If you consistently build loyalty, your company will reap sustainable benefits:
Loyal customers are much more likely to come back to your site, and the ones who trust you will likely tell their friends and family about you. This guide explains why loyalty matters and how analytics are the key to your company’s future.
Why Loyalty Matters
You have to understand the importance of loyalty, if you have any hope of succeeding long-term. Take a few minutes to consider how much it costs to generate leads and gain sales. If your customers only buy from you once, you lose out due to your cost of acquisition.
Use big data boosts customer loyalty and improves customer retention. Getting your online customer to buy from you more than once skyrockets your profitability. When you see how this can affect your bottom line, you will know that taking steps to improve customer loyalty is, in fact, the right call.
If you don't know what big data or analytics are, this section paints a clear picture. Don't let the term confuse you. Analytics is data you use to understand your customers on a much deeper level, and the outcome can take your breath away. You use analytics to see how your customers behave on your website, but big data even reveals how your prospects respond to different offers.
Doing an analysis of the big data you have collected lets you understand what your customers want, need and desire. But you will also understand what motivates them to take action. This will help you more easily reach your KPIs by letting you enhance your customer experience.
For a real-world example of how big data improves customer retention, look at Target. If you have a Target credit card, target tracks the things you buy in its stores and uses that data to give you a personality profile. Instead of sending you random advertisements, Target only shows you ads that will most likely interest you. Seeing things you enjoy increases your odds of making the purchase and returning to Target.
Create Customer Segmentation
Understanding your customers is one of the best ways to inspire customer loyalty. As far as knowing your customers is concerned, placing them into a predefined segments is a fantastic starting point. To create segmentation, you must first define the rules of segmentation for your customers.
Customer segmentation allows you to target your customers with the right offer. It enables you to focus on the specific interest of these groups, instead of having to communicate with your entire customer base as collective. Segmentation is vital to creating the personalization that customers prefer.
With customer segmentation, you are able to:
Learn What Your Customers Like and Dislike
Increasing your customer retention rate is about giving your customers what they want, but you first have to learn what that is. Analytic software can record the preferences of each customer so that you can determine what offers to send them. You may even discover that some products cost more to promote than they are worth, and removing them from your business decreases your overhead.
Some marketers think they can count on their customers to tell them what they want, which is true in some cases. People, however, don't always know what they want until it's right in front of them. You can run an analysis of your customers' past purchases to predict what they will want in the future. Showing your customers only the products that interest them increases your customer retention rate.
Segment Your Mailing List for a Custom Experience
If you don't have a mailing list, you are behind the game. A well-implemented mailing list will improve customer loyalty and customer retention before you know it. You can take your results even higher with big data. As you promote different products with email marketing, use big data to learn which customers buy what products.
You then segment your list so that you only send promotions that are relevant to your subscribers. If one of your customers stops buying from you after a while, you can reel them back in by sending limited offers and discount codes. This approach helps you keep a lot of people who would have otherwise walked away, improving your customer retention rate even more.
Take the Customer Loyalty Challenge
If you believe you know how to inspire enough loyalty to increase your customer retention rate, it's time to take the customer loyalty challenge.
Begin by making a list of the areas you believe are the most important.
Now, let's see how you did. Here is what inspires customer loyalty the most:
You must provide quality products or services at a fair price, and you have to make buying as convenient as possible. When it comes to consistency, you can foster customer loyalty through omni-channel communication.
Since your customers are the only thing that keeps your business alive, creating customer loyalty is essential. You can use big data analysis to learn what your customers want so that you can give it to them. Understanding your customers allows you to focus time and attention on recommending the products they actually want to buy. The analysis you perform is the foundation from which you take your online business to the next level.