Guest blog post by Dani Cushion, CMO at Cardlytics.
As marketers, we all aim to truly understand our customers. And, we’ve invested millions in CRM systems to help us know the ins and outs of how consumers spend within our stores.
But, even with all of that knowledge, we still have a blind spot when it comes to seeing how our customers spend when they walk out of our doors or click away to another site.
There is value in marrying CRM data with other sources, such as purchase insights – customers’ purchase information when they aren’t shopping with you – to build out the fuller customer picture. These insights have implications on loyalty and capturing headroom with existing customers.
Greater View, Better Insights
When you gain this more complete understanding of the customer, several things come into perspective.
First, many customers that appear brand loyal turn out to be heavy category spenders.
If you’re limited to your own CRM data, you have a blind spot. Sure, you can see how much they spend with you, but do you know where they’re spending when they’re not with you?
Loyalty is more than frequency and high spend, it’s about share of wallet. Do your customers choose you over the competition more often than not?
One of our clients, a popular apparel retailer, knew that 61% of sales came from 20% of their customers. They thought this 20% was loyal.
However, when looking at the full-wallet view, it turned out that only 5% of that 20% were true loyalists.
The other 95% were heavy switchers, spending a lot within the category generally, both with our client and its direct competitors.
The headroom possible with these customers was the bigger opportunity. With this insight, the brand tailored their campaigns to reach those heavy switchers to capture more of their category spend.
The Power of Combined Data
Combining other data sets (outside of CRM) with purchase insights can give marketers a new perspective on customers and challenges within the store. For example, bringing together location data with purchase data tells brands when people visit their store and spend and when they visit and leave without making a purchase.
This can help you identify larger trends within your business—such as merchandising. Supplementing CRM data with consumer spending insights can also help brands transition light customers into die-hard loyals.
For instance, a grocery chain may have a set of customers that has pets, but never shops with them for pet supplies.
Using just CRM data, the grocery chain won’t be able to see that these customers shop for their pet supplies somewhere else.
But, supplementing CRM data with purchase insights, the grocery chain can see that these people shop frequently with a pet supplies chain and can now present those customers with pet-centric marketing to capture some of those dollars.
How Do I Get the Full-Wallet View?
It’s an exciting time to be a marketer. The availability of so many new data sources helps make marketers’ CRM investments that much more valuable.
And, this is where our partners, like LiveRamp, are crucial. Working as a data conduit, LiveRamp brings together our purchase insights and a brand’s proprietary data so the marketer can build an omnichannel view of their customer’s full wallet behavior.
With this omnichannel view of the consumer, brands have a deeper understanding of what they want, leading to more effective marketing campaigns.
When marketers can identify their customers and how they’re behaving in each channel, they can build a more complete view of the customer journey and tailor the messaging accordingly. What a marketer knows in one channel and from one data source can influence how they interact with that customer on the rest of their journey.
Click here to read more about how we work with LiveRamp to help marketers get a full wallet view of the customer.