EMA Statement Drilling Down

Two fundamental rules of high ROI customer marketing

Don't spend on these customers until you have to

When you spend, spend at the point of maximum impact

Taking on the first aspect of the statement, it makes it arguably clear that
the assumption for such a fundamental rule to even come up is that not
every customer is same and who is a customer is relevant to the time.
Some would make huge transactions once in a year, while others would
transact every week. Also a customer never remains to be a customer
forever.

A marketer has to look into several factors about the customer, ranging
from the demographics to the behavioural. Considering behavioural
factors is extremely important, as they allow us to model the data about
the customer and get insights into future purchase behaviour.

The data about the customer (or big data) to get right marketing activities
need to address all the 4 Vs (volume, variety in terms of behaviour &
demographics, velocity of the data, veracity). It is only then patterns can
be visualized and insights to future behaviour be predicted about our
customer. Customer lifecycle can be identified using this structured data.
It further answers the question who is this customer we need to target
with our marketing activities. Add to this the latency data, the timing or
the max impact points can be easily identified.

A marketer also has be to careful about the extraneous factors, which

indirectly can have a great impact on the success of customer marketing
activities. Factors such as world events, economic changes in markets
other than directly involved, politics, climate, etc. can sometimes be
extremely disturbing to the marketing plans.

Referring to the magnitude of data available about the customer and the
extraneous factors, establishing links and combining different data
sources is also necessary towards generating insights.

Akash Nath Garg | Group 5 | MBA 2015