Predictive Analytics Can Harness Data for Marketing ROI

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Beyond list brokerage, AccuList can support direct marketing clients with “predictive analytics,” meaning scientific analysis that leverages customer and donor data to predict future prospect and customer actions. It will scientifically “cherry-pick” names from overwhelming “big data” lists and other files. For example, AccuList’s experienced statisticians build customized Good Customer Match Models and Mail Match Models to optimize direct mail results for prospect lists, as well as one-on-one models for list owners to help acquire more new customers or donors. Plus, predictive models aid other marketing goals, such as retention, relationship management, reactivation, cross-sell, upsell and content marketing. Below are some key ways predictive analytics will harness data for better marketing ROI.

More Swift, Efficient and Effective Lead Scoring

Lead scoring is too often a sales and marketing collaboration, in which salespeople provide marketers with their criteria for a “good” lead and marketers score incoming responses, either automatically or manually, for contact or further nurturing. Predictive analytics will remove anecdotal/gut evaluation in favor of more accurate scoring based on data such as demographics/firmographics, actual behavior and sales value. It also speeds the scoring process, especially when combined with automation, so that “hot” leads get more immediate contact. And it allows for segmentation of scored leads so that they can be put on custom nurturing tracks more likely to promote conversion and sales.

Better List Segmentation for Prospecting, Retention and Messaging

With predictive analytics, list records can be segmented to achieve multiple goals. The most likely to respond can be prioritized in a direct mail campaign to increase cost-efficiency. Even more helpful for campaign ROI, predictive analytics can look at the lifetime value of current customers or donors and develop prospect matching so mailings capture higher-value new customers. Predictive analytics also can tailor content marketing and creative by analyzing which messages and images resonate with which customer segments, identified by demographics and behavior, in order to send the right creative to the right audience. Finally, analytics can develop house file segmentation for retention and reduced churn, looking at lapsed customers or donors to identify the data profiles, timing inflection points and warning signs that trigger outreach and nurturing campaigns.

Optimizing for Channel and Product/Services Offer

Data analysis and modeling can also be used to improve future marketing ROI in terms of channel preferences and even product/services development. By studying customer or donor response and behavior after acquisition, analytics can identify the most appropriate promotion and response channels, communication types, and preferred contact timing by target audience. Plus, a customer model can match demographics, psychographics and behavior with product and offer choices to tailor prospecting, as well as upsell or cross-sell opportunities, to boost future results.

Committing to a Good, Clean Customer Database

Reliable predictions require a database of clean, updated existing customer or donor records, with enough necessary demographics/firmographcs and transactional behavior for modeling. So, to prevent garbage-in-garbage-out results, AccuList also supports clients with list hygiene and management, including hygiene matching for DO NOT MAIL, NCOA and more, data appending of variables from outside lists, merge-purge eliminating duplicates and faulty records, response tracking with match-back, and more advanced list screening options.

Want E-mail Marketing Success? Here Are Some Basics

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E-mail is a key part of most omnichannel marketing strategies, and AccuList USA supplies data and support for a growing list of e-mail marketing clients. Yet dodging spam filters and reeling in responses from crowded inboxes is an ongoing challenge. A recent Direct Marketing News article laid out some basic tips on how to get the most out of e-mail marketing:

Data Is Key to Deliverability, Targeting

As a data broker, AccuList USA naturally stresses that data matters. The DM News article listed data last among its tips, but we’ll put it first. Even the most well-crafted e-mail will end up in spam folders if delivered to an e-mail list with too many duplicates, outdated addresses, missing permission hygiene, spam traps, etc. Quality e-mail data is essential to deliverability, which means regular cleaning and updating of house lists, or carefully vetted rental lists (sponsored e-mails) for prospecting. Quality data is also key to the targeting that maximizes response, using segmentation and personalization to tailor offers and messaging to specific audiences and individuals.

Make Good First and Last Impressions

Once an e-mail lands in the inbox, the subject line, a brand’s first impression, impacts open rates.  While there are few absolute guidelines, be aware that 50-70 characters in length is the “sweet spot” for readability, per the article. In those few characters, the subject line needs to quickly convey an offer/value and tone that intrigue the audience. Beyond avoiding words and symbols likely to trigger spam filters, A/B testing is usually the best way to find which subject line leads to higher open and click rates, as the article advises. While focusing on a first impression, too many e-mail marketers forget the importance of a closing impression. For example, after gaining response and conversion, marketers can use transactional e-mails (e-mails acknowledging a purchase, donation, sign-up, etc.) to expand customer/donor value by offering a reward (discount on next purchase as an example), a loyalty program, a newsletter, social links and more.

Design With Mobile in Mind

When it comes to design, the key to success today is the ability to translate across desktop, tablet and mobile devices. Remember, research shows that more than two-thirds of consumers access e-mail through their smartphones! Other common general guidelines include formatting within standard dimensions and fonts, creating a layout with quick-scan logic and clear call to action, optimally sized images with alt text in case of blocking, and personalized or even dynamic content.

Embrace Social Media and Sociability

E-mail isn’t usually the only method for connecting with an audience, or necessarily the channel preference of all recipients. That’s why e-mails also should highlight social media buttons, invite readers to share content, or urge them to visit appropriate social pages and profiles, notes the article. Meanwhile, with personalization, humanization and authenticity as benchmarks of today’s marketing, e-mail marketers should avoid generic messaging and deliver content in a tone that speaks to the target audience yet remains in line with a consistent brand voice across channels.

For more detail, see the complete article at https://www.dmnews.com/channel-marketing/email/article/13034539/6-email-marketing-tips-to-stand-out-in-the-inbox

How Can Performing Arts Marketing Find the Best Targets?

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Since AccuList USA has successfully worked with performing arts and cultural organizations in audience development, supplying data and data services to help them acquire new patrons, ticket buyers and supporters, we were happy to see a recent npENGAGE.com post underscoring the key role of quality data targeting in performing arts marketing success.

Identify & Understand the Best Audience

Basically, performing arts marketers must acquire prospects with the potential to become long-term, high-value patrons; retain them; and maximize their dollar contributions. That challenge is not easy when studies show 72% of single-ticket buyers do not return, points out npENGAGE article author Chuck Turner, a senior analytics specialist at the Target Analytics agency for arts and cultural clients.  So a cost-effective marketing strategy will rely on data analytics both to target those with the highest relationship potential and to personalize messaging and offers for boosted ROI and loyalty.

Target to Increase Revenue & Donations

Analysis should look at the value of patrons in terms of the average of all revenue earned, including things such as gift shop and concession sales and tuition for classes offered, as well as ticket sales and subscriptions, Turner urges. That means targeting likely high-revenue prospects, plus, since it’s easier to increase revenue from existing patrons than to acquire new ones, targeting the right members of the audience pool for offers of add-ons and upgrades. For both groups, Turner suggests selecting those with higher average income, and thus higher capacity to spend. According to the Bureau of Labor Statistics, the average high-income person spends over $8,200 on entertainment each year, so if average program revenue per attendee is $34.33 (the average performing arts program revenue per attendee in 2013), there’s room to grab a bigger share! When it comes to increasing donations, external list data on both discretionary spending ability and nonprofit donation history can be used to target significant nonprofit donor prospects for acquisition, and that data can be appended to the existing audience database to better target for add-ons and upgrades. Turner points to Target Analytics findings that, on average, up to 40% of nonprofit audiences can be top prospects for significant contributory giving–if you communicate to prospects with a message that resonates with their mission-based interest.

Segment to Maximize Lifetime Value

With limited resources, performing arts marketers need to be more strategic and proactive in focusing on the most valuable segments. This means tracking lifetime value, defined as the net profit attributed to the entire future relationship discounted to its current value. Again, quality data can help target the right people–those with high lifetime value–with the right message. For both audience database and prospecting mailing lists, Turner stresses selecting targets based on charitable giving and income/discretionary spending ability. Conversely, knowing those unlikely to donate or spend helps minimize investment in unprofitable segments. For more, see https://npengage.com/nonprofit-fundraising/arts-fundraising-and-analytics/