Full disclosure: before coming to Woodhouse, I did my time at a top ten US bank, driving business through the usual bank marketing channel—Direct Marketing. Mainly, MAIL—and lots of it! I’m sure that this comes as no surprise to any of you who fill recycling bins with countless checking account and credit card offers on a daily basis.

There was a lot of talk and spinning of the wheels about what customer centricity is and how to move the direct marketing program from one of broad-based targeting—age, assets and other standard demographics—to a program based on customer value, true customer needs and behavioral and attitudinal traits. The problem is, since traditional direct marketing is only a one-way channel, how do you really determine customer needs and wants? What usually ends up happening is that you fall back on those same broad demographics, with slightly refined targeting based on what little information you know about your customers, e.g. presence of children—send them a college savings offer. Bought a new house (we know this because we just sold you a mortgage—brilliant)? Please enjoy our wonderful home equity rates!

So, what’s the difference with Social Media and customer centricity? Starting with the obvious, it’s a true two-way channel, allowing for direct interaction for your brand with your customers. You know what your customers want, because you are both listening and talking to them. Questions, polls, contests and the like help to further define offers, products and positioning. You also get immediate reaction and feedback to the content you post. This helps with determining what the customer wants from both an entertainment/engagement standpoint (videos, interactive content) and needs from a how-to and problem resolution standpoint.

Perhaps most importantly, Social Media marketing gives real-time insight into how your customers want to interact with you. Are they heavy Facebook users that want rich content and to actively comment and engage with others? Is Twitter their thing, looking for 140 character quick tips and a channel to contact you while on the go? Or are they looking to share or view check-ins, photos and videos as a way to relate with your brand? Social Media lets you connect with your customers how they want, where they want and when they want. Try doing this with a letter, self-mailer or bulk email.

To have success with any marketing program, you still need to be strategic with the channel, tools and targeting information that you have at your disposal. While Social Media allows for true customer centricity vs. traditional direct marketing tactics, your efforts will only pay off if you have a sound strategy that leverages the power of customer engagement for your brand.

Thoughts, likes and rants welcomed…