– Drive Revenues From Your Existing Customer Base


40 years ago, when computers just began to get popular in business usage, the computational brute force found early acceptance in number crunching techniques. While marketers never quite adopted quantitative techniques en masse, early database marketers were some of the earliest to use RFM techniques to segment customers and do different treatments to drive conversion. As the years have passed, and the analytical capabilities have become mainstream, database marketing continues to be at the vanguard of marketing functions that use quantitative techniques regularly. For the past 15 years, one to one marketing has been leading the charge.

At Xerago, we use 1-to-1 marketing to refer to any kind of marketing that is targeted at individual customers, across any channel. We use 1-to-1, Direct and Database marketing interchangeably. Customer Relationship Marketing (CRM) or Analytical CRM would probably refer to the same thing. However, Analytical marketing can mean a lot more than just 1-to-1 marketing. For example, C-SAT, NPS, and other marketing metrics are analytically driven too and are not necessarily part of one-to-one marketing.

Designing One to One marketing programs

Unlike other kinds of marketing, thinking 1-to-1 marketing requires certain distinct skills. An understanding of how to drive value from your customer portfolio – which changes from industry to industry. An appreciation of how to segment and treat customers differently. A fine-grained view of how different segments react to different treatments. A nuanced appreciation of marketing data marts, modeling, campaign management, response tracking, and personalized creative treatments. Most importantly, 1-to-1 marketing tends to be operationally rigorous. So, designing 1-to-1 marketing programs requires a portfolio type view of your customers, deep appreciation of your category and how customers behave in the category, and also use the process, tools, and technologies.

Driving value from your customer portfolio

Which customers have the highest potential? Which deliver the highest value? Which customers are likely to churn? Which segment is over-contacted? How do you time offers and communication to maximize response? What percentage of organization growth can be targeted from existing customers rather than from new-to-brand customers? How do you plan your campaign calendar to reduce over-contact and improve response? Marketers that know the answer to these questions is most likely to maximize value from their customer portfolio.

Industries that can derive value from 1:1 marketing

Unlike some of the other marketing services provided by Xerago, certain industries derive maximum value from 1-to-1 marketing. Some of these are:

  • Banking, Financial Services, and Insurance
  • Telecom
  • Retail
  • Cards Issuers
  • Airlines and Hospitality

Benefits of One to One Marketing

Advantages of One-to-one Marketing: Xerago has engaged with a number of clients over years to implement and manage their 1-to-1 marketing programs. Many of them have consistently realized 30% of their balance sheet growth, year on year, from their 1-to-1 marketing programs. While this kind of revenue growth consistently delivered over years may or may not be realized by all clients, it is certainly possible for every marketer of some sophistication to derive significant value from their 1-to-1 marketing.

Some of the benefits that most clients derive when they engage with Xerago for their 1-to-1 marketing services are:

  • Increased understanding of how to increase value from their existing customer base
  • Reduction in acquisition pressure due to revenue growth from existing customers
  • Increased customer centricity in their marketing structures and processes
  • Increase in product penetration levels and reduction in churn
  • ROI from data marts and marketing platforms

To learn more about how Xerago can help you drive your 1-to-1 marketing programs more effectively, contact us.