In the digital age, brands can no longer count on the fact that a certain percentage of their new customers will ultimately convert to loyal ones. When consumers have so many choices at their fingertips, brands must win loyalty over and over with each customer interaction, writes Tamara Tamara Gruzbarg, ActionIQ’s head of industry insights, in a new article in Retail TouchPoints.
To do so, you must be able to leverage one of your brand’s most valuable asset—all the rich data you collect over the customer lifecycle. Unfortunately, brands still struggle with customer data that is siloed in disparate systems, or gathered into generic data warehouses that scarce, expensive technical expertise to get data and insights into the hands of marketers.
But now, a new generation of small-footprint solutions—what Gartner calls smart hubs—is changing the equation by enabling a holistic, self-service approach to customer data. These solutions don’t just unify data. They also automate and connect key processes from self-service audience modeling and actionable AI to seamless, cross-channel activation.
With that kind of power, marketers can leverage customer data at every phase of the customer lifecycle:
When you have deep, granular information about your current best customers, you can build powerful campaigns that target consumers who share the same behavioral and demographic traits.
Even before a customer has made their first purchase, you can leverage all kinds of information you have already collected—demographic information, the channel of acquisition, browsing history, abandoned carts, etc.—to craft attractive offers.
3. Repeat Purchase.
When it comes to securing the all-important second purchase, speed is of the essence. By quickly leveraging gathered during acquisition, activation and first purchase — e.g. price point, product type, demographics, seasonality, channel preference, etc. — you can deliver compelling messages and offers.
4. Grow Lifetime Value.
To grow lifetime value, you probably need to broaden the relationship to include new products or product lines. By drawing on the the full, granular history of your relationship with individual customers, you are more likely to predict how all your customers will respond to offers that go beyond the products already purchased.
When you understand individual customers’ behavior, you also understand their individual shopping cycle. You can differentiate between a customer who may be churn risk if they have not interacted with your brand in the last month, versus the customer who may only be at risk after three or six months—and create campaigns accordingly.
Read the full article at Retail TouchPoints.