“The customer is always right.”
Although this is a phrase that has been a staple of business for decades, in this era of customer-focused marketing, it takes on both new shape and importance.
We are living in the age of the smart consumer; they know what they want, and they also know that if one business doesn’t provide it for them, there’s likely many others just a mouse click away that will. The crowded marketplace means that customers are less likely to remain loyal to one brand, and the advent of social media has also empowered consumers to share both positive and negative brand experiences online. E-commerce has provided customers with a plethora of opportunities and choices sitting right on their smartphone, which can be a positive for businesses who pay attention to their customers’ needs and a drawback to those who aren’t using customer data to empower their marketing strategy. If you’re not collecting and utilizing customer data in your efforts or are unsure of how to use analytics to boost your customer lifetime value (CLV), read on for some ideas.
Using Data: Smarter, Not Harder
Marketers have been told for some time now that the key to creating more relevant, “sticky” campaigns is to use data to inform your content. But the utility of data analytics goes beyond the campaign level. Today’s laser-focus on customer experience and journey means that data should be the backbone of your entire business strategy.
However, while many businesses may realize the star role that CX needs to play in their efforts, few truly know how to use data analytics to improve the experience and garner true customer loyalty. According to a recent study published by McKinsey, businesses’ use of analytics to create a competitive edge in customer experience is only at 32%. This demonstrates the issues that many businesses are having in trying to apply data in a universal, transactional way across their entire organization.
Great customer experiences lead to higher retention rates, increased brand loyalty, and bigger customer lifetime value (CLV). Improving customer experiences can seem like a straightforward task, but unless you base new tactics and strategies on tools like zero-party data, you might be putting in effort and resources in the wrong places.
So, what are some RIGHT ways to use data analytics to improve customer loyalty? Here’s 5 ideas to help you get started building that data-driven competitive edge.
Segment Customers Based on Demonstrated Behavior
Today’s ultra-connected world means that both your current and new customers will interact with your brand through many different channels, but eventually, they will develop a preferred way in which they obtain the goods and services they need from you. These preferences provide valuable insights about themselves, their behaviors, their lifestyles, and even their future purchases and areas of need.
By using a Customer Data Platform like FiO’s Insight Marketing Platform (IMP), you can segment users based on these various touchpoint behaviors on autopilot.
If you have an e-commerce store, a true IMP will allow you to segment your patrons based on their transaction history, number of previous purchases, and even their product search history, which can provide you with insight that informs a potential path for each customer. For example, consider the potential implications of someone who “purchased X product” 12 months ago, but then also looked at the upgraded version of the product and also downloaded the whitepaper on the upgrade using an email link sent to them. You can use these touchpoints to know exactly what branded campaigns to send them, and through which channel (email) to which they’re most likely to respond. You can also infer their areas of interest and what other product and service knowledge will be beneficial for them to see. This type of data segmentation not only leads to increased sales, but also makes the customer feel as if you’re paying attention to their needs and serving as a helpmate to them in their search for the right product. Know more visit our blog here: https://www.groupfio.com/5-ways-to-boostcustomer-loyalty-using-data-analytics/
Are you looking to improve your customer service?
Are you looking for ways to improve customer service and increase loyalty?
It is essential to put customers first if you want your business to thrive and have loyal customers.
A great customer experience will make your business look better and increase your profits.
Read moreThese are 8 tips to improve customer service in your company.
Customers are said to be the backbone of a business, especially when it comes to the existing customers.
Many companies focus on new customer acquisition but attracting new customers cost a business five times more than keeping an existing one.
This attachment should always be noted by the firm and relevant steps to be taken.
While nowadays, the consumer has a wider assortment and more platforms to shop from; the personal relationship with the retailer is more missing.
As customers move through this engagement, retailers learn more about these customers and are able to offer ways to satisfy their needs.
In another way, customer loyalty programs in retail are there for retailers to reconnect with their customers as individuals.
