The ‘A’ Word—Learn It, Love It, Live It!

I attended a seminar earlier in January held by the Direct Marketing Club of New York titled “Annual Outlook: What to Expect in Direct & Digital Marketing in 2012.” The main speaker at the event was Bruce Biegel, managing director at the Winterberry Group, a strategic consulting firm that focuses on advertising and marketing.

I attended a seminar earlier in January held by the Direct Marketing Club of New York titled “Annual Outlook: What to Expect in Direct & Digital Marketing in 2012.” The main speaker at the event was Bruce Biegel, managing director at the Winterberry Group, a strategic consulting firm that focuses on advertising and marketing.

For those of you who have never before attended an event where Biegel presents, I highly recommend attending one if you get a chance. He’s a highly engaging speaker with many interesting insights gleaned from years of experience in the field, and backed by the research and analytics of the Winterberry Group.

The focus of the presentation was a review of the marketing and advertising world of 2011, along with some predictions for 2012. According to Biegel, 2011 was the year in which many firms intensified their focus on reporting and analytics tools. For 2012, he predicted many marketers will finally begin to pursue true multichannel integration across their firms, driven by data, analytics and the quest for cross-channel attribution. He touched on the term attribution repeatedly, referring to it as the “Holy Grail” of multichannel marketing.

In a marketing sense, I define attribution—or the “A-word” for the purposes of this blog post—as the act of determining what marketing channel or budget was responsible for generating a particular action: be it a click, lead, order, etc. As a direct marketer, I just love this word. And you should, too. Attribution is where the rubber meets the road. Attribution is what separates the men from the boys, the measurable from the immeasurable, direct response from … well, branding. Not to disparage brand marketing, but I think I can speak for most—if not all—colleagues in the industry when I say that demonstrable attribution is really what has always separated direct response marketing from branding—analytics that essentially give us the ability to calculate the actual ROI of every precious marketing dollar we spend. Enough said.

But, let’s face it, there’s a dirty little secret in the direct response community that those outside of it might not necessarily be aware of. The fact is that attribution has not been all it’s cracked up to be over the past 10 years—and a far cry from an exact science, to say the least. We have the Internet to thank for that. To elaborate, let’s take a moment and turn back the clock around 15 to 20 years, and think back to a time in which the Web did not play such a prominent role in our lives. Back then, most direct response marketing was done via direct mail, catalogs and inserts, as well as DRTV. In this relatively simplistic world, customers could only really place orders using the return mailer or by calling a toll-free number. That was it. Since each piece was stamped with a keycode, attribution was as easy as: “Could you please tell me the five-digit code on the bottom right-hand corner of the order form” … and we knew with certainty why the sale originated.

Then along came the Web—and, with it, an entirely new channel for consumers to interact with their brands. And this is when things got confusing. Let’s say, for example, a consumer received a postcard or catalog from a company. In place of calling the toll-free number, he could instead go to Google and search for the website, find it, locate the products he’s interested in and place an order. Now who gets the credit for the sale? The direct mail team? The search engine marketing team? The catalog team? The email team? All of them? None of them? The fact is, there was really no scientific way to tell for sure. The gears of attribution broke down, creating a vast gray area of uncertainty where the worlds of traditional and new media converged. This was the direct marketer’s dirty little secret in the age of Web 1.0.

To deal with this mess, new techniques and technologies invariably emerged to bring some order to the chaos. Before long, many marketers turned to the concept of campaign-specific landing pages to send their cross-media (or cross-channel) customers to. At least this bypassed the regular website and kept and sales or leads it made in one bucket, separate from the home page and other Web traffic. This was a huge improvement.

Then other technologies like personalized URLs, or PURLS, entered the mix. Gimmicks aside, PURLs work because they are a tool for attribution—not because they give someone a link made out of their name. Sure, giving someone a personalized link is nice … but that’s only window dressing and obfuscates the real value of this cross-media technology. PURLs help marketers attribute activity to the direct mail channel. That’s it in a nutshell. Now of course, there are additional benefits, such as improved Web traffic rates resulting from personalized content, and higher website conversion rates due to a simplified workflow on a landing page that’s been optimized for this purpose alone. But the real value of this technology is attribution—and don’t ever let anyone else tell you otherwise.

Similarly, across other channels useful cross-media technologies emerged like QR Codes, which really solve in mobile the same issue marketers face on desktop Web browsers—namely, the inability to properly track and attribute cross-media actions resulting from their offline campaigns. When push comes to shove, sending individuals to purpose-built, mobile-optimized landing pages, personalized or not, enables precise tracking and measurement, not to mention a better overall user experience and, presumably, a higher conversion rate, too.

Looking forward, the next stage in attribution will most certainly need to deal with the advent of Web 2.0 and the world of social media. Seeing as firms are now making investments in social media strategy, CMOs are going to want to attach some kind of ROI calculation to the mix. Now, of course, you could pretty easily argue that it’s absurd to try to assign any type of ROI to social media in the first place. In that vein, Scott Stratten has a great blog post called “Things We Should Ask The ROI Question About Before Social Media” on UnMarketing that does just that pretty convincingly. But that’s an argument for another time and place. Regardless of whether you feel it’s a smart policy, I think it’s safe to say that where the marketing dollars go, pressure will ultimately follow to show value (ROI).

At the same time, regardless of what dollars are being spent and how these expenditures make CFOs hyperventilate, social media can and do generate sales for organizations. This is an indisputable fact and should not be up for debate anymore. What is in question is the ability of firms to track what happens in social media and attribute the activity to this emerging channel. As we speak, we’re starting to see the introduction of the first generation of effective tools (SocialCRM) that track social media interactions among pools of prospects or leads, and make them available to marketing teams for actionable analysis and follow up. Very cool stuff. But, of course, social media data are only one piece of a much larger puzzle, named “Big Data.” I briefly touched on Big Data in a previous post titled “Deciphering Big Data Is Key to Understanding Buyer’s Journey.”

Actually, on that note, I think this is a good place for me to call it a day. Not only am I running out of space for this post, but that last thought will make a great segue to my next post, which will address the amazing transformation that is taking place within many firms as they deal with the endless volumes of unstructured data (Big Data) they are tracking and storing every day. This wholesale repurposing aims not only to make sense out of this trove of data, but also to break down the walls separating the various silos where the data are stored, such as CRM/SocialCRM platforms, social media websites, marketing automation tools, email software, Web servers and more. Stay tuned next time for more on this topic.

Until then, I welcome any questions, comments or feedback.

The Mobile Nexus—If You’re a Marketer, Be Prepared to Live or Die By It

It’s no secret that the mobile channel is exploding in our lives. Unless you’ve recently been living under a rock, you’ve undoubtedly come across some jaw-dropping stats on mobile usage. Here’s a couple more to chew on. According to a recent article in Mobile Commerce Daily, mobile retail dollars doubled between April and December 2011 alone. That’s just eight months! And, Mobithinking.com reports that approximately 25 percent of Americans access the Web only on their mobile devices. Kowabunga!

It’s no secret that the mobile channel is exploding in our lives. Unless you’ve recently been living under a rock, you’ve undoubtedly come across some jaw-dropping stats on mobile usage. Here’s a couple more to chew on. According to a recent article in Mobile Commerce Daily, mobile retail dollars doubled between April and December 2011 alone. That’s just eight months! And, Mobithinking.com reports that approximately 25 percent of Americans access the Web only on their mobile devices. Kowabunga!

Many marketers refer to the mobile device as the Third Screen, after the television and personal computer. In this post, I’m going to propose a bold new idea here about the Third Screen, and why recent technological advances mean this exciting new channel is going to change our lives in ways we cannot possibly fathom today. This idea is predicated on the fact that in its new form, mobile essentially presents us with an entirely new paradigm in not only the way individuals interact with technology, but also how companies engage with and market to individuals. Let me explain.

Remember in the movie Minority Report, starring Tom Cruise, in which stores changed their signage when you entered, using your profile data to create a custom experience? Well, to a certain extent, that’s what’s possible now with mobile. Using location services, you see, mobile knows exactly where you are. Not where you live. Not where you’ve been. Where you are right now. It’s effectively marrying your personal profile to your geographic location. But that’s not all. Mobile also connects you seamlessly to your social networks—friends, followers, networks, reviews, blogs posts, etc. This provides a truly three-dimensional user experience. I call it the Mobile Nexus.

The Mobile Nexus is the intersection of three major elements in our lives—Personal Attributes (your demographic and psychographic profile), Geographic Location and Social Media. In theory, this confluence should enable marketers to craft marketing messages and personalized promotions based not only on who you are, but where you are, while at the same time giving users the ability to interact with your various social media networks to get more information, invite friends, share opinions, post reviews, and so on. The possibilities are simply staggering.

Sure, one could argue that mobile phones have been around for a while. But it was the recent emergence of the smartphone connected to the Internet and enabled with location services that, in my opinion, at least, changed the rules of the game for marketers. And although smartphones only came on the scene a few years ago, they’re gaining traction fast. In fact, according to MediaPost, smartphone penetration in the US is currently at 44 percent. What’s more, Mobile Marketing Watch reports that, as we speak, an astounding 75 percent of all new mobile phone contract subscribers are for smartphones. So count on the number of devices in the marketplace to skyrocket in coming months as old contracts expire. Can you say, “game changer”?

Of course, anyone familiar with the interactive marketing world could easily argue that geographic profiling is nothing new. Yes, it’s true that many websites and pretty much all ad serving networks drive personalized Web content based on IP address location. But, location services takes geo-targeting to an entirely new place, by providing real-time dynamic location data while you go about your day—not where your computer happens to be plugged into the Internet.

Turning to the social media component, if you look at current usage stats, you begin to appreciate its pervasiveness in our lives and why it’s playing such a big role in the mobile channel. Facebook has 600 million users. Twitter has 175 million. Meanwhile, 10 million foursquare members “check in” at more than three million locations a day, and consumers have posted more than 20 million business reviews on Yelp, and counting. So the numbers are eye-popping. Now with smartphones becoming the norm, accessing social media on the go is becoming mainstream, too.

Hype aside, let’s not forget that the mobile channel is still in its infancy and it will need much more time to reach maturity. At this early stage, enterprising firms are only now releasing the first generation of tools, while innovative agencies and consultants concoct new techniques to harness its power for business. In fact, we can see the preliminary results of the Mobile Nexus already.

Want to go out to eat? How about searching for a local restaurant nearby using your mobile device? Then use an app like Yelp and it’s not hard generate a list of nearby places, based on your preferences, along with user-generated reviews, hours of business, contact details, etc. Are you a traveling salesman in need of some fresh leads to visit? Well, install the Hoover’s “Near Here” App and, voila, you can search for look-alike businesses in the surrounding area based on proximity and business type. And if technology like this already exists, imagine what the future will hold?

“Those who call themselves ‘Mobile Experts’ only have two to three years of experience in the field,” explained a friend of mine who works as a consultant at a major management consulting firm. He and his team develop multi-channel sales and marketing strategies for their clients. With the recent proliferation of mobile technology, it should come as no surprise that many, if not all, of their new projects have a mobile component.

At this point, even the most experienced consultants have overseen no more than a handful of mobile implementations, and successful mobile marketers probably have no more than a dozen successful campaigns under their belts. “But things are changing so fast. Those who jump in now will be able to call themselves experts within a year’s time,” he explained. In other words, the best is yet to come.

Are you getting involved in the exciting new Mobile channel? If so, what success have you enjoyed? I’d love to hear your comments.

Deciphering Big Data Is Key to Understanding Buyer’s Journey

Long before a sale is won or lost, customers and prospects embark on what can be called the “buyer’s journey.” This journey is a complex evolution spanning the entire lifecycle of the customer-vendor relationship, beginning with identification of the underlying business issue or need, and culminating in vendor selection.

Long before a sale is won or lost, customers and prospects embark on what can be called the “buyer’s journey.” This journey is a complex evolution spanning the entire lifecycle of the customer-vendor relationship, beginning with identification of the underlying business issue or need, and culminating in vendor selection.

Along the way, the prospect engages in a wide breadth of activities. Some are internal, such as winning over key stakeholders, building internal consensus and acquiring the necessary budget; while others are externally facing. For example, market research, engaging with colleagues in similar firms to share experiences, and of course contacting salespeople for product demos and pricing negotiation.

I do not claim to have coined the term ‘buyer’s journey.’ For more information on it, you can check out a great article by Christine Crandell that appeared on Forbes.com earlier this month. Among other things, Crandell does a great job explaining how social media can be leveraged to better connect with and understand the buyer’s journey, particularly during times when prospects are not engaged with your sales team. What’s especially interesting about the concept of the buyer’s journey is that prospects are actually unengaged with your firm during the vast majority of this process. Engagement only begins when prospects start their market research and contact a salesperson—usually not before.

Now how does this relate to database marketing? Well, it does in two huge ways. On a strategic basis, any marketer worth his or her own salt knows that effective marketing depends getting your message in front of qualified prospects as inexpensively as possible. In order to do this effectively, identifying how prospects are researching the marketplace is key. Why? Because this is where your prospects are spending much of their time, this is where you need to have your brand appearing front and center. So, from a marketing spend point of view, without a doubt this is where you’re going to get the most bang for your buck.

Now, of course, this is far easier said than done. It’s going to take a ton of market research, including customer interviews, focus groups, industry insight and general analysis to identify how your customers researched the marketplace prior to making a purchase. Did they attend key industry trade shows or events? Do they belong to specific peer or networking groups? What publications do they subscribe to? Whatever the answers to these questions are … well this is where you need to be.

Another key to deciphering the buyer’s journey is understanding how the prospect is engaging with your firm across all Key Performance Indicators (KPIs). This understanding can only be arrived at through a deep analysis of every touchpoint between you are your customers. The best way to achieve this is to identify and extract customer and prospect data wherever it may reside. There are no shortcuts here. For large organizations, it can be located in an email broadcast tool, CRM, ERP, Marketing Automation Solution or purpose-built Master Data Management (MDM) Hub, among other places.

Now, of course, this means extracting and sifting through tons and tons of data—everything ranging from garden variety campaign analytics to purchasing history, from personal attributes to company insight, from demographic data to psychographic profile. Tracking, archiving and sorting out all this information is big business. In fact, many in the industry are now referring to this reality as ‘Big Data,’ as companies track and store vast troves of information that they need to make sense out of. In addition to the physical IT infrastructure required to capture and store the information, making sense out of it often requires technical expertise. Without wanting to veer off topic, if this sounds interesting then I suggest turning to NPR, where an interesting and in-depth story on Big Data aired on November 29, 2011.

As I was saying, once the data is extracted, you need to make sense out of it. Paramount to this task is the process of creating robust user profiles replete with detailed demographic, psychographic and, of course, (for B2B) firmographic information—in effect, multi-dimensional user profiles—and mapping it back to KPIs that help identify engagement patterns and behavior central to the buyer’s journey.

Once user profiles have been established, this is where the fun parts comes in, as marketers leverage this information to create compelling offers that speak to the various customer segments. The good news is that recent technological innovations have made this job much easier and more effective. Using marketing automation tools, it’s now possible to broadcast varying sophisticated drip marketing campaigns to various segments of your database—segments that can now easily be created using complex rules based on both list attributes and user engagement. What’s more, the marketing message itself—email creative, direct mail piece, landing page, and so on—can now be highly personalized based on profile data, resulting in higher response rates, reduced media costs and, of course, improved customer satisfaction.

I hope this all makes sense. Any comments or feedback are welcome.

Updating Your Marketing Database

It’s amazing how quickly things go obsolete these days. For those of us in the business of customer data, times and technologies have changed along with the times. Some has to do with the advent of new technologies; some of it has to do with changing expectations. Let’s take a look at how the landscape has changed and what it means for marketers.

It’s amazing how quickly things go obsolete these days. For those of us in the business of customer data, times and technologies have changed along with the times. Some has to do with the advent of new technologies; some of it has to do with changing expectations. Let’s take a look at how the landscape has changed and what it means for marketers.

For marketing departments, maintaining updating customer data has always been a major headache. One way to update data is by relying on sales team members to make the updates themselves as they go about their jobs. For lack of a better term, let’s call this method internal crowd-sourcing, and there are two reasons why it has its limitations.

The first reason is technology. Typically, customer data is stored in a data hub or data warehouse, which is usually a home-grown and oftentimes proprietary database built using one of many popular database architectures. Customer databases tend to be proprietary because each organization sells different products and services, to different types of firms, and consequently collects different data points. Additionally, customer databases are usually grown organically over many years, and as a result tend to contain disparate information, often collected from different sources during different timeframes, of varying degrees of accuracy.

It’s one thing having data stored in a data warehouse somewhere. It’s quite another altogether to give salespeople access to a portal where the edits can be made—that’s been the real challenge. The database essentially needs to be integrated with or housed in some kind of tool, such as an enterprise resource planning (ERP) software or customer relationship management (CRM) software that gives sales teams some capability to update customer records on the fly with front-end read/write/edit capabilities.

Cloud-based CRM technology (such as SalesForce.com) has grown by leaps and bounds in recent years to fill this gap. Unlike purpose-built customer databases, however, out-of-the-box cloud-based CRM tools are developed for a mass market, and without customizations contain only a limited set of standard data fields plus a finite set of “custom fields.” Without heavy customizations, in other words, data stored in a cloud-based CRM solution only contains a subset of a company’s customer data file, and is typically only used by salespeople and customer service reps. Moreover, data in the CRM is usually not connected to that of other business units like marketing or finance divisions who require a more complete data set to do their job.

The second challenge to internal crowd-sourcing has more to do with the very nature of salespeople themselves. Anyone who has worked in marketing knows firsthand that it’s a monumental challenge to get salespeople to update contact records on a regular basis—or do anything else, for that matter, that doesn’t involve generating revenue or commissions.

Not surprisingly, this gives marketers fits. Good luck sending our effective (and hopefully highly personalized) CRM campaigns if customer records are either out of date or flat out wrong. Anyone who has used Salesforce.com has seen that “Stay in Touch” function, which gives salespeople an easy and relatively painless method for scrubbing contact data by sending out an email to contacts in the database inviting them to “update” their contact details. The main problem with this tool is that it necessitates a correct email address in the first place.

Assuming your salespeople are diligently updating data in the CRM, another issue with this approach is it essentially limits your data updates to whatever the sales team happens to know or glean from each customer. It assumes, in other words, that your people are asking the right questions in the first place. If your salesperson does not ask a customer how many employees they have globally or at a particular location, it won’t get entered into the CRM. Nor, for that matter, will data on recent mergers and acquisitions or financial statements—unless your sales team is extremely inquisitive and is speaking with the right people in your customers’ organizations.

The other way to update customer data is to rely on a third-party data provider to do it for you—to cleanse, correct, append and replace the data on a regular basis. This process usually involves taking the entire database, uploading it to an FTP site somewhere. The database is then grabbed by the third party, who then works their magic on the file—comparing it against a central database that is presumably updated quite regularly—and then returning the file so it can be resubmitted and merged back into the database on the data hub or residing in the CRM.

Because this process involves technology, has a lot of moving parts and involves several steps, it’s generally set up as an automated process and allowed to run on a schedule. Moreover, because the process involves overwriting an entire database (even though it is automated) it requires having IT staff around to supervise the process in a best-case scenario, or jump in if something goes wrong and it blows up completely. Not surprisingly, because we’re dealing with large files, multiple stakeholders and room for technology meltdowns, most marketers tend to shy away from running a batch update more than once per month. Some even run them quarterly. Needless to say, given the current pace of change many feel that’s not frequent enough.

It’s interesting to note that not very long ago, sending database updates quarterly via FTP file dump was seen as state-of-the-art. Not any longer, you see, FTP is soooo 2005. What’s replaced FTP is what we call a “transactional” database update system. Unlike an FTP set-up, which requires physically transferring a file from one server and onto another, transactional data updates rely on an Application Programming Interface, or API, to get the data from one system to another.

For those of you unfamiliar with the term, an API is a pre-established set of rules that different software programs can use to communicate with each other. An apt analogy might be the way a User Interface (UI) facilitates interaction between humans and computers. Using an API, data can be updated in real time, either on a record-by-record basis or in bulk. If a Company A wants to update a record in their CRM with fresh data from Company B, for instance, all they need to do is transmit a unique identifier for the record in question over to Company B, who will then return the updated information to Company A using the API.

Perhaps the best part of the transactional update architecture is that it can be set up to connect with the data pretty much anywhere it resides—in a cloud-based CRM solution or on a purpose built data warehouse sitting in your data center. For those using a cloud-based solution, a huge advantage of this architecture is that once a data provider builds hooks into popular CRM solutions, there are usually no additional costs for integration and transactional updates can be initiated in bulk by the CRM administrator, or on a transaction-by-transaction basis by salespeople themselves. It’s quite literally plug and play.

For those with an on-site data hub, integrating with the transactional data provider is usually pretty straightforward as well, because most APIs not only rely on standard Web technology, but also come equipped with easy-to-follow API keys and instructions. Setting the integration, in other words, can usually be implemented by a small team in a short timeframe and for a surprisingly small budget. And once it’s set up, it will pretty much run on its own. Problem solved.

Creepy Marketing—When Database Marketing Goes Awry

With Halloween over and the holidays on their way, I thought that Creepy Marketing made a timely subject for today’s blog. Now I’m not referring to marketing for ghouls, witches or mummies. I’m talking about adding a creepy factor to your marketing program—a major pitfall of 1:1 marketing.

With Halloween over and the holidays here, I thought that Creepy Marketing made a timely subject for today’s blog. Now I’m not referring to marketing for ghouls, witches or mummies. I’m talking about adding a creepy factor to your marketing program—a major pitfall of 1:1 marketing.

Creeping people out is, after all, contrary to what we’re trying to achieve as marketers, which is namely to use promotion to advance the brand’s sales and branding objectives. That is, of course, unless it’s your goal to damage your brand and drive away customers. Assuming that’s not the case, let’s assume that creepy is bad. Very bad. In the age of social media, one creeped out customer can very easily spread the word to hundreds of thousands of customers and prospects. In other words, better safe than sorry.

But before we go any further, however, let’s attempt to define creepy. This is important because many marketers I speak with cite there often is a razor thin line between casual and its inappropriate Cousin Creepy, between making a sale and detonating a potential long-term relationship. Fair enough. Creepiness is also a bit slippery because, like fashion tastes, standards for creepiness definitely do tend to change with time. To quote Sean parker, former CEO of Facebook, “Today’s creepy is tomorrow’s necessity.”

When it comes to detecting creepiness, I’m a firm believer of what I’ll call the ad oculos school of thought. For those of you who do not understand Latin, ad oculos means “to the eyes,” and roughly translates into “obvious to anyone that sees it.” In other words, if it looks creepy and feels creepy, then it probably is creepy and you shouldn’t do it.

You shouldn’t, for example, write out your customer’s names on a postcard or landing page—or anywhere that might be, or seem, visible to the general public. Nor for that matter should you display your customer’s age, marital status, or medical condition on any piece of marketing collateral. This doesn’t mean that you shouldn’t send offers for dating services to a customer you know is single, or information on chiropractors to someone who has acknowledged a back problem. What this means is you need to be careful with the language you use in these offers, taking care not to publicize information your customers want to remain in the private sphere.

It’s also important to keep in mind that 1:1 marketing works because it focuses like a laser on your customer’s interests and presents them with compelling and compatible product information and offers. Personalized communication is not an exercise in regurgitating your customer’s personal data in an effort to prove to them how much you know.

Remember, successful database marketers use profile data to run highly compelling and relevant campaigns to their customers. What makes the campaign successful is the fact that the offer and marketing message contain relevant information that the recipient will have a strong affinity for—not simply because it is personalized. Personalization for the sake a personalization is nothing but a gimmick—it might work once but that’s it. Successful and sustainable personalized marketing programs ultimately find a formula for identifying customer interests based on key data points and indicators, and use this formula to create and disseminate offers that will strike a chord with prospects and customers.

Have you ever been creeped out? If so, I’d love to find out how and get your feedback.

Get Your PCRM On!

Never heard of PCRM? Well, that’s because it doesn’t exist—not yet, anyway. But it should. For those who are unfamiliar with Customer Relationship Management, or CRM, it describes a strategy for managing a company’s interactions with customers and prospects. The key to any CRM program is that interactions are with your customers and prospects—and that means you know something, usually a lot, about them.

Never heard of PCRM? Well, that’s because it doesn’t exist—not yet, anyway. But it should. For those who are unfamiliar with Customer Relationship Management, or CRM, it describes a strategy for managing a company’s interactions with customers and prospects. The key to any CRM program is that interactions are with your customers and prospects—and that means you know something, usually a lot, about them.

And as any experienced database marketer knows, knowledge means power—power to tailor the marketing message based on what you know or learn. Essentially, it’s a marriage of marketing and data. Unfortunately, however, many CRM programs miss the boat when it comes to taking advantage of this fact, and fail to communicate with customers and prospects on a 1:1 basis. Hence the need for Personalized CRM, or PCRM, instead.

Personalization is important because, let’s face it, we live in an age of information overload. According to an article in the New York Times published in 2007, at the time Americans were exposed to 5,000 ads a day—and it’s safe to say that number has continued to climb since. And unless you’ve been living under a rock for the past 10 years, this fact has been painfully obvious. For marketers, it’s meant a steady and inexorable decline in response rates across the board, in an increasingly futile attempt to get the attention of a distracted populace. How pronounced has the decline been? While a 3 percent response rate might have been the gold standard for a prospecting direct mail campaign 10 years ago, for example, today it hovers at around 1 percent, according to the DMA.

One effective strategy to cut through the clutter is personalization, or 1:1 marketing-a strategy you should be implementing across the board on all your CRM initiatives. Think about it: These are your customers and prospects, and you’ve captured tons a data about them. You know when they became customers, and how. You know what campaigns they’ve responded to, banners they’ve clicked, emails they’ve opened, and so on. You know their gender. You may even know their birthdays. So use this data to drive personalization!

When it comes to implementing 1:1 communications, the good news for marketers is two-fold. First, in our multi-channel world there are increased opportunities to add a personalized touch to your communication strategy; email, direct mail, landing pages and mobile can all be personalized based on your CRM data. Second and perhaps more importantly, the past few years have witnessed a proliferation of new and exciting technologies that make it ridiculously easy for rank-and-file marketers to communicate on a 1:1 basis, much of it not requiring any IT support.

Direct mail, for example, can now be personalized using Variable Data Printing (VDP) software, a technology used by virtually all digital printers in business today. Never tried it? Well, maybe it’s time you did, as the days of ‘spray and pray’ are long gone. And although VDP may be more expensive than traditional offset, the improved response rates can mean improved ROI. On the Interactive side, email marketing and demand generation software have grown up to the point where it’s a snap to personalize both images and text in an email message based on profile data, not to mention trigger multi-touch drip-marketing campaigns based on lead scoring.

When driving customers of prospects to the Web, keep in mind that a personalized landing page can convert traffic up to five times better than a generic Web page ever will. The fact is, keeping customers and prospects focused on the marketing message interlaced with personalized content is a winning combination.