Marketing and Soft (vs. Hard) Data – 4 Ways To Empower Your Strategy
One-to-one marketing is a strategy of customer relationship management that relies on the personalization to foster customer loyalty and make a better return on marketing investment.
The idea behind it is that one size doesn’t fit all when it comes to communication; so, treating each person differently is essential to be convincing, persuasive, and effective. To empower your strategy, in fact.
This is true between Brands and customers as much as between human beings. But, while people’s capability to adapt their communication depending on the interlocutor is potentially endless, determined by their social and empathic skills, Brands often do not have this ability.
To some extent, this is due to what kinds of data Brands possess about customers, which are incomparably lower – in the number and types – compared to those that people have or can get.
“Demographic and behavioral information only give marketers part of the story they need to effectively segment a customer base. The problem with both of those types is that they do not tell us why people are doing things, which, as marketers, is the most important thing for us to know.” (Susan Baier)
By using only socio-demographic data, all customers that fall in a specific category (i.e. new moms, Millennials, Londoners) would be marked identically. These are necessary information but, taken alone, will lead you to a vague image of your customer, and few indications as to whether they will be interested in your product.
Adding “soft”, subjective and qualitative data to traditional “hard”, socio-demographic data like age, location, and economic status enables the understanding of who your customers truly are and why they make certain choices, so that you could envision what they will appreciate most and how they will behave in the future.
We are talking about customer attitudes, aspirations, values, lifestyle, and personality – so relatively stable information – on the one hand, and about their feeling, perceptions, and emotions – which are temporary and contextual – on the other.
Unlike hard data, soft data are not readily available. To find them, you have to dig a bit deeper into the virtual and physical touchpoints where your relationship with customers takes place.
What are these touchpoints? Here are four that represent optimal sources of soft data.
The social profile is undoubtedly where you can find the most heterogeneous information about a user: images, videos, text posts, self-descriptions, likes, comments and content sharing offer a comprehensive picture of a user’s interests and way of thinking, but also of his/her hobbies, lifestyle, and personality.
WEBSITE AND ECOMMERCE
The massive amount of data resulting from a user’s behavior on your brand’s website and eCommerce can be analyzed and interpreted at different levels of depth. For example, for a fashion brand, information can go from what the user has purchased to what are his/her own style and emotional relationship with clothing.
If you think that customer analytics have to do only with your digital properties, you are wrong! By recognizing biometric and audio cues with in-store analytics solutions, you can identify customers’ in-the-moment feelings and state of mind.
For example, facial recognition technology and GSR sensors can be used to show:
• What areas of your store are most engaging
• Whether and when customer feel stressed or disengaged within your store
• What products and elements are most appealing
• What emotional reactions your store layout and your shop window generate
Today they are almost exclusively employed as customer support tools, to answer simple questions and provide guidance in well-circumscribed domains, but conversational interfaces (the so-called “chatbots”) can potentially become much more.
If put in the role of “virtual interviewers”, they become a new tool to perform market research, both quantitative – by administering a structured questionnaire – and qualitative – applying natural language processing to open questions.
What is important to be aware of is that your online and offline properties can offer much more insights than you already collect, and these insights can help you build a picture of your customers as “people”, not just consumers.
Moreover, analyzing these soft data with artificial intelligence techniques enables you to build predictive models of consumer behavior and individual traits. Then, applying them to your content delivery system allows you to personalize messages, offers, and experiences based on the unique features of each customer, thus taking your one-to-one marketing to the next level.
Download The 7 Pillars Of The New Customer Loyalty to define the foundations on which to build your engagement and loyalty strategy, create innovative experiences and establish a lasting and valuable relationship with your customers.