What is statement marketing? It is sometimes called TransPromo or integrated customer communications, and other names too numerous to list, but what it refers to is the practice of putting messages, usually related to marketing, on transactional documents. It is not rocket science, but it is effective and economical. This article will investigate how advances in data technology give this proven communication strategy even more bang for the marketing buck.
It is worth noting that this practice is not new. It has been around for decades. However, as technology has advanced, this tool has become even more economical, effective and versatile. For example, technology now allows even the smallest of businesses to capture, use, and segment data. These advances in technology provide a wide range of marketing opportunities that were not available when messaging on statements was limited to a few lines of black text on a printed document.
Data is critical in our information age, so we will take a closer look at how advances in data technology can be used to create an effective statement marketing campaign. Databases are no longer no relegated to Fortune 500 companies. Almost every business has some type of electronic database populated with valuable customer data. This data can (and should) be used to create targeted, relevant messaging that speaks directly to the recipient of the message. There is a local restaurant chain that I go to that presents a good example of data collection. They have a loyalty program that provides members with discounts after a certain amount is purchased. Every time I go there, I hand them my card with the check. They swipe the card and know how often I visit, which location I visit, what I order and how much I spend. They own a wealth of information about my dining habits.
So how could they make use of that data? There are many ways, but because we are discussing statements, let us examine how the data collected by my local restaurant could be used on their loyalty club statements (by the way, this is a hypothetical, as this business does not send loyalty club statements – a big mistake in my opinion). So hypothetically, they could send me my loyalty club statement with information about specials on food similar to what I have ordered in the past (Buffalo Wings). They could send me my statement during a time that I have historically not eaten at their establishment. They could add a coupon for a higher margin item I do not typically order. All of these things have the potential to get me (and my money) into their restaurant at a time I usually do not eat there to buy food I usually do not buy. By using the information (data) I give them, they can tailor the messaging on my statement in such a way as to benefit both the business and me.
If you think about it, there are many such opportunities for them to personalize their communications to me. I receive email updates from them frequently that could be personalized just like the statements. They could create a referral program if I get my friends to sign up for the loyalty club. That would give them even more data to use in their customer communications.
With data, which is now easier to capture and use, messaging can be personalized and specific behavior encouraged. That is just one example of how statement marketing can impact a business’ bottom line. Can you think of any others? Please share your ideas in the comment section.
If you are looking to take your business’ marketing to the next level, give us a call. Perhaps we can help make the process easier and start putting that additional revenue into your cash register even faster.
John Rothstein, Esq.,
Compliance and Communications Strategy Consultant
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