Maintain best Customer Relations with databased Customer Dialog
Current Studies prove: Dialogue Marketing is in vogue. Around 2.7 million German companies with advertising activities use at least one dialog medium to enter into dialog with their customers and spend around 27.3 billion euros a year on this. Does your company already benefit from customized dialog campaigns using data-based marketing? What are the core elements of dialog marketing anyway? We explain these building blocks, show the most common instruments and the relevance of response elements and cross-channel campaigns.
What is „Dialog Marketing“?
Dialog Marketing describes the interactive exchange between companies and customers, which includes all marketing activities in which media are used with the aim of acquiring new customers, establishing an intensive relationship with potential customers and maintaining and deepening the relationship with profitable existing customers in the long term. Dialog Campaigns are all about getting the recipient to respond in a measurable way, known as a response, by targeting individual, personalized content and relevant messages, and focusing on the dialog between the company and its customers.
From Direct Marketing to Dialog Marketing
The classical Direct Marketing is characterized primarily by the personal Customer Approach. As a sub-area of Direct Marketing, Dialog Marketing goes one step further and focuses on the mutual Exchange of Information between Companies and potential Customers as well as existing Customers, in addition to the Targeted Approach via individually tailored Offers and Content on Products and Services.
Consequently, Dialog Marketing is not just about a one-off Sales Transaction, but rather about cultivating Customer Relationships and building long-term Customer Loyalty as a decisive competitive Advantage.
The fact that Dialog Marketing has replaced Direct Marketing in general Language Usage is due to technological Developments over the years. In addition to new Communication Channels, more and more Media are being introduced that facilitate and accelerate the Interaction between Sender and Receiver – thus creating not only direct Contact, but a genuine Dialog.
Successful Dialog Marketing begins with a Strategy
In order to focus Dialog Campaigns on the Acquisition of new Customers and the Development and maintenance of Customer Relationships, a fundamental Strategy is the prerequisite for successful Dialog Marketing.
- What is the current Situation in the area of Customer Dialogue?
- What are relevant Target and Customer Groups and how can these are described as databased?
- Which Advertising Media, Channels and Instruments prove to be useful?
- What is the financial Framework of the Budget?
- How is Data Management organized process-wise and systematically?
- Who is responsible for the Data Selections?
- In what way do the Dialog Campaigns and Programs support the Customer Journey of the Customer Groups with relevant Messages and Offers?
Once these Questions have been answered, it’s time for the Implementation: The graphic Preparation of the Content (e.g. Design of E-Mailings, Catalogs or Internet Campaigns) as well as the technical Implementation (e.g. Landingpages or Chatbots), if necessary.
The Relevance of Data Quality in Dialoge Marketing
Without complete, valid and usable Data, no efficient Dialog Marketing is possible. Therefore, Databases with personal, transaction and profile-related Data play a major Role in Customer Acquisition as well as in building and maintaining Customer Relationships. Not only the Amount of available Data is decisive here, but also the Data Quality. For example, in the Case of a person-specific Approach, the wrongly written Address can mean that the Letter cannot be delivered. These Effects due to a Lack of Data Quality therefore have a negative Impact on the Success of Dialog Marketing.
To avoid such Losses, continuous Data Management is essential. Customer Data is collected, validated, enriched, analyzed and finally evaluated by means of Purchasing Behavior and Reactions. For each further Interaction, meaningful Customer Information is supplemented and stored centrally, thus enabling personalized Communication and the rapid Initiation of Measures. This is where so-called Data Mining comes into Play, which uses systematic Application of statistical Methods to identify various Trends and Cross-Connections, thereby gaining value-adding Knowledge from large Amounts of Data.
Customized Content through value-added Data Analytics
The collected Data is analyzed using specific Tools and Methods to obtain value-added Customer Insights.
Examples of such Analysis Methods:
- Website Analysis
- Google Analysis & Potential Analysis
- Social Media Analysis
- CRM Screening
- Customer Journey Analysis & Touchpoint Analysis
- E-Mail-Marketing Analysis
- Market- & Competition Analysis
- Conversion – & Sales Funnel Analysis
- E-Commerce Analysis
- Technology Screening
The detailed Information gained from this is therefore systematically used for Customer Dialog and Customer Relationship Management.
In Addition, there is a lower Scatter Loss and the Probability of Sales Success increases. Because the exact Definition of the Target Group and Knowledge of their Needs is essential for an optimal Approach through Products, Services, interactive Processes and relevant Messages. Due to these personalized Offers, the Customer is more likely to react positively to the individually tailored Advertising Content and takes the time to go into the Offer in more Detail and deal with the Content.
Which Instruments are used in Dialog Marketing?
If Dialog Marketing is viewed in a broader Sense, it is understood to include classic Forms of Advertising such as Print, Poster or Banner Advertising, which contain Response Elements. In a narrower Sense, Dialog Marketing is defined by Advertising Forms that promote actual Dialog, for example via Social Media Channels, Telephone Calls or Trade Fairs.
The most common Instruments of Dialog Marketing:
- Print Advertising Media: Postal Mailings, Catalogs, Brochures, Magazines, Inserts, Classic Advertisements with Response Elements
- Digital Advertising Media: E-Mailing Campaigns, Newsletter, Mailing Routes along the Customer Journey, Marketing-Automation, Google Ads, Google MyBusiness, Social Media Ads, Search Engine Optimization (SEO), Online Ads (Content-/Display Ads), Display- and Video Advertising, SMS and MMS Advertising
- Loyalty Programs: (Online) Customer Clubs, Project- and Customer Cards, Bonus- and Loyalty Programs, Couponing, Subscription and Membership Models, Customer Magazines, Recommendation Programs
- Conversational Marketing: Chatbots (AI-supported), Voicebots, Apps
- Dialog Programs: Multi-level channel-specific Dialog Programs, Omni-Channel Dialog Programs
- Web Portals: Online Customer Clubs, Onlineshops, Marketing-Websites, Landingpages
- Fairs: Consumer Fairs, Trade Fairs, Congresses, Conferences
- Feedback: FanScan / FanPrinciple, Telephone Surveys, Online Surveys
The Use of Response Elements in Dialog Marketing
In Addition to the customer-specific Approach, Response Elements are a further Characteristic of Dialog Marketing. These make it easier for the Customer to contact the Company directly and react quickly to the Offers received. The Response Options to the Advertising Measures should be made as simple as possible.
In Addition, financial Incentives can be helpful in provoking Customer Reactions. These include Discounts on Coupons, money-back Guarantees in the event of Dissatisfaction, early bird Offers or Referrals.
Response Elements have further decisive Advantages: They make it possible to measure Advertising Success on the basis of Customer Feedback and to take prompt Action in the event of Failure. For example, a money-back Guarantee provides the signal whether a Product satisfies the Customer or should be optimized.
Cross-Channel Campaigns in Dialog Marketing
According to Studies, more than 4/5 of all German Companies use at least one of the Instruments mentioned to attract the Attention of prospective and existing Customers. But the Success of Dialog Marketing is not based on the Use of a single Instrument, but rather on cross-channel Communication. Here it is crucial to reach the right Target Group at the optimal Time with a relevant Message via the preferred Channels.
Especially in today’s World, Consumers have significantly more Information Options and show a changed Consumer Behavior. In order to build intensive Relationships, Communication should be adapted to Consumer Behavior and Customers should be picked up in the individually preferred Way with precisely tailored Content. The Keyword is “Cross-Channel Marketing”.
Cross-Channel Marketing is all about coordinating integrated Communication across all Channels and creating a barrier-free Network of all Customer Touchpoints within the Customer Journey. This enables a consistent, authentic Appearance on the Company Side and a positive Consumer Experience on the Customer Side.
This Approach offers decisive Advantages:
- Each of the Channels has specific Characteristics that allow Advertising Content to be presented in different Ways.
- In spite of or because of the Differences, Synergies can be created and Messages can be spread in a more coordinated Way.
- This Approach increases the Potential for Conversion.
- The automated Interaction of the Channels creates a Dialogue along the Customer Lifecycle, which recognizes the individual Characteristics of each Customer and picks them up on the preferred Channel with customized Messages.
- This delivers a much higher Conversion rate than traditional Marketing Forms.
Thanks to Digitalization and Marketing Automation Tools, Cross-Media Campaigns can be controlled in a coordinated Manner and thus generate more Sales and a higher ROI from the Marketing Campaigns.
Due to the innovative Possibilities that arise with technological Developments, as well as the enormous Changes in Consumer Behavior, the Customer Approach should take place less and less via Mass Marketing Activities. On the corporate Side, a Change of Direction towards a more customer-oriented Approach becomes necessary.
In the interactive Dialogue Marketing Companies get to know their Customers better and better and a precise Targeting as well as individual, direct Approach is made possible – in addition, the scattering Losses of Marketing Actions are reduced. The economic Efficiency of these advertising Measures can be measured and evaluated by the Type and Number of any Reactions and Interactions and consequently Budgets can be used more efficiently.
The holistic Result of successful Dialog Marketing is the best Customer Relations for more Sales, more Profit and more Customer Loyalty.
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