-driven marketing as businesses strive to connect more intimately with their end users (Figure1).
Figure 1 – Evolution of data-driven marketing
A good example of pure batch and blast is when businesses were targeting certain demographics as a whole, i.e., all people in the same zip code got the same email. Eventually, and as data and targeting became more important, some level of A/B testing was added to optimize the messaging to end users.
As access to better and granular data became possible, and as more people went online, businesses were able to communicate with millions of customers and do further segmentation of their audiences. From there and with the popularity of the mobile device, deeper personalization became possible, leading to today and personalization 2.0, where using data unification, multi-channel deployment and real time engagement allows for a highly-tailored experience.
Figure 2 – Consumers demand personalization
You might ask why do brands adopt deeper levels of personalization? Because consumers demand it. (Figure 2). In fact, Leanplum did its own research and published a data science report on the topic.
Analyzing data from more than 1800 campaigns and over 670M messages sent, we found that as the level of personalization grew, so did the impact on revenue (Figure 3). From basic segmentation (bottom of the ladder) to the highest level of personalization (message content customization – top of the ladder), brands can realize a 3X improvement on revenue with more personalization. We also examined the value of holdbacks, both at universal and campaign levels. Interestingly, and as our webinar poll also confirmed, almost no one uses universal holdbacks, which can be key in evaluating the general effectiveness of your overall messaging.
Figure 3 – Value of personalization beyond segmentation
Read our recent blog post to dive deeper into our data science report and analysis of our findings.
How Popsa Uses Personalization
A Leanplum customer, Popsa is a photo
This story was published at LeanPlum.com and provided for your interest.