McKinsey found “executive teams that make extensive use of Hyper-Personalization and Predictive analytics to influence their business decisions to see a 126% profit improvement over those who don’t. Instituting a loyalty program using the right analytics can improve customer appreciation and increase sharing between clients and those closest to them.
Although innovations such as Artificial Intelligence (AI) may be trending, it should not overshadow the value of data found in the Customer Experience (CX).
The main goal of loyalty programs is to increase customer retention. You want to turn customers into patrons and have them continue using your Brand after their initial purchase. For business, higher retention rates mean a steady flow of bottom-line revenue, which cuts costs when acquiring new customers. This is precisely why your loyalty programs must be highly effective and serve a real purpose.
By fusing data with retention strategies to provide your customers with the best experience, you can dynamically increase your revenue and impact your team’s approach to reach potential buyers. Now, influencing customers to become loyal isn’t a magic trick. It just requires data you more than likely already have that’s only not being used to its full potential. The beauty of loyalty is that regardless of your industry, most organizations have mounds of useful data. Take this data and assign team members to analyze your most valuable customer data points and begin to uncover the correlation between purchasing behavior and customer characteristics to find commonalities to infuse with your sales and marketing strategies.
Fine Tuning The Customer Experience (CX)
Don’t Get Distracted With Shiny Objects – Innovate With Real Data.
Recent studies show almost 40% of CMO’s believe AI will be the biggest game-changer moving forward, but the rush to utilize AI technology shouldn’t discount data readily available.
Social Media Is An Untapped Data Source
Brands struggle to manage virtual channels for Digital CX, such as Social Media. Many run before they walk, investing capital in advanced data-centric technologies instead of exploiting the value of readily available social media data.
Customers desire to interact with Brands via Social Media. Yet, Brands remain slow to embrace social media channels and the data it provides, such as a real-time perspective of what their audience cares about. For many, this data source remains untouched.
For example, some Brands have captured the value of integrating social media data into its customer profiles and provide better visibility for service teams to see customers based on social media activity. Activity such as previous purchases or service requests to solve the problems faster and more effectively.
With more opportunities to reach people, Brands must be mindful of Consumer-to-Brand interactions. A senior director of digital experience in CX said: “People’s behavior, habits, and previous interactions will play an increasingly active role in defining which promotions and marketing messages they receive. By 2021, the customer experience will largely be defined by two-way relevant discussions between “intelligent” software rather than a unidirectional flow of promotional content.”
Find a Balance
It’s a significant challenge to unify, organize, and make sense of such a broad range of data unless the technology is underpinned by overarching strategies that seek to unify and manage customer data. This will only yield fractional results.
Learn how FiO’s Hyper-Personalization, Prescriptive Analysis, Customer Journey Analytic & Closed Loop Integration Platforms can deliver an outstanding Customer Experience and increase Customer Loyalty now.