Maximise ROI and Enhance Customer Experience with Accurate Address Data
Data-driven marketing is a strategy that uses customer data and insights to create more targeted, personalised, and effective marketing campaigns. This approach relies on analysing large sets of customer data to identify trends, preferences, and behaviour patterns that can be used to create more relevant and engaging marketing messages.
Data-driven marketing was already a prominent trend in the marketing industry, and it is likely to continue to be a major focus in 2023 and beyond. It is expected to become even more sophisticated with the help of advanced technologies such as artificial intelligence, machine learning, and predictive analytics.
Marketing teams are constantly seeking new ways to connect with their audiences and drive conversions. One crucial piece of information for achieving these goals is address data, which provides the property details where customers and prospects live, work, and interact online. Address data can help you segment your customer audiences, target your marketing efforts, and personalise campaigns.
According to a study by Epsilon, personalised email campaigns based on address data can generate a 29% higher open rate and a 41% higher click rate compared to non-personalised campaigns.
Address data can be used in a variety of ways to inform data- driven marketing strategies.
You can use address data to personalise your marketing messages to specific geographic regions. For example, a retailer might send an email promotion for winter clothing to customers in colder regions, while promoting summer clothing to customers in warmer regions.
Location data can be used for advertising. A business might use geotargeting to display ads to a shopper when they are in an area near a shop. This can make it easier for customers to find and purchase products or services that are relevant to them, without having to sift through irrelevant information or offers.
An analysis by Google found that 76% of people who search for something nearby on their smartphone visit a related business within a day, and 28% of those searches result in a purchase
In recent years, direct mail has remained a popular marketing channel in the UK, with businesses of all sizes using it to reach their target audiences.
According to the Direct Marketing Association (DMA), direct mail response rates in the UK were 4.9% in 2020. Response rates can vary depending on the specific industry, audience, and campaign objectives. The DMA also reported that direct mail spending in the UK reached £1.7 billion in 2019, demonstrating the continued relevance and effectiveness of the channel.
Address data has long been used in direct mail campaigns, allowing businesses to send physical mail to specific households. By using correct customer data to send mail, you can increase the effectiveness of your campaigns. It will arrive to the correct property and be addressed to the right person.
Something to consider is the increasing focus on sustainability and environmentally friendly practices, so it’s essential to get the property address right, and avoid wasting paper and resources.
Optimising mailing lists ensures that direct mail pieces are sent only to customers who are likely to be interested in the product or service being offered. This can help reduce the number of mail pieces that are sent to incorrect addresses, reducing waste and the environmental impact of direct mail campaigns.
For businesses that rely on physical deliveries, customer address data can be used to optimise delivery routes and reduce shipping costs. Mapping out delivery routes using the correct customer addresses improves logistics processes and reduces delivery times. It is also an efficient way to minimise travel time and fuel costs for drivers.
Address information can also be used in market research to gain insights into consumer behaviour and preferences. This can help identify patterns in customer behaviour, such as where their customers are located, which areas have the highest demand for their products or services, and which areas have the most growth potential.
While it is a powerful tool for marketing, it also presents some challenges that you need to be aware of. These include:
Data Quality Issues
One of the biggest challenges with address data is ensuring that it is accurate and up to date. Addresses can change frequently, and people may provide incorrect information intentionally or unintentionally. Organisations that invest in data cleansing and validation ensure that their CRM data is as correct as possible. A survey by Experian found that 94% of businesses believe that inaccurate customer data negatively impacts their customer experience.
Cost of Acquiring and Maintaining Data
Collecting and maintaining address data can be expensive, particularly if you rely on third-party sources. Doing it manually can also take a lot of time and team resources.
Data Privacy and Security Concerns
Customer addresses can be considered personal information when it is tied to a name, and it is important to comply with data privacy regulations when collecting, storing, and using this data. In addition, taking steps to protect the CRM from security breaches and other forms of data loss is essential.
While address data can provide valuable insights, it is not a complete picture. It’s more efficient to rely on data from various touchpoints to capture a 360 view of a customer, such as web activity, social media, content etc.
Invest in Cleansing and Validation
To ensure that your customer address data is accurate and up to date, invest in data cleansing and validation. If your CRM already has wrong or outdated information, it’s best to clean this up as soon as possible. Moving forward, and online address finder can help import the right details into your database by capturing the valid details at point of entry.
A study by Pitney Bowes found that businesses that invest in data quality and address validation see an average increase of 19.8% in revenue.
Segment Audiences Based on Addresses
By segmenting audiences based on location, you can develop more targeted marketing campaigns. For example, marketing can highlight promotions or events that are happening in a customer's area. Customers are generally very happy with personalised ads or mail, as the content is relevant to their interests and needs, which can be more appealing and engaging than generic messaging.
Use Address Data in Combination with Other Data Types
This information is useful in combination with other data types, such as demographic and behavioural data. By combining different types of details, you can develop a more rich understanding of your customers and develop more effective marketing campaigns. Make customers feel recognised and valued, which can foster a stronger sense of loyalty and connection. Email and phone validation are a great addition to achieve an omni-channel approach.
With the increasing amount of data available from various sources, including social media, customer interactions, and website analytics, data-driven marketing has become essential for businesses to understand their customers better and deliver more personalised experiences. As businesses increasingly rely on customer data to drive growth, addresses will always play a crucial role.