ROI OF CUSTOMER IDENTITY MANAGEMENT: Personalized Engagement for Short- and Long-Term Gains


Janrain and the Altimeter Group issued a white paper, Marketing’s New Imperative: Customer Identity Management. Andrew Jones, former analyst for the Altimeter Group, has created a three-part series highlighting the main points in the paper. This is PART  TWO: ROI OF CUSTOMER IDENTITY MANAGEMENT

Consolidating customer identity makes insights actionable across channels. Tools like marketing automation are starting to tie things together when it comes to coordinated engagement, but the value of these tools is limited to the data they are based on. For example, batch-and-blast emails, based on little-to-no segmentation, don’t have high open rates. High degrees of segmentation and personalization, on the other hand, have been shown to dramatically increase open-rates and click-throughs. At a time when marketers are spending more on technology every year, many are leaving money on the table by not investing appropriately in customer data and identity.

ROI for Customer Identity Management comes in the form of both short- and long-term benefits. The prediction is that longer-term traditional marketing campaigns consisting
of one-way push-messaging will largely disappear. Instead, marketing will be based on relationships, because we will understand who our customers are and what they care about. Today’s marketing structure and engagement technology is campaign-oriented though, which will not immediately change. In the short-term, Customer Identity Management can help impact established metrics like open-rates, clicks, downloads, leads, and (un) subscription rates.

An organization’s approach to customer identity will be dependent on the business objectives. A retailer will likely want to increase the average order value and total number of orders, whereas a publisher will aim to increase unique and repeat website visits and/or mobile app usage. The data that helps each to improve their Key Performance Indicators (KPIs) differs substantially. The retailer will want data that helps him understand an individual’s budget and intent to buy, for example, while the publisher will want to understand a user’s content preferences.

Customer Identity Management provides the foundation for marketers to understand customer insights across channels. By unifying customer identity, retailers, publishers, and other businesses can have optimal customer insight. That allows them to deliver the most personalized messages and positively influence KPIs. Marketers that successfully leverage customer identity will gain and build customer relationships, value, and loyalty. That’s why it’s imperative that marketers recognize the challenges they face concerning the expectations and behaviors of today’s consumer ; clearly, anyone who doesn’t take them into consideration will put those relationships in jeopardy.


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