Programmatic CRM – how to earn more on marketing?

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CRM data - the new currency of Programmatic Marketing

Marketing drives trade and trading with marketing is increasingly profitable. Companies not only advertise their own products, but also see a potential in marketing the products of non-competitors. Customer Intelligence is the new currency of the digital era. It is obtained from transaction systems, CRM applications and the company’s own communication channels. Then, it can be supplemented with declarative data obtained from surveys and extended with online behavior. In order to combine data from advertising network with a transactional system identifier, e. g. an online store, we need to encourage Customers to give their identity details on the company’s website, like email address or mobile. We can also collect data on the behavior of anonymous Customers (cookies). Based on the above data we can create segments of similar cookies and calculate various analytic measures, including the probability of the relevant offer. Customer data base is a valuable asset and the demand for it is growing.

Programmatic CRM - extended Customer profile

Figure 1. Extended Customer profile is as unique as DNA

Connecting Programmatic as another channel in CRM campaigns

Sample decision tree

Figure 2: Sample decision tree as an analytic method used for Customer segmentation

The main objective of marketing campaigns is to encourage the Customer to purchase a product or a service. In order to plan effective communication, we must analyze which customer journey converts into sale the fastest and reach the Customer in the spot where they spent most of their time. Anchoring a pixel on your own website and tracking the cookie online in cooperation with Data Management Platform (DMP) is a common technique used in remarketing. While starting cooperation with such entity, it is worth verifying what percentage of cookies collected on the company’s website is represented in the base of the relevant DMP. The next level of Programmatic Marketing maturity is automation of a decision tree, based on analytical formulae. The gathered cookie data allows its identification and the offer can be personalized for the cookie. For new unidentified cookies can be presented an offer, which is best for a segment of other similar cookies.

The most advanced approach to Programmatic CRM is the use of stream analytics to detect event sequence and combination. The synergy of Customer data analysis and current online behavior allows us to perform effective acquisition, increase the Customer value in sale campaigns and prevent the customer from leaving through pro-active retention campaign.

Programmatic KPI in performance model

Campaign performance metrics

Figure 3: Campaign performance metrics with the example of SAS tools

The consequence of direct communication is the Customer’s temporary exclusion from other campaigns due to the consistency of the message and the policy of contacting the Customer not more often than e. g. once a week. That is why it is important for the Marketing Team to minimize the alternative cost i.e. the lost gains from other campaign. In order to select the best campaign we should use optimization, which will indicate the best offer in terms of the expected value of sale, quantity of items sold or any other criterion, which is called objective function. As an input parameter for the multi-criterion optimization, it is worth including actual performance of all touch points. There are many methods of assessing how the relevant channel and moment of contact affect the sale’s conversion. In place of expert assignment of weightings to the channels, assign the campaign success based on mathematical modelling the feedbacks and response times from individual communication channels. Only based on the adequately collected and analyzed data we are able to settle the completed marketing campaign and plan effective communication and further improve the campaign performance metrics on ongoing basis.

If you want to use an additional stream of income from advertising 3-rd party products in your own communication channels or leased areas of advertising network, you must build the Customer data base and adopt a reliable analytic approach to settle the performance of campaigns in all touch points with the Customer.

If you want to learn more on marketing and Customer Intelligence solutions, watch a series of SAS webinars available here.

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About Author

Ewelina Ciach

Direct marketing expert implementing communication strategy at analytical and operational CRM projects for telco and banking enterprises. Ewelina's passion is transforming marketing into a consistent omnichannel dialogue in the context of the Client's predicted needs. Business value and return on investment is estimated at the initial workshops. Certified solutions architect (TOGAF, ITIL, COBIT) and Project Manager (PMP, PRINCE2 Practitioner, IPMA) experienced in implementing complex integration projects.

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