Last month we discussed the importance of building and optimizing your data for sales and marketing purposes. This month, we take a closer look at service sales and how to best leverage that valuable knowledge-base to drive more effective, more efficient sales and marketing campaigns and service sales.
Sales and marketing campaigns and service sales can fail for a variety of reasons, but the most common culprit is that they are based on inaccurate or outdated information. But let’s assume you’ve made that necessary up-front investment in your data foundation – gathering and validating all relevant customer data then sharing and maintaining it between stakeholders. What’s the next step?
Today’s most successful marketers agree that together, data-driven strategies and predictive analytics help companies significantly increase the effectiveness of their service sales and marketing campaigns. According to experts, the use of predictive analysis yields a median return on investment (ROI) of 145%, which equates to almost double the ROI when non-predictive analysis is used.
When you apply rich analysis and statistical modeling to your installed base data, you can uncover previously unforeseen buyer trends and behaviors – all of which represent proactive sales opportunities. Simply put, these tools predict customer needs and purchasing probabilities – allowing you to target the right customer with the right offer at a time when they are ready to make a specific purchase.
The sales and marketing benefits to a predictive analysis approach are measurable – both in terms of higher campaign response rates and improved sales close rates. For example, the 2012 Silverpop Email Marketing Metrics Benchmark Study cites average email marketing open rates of 19.9%. However, MaintenanceNet – through the use of data aggregation, cleansing and enrichment; predictive analytics; and automation – helps customers achieve an average open rate of 42%, more than twice that of the industry average.
And as your open rates improve, and your ability to better target customers increases, your cost of sale decreases. Data accuracy and analytics enable you to accomplish your sales goals with fewer resources and with less overall effort.
The bottom line is this: when it comes to sales and marketing, don’t operate in a vacuum. Do your homework up front – and make use of rich analysis and statistical modeling — so you’re assured that your campaigns will reach the right people at the right time, with the right message.