Why Don’t You Know That I’m Your Customer?
So if your customers are 8-10 times more valuable than your prospective customers, why don’t you know that I’m your customer? Hmmm…
The other day I received a credit card offer in the mail – I had been pre-approved for a great rate! No big deal, we all get tons of these credit card offers. Except this one was from my bank whom I already had a credit card through – and this was at least the fourth offer I received in three months. And let’s take a look at my car lease company. I currently lease my car but I keep getting offers to buy the car I traded in a year ago. I went with the spiffy new model but they apparently don’t know that. (I guess I won’t be leasing there again.)
So why do some companies still not have it right? Customer experience is key to not only keeping your most valuable customers, but to also maximize their lifetime value. And as the voice of today’s customer only gets louder, we need to make sure we are truly listening and getting to know our customers on a more personal level.
Are You Capturing All Your Customer Data?
If you think you know your customers based on their basic demographics and purchase history alone, you probably don’t really know them. Your customers are producing tons of data across all different channels - behavioral data, social media, transactional, digital activity, etc. The only way to craft personalized messages is by capturing ALL this data.
Many marketers are challenged by the overwhelming amounts of customer data being produced today. On top of that, many of these data sources are sitting in silos of information, making it difficult to effectively analyze and to achieve the ever-elusive Single Customer View.
According to research by Harris Interactive, on average, organizations use 36 different data-gathering systems and vendors for marketing efforts. Only a quarter (24%) of all respondents felt customer communications and data gathering systems were fully integrated. Without a single view of the customer, the customer experience is compromised. The investment in data integration and cleansing is well worth the effort - according to the study, 86% of consumers will pay more for a better experience
What Do Your Customers Want?
To deliver truly exceptional customer experiences, you have to know who your customers actually are as well as what drives them to act. In order to target customers with the most relevant offers, customers must be segmented into groups who share similar characteristics, such as age, gender, lifestyle, and so on.
When creating customer segments, a company must consider both traditional ways of segmentation as well as newer, digitally driven segmentation. Consider characteristics such as:
- Demographics: factual characteristics, such as age, gender, occupation, and income. For example, are the majority of your customers female or male? Where do they live? Are they single or married?
- Behavioral: characteristics such as product usage and frequency of purchase.
- Psychographics: values, attitudes, lifestyles. Psychographic information answers questions such as what motivates your customers to buy your products and services? What are their key values? What are their hobbies and habits?
- Digital Preferences: it’s the age of digital and more and more customers use their smart phones when shopping, access social networks for product recommendations, or are constantly connected to their devices when conducting transactions. Be sure to consider digital behaviors when creating customer segments.
Make Your Customers Happy with Loyalty Marketing
Successful companies know that focusing on loyal customers is critical to remain in business. The concept of loyalty programs is not new. According to a recent report by FiveStars, a company’s most loyal customers spend 10 times more than new ones. Focusing on loyal customers strengthens these relationships, reduces the risk of churn and increases overall revenue.
Other reasons to focus on loyal customers:
- VIP and loyalty program members are 70% more likely to spread the word about your business.
- The probability of making an additional sale or upselling to loyal customers is 60-70%.
Implementing a reward program for these customers will quickly grow your business. Consumers who sign up for loyalty programs want to hear from companies. The survey also revealed that 65% of a company’s most loyal customers want to receive coupons and promotions on a regular basis. However, customers do not want to receive every offer on the table. By analyzing customer profiles and channel preferences, marketers can deliver highly targeted offers on a regular basis.
Your customers are one of your greatest assets. Today’s consumers are more empowered than ever. They expect to be known and heard by their favorite brands. And they want to receive personalized and relevant communications. So be sure you are implementing the right solutions to get to know them so they don’t have to ask - “Hey You! Do you even know that I’m your customer?” Because a question like that is a revenue killer.