Businesses (big and small) sit on a treasure trove of customer/prospect data and so many either don’t know what to do with that data or are able to take action (e.g. resource restrictions). Activating stagnant customer bases can change a company’s course and be the difference between breaking even and breaking out. For many businesses the cost of acquiring new customers can be quite expensive, but engaging an existing customer isn’t expensive. Also, engaging prospects who haven’t taken action can lead to better conversion rates and improve acquisition costs.
There are so many ways to leverage your in-house customer/prospect data that it can be overwhelming. So, I’m going to focus on how you can leverage that data through a handful of online channels. The first part of this series will start simple – defining CRM targeting. There are two ways to use CRM data: pretargeting and retargeting. I’m going to start with the retargeting because Google (and others) helped make it a staple of online strategies and there’s a general understanding of this concept.
What is CRM Retargeting?
The CRM data (email addresses and phone numbers) can be onboarded to reach your customers online through placements on other websites (e.g. ESPN), social networks (Facebook, Twitter, Instagram) and Google properties (Gmail, search, YouTube). Each of these options will be explored further in an upcoming post.
Retargeting in general has become more sophisticated, but at its core its still an awesome tool to reactivate customers who haven’t done business with you in a whole or to strategicaly gain another touchpoint with prospects.
How Does CRM Retargeting Work?
Here’s an illustration of how CRM retargeting works:
How Effective is CRM Retargeting?
Very. Our clients are experiencing an average 20% lift in email and direct mail response rates when doing CRM retargeting. Conversions are up an average 3x and acquisition costs have dropped by as much as 80%. We’ll get more into those numbers in an upcoming post.
In the next part of this series, I’ll talk about the different retargeting channels you can leverage.