Managing Data in an Economic Downturn – Scott Logie

Whilst a number of brands have hit the headlines recently after feeling the effects of the uncertain economic climate, there are still some organisations that are investing in the future and developing long term customer relationships.

Without doubt, the economic shift we find ourselves in will change the way we market. There will be a shift in focus from volume of response to marketing ROI. So instead of asking “How many people responded to this campaign?”, we will ask “How much did it cost to recruit this customer?” – which arguably, is an approach that marketers should adhere to at all times. Alternatively, other organisations will take the view that the best way is just to keep on talking to people. Any people. About anything. And consequently, a scattergun approach is adopted, as large organisations in particular effectively try to market their way through any crisis by chucking out more communications.

Both of these approaches have their supporters and detractors, and indeed their own pros and cons. But of course, this behind-the-scenes navel-gazing is irrelevant to your average consumer. They don’t care about the rationale behind each and every communication. What they care about is how targeted, relevant and useful that interaction is to them. And in the current economic climate, organisations can’t afford to neglect these key criteria. So how can you use your data to ensure that you keep your customers close through the hard times?

When we first start working with any client, the eventual aim is seamless, multichannel communications that talk to each customer or prospect as an individual in order to engender long term trust and loyalty. But of course there are a number of questions to be asked first, and these questions usually fall into two camps; data and resource. So, what data do you have? And what are your capabilities for using it?

Data Assets

• Where are they held?
• How extensive are they?
• How well-structured are they?
• How accessible are they?

Data Management Resource

• How is it stretched?
• What does it cover?

Once you have the answers to these basics, then you can start to look at structuring the business to deliver better customer communications. Ultimately the starting point is ensuring that data is placed as a top priority within your organisation. Actioning real change to the way you communicate with customers will be a tall order unless you structure your business in a way that places data at the forefront.

It is important to remember that the credit crunch will actually only affect around 20% of individuals. Sure, a large percentage of people will feel that they are affected but in real terms they will be as well off as they have ever been. And at times of change and uncertainty, the survivors are those who keep communication channels open and who are consistent in their approach. The key is to ensure that we make the bulk of our customers feel that they are being looked after and cared for at what is a ‘difficult time’ while also ensuring we are seen to tighten up on cost. Ultimately, any organisation will live and die depending on its day to day relationship its customers. Strategies such as rate chasing, and the promotion of headline products will provide short-term glory, but it is service and communication that will win through in the long-term. Service and communication are people-led and process driven and an organisation’s ability to maintain a high calibre of both will ensure its longevity and prosperity.

In times like these small changes can make big differences for organisations. Again it all comes down to relevance and communication so ensuring that we have the right information on customers and using it wisely becomes vital. That means ensuring you have the right data processes in-house to cut out poorresponders, cleaning data to ensure you get rid of any that proves to be of lower quality and using your insight to talk to people as individuals.

So, given the recent troubles for many companies and the increasingly sceptical consumer audience, is it too late for organisations to refocus and get it right?

Well, in a word ‘no’. But organisations should be prepared to use their data carefully to climb back from the brink. And it may be a long hard slog. The strategy should be to get under the skin of our data and stick with customers who have stuck by us. That means understanding the communication channels those consumers prefer and having the correct data processes in place to ensure that we can sync with those preferences if and when they change. Repaying loyalty is key and the way to do that is through close attention to your data.

The technology is evolving to allow us to get even closer to customers and prospects. Indeed, the next steps will be around management of preferences – so consumers will be given the choice as to what communication to receive, from which brand, through which channel. And of course, the output of this will be more integrated comms messages, delivered through the relevant media and at a time either set by the consumer or recognised by their behaviour.

The market will recover of course, it always does. But it is the brands that get close to their customer data now and use it in the right way that will be in the strongest position once it does.