Data-Driven Marketers Will Make Merry This Holiday

Data is quickly becoming the primary competitive differentiator in retail. Why? Because when retailers use data-driven marketing, they create better customer experiences—the kind that keep customers engaged, satisfied and loyal.

And what happens when customers are engaged, satisfied and loyal? Revenues increase.

Just last month, Teradata released new research showing that the debate about how to approach the modern consumer is over. Companies understand that to be successful, they need to pursue a data-driven model, one that puts the customer at the center of all they do. In fact, 49 percent of those we polled said becoming customer-centric is a top two priority.

A few retailers are leading the way. For example, over the past few years, American Eagle Outfitters (AEO), has become laser-focused on developing a “full and single” view of the customer. Marketers at AEO now integrate and analyze data across multiple channels—direct mail, email, SMS, social media, etc.—and they use those insights to engage customers both on- and off-line.

Last year, AEO was particularly innovative during the holiday season, testing a mobile app called the “12 Days of Christmas Gift Guide.” By integrating data analytics and geospatial coordinates, customers who had downloaded the app saw a holiday offer as they neared an AEO store. Not surprisingly, conversation and conversion rates ramped up with each passing day. Another holiday campaign focused specifically on customers who weren’t responding. After providing the non-responders with updated, more targeted offers, AEO marketers were able to start conversations and increase conversions.

For Rick Guntang, Senior Manager of Performance Marketing Operations at AEO, data-driven marketing keeps the brand’s messaging relevant… and fun.

“For us the technology is making sure we keep them engaged and we do that by having fun,” Guntang says. “If you visit our site or have our app, we try to make sure it’s interactive. We try to give you the opportunity to provide us feedback. We try to give you the opportunity to make sure you can participate in the brand whether it be by commenting about how you feel about our jeans or giving us some feedback in terms of what your experience was like with us at the direct perspective and the brick and mortar source. So it’s definitely a differentiator in terms of being as agile as we possibly can.”

So keep your eyes open this holiday season. I predict that over the next few months, data-driven retailers will emerge as true leaders, in both forward-thinking marketing strategies and revenue. They recognize that the customer relationship as the single path to sustainable growth and reliable retention.

Data-Driven Marketers Will Make Merry This Holiday