Best Practices: 3 Secrets to High-Value Customer Acquisition

August 29, 2017 Lyra Hankins

Best Practices: 3 Secrets to High-Value Customer Acquisition

In the communications and digital media industry, acquiring customers isn’t necessarily the biggest challenge. It’s finding and keeping the high-value customers that becomes difficult — and getting them on board requires more than just offering the best pricing. It requires honing in on data, analytics, and insights that can help predict who your best customers could be and better identify the channels where they will be most responsive.

Savvy marketers already leverage their transactional data and analytics to segment their customers. But using your own customer data is just one piece of the puzzle. Being able to identify reliable, trusted third-party data sources, linking this with in-house customer data, and using powerful predictive analytics models may not only help you identify these potential customers but also help you reach them on their preferred media channels. So instead of attracting customers why may likely switch providers when the next best offer comes along, with the right enhanced insights, you are better able to identify the customers who may be the most beneficial to your bottom line as they stay with your company for their communications and entertainment needs.

Linking Data Becomes Necessary for Successful Acquisition
Silos within your organization may prevent you from crafting a holistic view of your customers and effectively using the data to create high-performing analytics models. You may be using a variety of transaction and customer data — but that data can be problematic and hard to incorporate if it is not linked, standardized or effectively associated with the right customers. When you link all sources of internal customer data, then combine it with reliable, comprehensive external data assets, you can build more robust analytic models.

Identifying High-Value Customers Can Be a Challenge
According to Deloitte’s Digital Democracy Survey, 40 percent of U.S. consumers who are streaming video are using a free service(1). Easy availability of free services like these is contributing to customer movement between providers. When communications and digital media companies compete on price, they may be attracting consumers who are just one step up the ladder from those wanting free service — those seeking the best deal. The investment to acquire new customers (advertising, free months of service, free equipment) is wasted when these consumers find a better deal and discontinue your service. The trouble is, it is often difficult to identify which customers will be high-value, long-term users, and which ones are just shopping around for the next best deal.

The right data and analytics can play a key role in improving the effectiveness of your customer acquisition campaigns. Using reliable, third-party data that identifies consumers who have appropriate household economic capacity, preferred demographics, and psychographics, and who might be loyal to your brand can help you determine which consumers have a lower risk profile or who might be interested in adding additional services. These are the high-value customers you will want to attract. Linking your data effectively, combining it with these differentiated data assets, and powering your analytics with leading technology can deliver centralized, actionable, highly-predictive insights to help you find these customers.

Reaching Customers on the Right Channel Is Key
Once you have identified the right customers to target, finding out where to reach them is your next challenge. Research shows that data-driven planning and analytics-defined execution improved the results organizations achieve with digital display advertising, mobile applications, text messaging, social media, and other channels(2). The challenge, as a marketer, is to determine how to reach your best customers with the most relevant message.

Connecting with these high-value customers necessitates taking your data and analytics practices to the next level. In fact, your competitors may already be doing this: According to a recent survey, 66 percent of marketers are using data to provide custom messaging and personalized customer experiences(3). When you create campaigns based on data-driven marketing methods, you are better able to align your products and services with your customers’ preferences and engage with them on the platforms of their choice. This includes social media, mobile apps, and addressable TV.

The key theme that runs through the most effective customer acquisition efforts is data, analytics, and insights. To obtain best results, it is critical that you combine and leverage data from both internal and external sources, analyze it effectively, and then use those actionable insights to better engage with potential customers. Unified databases and robust analytic models can help you determine which prospects are likely to become high-value customers, where they can be reached, and how to reach out to them.

To learn more about how big data and analytics can help improve customer acquisition, download Customer Acquisition for Communications and Digital Media Organizations: 5 Questions to Ask About Your Data and Analytics Needs.” Then contact us to learn more about what Data-driven Marketing solutions from Equifax can do for your customer retention and acquisition strategies.

[1] Digital Democracy Survey, Deloitte Consulting.

[2] The Global Review of Data-Driven Marketing and Advertising, GDMA LLC and Winterberry Group LLC, January 2017.

[3] “Your Next Marketing Strategy Depends on Complex Data Analytics,” Sitepoint.com, May 17, 2017.

The post Best Practices: 3 Secrets to High-Value Customer Acquisition appeared first on Insights.

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