5-Step Process to Understanding the DNA of the New Consumer

With all this data, what’s a marketer to do? Follow this five-step approach to getting to know your customers better in order to optimize your direct marketing efforts:

• Step 1: Get a single view of your customer.
• Step 2: Append data to allow for segmentation. Data types available range from demographic and psychographic to transaction and survey data.
• Step 3: Create custom groups based on clusters of behaviors and profiles. Overlay third-party personas on your housefile to improve information about new files or older buyers.
• Step 4: Develop contact strategies specific to each cluster. Clusters may be based on near-term value, channel preference, merchandise category penetration, frequency of purchase, demographics, history of spend, among any number of factors.
• Step 5: Monitor results and make adjustments as needed. Make sure you update clusters, as behaviors and profiles change over time.

An understanding of the individual consumer is key to an effective marketing program. And as consumers change over time, so should your marketing strategy.