Are You Using All 3 Data Types?

We all understand the importance of crafting personalized, relevant messages that engage customers and drive revenue. The key is having the correct data to drive your desired results. But what kind of data? There are three main types, and the best results are achieved by using a combination of all three.

Let's look at each.

1. Demographic data. This tells you who your customers are. It covers the basics like names and addresses ("Hi, Janie!"), plus other details such as age range, education level, income bracket, and whether they have kids at home. In a business setting, this might include their industry, company size, and role.

2. Activity data. This shows you what your customers actually do. Think about purchase records, website browsing habits, and how often they buy. For example, if you send out an email featuring three new products and specific recipients click on two of them, that's valuable activity data you can leverage for follow-up. ("Hi, Susan. Still loving that floral dress? Here's 20% off to finish your purchase!")

3. Preference data. This reveals what matters to your customers. Do they support charitable causes? Subscribe to sports magazines? Preference data enables you to group customers by shared interests and refine your messaging for a greater impact.

Let's say you run a specialty gift shop. When you analyze your data, you notice buying patterns for specific customers. Beyond the usual holiday shopping, you might see that Janie orders candy every early September (for her mom's birthday) and Bob buys flowers every late May (for his anniversary). To tap into these patterns, you create an automated direct mail campaign that sends product suggestions and special deals two weeks before each customer typically makes their purchase.

Or imagine you design modern fashion accessories. You discover that many in your target audience support organizations that fight childhood hunger. With this insight, you add a special offer to your next email blast: "Use code CARE and we'll donate 5% of your purchase to your local food bank!"

Data is a powerful tool for any print or digital campaign. By combining demographic data with activity and preference data, you can connect with what truly motivates customers and drive responses in ways that demographics alone cannot match.