Profiling Your Marketing Data Is A Critical First Step
Understanding your marketing data is an essential first step before you start creating hypotheses and embark on deep dive analytics.
Here are 20 customer profiles that we think it's well worth you extracting from your marketing databases.
Once in place, these metrics will enable you to communicate who your customers are and what they look like. They should also help you to track how your customer base changes over time and to set the strategy for your data analytics.
Stop! Building a data strategy should be your next step if you don't have this data, it proves very difficult to produce, you don't have faith in the outputs or you start to uncover data issues.
Get the data strategy in place before you start trying to undertake further analysis.
1. Unique Customers
Removing duplicates, this is the total number of individual customers that you have got.
These could be very borad but would typically include Age, Gender, Marital Status and Location.
How often your customers visit, transact or have a meaningful interaction with your business.
How valuable your customers are. This coule be expressed as sales or by value metrics such as Average Transaction Value (ATV) or Annual Premium. You will need to apply some form of segmentation to understand differences in behaviour, perhaps using the demographic splits outlined above.
The length of time that individuals have been your customers.
6. Marketing Permissions
Of your entire customer base (unique customers), how many have opted in to communications from you and how does this vary by communications channel (email, SMS, phone etc)?
7. Product Holding
The number of your products that the average customer 'holds' or buys from you and how this varies by segment.
8. Product Usage
This may only apply to certain brands. If a customer has purchased a product or service from you, how many actually use it. This is a key profiling variable for businesses that offer a subscription model, offer rewards or are in sectors such as insurance.
9. Active vs LapsedThe proportion of your unique customers who are active (ie. still buying from you or interacting with you) versus those who have lapsed.
10. Household Count
This takes your unique customers and looks at whether you have multiple unique customers in one household. Depending on your product, if you do have a high household count, then you may also have high wastage of your marketing investment.
11. PAF Verified
This is the poportion of customer addresses that have been verfied against the Postal Address File - in effect, it's the number of mailable customers on your marketing database and a key measure of data quality.
12. Suppressions - Deceased, Goneaway
Using third party data, you can screen out any customers who are deceased or no longer present at the address on your customer database. This is another good measure of data quality.
13. Affluence or Income Band
Based on postcode data you can establish the affluence of your customer base. This could have impacts on your messaging and price points.
14. Consumer Segments
Industry standard classifications such as MOSAIC and ACORN give a rich picture of consumers in the postcodes where your customers live. They can give you colour and a deeper understanding of who your customers are than can be found on through your own marketing data.
15. LifestageThe age and living situation of your customers and prospects should have a significant bearing on how your market to them.
As should their lifestyle. It's easy to overstate the role that brands play in the lives of consumers. Understand your customers' lifestyles and you at least have an understanding of how you could be relevant.
17. Household CompositionWith society in constant flux, understanding household composition is becoming increasingly important. Elderly relatives or children in higher education could have a significant bearing on the attitudes and needs of your customers.
This is a build on your understanding of value. What proportion of your customer base account for 80% of sales? If it's low then you could have a fragile business; if it's very high then you may have a disengaged audience.
19. Online vs Offline
It's important to know how you acquired your customers and also how they interact with.
20. Acquisition Source
Profiling where your customers were acquired from is increasingly important. While there is a need to attribute this carefully, it's a key determinent of long term value.
A Final Word
Don't look at these metrics in isolation or only ad hoc. Track changes and compare current performance to last year and previous month.