Challenge: Data in front, one more goal

When the members’ magazine is sent out twice a year, fans rejoice. Unless the booklet doesn’t arrive. Then the faces are long. This happens when addresses become outdated, recipients move, or even incorrect names are recorded in the CRM system. The challenge: data quality. And this plays a prominent role not only in the mailing of member magazines.

Fan campaigns, member analysis, fan support and much more also come to nothing or are simply not feasible without good data. Together with the Schober Information Group, a Bundesliga club has therefore vigorously tackled the issue of data quality. The goal: to increase data quality, expand the depth of information through data enrichment, and create a solid data foundation for the use of analytics and artificial intelligence (AI) in direct and digital marketing.

Solution: Data quality check and data depth enrichment

The Data Quality Check project was launched. This compares the CRM data of the association with the current data from the Schober data universe. The comparison shows: gaps in the data, outdated data, incorrect data or duplicates. As a rule, according to Schober’s practical experience, about 15% of the master data in CRM systems must be updated within a year. The younger the target group, the more mobile and the more frequent the need for updates.

After the check, the need for action is determined and the association decides to update and populate its own data (First Data) with Schober third-party data. Additionally, one uses the option to increase the data depth. This means that Schober offers additional information beyond current address data. Socio-demographic data, development at the place of residence, purchasing power information and many more details can be added.

Outlook: Analyses, but please automated and secure

The association has gained a solid data foundation for more in-depth analyses. After all, you don’t gain any insights from false data. Only those who can create added value for their fans and members thanks to good data can take the lead. And this is exactly where it should go: from data by means of analysis, information about fans, their joys and requirements is obtained.

The methods and analysis strategies can be diverse. Typically, cluster analysis, AI, and self-learning algorithms are used in such scenarios in addition to simple data mining with pattern recognition. Of course, all of this is done in compliance with DSGVO – security and data protection have the highest priority for us. Our membership in DDV as well as certifications by CSA and IABEurope underline our claim to secure and DSGVO-compliant data handling.

In the next step, the Bundesliga club plans to derive targeted marketing measures from the analyzed data. Who is a casual fan and only comes to the stadium in good weather? Which fans don’t need advertising because they are in the stadium for every home game anyway? Which fans have a pet and would be delighted with the original feeding bowl with club logo? These are just a few examples of questions that can be answered easily and automatically with the right methodology.

If you also want to play in the premier league with your data…

If you want to follow our customer’s example and play in the first league with data-based marketing, please contact us. At Schober, we have been shaping the future of sales and marketing for over 75 years. And the method described above has long since given rise to a cloud-based out-of-the-box platform for managing customer data (Customer Data Platform – CDP). We call the solution udo and think you should get to know udo. We would be happy to show you how easy udo can also turn your fans into customers or even happier fans.

Simply play in the premier league with your data.

Sales funnel and value-based selling

The classic sales funnel still views the sales process exclusively from the seller’s perspective. But in modern marketing, we can and want more: it’s about a deeper understanding by understanding the customer’s point of view and thus managing the interaction in a more targeted way. The goal: to gain satisfied buyers who will buy again and again and recommend products to others. I call the underlying sales approach value-based selling because it convinces the addressees of the value of the offer. But this means that the funnel is no longer sufficient as the basis for marketing and sales. In order to meet the new requirements of the data economy, important aspects include: Personas, added value, content, customer journey and measurement.

Stairs instead of funnel

How are the terms related? If you want to sell the added value of your products, you have to know your addressees, which is described in more detail in personas. Then marketing measures can specifically highlight the added value of an offer, which is done via appropriate content. Finally, interaction between supplier and addressee is necessary to motivate purchase. And it is precisely here that the digitized world with New Data, touchpoint explosion and non-linear customer journeys has created new requirements. If you want to address, qualify and manage your customers properly, you have to orchestrate the customer journey. This only works with data and a data strategy – “Brahm’s staircase”. It is a method of data-driven marketing that uses four successive stages to qualify prospects more and more precisely, convince them, and then convert them to customers at the highest stage.

Reaching the goal with data and method: The four-step data staircase

The first step is to create a data basis. To this end, companies ensure the central provision of all data related to the intended customer interaction. Centralized is important, because most of the time data lies unconnected in different transaction systems (ERP, e-commerce system, content management, etc.) next to each other. Only the mapping of the data silos creates the basis for further analyses. Because if companies use incorrect or incomplete data, they will also receive only incorrect or incomplete results when evaluating it. The supposed treasure trove of data then quickly turns out to be data garbage.

Increase depth of information, data on insights level two and three

But sometimes the depth of information in the existing data is not enough. Therefore, at stage two, one examines the existing database against the background of the business and communication objectives. If necessary, the depth of information is increased in order to create the right added value in the customer interaction. Typical additions here include geodata, data on the degree of digitization, IT systems used, or corporate structure, depending on the potential customer target group.

In stage three, this data becomes information. Analytics and AI turn data into information about prospects, customers, and their needs. Methods and analysis strategies are diverse and depend on the task. Typically, cluster analysis, artificial intelligence and self-learning algorithms are used in addition to simple data mining with pattern recognition. With the insights gained, companies can make value-oriented interaction and product offers.

Stage four: value-based selling

Stage four moves to action, using the insights from the previous stages to convince addressees of the value of the products on offer. That is exactly what value-based selling is. In principle, all available channels and content formats are used for interaction, and the selection of suitable information media can usually be determined very precisely at the previous stages.

Brahm’s staircase” orchestrates the customer journey at the data level: personas, added value, content, customer journey and measurement come together in real time. With this method, sales and marketing can lead customers unerringly to happiness – via a four-step staircase.

“Brahm’s stairs”, funnel and udo – What are your experiences?

What are your experiences? Have you also considered how to better orchestrate your sales or marketing funnel? We look forward to learning more and engaging in dialogue with you.

By the way, we at Schober have been shaping the future of sales and marketing for over 70 years. And so an out-of-the-box platform for managing customer data (Customer Data Platform – CDP) has also emerged from the method presented. We call the solution udo (universal data orchestration) and think you should get to know udo. If you have any questions, please do not hesitate to contact us at contact@schober.de. Good luck and long live sales!

Your Martin Brahm and the Schober Team

Intensive customer loyalty

But before we get to the analytics, let’s take a quick look at the bigger picture: Acquiring new customers is time-consuming and requires significantly more effort than intensifying existing customer loyalty. This has been proven by many studies and surveys. And this experience applies not only to the sale of energy bars, wine or travel to end customers, but also in B2B business. Craftsmen who have good experiences with their suppliers, for example, buy regularly and usually also larger baskets of goods. So let’s intensify customer loyalty!

“Mmmh-delicious-moments” or: Knowing customers in order to bind them specifically

Customer loyalty is hugely important, as my Buddy illustrates. Satisfied regular customers are loyal, tolerant of mistakes and recommend products to friends and colleagues. In times of social media, this also means that loyal customers recommend a product to many people in their social network. How do you win loyal customers and create these “Mmmh delicious moments”? How do companies increase customer loyalty and turn single buyers into multiple buyers? Of course, a good product range is a basic prerequisite. But it is also crucial to know your customers inside out. Knowing what moves them, what excites them and what motivates them to buy again. The key to this: Multi Buyer Analytics.

Evaluate purchases with Multi Buyer Analytics

Companies that use multi-buyer analytics are significantly more successful than their competitors. This is proven, among others, by a power bar manufacturer and Schober customer who uses Multi Buyer Analytics based on our universal data platform (udo) with great success. The first thing to do is to get a solid overview of purchases and buying habits.

Which customers only buy once and then disappear from the radius of marketing measures? Which customers, on the other hand, buy multiple times? With the answers, segments for subsequent measures can already be created in a first approximation. If you add the time intervals between purchases and the product groups purchased in each case, the view of the customers quickly becomes complete.

For example, it can be determined that a so-called persona of multiple buyers prefers to buy a certain product in larger quantities, but then does not order anything else for a longer period of time. Another, however, orders small quantities more frequently, but these come from different product areas – energy bars, protein shakes and isotonic sports drinks.

Product mix analysis

Product mix analyses go deeper, allowing the correlations between individual offers to be determined at product level. In the case of the power bar manufacturer, for example, flavor, price and container size are related. For other Schober customers, such as the water specialist bevo, it is water pipes, connecting sleeves, special adhesives and hoses. Whatever the product portfolio looks like, a product mix analysis of purchases reveals valuable synergies for existing customer care. Of course, it is precisely these correlations that must first be drawn from the data through analysis. To make this possible even without studying mathematics, udo offers intuitive ready-to-use analytics.

Targeting customer loyalty measures

Targeted analysis of purchase and customer data as part of multi-buyer analytics provides crucial knowledge about customers. Single and multiple buyers and their respective preferences can be precisely identified so that marketing and sales can use targeted communication measures to stimulate customer loyalty and new purchases. The right triggers and purchase motivations can then be set along the customer journey: The targeted development of existing customers can begin – from single to multiple buyers, from loyal customers to brand ambassadors. Of course, many factors – market, target customers, budget, creativity and others – play a role in the measures. The right mix of measures is therefore always individual.
We have compiled five key success factors and reasons for multi-buyer analytics in a checklist, which you can download for free below.

Back to the gym

But let’s get back to the power bar manufacturer and its case. The company used multi-buyer analytics to initially segment the buyers of its products in a targeted manner and cluster them according to buyer groups. One key finding: the number of repeat buyers can be increased particularly quickly through targeted cross-selling. From the product mix analysis, it was clear that energy bars are a low-threshold, “fast-turnaround” offering and sell very well along with energy gels in the gym environment.

Lack of information quality

Today, every company stores and uses the data of its own customers and prospective customers: Goods are sent, invoices are written, consultation logs are kept in the call center, marketing campaigns are set up and much more. This CRM data is becoming increasingly extensive and complex over time. But without a data strategy, the overview is quickly lost.

Data quickly becomes obsolete. For example, they are entered incorrectly, are no longer up to date or are duplicated. Such data errors reduce data quality and have direct economic consequences. This is also known as the “garbage in garbage out” principle: errors in data cause errors in analyses and forecasts. To illustrate, if you put water in the tank of your car, you won’t be able to drive far. So it is with data quality. Poor data leads to a lack of information quality – wrong decisions are made and opportunities are missed.

Avoidable costs

But a lack of information quality also causes high, in many cases avoidable, costs. A simple example is not reaching a customer or sending out expensive catalogs twice. Unrecognized risks are also problematic, such as when a customer bundles large merchandise credits under different identities. Even if customers are contacted despite an advertising ban and there is a threat of legal disputes, costly inconveniences can quickly arise. This makes it clear that strengthening the database reduces risks and costs. Where are the biggest challenges in data quality?

How to strengthen data quality

Poor quality data contains data errors, duplicates, missing values, incorrect formatting, inconsistencies, and more. The subject matter is very complex and requires experience. That’s why the Schober Information Group Germany offers a data quality check that quickly provides certainty about your own data quality and optimization potential. Briefly, the most important three aspects:

Duplicate addresses – this happens when several contact persons are entered for one company or several people from one household. In this case, Schober offers to identify and mark multiple existing data via a duplicate comparison. Subsequently, the entries can be merged or even deleted upon explicit request.

Outdated information on companies – this happens when companies move, go bankrupt, change their name or similar. It is estimated that around 30% of addresses need to be updated within a year. Here, Schober offers to identify addresses in the CRM data that are unsuitable for advertising, relocations, insolvent or defunct companies for processing or to confirm them positively.

Outdated personal details – this happens when people move, marry or die. Here, Schober offers reconciliation and updating based on negative data – such as people who have moved house, deceased persons or poor payers.

By the way: In principle, database entries are only made at the express request of the customer and only by the client himself.

More insight thanks to data enrichment

Data quality is the suitability of data for a particular purpose. And that doesn’t end with being coherent. You also need to provide the necessary information! If you want to convince people of the benefits of a pool in the garden with an elaborate marketing campaign in spring, for example, you need information on the residential structure and purchasing power. Because in an urban residential area without gardens, of course, you can not create a pool. If advertising companies do not have this information, targeted enrichment with the Schober data universe can help.

Whether geodata, identification data, potential analyses, industry keys, decision-maker data or company size – the Schober data universe provides the required data and significantly increases the depth of information. This ensures targeted customer contact and the ability to create detailed analyses based on facts.

The advantages of information quality and depth

A strong database with high quality and depth of information strengthens sales, support, product development and marketing. This is undeniable. In our experience, the concrete benefits are, for example, better deliverability of marketing and sales campaigns. This starts with the correct postal address and goes on to socio-demographic characteristics and the correct form of address. The result is efficient CRM processes that save more than just costs. After all, a strong database is an important asset and a central component of value creation for companies.

Data is silver, good data is gold

Data is silver, but good data is gold, because only from it can companies gain the information that determines market success. The analyses become more accurate, leads can be assessed more precisely and customer interaction becomes more precise overall. “Get the basics right” is what we say at Schober and with the “Brahm’s staircase” we have developed a method to generate added value from data. This has also resulted in a cloud-based out-of-the-box platform. We call the solution udo and think you should get to know udo.

We will be happy to show you how to increase data quality. You are always safe and DSGVO-compliant with us, because Schober attaches great importance to data protection and security. Simply contact michaela.weisse[at]schober.de and she will help you to carry out a free data quality check and increase your sales thanks to the depth of information. If you have any questions, please do not hesitate to contact her.

Good luck and long live your sales!

Your Schober Team

Office Depot Germany/Viking: International shipper of office supplies

Scissors, stamps, furniture or cleaning supplies – if you’re looking for office supplies, you’re in good hands at Viking in Germany. The office supplies retail brand, which is part of the European Office Depot group, is now successful in eight European countries and employs over 1,500 people in Europe. Viking’s recipe for success: one stop store for your workplace, innovative and data-driven marketing, and great customer service.

Challenge: New acquisition channels for efficient B2B growth in Europe

In order to grow across Europe, acquire new customers and expand existing customers, Viking relies on the Schober data universe in combination with the analysis and marketing expertise of the Schober Information Group. In addition to tried-and-true marketing – SEO, SEM, catalog mailings and field sales, Viking has developed new ways with Schober: 1. data quality assurance 2. market potential analyses & target group clustering as well as 3. international B2B e-mail marketing.

Solution: Data Quality, Analysis & Scoring, B2B Emailing

Success in data-driven marketing depends on data quality. Therefore, Viking and Schober start with a data quality check including data enrichment. Now we have enough data for analyses: What addressable market potential is there in Europe, in Germany, in the UK? Which types of companies predominate? What are the portfolio synergies? These are examples of questions from the potential and customer value analyses that lead to target group clustering. Company potentials targeted by Viking via email campaigns to specific groups.

E-mail convinces and activates thousands of new customers

What comes out? Viking and Schober initially carry out analyses and e-mail marketing in Germany with great success. Thousands of new customers are convinced, so that the positive experience is also transferred to other European markets: After Austria and the UK, the next market on the agenda is Belgium. With international data partners and his data know-how, Schober manages the international roll-out of B2B marketing campaigns.

Outlook: Constant dripping wears the stone instead of mayflies

Viking is so pleased with the success that they have scaled up: Data quality and data enrichment run monthly – as do analytics and scoring. The return on marketing investment is particularly interesting when compared to search engine marketing. Why? “We usually only see contacts that we acquire via search engines once. We can turn customers from Schober email campaigns into loyal existing customers. This is exactly in line with our positioning: one-stop store for your workplace, innovative and data-driven marketing and great customer service,” says Sandy Kirchhoff, Senior Manager Commercial Marketing Europe.

Of course, priority one: existing customers

While for new customers it’s all about gaining and maintaining attention, for existing customers the focus is on building on the existing relationship and increasing loyalty. The energy industry shows this very vividly: The willingness to switch electricity, gas and water is constantly increasing and is further fueled by sales and comparison portals (more on this in our white paper: “Marketing and sales in liberalized energy markets“). Of course, if you lose existing customers, you need at least the same number of new customers to maintain the status quo alone. Assuming that new customers cost around five times more than retaining an existing customer, priority one is clear: nurture existing customers – and develop new customers into existing customers.

1. customer life cycle – it’s the data that counts

Sales professionals and marketers in industries such as energy, as well as telecom or insurance, need more than others to gain deep customer insights and actively engage with their customers’ needs in order to make enticing offers. To do this, they need the right technical foundation and data, because the key to long-term customer loyalty is ongoing data-driven evaluation of customer needs at every stage of the customer lifecycle. Only those who know the life cycle of their customers can expand the customer relationship with valuable offers and increase loyalty. This is where udo helps.

2. customer value and potential analyses

Because udo von Schober offers detailed analyses of customer data, for example as a customer value analysis. Existing business partners and customers are systematized according to their previous contribution to sales. The respective customer value then shows which existing customers are particularly attractive in terms of sales and how their shopping cart can be increased. In the case of utilities, for example, the e-charging station can be an attractive addition to the electricity contract. In addition to analyzing the inventory, this also makes it possible to forecast the future potential for sales.

3. data quality and data networking – are the data up-to-date?

4. personalized interaction with value or “off to the bathroom

Image source: ThisIsEngineering, Pexels

Customers only buy products or services if they promise benefits and added value. The same is true for customer interaction. If you want to retain customers and develop them into loyal existing customers, you also have to make customer interactions personally useful and of value. Purchase history, age and housing conditions offer initial clues for action. Truly personalized interaction, however, requires more: Can a new electricity customer be targeted with an annual ticket for the municipal swimming pools? To estimate this, one needs additional data. Those who have the necessary insights can also send marketing and sales to the right communication channels in a targeted manner with value-added interaction.

5. termination prevention through segmentation and personas

Deciding on the optimal product and communication strategy, the loyalty programs or the appropriate channels succeeds by first segmenting customers. Segments as bundles of characteristics can additionally be condensed into personas. Similar to a short biography, personas describe relevant customer characteristics in detail. These help to respond to customer wishes with maximum precision and to implement target group-appropriate measures.

But patterns can also be seen where terminations are expected soon. The “soon-to-be-terminated” persona can be won back – if it is recognized – before the termination even occurs. The attractive product combination of electricity, public transport and Internet or the new eco-electricity offer do wonders for customers. The company saves the cost of acquiring new customers.

Marketing and sales can actively influence the switching needs of end customers in a targeted manner by using existing customer information. But some fluctuation is inevitable – fortunately, even among competitors.

Develop new customers into existing customers? Who knows the set screws and has udo …

If you’re thinking “Sure, that’s great, we’ve tried that, but customer lifecycle management is very challenging,” you’re right. Yes, it is challenging. But we at Schober have been shaping the future of sales and marketing for over 75 years. And so a cloud-based out-of-the-box platform for managing customer data (Customer Data Platform – CDP) has emerged from the method presented. We call the solution udo and think you should get to know udo. We’ll be happy to show you how easy udo makes customer lifecycle management.

Good luck and long live your sales!

Your Schober Team