Getting to know Event Based Marketing
Trigger or event based marketing is defined as a marketing technique that is based on response to a measurable change in customer behaviour or a specific customer action or an event that influences customer response. Assisted by technology, organisations can deliver personalised relevant communications on products and offers to each customer, generating a higher ROI. The key to the success of event based marketing is timing and relevancy.
Broadly, there are three types of triggers or events that can initiate a marketing action aimed at an individual customer:
- Transactional triggers/events – based on a customer action such as a purchase or sales enquiry, thus providing a natural trigger for follow-on marketing communication
- Recurring triggers/events – based on an individual’s details and personal profile. Thus a birthday or membership renewal date can act as the trigger for a piece of marketing activity.
- Behavioural triggers/events – such as customers opening a new account, post product purchase feedback request, changes in purchasing patterns and changes in spending levels or account values, a cross-sell or up-sell based on a customer’s activity.
- Threshold triggers/events – where a customer’s actions reach a threshold, such as exceeding a spending limit or over-utilizing a facility
Thus, in event based marketing, an activity acts as a trigger to initiate a certain event. For eg. if an online purchaser browses through a certain product category but doesn’t make a purchase, an e-mail triggered by this event (or non-event) can be sent automatically to that individual, encouraging them to purchase by alerting them to special offers or bargains within that product category.
Alternatively, if the customer does make a purchase, a trigger-based e-mail can contain a special reward offer or discount for that buyer’s next purchase.
Event based marketing needn’t be confined to the internet. It can work just as well in digital print-based direct mail or in SMS text messaging. All these mechanisms share a direct two-way communication channel between the brand and the individual, maximizing the potential for the message to reach that target audience member on a one-to-one basis, and allowing for a one-to-one response. Consequently, a trigger-based campaign can use all these media – web, direct mail, SMS – in any particular permutation or combination.
Examples of few Trigger conditions used in a banking scenario
Mr. Abhishek, who works with a manufacturing set up is a customer of the bank. Abhishek usually withdraws Rs. 10000, on the 10th of every month. In December he withdraws an additional Rs. 15000 on 15th which is deviation from the usual pattern. This immediately triggers a message on personal loans to his mobile and email-id, detecting emergency.
Mr. Guhan, works for a IT company. The company he works for has the salary accounts of all their employees with this bank. In September Guhan transfers 90% of his monthly salary credit to another bank. An observation is made for 3 months and if this trend continues, this transfer on the fourth month triggers a message offering schemes that would encourage him to retain his balance with this bank.
Ms. Deepa works for leading MNC and holds her salary account with this bank. It was observed in April that there was a 25% increase in the monthly salary credit. This acts as a trigger and sends information on exciting car loan schemes that cannot be ignored.
Mr. Paul is a businessman who holds his personal account with this bank. It is observed that he has been making investments in mutual funds of late. The next investment he makes triggers information on the wealth management schemes available with the bank.
A well considered event based marketing campaign can deliver significant results. By aligning the content and timing of messages with customer needs, the relevance, response and ultimately the revenue from your direct marketing campaigns is increased. Owing to the relevance of the content and timing, it is common for trigger based campaigns have a high success rate. This, in turn, strengthens customer relationships, making them feel valued. Service above and beyond what people are used to or expect can also lead to a considerable increase in referrals.: