According to an article published in the Harvard Business Review, IBM estimate that the poor data analysis conducted by US businesses is losing $1.3 trillion in revenue. The Aberdeen Group also reports that 95% of companies do not use consumer data effectively.
Big data is big business. The more marketers understand about your customer’s needs and behaviors, the easier it is to sell your products. Although digital platforms provide some useful data about your campaigns, data gaps typically result in poor targeting and lost dollars.
One of the key points raised at SWSX 2018 last month was the scarcity of useful analytics provided by leading marketing platforms such as Facebook and YouTube. Even Google Analytics only provides a fraction of the bigger picture.
A solution to this issue is an analytical process the industry is calling “audience enrichment.” This involves combining all the data you have on your individuals taken from multiple platforms across devices.
Digital platforms are a hotbed for consumer data, but there is no one tool that can accurately measure engagement, trends, response rate, and conversions. The challenge for marketers is to create content based on data that is at best sketchy.
Subsequently, companies that collecting consumer data from digital platforms and sell it to brands has become big business. The data industry is estimated to be in the region of $1.36bn a year.
However, data-gathering in this way is unethical. As the recent Facebook scandal involving Cambridge Analytica revealed, passing on personal details of your customers puts the reputation and financial position of brands at risk. Facebook shares dropped by more than 11% in the days after the data leak was reported.
In a nutshell, audience enrichment is the process of collecting data from multiple platforms and building a profile of individuals customers. The principle behind this for businesses is to take data from cross-device analytics and create categories of customer profiles.
Brands that can afford to pay companies for audience enrichment services take the data collection process one step further. Technology allows marketers to build on the consumer data you already have with user-behavior taken, or rather, purchased from third-party sources.
Audience enrichment enables advertisers to accrue data on their customers that goes beyond the scope of your own website. The data you purchase from these unscrupulous companies give you a record of other websites your customers have visited and how they use them.
For marketers, audience enrichment sounds like a good idea in principle. It enables you to determine how many of your competitors customers are comparing you with and which ones. These services are sold to businesses on the premise that industry insights enable you to identify which content receives the highest success rates.
Consumers will not share the same view. As more online users demand better privacy policies in light of IoT, companies have a responsibility to protect the personal details of your customers. And you still have sufficient tools at your disposal to gather valuable data that enables you to create engaging content.
By taking known data from cross-device platforms, you should have significant information to build richer audience profiles. This data will help to create tiered retargeting campaigns and launch personalised offers.
However, this data only provides first-business insights. It does not reveal the broader scope of the story that helps you decide what type of content will be most effective. Marketers are therefore still fumbling blindly to incorporate creative advertising solutions into your marketing campaigns.
One solution to swerve this barrier is to create multiple-choice surveys and send them by SMS. Texting has proven to be the most powerful channel for eliciting a response from consumers.
Mobile was the chosen channel of the presidential candidates during the 2016 election campaign. Text messaging services were leveraged to share round-the-clock updates and help candidates grow their audience.
SMS was the preferred marketing channel because it can be used in multiple ways; to provide news updates, include apps, embed videos and links and drive traffic through your sales funnel. But it can also be used to send polls.
And because 98% of text messages are opened, multiple choice and marketing segmentation surveys represent powerful tools that enable you to collect information analytic data on other digital platforms do not provide. And the added bonus is, you don’t betray customers by selling their private information.