The evolution of customer relationships over the last decades has created multiple new ways for businesses to engage with and market to their customers. Digital and online channels that didn’t exist just a few years ago now have a powerful influence on how customers react to marketing and engage with brands and, in return, customers are demanding more from the companies they deal with.
In an environment where customers can use social media and online resources to easily share with each other opinions on products and services, it’s more important than ever for companies to do what is necessary to maintain customer loyalty. By using big data, and the information you have gathered on your customers, you can increase their loyalty to your brand at a lower cost and with a higher ROI.
Why Worry about Customer Loyalty?
Most companies, from department stores to retail and luxury shops, rely on repeat business and customer loyalty for their success. Why should you worry about customer loyalty?
- It costs less to keep a customer than to acquire a new one: Some resources suggest that it can cost up to seven times more to acquire a customer than it does to sell to an existing one. From an economic standpoint, customer loyalty is critical.
- Loyal customers bring more business: The more a customer likes your company, products, and services, the more likely it is that the customer will return to you when needing those products and services again. In today’s marketing world, customers are closer to brands than ever before, and by cultivating that closeness, you’ll be able to make many repeat sales. The lifetime value of a repeat customer can add significant amounts to your profits over the years.
- Loyal customers turn into advocates: Loyal customers recommend your products and services to others. They comment favorably on reviews they see online. They purchase your offerings exclusively, even if there are cheaper alternatives available. The advocacy of a loyal customer can substantially increase the return on an investment in loyalty programs.
Using Big Data: A Customer-Centered Approach
Big data allows you to take a customer-centered approach to your marketing. You can customize your message to ensure it reaches the customers most likely to respond to it. When you successfully manage this type of customization, it will almost seem like you’ve read your customers’ minds. Their trust in you will increase and you will differentiate yourself from your competitors in a positive way. You’ll see a better response and improved ROI from your marketing campaigns.
Customization through the use of big data allows you to:
- Contact the right person at the right time: You can effectively engage with active clients at the right point in the buying cycle.
- Provide timely offers: Big data analysis allows you to provide offers that correspond to what customers need at the time they need it. You can anticipate their needs, and make relevant offers before your customers run out.
- Send relevant offers: You can use information from your customer database to ensure that your offers reach the right people. An offer intended for a VIP client can go where it’s needed, while offers for inactive customers can be targeted appropriately.
- Make personalized offers: Accurate customer data allows you to personalize your marketing message according to the needs of your clients. Personalization not only makes customers feel good, it makes them feel as though you’ve listened to, and responded to, their exact needs.
- Find the right communication channel: Some offers may be more effective on one channel than the other. Your response statistics can show whether your messages are more effective via canal push or canal pull, in print or through email, SMS message, Messenger and so on. When you have this information, you can focus your marketing message on the channels that work best for you.
Using Big Data: Effective Data Analysis
Your customer database is a goldmine of data you can act on and use in your marketing campaigns. You can use this data to segment your customers and put them in relevant groupings. For example, put frequent purchasers into a VIP group that may receive exclusive offers and discounts. Identify inactive customers and extend offers to revive their interest. Some other factors associated with good data use include:
- Purchase analysis: Analyzing what customers purchase can give you important data on their buying practices. You may find that the majority of your customers prefer one type of product over another, or are more likely to need your services at a certain time of year.
- Demographic analysis: Standard demographic data forms the foundation of a good customer database. This can include information such as age, occupation, education, marriage status, address, income level, and much more. You can find that many of your customers come from a particular geographical area, for example, and focus your marketing efforts on it! But before collecting these data, get familiar with the new General Data Protection Regulation (GDPR)!
- Updates and data purges: Keep in mind that CRM managers, sales staff, and other employees who interact directly with customers should be responsible for adding new and updated information to your customer database. Outdated information should be regularly purged from the database. The effectiveness of the database and the ROI of your customer loyalty programs rely on having the most recent and most accurate customer data possible: don’t waste your budget on wrong numbers!
Updating your customer database is key
It is critically important that you continue adding information to your customer database so that you can better assess customer needs. Customer satisfaction surveys give customers the chance to evaluate your products and services. The more information you have, the easier it will be to identify customer needs and wants, along with insight into how, when, and why customers use your offerings. Direct contact with customers through chatbots, in store or on a website can also be an excellent source of relevant information to add to your database.
The more you know about your customers, the more successful your mobile marketing campaigns will be. Let myElefant help you with mobile messaging tools and CRM techniques to improve customer loyalty through better use of your existing customer data. Contact us today for more information on how to use big data in your mobile campaigns and for professional counseling on effective CRM processes.