Marketing is all about finding the most profitable growth opportunities in your data, knowing where to place your bets, taking the best marketing action and ultimately maximizing the cross-business influence of every dollar you spend. It’s not easy to do. But insurance company, USAA, has proven when marketing analytics used wisely can return impressive results. Doug Mowen, Executive Director, USAA, shares his five keys to marketing excellence.
Key Insight 1 – Define success: Which insights would promote data-driven decision-making?
It’s critical for key stakeholders to clearly define “What is that you are trying to accomplish?” and “What is success?”. For example, number of expected responses from a specific marketing campaign.
Key Insight 2 – Target carefully: Understand your customers and what drives their behavior.
Demographic variables give you a good idea of what the customers look like, but USAA has found that behavioral data is a much better predictor. For example, event-driven data such as marriage, moving house or having a baby.
Key Insight 3 – Align resources: Understand who and what is available and know the limitations.
It’s important to assess budgets and determine if you want to create a comprehensive campaign using all marketing channels, or for a limited budget just focus on a few customers via one channel.
Key Insight 4 – Measure carefully: Determine the incremental benefits of your initiatives.
While first key to marketing excellence focused on defining success, the fourth key, measure the success and is essential. USAA uses a control versus exposed approach to measure the incremental value of its marketing analytics.
Key Insight 5 – Build creditability: Certify and clearly communicate your results.
If you can clearly support and share your analytics results, you will be much more successful at building a business culture that relies on facts to make decisions.
In a recent survey by analyst firm, Strategy Meets Action found that 56% of insurers are initiating marketing analytics projects. To help improve your chances of success with these new initiatives download the conclusion paper “Five keys to marketing excellence” detailing USAA marketing success.