How can you Improve Customer Loyalty by Applying Data Analytics?

It is a surprising fact that acquiring new customers is 5 times costly than retaining existing customers. Being a marketer you must be aware of this. According to a study, it is also said that when you increase customer retention by even 5%, it boosts your profits by 25% to 95% approximately. Most of the businesses offer loyalty programs to retain customers and drive a repeated business from them. This is very effective. Nowadays retailers have access to a wide range of customer data. From purchase history to the buyer’s journey to social media engagement, business owners like to track everything. With the growing technology, it’s not difficult to get or track the customer data. Hence the number of available customer data sources is growing day by day. By using the right customer loyalty analysis, brands can better understand customer behavior. They can further improve customer satisfaction and drive more profit to the business.

Here are 4 ways to retain customers and maximize the value:

If you want to retain the existing customers here are the top 4 ways of doing that. Let us understand them one by one: 

Know what customers want?

You must have seen in your personal life that various brands send special offers on customers’ birthdays & anniversaries, no matter who they are or what they like. This helps to analyze the customer’s buying patterns, preferences, needs, and opinions. It can be done in different ways including the in-store data, social conversations, or online history of the buyer. This kind of data helps you to know what kind of offers will surprise & delight your customers. Based on this data you can send personalized messages using different outbound solutions like Minavo’s VMessage.

Analyze your sales data; it will help you to figure out the most popular product categories and brands in your catalog. It will also help you discover seasonal sales trends. You can identify which product was sold more during school holidays, which ones peak during the festive season etc. The next thing you need to do is to monitor keywords in social conversations and other text-based data sources. It includes emails, on-site reviews, and surveys, in this way you can find out what is the experience of your customers and what they say about your products and services. In case you get to know that they are facing issues, you need to fix them before it becomes a big problem. You also need to figure out the areas they love. You can convert your customers with more offers and promotions.

Sometimes, it may not be the product but about its presentation. For example, your customer can be happy with your rewards & offers but at the same time, they can feel happier after seeing a personal touch. This shows that your brand understands who they are personally and what is important to them. You can also conduct the user surveys via email, on-site, or at the POS to figure out whether your customers are feeling happy with the loyalty rewards or not. If not then how can you improve them?

Do precise promotions

Social listening lets the brands to do precise target promotions. This method is much better than using traditional marketing techniques. You can also use the recommendation engines to find out customer preferences. You can get to know that at what time and on which channel will you get your potential customer. These specific targeted product recommendations can help you a lot to make your customer happy and you can drive great revenue.

You can also upload a list of customer emails to Facebook Advertising Platform to target them. Facebook will target your customers based on user behavior data. For example, you can target:

1. People who are interested in the product/services that you are offering.

2. Users based on the source of the traffic to your website

3. People who have already visited a specific page on your website

4. People who haven’t visited in a certain period

5. Users with abandoned carts – people who have visited the checkout page but didn’t complete the order

6. People who recently made a purchase

The most common reasons why loyalty programs don’t work is: the discount coupons and offers are difficult to redeem. The customer might have won a coupon on your website but they might be unaware of the fact that how to redeem it offline after visiting the retail store offline? It’s also important to look into real-time, cross-channel coupons and make sure that the customers can redeem directly at the POS, or using their mobile.

Identify brand ambassadors

Whether you like it or not but the reality are that the customers use social media to share, review, and praise about the brands they shop with. These reviews can provide various useful insights into what people think about your product/service.

You can use social media monitoring tools to analyze social conversations about your brand. Later on, you can identify those people who:

1. Talk enthusiastically about your brand, products/service and loyalty programs

2. Drive traffic to your website/online business

3. Write positive reviews, posts about your business 

4. Engage other people positively with your brand online 

These people can be the potential brand ambassadors of your business who can help you grow your business. You must create a special list of these influencers and share your content. You can also reward/encourage them by:

1. Giving early access to your products/services 

2. Giving them special discounts and offers 

Add insights into Loyalty Programs

Businesses can also combine this social data with their sales databases. They can do so from the online store & POS. Web analytics data can also be used to get a comprehensive understanding of your customers. You can know who your customers are, how they reach your site, what they purchase, what they like, their opinions, what are their age, and various other things.

Later on, you can use these insights to monitor or grow the performance of their loyalty programs. You can even go deeper and analyze the retention rate for each customer segment.

Conclusion

Targeted recommendations, on-time promotions, and personalized rewards are the key factors of building customer loyalty. Data analytics can help you to achieve this goal. Implement the above-given tips and convert customers into loyal brand ambassadors.

Here are 4 ways to retain customers and maximize the value:

If you want to retain the existing customers here are the top 4 ways of doing that. Let us understand them one by one: 

Know what customers want?

You must have seen in your personal life that various brands send special offers on customers’ birthdays & anniversaries, no matter who they are or what they like. This helps to analyze the customer’s buying patterns, preferences, needs, and opinions. It can be done in different ways including the in-store data, social conversations, or online history of the buyer. This kind of data helps you to know what kind of offers will surprise & delight your customers. Based on this data you can send personalized messages using different outbound solutions like Minavo’s VMessage.

Analyze your sales data; it will help you to figure out the most popular product categories and brands in your catalog. It will also help you discover seasonal sales trends. You can identify which product was sold more during school holidays, which ones peak during the festive season etc. The next thing you need to do is to monitor keywords in social conversations and other text-based data sources. It includes emails, on-site reviews, and surveys, in this way you can find out what is the experience of your customers and what they say about your products and services. In case you get to know that they are facing issues, you need to fix them before it becomes a big problem. You also need to figure out the areas they love. You can convert your customers with more offers and promotions.

Sometimes, it may not be the product but about its presentation. For example, your customer can be happy with your rewards & offers but at the same time, they can feel happier after seeing a personal touch. This shows that your brand understands who they are personally and what is important to them. You can also conduct the user surveys via email, on-site, or at the POS to figure out whether your customers are feeling happy with the loyalty rewards or not. If not then how can you improve them?

Do precise promotions

Social listening lets the brands to do precise target promotions. This method is much better than using traditional marketing techniques. You can also use the recommendation engines to find out customer preferences. You can get to know that at what time and on which channel will you get your potential customer. These specific targeted product recommendations can help you a lot to make your customer happy and you can drive great revenue.

You can also upload a list of customer emails to Facebook Advertising Platform to target them. Facebook will target your customers based on user behavior data. For example, you can target:

1. People who are interested in the product/services that you are offering.

2. Users based on the source of the traffic to your website

3. People who have already visited a specific page on your website

4. People who haven’t visited in a certain period

5. Users with abandoned carts – people who have visited the checkout page but didn’t complete the order

6. People who recently made a purchase

The most common reasons why loyalty programs don’t work is: the discount coupons and offers are difficult to redeem. The customer might have won a coupon on your website but they might be unaware of the fact that how to redeem it offline after visiting the retail store offline? It’s also important to look into real-time, cross-channel coupons and make sure that the customers can redeem directly at the POS, or using their mobile.

Identify brand ambassadors

Whether you like it or not but the reality are that the customers use social media to share, review, and praise about the brands they shop with. These reviews can provide various useful insights into what people think about your product/service.

You can use social media monitoring tools to analyze social conversations about your brand. Later on, you can identify those people who:

1. Talk enthusiastically about your brand, products/service and loyalty programs

2. Drive traffic to your website/online business

3. Write positive reviews, posts about your business 

4. Engage other people positively with your brand online 

These people can be the potential brand ambassadors of your business who can help you grow your business. You must create a special list of these influencers and share your content. You can also reward/encourage them by:

1. Giving early access to your products/services 

2. Giving them special discounts and offers 

Add insights into Loyalty Programs

Businesses can also combine this social data with their sales databases. They can do so from the online store & POS. Web analytics data can also be used to get a comprehensive understanding of your customers. You can know who your customers are, how they reach your site, what they purchase, what they like, their opinions, what are their age, and various other things.

Later on, you can use these insights to monitor or grow the performance of their loyalty programs. You can even go deeper and analyze the retention rate for each customer segment.

Conclusion

Targeted recommendations, on-time promotions, and personalized rewards are the key factors of building customer loyalty. Data analytics can help you to achieve this goal. Implement the above-given tips and convert customers into loyal brand ambassadors.

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