5 Reasons To Insist on 1st Party Data for CRM Targeting
Mar 22, 2017
A wise, wise man, named “Dr. Phil” once said: “the best predictor of future behavior is past behavior”
Utilizing third party data provider segments to get in front of your target audience online is a common practice in the digital world. However, (as Dr. Phil would say) perhaps the best indicator of what your future purchasers will look like is the customers you’ve already earned. Being able to leverage your own first party data will likely increase your conversion rate and lower your back-end CPA (cost per acquisition). Here are the top five benefits to leveraging your CRM list online:
1) Increased CR (conversion rate)
When activating your CRM list online, you are likely to see a higher return rate from past customers than new costumers. Research has shown, it costs 4-10 times more to acquire a new customer than to keep an existing one. Your CRM list allows you to continue a conversation with your past customers, making them more likely to be a repeat and loyal purchaser.
2) Find your past customers across devices
When you upload your email list into Facebook or Adwords, you are able to find the user… not the cookie. This allows for a few benefits, one being that you are now able to get in front of your customer no matter what device or browser they are on. For example, you can deliver a Facebook newsfeed ad or YouTube video, whenever and wherever that user/email is on one of the platforms.
3) Longer shelf-life than a cookie
Along the lines of benefit number two, since you are now targeting the person and not the cookie, you no longer have to worry about people clearing their cookies, not being identified as the same cookie, etc. If a person came to your site then later cleared their cookies, your standard site retargeting is not able to reach them anymore. With CRM data, you are able to continue delivering ads to the person whether they cleared their cookies last week or not.
4) Get the right message to the right customer
If you have a large enough CRM list, it can be beneficial to segment out your list based on the type of customer. This will allow for more customized messaging to each user. For example, you may want to speak to someone who donated to your non-profit four years ago in a different way than someone who donated to your non-profit within the last six months, or even further, someone who has signed up to volunteer for your non-profit but has not donated.
5) Expand your prospecting audience through look-a-like audiences
The final key benefit to utilizing your CRM list online is to create a larger pool of potential customers. With retargeting, there is a limit in which you will hit diminishing returns, and thus it limits scale. Look-a-like audiences allows for much larger scale, while also driving in new customers. One of the most effective ways of finding potential customers is to use behaviors of past customers. Most DSPs and other platforms are able to create audiences with a high propensity to convert, based on your current customer profile(s).
If you have access to your CRM list (whether it be emails or addresses) and aren’t currently using it for online targeting, we strongly encourage you to reach out to your media team and figure out the best solution in activating it. You’ll likely see conversion rate, engagement rate, and click through rates increase, driving more orders/purchases/donations for your business.