Customer Loyalty and Analytics: 5 Strategies to Reduce Churn

Posted by groupfio on January 24th, 2022

Think customer loyalty programs are all about getting generic discounts, points and rewards? Think again. Today, customer loyalty has become a major focus for brands as they Today, it’s more about offering customers something as personalized as possible, so that they feel truly special.In the globalized world of today, competition is cut-throat. Businesses are popping up everywhere, and customers have a variety of options available. In such a world, the experience becomes a huge differentiator. A good experience makes for long-term happy customers. A good understanding of your customers is the key to delivering such an experience. That’s where customer loyalty analytics can be very useful. With the help of big data, you can learn about your buyers and tailor an experience that matches their expectations. Customer loyalty analytics can also be useful in developing customer-centric marketing strategies that give a higher return on investment.

We are living in the age of the smart consumer; they know what they want, and they also know that if one business doesn’t provide it for them, there’s likely many others just a mouse click away that will. The crowded marketplace means that customers are less likely to remain loyal to one brand, and the advent of social media has also empowered consumers to share both positive and negative brand experiences online. E-commerce has provided customers with a plethora of opportunities and choices sitting right on their smart phone, which can be a positive for businesses who pay attention to their customers’ needs and a drawback to those who aren’t using customer data to empower their marketing strategy. If you’re not collecting and utilizing customer data in your efforts or are unsure of how to use analytics to boost your customer lifetime value (CLV), read on for some ideas.

Using Data The Smart Way

Marketers have been told for some time now that the key to creating more relevant, “sticky” campaigns is to use data to inform your content. But utility of data analytics goes beyond the campaign level. Today’s laser-focus on customer experience and journey means that data should be the backbone of your entire business strategy.

However, while many businesses may realize the star role that CX needs to play in their efforts, few truly know how to use data analytics to improve the experience and garner true customer loyalty. According to a recent study published by McKinsey, businesses’ use of analytics to create a competitive edge in customer experience is only at 32%. This demonstrates the issues that many businesses are having in trying to apply data in a universal, transactional way across their entire organization.

Great customer experiences lead to higher retention rates, increased brand loyalty, and bigger customer lifetime value (CLV). Improving customer experiences can seem like a straightforward task, but unless you base new tactics and strategies on tools like zero-party data, you might be putting in effort and resources in the wrong places.

So, what are some RIGHT ways to use data analytics to improve customer loyalty? Here’s 5 ideas to help you get started building that data-driven competitive edge.

1. Segment Customers The Smart Way

Today’s ultra-connected world means that both your current and new customers will interact with your brand through many different channels, but eventually, they will develop a preferred way in which they obtain the goods and services they need from you. These preferences provide valuable insights about themselves, their behaviors, their lifestyles, and even their future purchases and areas of need.

By using a CDP like FiO’s Insight Marketing Platform (IMP), you can segment users based on these various touchpoint behaviors on autopilot.

If you have an e-commerce store, a true IMP will allow you to segment your patrons based on their transaction history, number of previous purchases, and even their product search history, which can provide you with insight that informs a potential path for each customer. For example, consider the potential implications of someone who “purchased X product” 12 months ago, but then also looked at the upgraded version of the product and also downloaded the whitepaper on the upgrade using an email link sent to them. You can use these touchpoints to know exactly what branded campaigns to send them, and through which channel (email) to which they’re most likely to respond. You can also infer their areas of interest and what other product and service knowledge will be beneficial for them to see. This type of data segmentation not only leads to increased sales, but also makes the customer feel as if you’re paying attention to their needs and serving as a helpmate to them in their search for the right product.

2. Nurture Leads

Once you begin using data to inform on a customers’ interests, pain points, and preferences, consider sharing non-promotional content that’s meant to nurture them through the know-like-trust cycle. The more relevant the content, the more likely they are to remain on your outreach list and to convert into customers.

Consider this example: you’re a marketing agency that provides SEO services to companies looking to increase their standing on SERPs. Some of your clients want to just improve their site’s overall SEO, while others are looking to go deeper and boost the backlinks to their sites.

By collecting the right data, you can ensure you’re providing the right expert advice to each group. The overall SEO segment would get informative blog posts or video walkthroughs about various SEO-boosting website tactics they can use to maximize their website’s potential, and the backlinks group would receive tips on prospecting sites for pitching ideas or articles on how to submit their products and services to influencers. By not always pitching but providing value-add content, your organization is seen as an asset that is invested in your customers, and this builds trust and loyalty. Know more about Customer Loyalty and Analytics: 5 Strategies to Reduce Churn please visit here : https://www.groupfio.com/customer-loyalty-and-analytics-5-strategies-to-reduce-churn/