A 3-D version of customers

Direct marketing is a very expensive marketing tool to deal with. It costs more because it intends to reach a very specific target. As a compensation it is expected a higher percentage of conversion because you’re putting all the efforts to take a message to someone who wants to hear it. In many cases though, expectations are not fulfilled mainly due to poor selection of people. Not working on your back-end can also become a problem if your customers are leaving your company/product or just don’t buy anymore. "With more power comes more responsibility" and "The price of freedom is eternal vigilance" are the answers.

"More makes more"- If want to convert prospects into clients, make sure you are getting the right people. Profile these people into narrow filters. Perhaps you won’t use all the information, but at least you’ll know how to deal with it.

From the most simple to the most complicated to achieve
1. Geographic (Where?)
2. Demographic (Who?)
3. Psychographic (How they behave?)
4. Mapping (a comprehensive 3D selection)

3D is not a video-game measure. It’s actually the combination between the 3 of items (Geo, Demo and Psycho). Using this method it’s possible to find gaps to be explored. This is similar to what entrepreneurs do. They research the market to find something that hasn’t been offered yet or someone who hasn’t had the opportunity to have access to a product or service.

Take Japan as an example. There are 47 prefectures (similar to districts, provinces or states) distributed into 8 regions (geo). The region of Tohoku is the least populated whereas Kanto (where Tokyo is) is by far the highest populated (demo). Though Japan has an interestingly homogenous distribution all over its territory, some differences are clear. There are rural and urban areas where people have different activities and ways of life (psycho).

That’s when data becomes information. Data alone doesn’t "speak", but a combination of statistical (geo and demo) and subjective information (psycho) clears the whole panorama. Detailing customers and markets to the extreme is a great advantage to companies looking for exceptional conversion in direct marketing.

"Eternal vigilance" – This shouldn’t be the rule only for acquisition. Companies in general have huge problems trying to either persuade their customers to remain loyal or to make them buy more. There is lots of competition around and being unfaithful is not a rare practice. Looking into your own customers is usually the best, quickest and cheapest way to convince them to stay with you. The geo-demo-psycho thing can also be applied here, but it will be deeper.

Geographic (Where – may also be the channel, like internet, DM, telephone)
Demographic (Who – gender, age, occupation etc)
Psychographic (Why did they buy this brand and not other? Any promotion involved? Good deal? Value?)
Mapping

Looking for not answered questions is a way to fill the gaps and prepare targeted new strategies. It’s all about finding the right person.