Building a data-driven and customer-oriented marketing strategy is the foundation of your brand’s success.
The recent research study by Gallup found that companies that use customer behavior data outperform their rivals by 85% in sales growth and 25% in gross margin.
And, this is not surprising at all.
The way we promote our businesses has changed over time. The digital era is all about customer-centricity and appreciating customers’ individual preferences. To succeed, you first need to understand your customers, track their buyer journeys, collect their feedback and, based on this data, personalize their user experiences at every touchpoint.
If you don’t know where to start and what tools to use, here are a few tips that may help you.
1. Use Customer Data to Retain Customers
According to the research study by NewVoiceMedia, 51% of these customers will never buy from you after just one negative experience.
Still, only 1 in 26 consumers inform brands about their bad purchasing experiences. They will simply leave you.
You cannot afford this to happen. Statistics say that acquiring a new customer costs 5 times more than retaining an existing one. Namely, the probability of selling to a current customer is approximately 60-70%, while only 5-20% of new customers will buy from you.
This simply means that you cannot rely on your customers to tell you what annoys them most. Instead, you should observe their behaviors to understand their needs, preferences, and problems. With proper analytics, you will be able to identify key signs of trouble and address them adequately.
That’s exactly what big brands do to reduce customer churn. For example, by analyzing customer data, Netflix observes activities of their individual customers monthly. Their goal is to find users that fall below the average service consumption and then encourage them to keep subscribing. Based on this data, they know how to improve their recommendation algorithms and provide more personalized content suggestions.
Most importantly, they use customer insights to create new products. For example, by listening to their customers on social networks, they found that most of them complain about falling asleep and losing their place in the show they were watching. To help their customers overcome this problem, they created Netflix Socs that turn off the show when a user falls asleep.
Collecting customer data across various channels is key to your success, given that customer segmentation is not always enough.
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This was perfectly explained in 2013 by Todd Yellin, Netflix’s VP of Product Innovation:
“It really doesn’t matter if you are a 60-year-old woman or a 20-year-old man because a 20-year-old man can watch Say Yes To The Dress and a 60-year-old woman could watch Hellboy.”
2. Personalize User Experiences
Today’s time-spanning, hyperconnected, and omnichannel customer journey varies based on an individual customer’ needs, habits, motivations, values, and problems. That’s why generic brand messages, content, and offers are not enough to impress them.
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Modern customers are aware that brands are using their personally identifiable information to provide better experiences. The study by Accenture claims that 33% of customers who ditched a business relationship did so due to the lack of personalization. Moreover, SalesForce found that 62% of consumers expect brands to provide personalized offers based on the purchases they already made, while 52% of them are willing to share their personal data to get relevant deals and offers.
Many customer touchpoints provide better customer data:
- Create customer satisfaction surveys to get customer feedback directly.
- Listen to your customers on social networks and read their reviews consistently.
- Stay on top of their interactions with your brand via direct messages on social, IM apps, chatbots, and email.
- Use historical customer data (their previous purchases, items in their shopping cart, their product views, and products they’ve liked, rated, or reviewed) to learn more about your customers and provide them with target content and deals.
This is also an opportunity to clone your top-paying customers. In other words, you can target the customers that have the same behavior and habits as your highest-value customers.
Customer data also helps you improve your content strategy, as well. By getting to know your customers, you will be able to create content that solves their problems, educates them, and evokes emotions in them.
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Be it interactive content like quizzes or traditional blog posts, personalized content that speaks to your customers will increase their UX and inspire more conversions.
3. Delivering Better Rewards
An average customer participates in multiple loyalty programs. Namely, 87% of them claim that they expect brands to have loyalty programs, while 54% of them say they would consider doing more business with a company that rewards loyal consumers.
However, to work, your loyalty program needs to be tailored to your customers’ preferences. And, that’s exactly where collecting customer data can help.
Your customers expect to see rewards that are relevant to them – something that would inspire them to take the desired action. Most importantly, you will be able to track your customers’ actions and reward different types of loyalty. For example, you don’t need to reward your customers only when making a purchase. On the contrary, referring a friend, following your brand on social networks, reviewing your brand, checking into your physical store, and taking out a customer satisfaction survey are also actions that should be rewarded.
4. Retarget Old Customers
There are numerous reasons why people stop buying from you. Maybe they’re not satisfied with the shopping experiences you provide or they don’t consider your offers relevant anymore. This happens to even the most popular brands with powerful loyalty programs.
Fortunately, there is always an opportunity to retarget your old customers. Seeing that you care about them and do everything in your power to win them back, a customer would probably rethink their decisions and start buying from you again.
If someone adds a product to a shopping cart and then decides to abandon it, why not get back to them and ask them what went wrong. Knowing what the major frustrations of customers are will help you address these problems faster, adapt your loyalty program to their expectations, provide more relevant deals and, in this way, motivate them to buy from you again.
Over to You
Your customers’ feedback, behaviors, and previous actions unveil invaluable insights into your business performance. This data tells you what tactics work or don’t work for them, giving you more room to improve your brand perception and personalize your customer relationships.
How do you use customer data to keep your customers satisfied? We’re listening!