05 March 2021
The Growing Importance of a Strong Customer Data Management Strategy
Traditionally, retailers have focused on peak times during certain sales moments every year, such as holidays, Black Friday and the sales season. And in terms of targeting specific customers, remarketing strategies were the way to go. However, since the COVID-19 crisis, we now live in a world where the e-commerce business keeps evolving. As a result, a customer data management strategy that goes hand in hand with an ‘always on’ mentality has become increasingly important to attract customers at any given time.
These shifts in using data and targeting formed the main topic of this month’s Beyond Digital, the knowledge-sharing discussion club organized by digital expert Ariad. Along with other digital experts, Luke Van Veen, Digital Media Lead at Samsung Electronics Benelux, shed his light on the importance, advantages and challenges of a customer data management strategy and demonstrated how Samsung is reaping the benefits from theirs.
Consumers are constantly in the market for new products and services so brands must always have the door open and maintain an ‘always on’ approach, continuously targeting customers in order to achieve the highest possible reach and results. This involves using customer data in a structured and goal-oriented way and developing a strategy that needs updating as technology evolves rapidly.
"At Samsung, we have now been using a customer data management strategy for about 4 years. Based on our data, we determine whether consumers already know which product, brand or type of model they want to buy. We combine that information with our KPIs and then target customers in the most suitable way depending on how close they are to conversion. We really noticed an increase in our sales," explains Luke Van Veen.
Bart De Bodt, Head of Digital Experience and Sales at Argenta, argues: "The CDM strategy seems very relevant to me, but the condition is that you need a lot of data. The sector you are in and the channels you can use are also decisive. At Proximus we applied a similar approach and also at Argenta we use this more and more. In both cases there is direct contact with consumers. However if you are working in life insurance through brokers, it is much more difficult, since brokers are considerably less digital and you don’t have that direct relationship with the consumers. I also see differences between telco and banks. Banks are unlikely to use Live shopping through Facebook to target new customers."
First party data
With the cookieless era upon us, cookies will no longer be trackable through real marketing and segments can no longer be purchased from retailers. That is why there is an increasing focus on loyalty and why first party data is becoming very important; customer relationships will be less cookie-based and more account-based. By using account-based customer data, companies can achieve more cross sells and can offer a more personalized customer experience.
"There is a shift in thinking. The need and value of companies to provide a good incentive for customers to log in is increasing."
"There is a shift in thinking. The need and value of companies to provide a good incentive for customers to log in is increasing. The more data customers provide, the more leverage you have," claims Steven Elliott, Group Manager Creative Technology at Bose Corporation.
There is a danger that companies with little first party data will become more dependent on the big players such as Google and Facebook, who in turn will gain more control. However, the power of giants can be limited by smaller companies collaborating with local publishers. “At Samsung we try to collaborate with local publishers as much as possible. Aside from making us less dependent on the big players, it's also cheaper, leads to more quality content and gives us a better view of where our ads appear,” says Luke Van Veen.
Do you want to know more about the changes that the cookieless era will bring? Check our Beyond Digital blog for more, and take part in the next discussion of what's shaping the digital future of customer experience: Sign up for Beyond Digital, the monthly knowledge sharing group for Belgium's most ambitious leaders and digital experts!