Forget Easter, the next big dates for the retail space are those dedicated to our lucky parents. Mother’s Day and Father’s Day will be upon us soon and consumers will, once again, flock to retailers for gifts for their parents. Last year, Americans spent a whopping $23.1 billion on Mother’s Day gifts and a further $15.3 billion toward Father’s Day.
For retailers, this is one of the busiest and most lucrative times of the year. Marketers should have plans in place to seize the opportunity to maximize sales and drive competitive advantage.
The age old customer acquisition challenge has never been more arduous or expensive. In fact, customer acquisition costs increased by almost 50% from 2013-2018. Figuring out exactly how to attract those potential customers can be a headache for any marketer. Furthermore, this particular gifting period is made more challenging for brands as they are targeting consumers who are buying on behalf of other consumers – buying patterns are therefore hard to predict, abnormal and more aligned with the purchase preferences of the recipient.
At a time when marketers are scraping back budgets to meet targets, ineffective targeting customers based on assumptions is not going to cut it during such important sales cycles. However, with a data-driven approach to understanding the customer journey, businesses can begin to garner intelligent analysis of historical data in order to cut through the complexity.
It’s all in the data
In understanding complex customer journeys that are not easy to stitch together, particularly in cases like Mother’s Day or Father’s Day (where the customer is influenced to purchase for a different customer’s buying preferences) using sophisticated customer data tools to read, analyze and garner meaningful insights is crucial. Dynamic data-driven models like multi-touch attribution (MTA) assign credit to all touchpoints that positively impact the customer journey and which lead to a sale or conversion.With MTA, you receive exact feedback on which touchpoints are contributing to the success of your campaigns, both current and historic ones. With these insights, you can then adapt your strategies, confident that your efforts are driven by facts and data, rather than assumptions.
Businesses exist to combine customer data and generate predictive, data-driven analytics that can help power marketing decisions. Fospha’s Customer Data Platform (CDP) can be made bespoke for each client, storing all of an organization’s customer data in one place, regardless of what source the data came from within the business. Fospha’s CDP is unique in that it provides highly personalized data on each customer and their journey to conversion. Acquiring and applying such data personalization is a valuable commodity. In fact, 93% of companies witness increased conversion rates from personalization.
History tells a story
A system which integrates historical data, such as Fospha’s CDP, allows the brand to see which products sold the best during the previous gifting season. In basic terms, the system can compare this historical data to what those customers bought at other times of the year and then identify the categories that disproportionately sell more at this time and direct more marketing budget and attention at them.
As well as historical data, in further understanding purchase paths a CDP can integrate a number of variables such as ‘use of discount vouchers’ and look at keywords within those variables to determine intent. Certain discount messages will resonate more, often due to their emotional connection to the theme of the period. By identifying these, you can divert budget from ineffective discount messages to those that outperform, driving performance and ROI.
Using a data-driven approach to measuring complex customer journeys is important for any business wishing to achieve marketing effectiveness and drive better ROI. By analyzing historical data and using multi-touch attribution, marketers are able to understand the effectiveness of every single touchpoint and channel in a customer’s journey. Through this, they can reduce their spending on ineffective mediums while doubling down on those already delivering strong results.