Chief Financial Officers (CFO’s) are looking to maximize the company’s profits, and one fertile area is marketing data.
Both the CFO and CMO are looking to turn marketing data into intelligence and intelligence into action. Digital marketing gives the CFO and CMO more data and analytics for market insights showing customer interaction and data sourcing to help get better marketing results and better customer experience.
In the present era where information is saturating every business and technical sector, it is vital to make good use of analytics to create long-term customer relationships for better brand positioning. There is so much data lying around in systems that speak volumes about businesses and their customers.
Marketing technology advances have made everything measurable. This can be intimidating for marketers who have never been held accountable for marketing metrics such as bleeds, conversion rates, and sales.
Just 36% of CMOS have quantitatively proved in the short-term impact of marketing spending, and for demonstrating long-term impact, according to a CMO survey.
Modern marketers must develop strong analytic knowledge and capabilities to continually prove the value of marketing to CEOs, cfo’s, and the rest of the executive team.
The CFO, having the competitive strategic skills, is in a better position, by role and logic, to lead the entire marketing team to come up with ideas and goals in their marketing to generate better results for any brand. The only way to become a competitive leader is to engage the customers and prospects based on their specific needs. And all this comes from data.
About Intelligence Data and Marketing Data
The for profit business goal is to maximize stakeholder value. Additionally, the venture may want to become industry leader.
Growth is achievable with the correct use of data – from marketing analytics to customer and prospect stats. Businesses need marketing data to help them in making their plans for the next move in their operations and how to grow amid stiff competition.
The challenge many CFOs encounter is how essential is raw marketing data is for the purpose of business expansion. You need to understand that marketing data is not all about the web analytics you record and audience stats. It also includes conversion rates as well as the cost of advertising for various campaigns and their significance in your business performance.
In other words, marketing data should inform you whether your previous marketing makes any progress or generating ROI. From the information you gather, it is easier to set your next move in marketing.
Now that you have the data you need in your hands, how can you use it to transform your business in terms of performance and reliability? This is where data intelligence comes in. You have to get a complete understanding of the information you have in the form of “data” so that you can take the next step in the right direction.
Data intelligence is the analysis of the diverse range of (unending) data you have obtained to create meaningful insights about your business trend. In a simpler language, intelligence data is a simplified presentation of previous performance in your business, marketing, and developments.
There is a need for every CFO to turn their marketing data to intelligence data to help them come up with quick action plans.
In this post, you will learn how to convert your data into meaningful insights to help your team reach the target with minimal expenses. Intelligence data also helps you to create action plans that pinpoint to your goals and save you time.
Here are the steps of converting marketing data into intelligence data.
1. Assess Current Customer Performance
To build an action plan and relationship with your existing customers, you first have to understand them. How well have they been performing with your business? And with performance, we will want to look at their financial position using the customer-specific financial metrics.
The need for financial metrics on business intelligence data is to ensure that you focus on company growth. You can draw your metrics for each individual customer.
You may also want to create customer segments and compare their performance to come up with realistic intelligence data to govern your next move in targeting and executing your outreach campaigns.
In customer financial metrics, you need to extract the following information.
Revenue and Profit for Each Customer or Segment
For each customer that has made a purchase, you need to know how much they have spent in your business and for what products and services.
You also have to calculate the actual profits you realize on the products they buy. Customer revenue helps you identify significant buyers that can boost your business growth to a newer level based on their profitability.
Customer’s Upsell and Cross-sell Penetration
Your customers differ in their buying habits. Your list will include onetime buyers (transactional revenue) while others have bought a range of products from you (recurring revenue).
The cross-sell value of a customer is critical to your business because it opens up possibilities of selling new products to them. You may want to include them in your next product-testing campaign or inform them on pre-order offers.
If you are going to create a campaign based on retargeting ads, this type of customer should comprise the larger part of the target audience. They are more likely to convert when you give them an offer for products they may be interested in.
The upsell value of any customer determines the profit margin you make from a single product – by selling a more priced product to your customer. It all depends on how you convince your customers to choose quality when they are shopping at your store. This information is vital when creating your customer segments for your next campaign.
Lifetime Value of a Customer
How much a customer has spent on your business ever since they started buying from you is an important piece of information. You can use the data to create custom offers and promotions aimed at targeting loyal customers in an effort to try to make them buy more from you.
This attribute will come out clear if you are selling recurring products and services. Customer retention defines their satisfaction with your services.
It may also depend on the affordability of your products and services. While customers come and go, there are those who have stayed with you through thick and thin. They are understanding when things are not right.
Your goals at the bottom-of-funnel is to create recurring revenue and customer loyalty.
Customer Satisfaction and Sentiments
It is not all about selling. What if your customers are running away from you after the first sale? How satisfied are they after you closed the deal?
You also need information on any feedback your buyers left on your products. The sentiments are necessary for analyzing what you need to improve in your business to make it better for your current and future customers.
You should create workflows to automate touchpoints to get back with your customers that has purchased a product or services. Ask them for feedback and to write a review.
2. Use Segmentation to Create Audience Groups
Yes, they are all your visitors and customers. But no, they are not the same! To better achieve your goals and plan your next business move, you need to have an understanding of the types and categories of customers you have. Segmentation helps you to group your customers based on the data you already have.
First of all, you should understand the source of your audience. Taking an example of an eCommerce business, you want to know the audience source, e.g. organic Google search, Facebook ads, or any other campaigns. This will help you know what brought each audience type to your products.
Another thing to be careful about with audience segmentation is the type of content your audience consumes on your website or social media channels.
Many people engage with interactive video content online when compared to text or link content. You can use their feedback and statistics to create custom content and deliver it right to their Inbox or use retargeting to reach them and see how they respond.
You can also base your customer segmentation on the customer location to provide content or prepare products that comply with their region and satisfy the local governing laws.
You can take the example of mobile phones. The power sockets in the UK supply energy at 240v while in the US it is at 120v. You need to manufacture the right charging adapter for the correct region.
Google analytics also come with wonderful segmentation tools. It helps you to identify the behavior of your customers across the entire website. You will then plan on the next move to convince the customer before they go to your competitor.
3. Identify Individual Customer Real-time Behavior
It is true that you can use analytics tools to see how your audience maneuvers through your website, the content they engage, and the pages they visit, as well as the time they spend on those pages. These are called heatmaps. Hotjar is a great solution for this.
People also use surveys to collect information about their audiences like their work routine, personal skills, and their preferences and hobbies.
But that information is not enough in the present. When you are looking at your marketing data, you want to come up with more solid information.
Learn where your audience spends most of their time, what technology they use, which content they share, and why they do what they do. The “why” part is critical because it addresses the emotion – which is a unique selling point any business would want to leverage.
Real-time customer information will help you identify their needs in the present and predict what they will be interested in later. Your audience will be amazed by how you are able to stay relevant to their needs.
You can trigger sales because you almost know the time when they need a specific product.
4. Collect the Contact Information of Your Customers
Business marketing requires reaching out to your clients in an effort to sell. See what marketing data you can glean from here.
And direct communication is an effective way to keep the relationship going even after your customer has purchased. You can send an offer if you know when your customers need your product.
Forget about spamming people’s accounts with unsolicited sales emails and calls. Building customer relationships is based on the support you give them knowing their buying trends and past experiences. The customers who have already purchased from you are ideal for direct marketing campaigns – but they must first trust you.
You should respect the contact information of your customers. Remember the segmentation rule and customer performance? You only need to contact each customer based on their needs and trends. And you should customize each message you send your customers to meet their expectations.
Sign-up and contact forms are other means to record customer information. You can make use of a good sign-up tool to populate your email list.
Use marketing technology an automated workflows to create a connected customer experience. You can use technologies like MailChimp, ActiveCampaigns, or an all-in-one system like HubSpot.
5. Put Your Customer Analytics to Work with Your Marketing Data
You have collected information about your customers, but, apart from identifying them, how else do you use the information? There is so much you can do with your analytics.
After segmenting your customers, how do you ensure that you make gains for your business with the valuable data you have collected?
Customer knowledge management is one of the things you need to achieve in your marketing goals. Consumers expect you to understand what they need or may be interested in.
When you send out a campaign that does not address your customer’s immediate pain point, you will achieve nothing because they will disregard your messages and assume you have irrelevant information.
You can also differentiate between customer needs and wants based on their behavior.
Since you have already learned about their budget (buying trends, current technologies, customer value on revenue, retention, cross-selling, etc.), you can tell what product your customers may be interested in so that you focus on what brings more returns.
Artificial intelligence (AI) solutions are making headway to help make this process easier.
Analytics also help you to stand out from your competitors. You can use your customer data to know what they may want.
Understanding their experiences also helps you create cost-effective yet strong products for your target market that brings better satisfaction. In the process of designing custom products, you bring uniqueness to the industry as well.
6. Be Ready for Shift Challenges in Your Company
As a CFO, once you break down the data and start to implement it, you will see massive changes in your marketing strategies and trends as well as your market reach.
Sometimes your marketing team may think that the shift is a total transfer from your business focus to something alien.
In a company or business venture where everything is cultural, you would expect people to wonder how data or statistics should change the mode of marketing in business.
But it is the role of the CFO to train the marketing team the essence of relying on marketing data to come up with actionable intelligence for better results in business.
Summing Up about CFO’s and Marketing Data
In marketing, the CFO has the mandate to come up with the right marketing strategies to improve their business performance.
They know how they spend on each marketing campaign and the returns the business makes. Their leadership abilities and job qualifications give them the responsibility to handle the role.
It is, therefore, mandatory for every CFO to know how to use their marketing data to create better experiences and results in their businesses. The first step is to start harvesting data for all your business activities – marketing, conversions, and goal achievements.
Marketing leaders are working with their peers the CFO to improve results with a data driven marketing organizations.