7.22.2011

You don't KNOW me!?: CRM & Personalization

Effective CRM of the future will focus on psychographic customer profiles in addition to traditional demographic profiles.  Beyond the basic principles that determine how profitable a relationship with a customer will develop, successful businesses should seek to know WHO their customers are and WHAT motivates them as accurately as possible.

Why?  Understanding the belief systems and circumstances that motivate your customers to buy or BUY MORE can increase incremental value if your communication is in line with those factors.  Below is an example based on my favorite hobby; video gaming. (Refer to this chart to understand psychographic jargon.)

Amanda is a 25 year old female in social grade B living in a metro area with a steady job at the same company for many years. Classified as a Reformer, Amanda has been a loyal subscriber to Microsoft's online gaming service for at least 5 years.  During this time, she has never changed her profile name.  Microsoft wants to sell her on their name change service.  As a member of social grade B, she is a good canidate for purchase as she has some disposable income and has attained enough social status that titles matter.  As a Reformer, she regonizes that value often comes in small packages and a hefty price tag is not required for satisfaction. 

In order to properly sell their name change service, Microsoft could use the following dialogue:
-"Thank you for being a loyal member of XBL.  We've noticed your tag has not changed in the 5+ years you've been a member.  While you are welcome to retain your name for as long as you are a subscriber, we'd like to offer you a 30% discount on our name change service.  Think of it as a chance to re-brand yourself and find a title that fully grasps who you are now.  For just $5, you can select a new name that reflects your individuality." ( This tactic speaks to the thrifty and anti-establishment tendencies of a reformer, the status of a grade B, the targets age and gender within the life-cycle of a loyal customer.)

However, Microsoft should NOT use a tactic like the one below to speak to Amanda:
-"Did you choose the wrong name?  Does your title scream WIMP?  You can fix that by ordering a name change for $8.  In just seconds, you can go from lame to fame as you let our name generator provide you with the ULTIMATE handle!  Don't be stuck with xX01Loser10Xx!  Get a new, cool name today!" (This tactic speaks more to young, male D status NEW subscribers with a Struggler or Aspirer psychographic profile.)

By choosing a specific dialog suited to a small group, CRM marketers can almost guarantee a sale.  Don't believe me?  Look at my new "DarqueDuce" xbox gamertag.