Monday, June 30, 2008

Transactional Consumer Data can drive Marketing ROI

Credit card companies and other firms with transactional data mine that information to generate targeted marketing communications to generate high ROI campaigns. As marketers this is what we try to accomplish. But let's take the power of transactional data farther. What if, in addition to marketing to consumers based on mining transactional data, we put the informative power of the information into the hands of our consumers? Scary? Perhaps. Consider this. If MasterCard, Visa, or American Express were ubiquitous and able to capture all of my transactions (ok, Amex may not have the retail footprint), and track changes in spending behavior, what would it be worth to me to view these trends? I'd certainly be open to using my MC or Visa exclusively to be sure the analytical information delivered to me represented my full spending.

Think about the power of this exchange: In return for my commitment to increase my 'share of wallet' (transactions) with my credit card provider, they deliver to me compelling information about my spending behavior patterns. Suddenly, my credit card provider is an asset as my partner in managing my lifestyle spending rather than simply being a transactional cost center. By changing the thinking and approach to how the data is used, this could take the relationship to another level and generate a powerful ROI to the credit card firm.

Note that this could also work in other realms. If my local grocer provided a comprehensive analysis of my grocery shopping trends (think of charts similar to your mutual fund reports) I would be more willing to provide 100% share of my grocery shopping to that grocer to ensure that the information accurately reflects my total behavior. (Hey, I've been eating more veggies, and less meat....but I'm buying more ice cream these days.)

The key point is that marketers can enhance ROI by recognizing the power of the data that they own and how that data is presented to customers.

1 comment:

Good Cheap Wine Guide said...

Great concept! I am uncertain why this is not widely used. Personal partnerships could work in a wide variety of disciplines. Good post!