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8 Ways Data Can Help Improve Customer Retention
The gateway to building quality and long-lasting relationships with customers comes down to customer service and the personalization of your offers. But this isn’t possible without a thorough understanding of customer data analytics. Data analytics will support your customer retention marketing strategy by establishing a connection with customers through personalization that will stand the test of time. Here are eight ways data can improve your marketing strategy and how you can retain new and old customers.
1. Data Tells You Which Customers to Keep & How to Keep Them
Data gives businesses valuable information about their customers, which can help develop customer retention strategies. Businesses can filter their customers from most to least valuable based on their purchasing preferences, value, and frequency. One important datum to help businesses take a personal approach to understanding this rank is Customer Lifetime Value (CLV). If a high and frequent spender stops shopping or using their store cards, retailers can investigate root causes and create targeted strategies for retention to persuade them to engage.
2. Better Identify Needs of Potential Customers
In addition to improving the experience for existing customers, data can also identify the needs of potential and new customers. Businesses can use data to match products and services with new clients more efficiently. By matching new customers to products that meet their needs immediately, they are more likely to continue giving you their business.
3. Data Helps You Fine Tune Your Message and Promote the Right Products
E-commerce retailers can analyze metrics like purchase habits, product ratings and reviews to distribute individualized messaging to millions of global customers. Data analytics helps brands create stories that are relevant to each of their marketing segments for a more personalized message for each customer. Facilitating targeted marking campaigns will earn a higher Return on Investment (ROI), which is crucial when customers expect more customization from retailers.
4. Reduce Product Proliferation
Many businesses rely on creating newer, better products to attract new customers and retain existing ones, but an overabundance of products can leave customers feeling overwhelmed with too many options. Instead, if businesses can narrow down their offers to what best serves and interests customers, customer loyalty and revenue will increase.
Knowing what best serves and interests customers is quite easy. By analyzing data like customer transactions and inventory turnover, you can compare information and find which products are the most profitable. Taking the time to understand the customers’ needs will give businesses an advantage over their competition.
5. Improve Customer Experience Through Real-Time Data
Social media has made it possible for many businesses to personally connect with their customers, but without a platform like this, how can retailers interact and understand what their customers are thinking? Big Data gives access to real-time data without the need for social media interactions. You can learn what your customers are buying, clicking, and talking about. You can have a continuous conversation with your customers through personalized landing pages, advertisements, and mobile applications.
6. Make Customized Offers
Customers today want to feel unique and special, so if you can customize your offers based on their individual needs you won’t lose them to your competitors. Big Data can gather information from customers such as sex, location, and social data, so that you can send unique offers to each one based on their interests and needs or problems.
7. Helps to Identify Key Trends Faster
Decision makers in retail are always seeking opportunities to assess Key Performance Indicators (KPIs), as this information is crucial to helping you identify trends that impact daily operations and connect those results to your customer interactions. With information about KPIs you can improve forecasting, improve your customer service tactics, and eliminate processes that have negative outcomes.
8. Brings Greater Customer Satisfaction
By collecting data, you can develop a solution for how to measure fulfilment rates and delivery times quickly and efficiently. You can answer important questions such as: how fast are orders being fulfilled? Are deliveries on time? What delays are there while completing deliveries? How often do customers order a second time from you? Analyze important data like these and you’ll be on your way to implementing strategies to increase customer retention.
Let Macromark Provide You with the Data You Need
Customer analytics can improve your marketing strategy by significantly reducing your customer acquisition costs, helping you better understand your customers’ needs, provide you with information to cross-sell and upsell, facilitate sustainable growth, and measure customer loyalty. A successful customer retention strategy is a two-way street. As you provide offers that appeal to your customers’ interests and needs and show them how much you appreciate their business, you will be rewarded with their loyalty and word-of-mouth advertising. Happy customers are more likely to share their positive experience with your brand with their friends, co-workers, and family members.
Data helps you take more control of the success of your business by showing you where you need to improve. Customer loyalty programs require customization and expertise, so if you need help setting up your campaign, we can help. At Macromark, we help our clients build strong customer retention strategies. Analyzing data is our specialty. If you need a little extra support in any of these fields, we’re here to help. Contact us today for more information.
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