As with life, business is all about relationships. But many executives aren’t taking full advantage of the opportunity to get to know their customers. In fact, in a recent survey by the Chief Marketing Officer (CMO) Council, nearly 50 percent of marketers described their knowledge of their customers as “poor” or “fair.” The survey also found:

• Only 10 percent rated their customer satisfaction research as “extremely good” or “reasonably reliable.”
• Many marketers currently spend less than 10 percent of their budget on personalized strategic communications. Fifty-five percent said they will spend more than 10 percent in the future.
• Marketers in the professional services industry had higher scores than the average, with 56.2 percent rating their customer satisfaction research as “extremely good.”

The results of the survey are surprising, given that personalized communications often outperform traditional mass-marketing tactics. Among respondents who do use personalized communications, individualized letters and email were the most commonly used methods.

The study makes clear that although personalized communications are critical to a customer retention program, executives need to take better advantage of their opportunities. “Marketers are still missing the mark on how to leverage and utilize data,” says Donovan Neale-May, executive director of the CMO Council. “Because of this, they are unable to realize the full potential of personalization tools, services, and solutions.”

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