Why is it so important to focus on customer loyalty? Unfortunately, most marketers who overly concentrate on driving new leads into the sales funnel forget the extensive force a community of loyal customers can be for business.
Most traditional retailers think they can build loyalty discounts and coupons, but some retailers operate on “the extended value exchange. This approach builds loyalty, not through cost savings, but the customer value, as realized through the brand promise, be it convenience, simplicity, sustainability or style. Brands that deploy this model create a marketing engine fueled by advocacy and word of mouth – one that tends to be far more effective than any punch card could be.
Integrate Data Into Your Customer Journey
You must integrate data into your marketing strategy by creating personalized customer journeys. Collecting, analyzing, and using the extensive quantity of available customer data can build custom experiences for each customer. Changing your service strategy and operations with data leads to more profitable business results. A data-driven service approach is creating a positive difference in the financial services and telecommunications industries and can also help your business attain these benefits:
- Personalized, enhanced customer experiences across all channels
- More effective, empowered service agents impact the success
- Improved efficiency, prioritization, and automation throughout service operations
- Less IT complexity and expenses lead to higher margins
Let’s explore the four benefits of data-driven service and valuable resources as you focus on protecting the bottom line.
Enhanced Customer Experiences Across Channels
Customers are unique business assets, so carefully cultivating and protecting each relationship is critical. Regardless of how they engage, each customer anticipates a personal interaction resulting in a quick solution. For example, maybe there’s a service issue, and they made several attempts to get help. Or maybe there’s an opportunity to upsell their existing products and services. Unfortunately, the siloed data systems inside and outside your organization’s customer relationship management (CRM) system make it more complicated to deliver best-in-class service.
Personalization – the Most Powerful Trend in Customer Experience Design
When discussing increasing customer experience, it is inconceivable not to talk about the most important trend, which is slowly becoming necessary – personalization. Whether we buy smartphones, clothes or investment services, personalization and the individual experience that goes along with it become one of the most crucial factors in successful sales.
How Does it Work?
Personalization can enhance customer experience by making it more applicable and targeted to the individual. For example, you can customize content and recommendations to the customer’s specific interests or provide a more bespoke and humanized service. Customers who feel like the experience is more customized can be more loyal and satisfied and are more likely to purchase over and over.
Data Fuels Personalization
Customers prefer to interact with brands that treat them as individuals
rather than numbers. This interaction involves addressing the market’s demands that increase customers who want more personalized communication. An ideal way to achieve this is by leveraging a sound first-party data strategy to derive in-depth, precise, behavioural, and demographic insights. There is also a mutual trust established when you are transparent about your organization’s goals with this information.
According to a recent study, consumers are willing to share data for enhanced value exchange. For example, 80% of consumers are eager to share personal data to earn loyalty program benefits, 70% are willing to share their data to obtain special discounts and offers, and 71% of consumers will shop more often with retailers or brands to personalize their communications.
Businesses today are implementing marketing automation to improve customer engagement and drive personalization. To offer moment-based experiences, data teams should rethink their technology stacks and focus on quality data. Showcasing ads to complement products they have already purchased is one way of engaging them.
Start using data to enhance your customer journeys if you want to stand out in the market and elevate your marketing strategy. This approach provides you with all the tools you need to grow your revenue, evolve as a business, and promote more happy, loyal, and connected customers for your organization.