Most companies are sitting on a gold mine. It’s their operational/transactional data. And yet most have not taken the steps necessary to leverage it to their benefit.

We recently completed a project for a customer that uncovered $110 Million in annual incremental revenue opportunity because we were able to convert their operational data into a 360 view of their customer base.  By appending other data to their transactional data we developed a complete customer profile and predictive models of others who would be most likely to respond to their product offerings.

Obviously it was a bit more complex than simply stated above, but it illustrates the real power that exists within information most companies have about their customers.

I always use this analogy with clients regarding the value of understanding what their customers look like: “Imagine you are going to a cocktail party where there will be 100 people.  You have an hour to talk to as many as you can to convince them about a point of view.  If you could walk in and immediately recognize the 32 people who would be most sympathetic to your position, you would be more successful than if you just started talking to the first person you saw.”

Apply this to a marketing initiative in your business.  If you could send out 30% fewer direct mail pieces because you scoped the list to include only those that best matched your customer profile you would spend less and realize a better return.  This type of lift can be duplicated across any number of initiatives.

Think about the data you have.  What are you doing with it?