Organizations sit on substantial amounts of structured and unstructured data gathered from sources such as website analytics, social media behavior and mobile device usage. Many companies are investing heavily in data-driven initiatives, with Forbes reporting $8 billion in big data project spending. You need a way to stand out in the competitive marketplace, and using data to improve your customer experience is a key differentiator. A quality customer experience improves loyalty and creates engaged customers who have 23 percent higher revenue potential, according to Access Development. So how can you use data to foster customer relationships?
Building Consumer Profiles
Customers encounter information overload throughout their day, so establishing relevancy is one way of standing out from your competitors. You build a personalized experience by using customer information, demographic data, and direct feedback to build consumer profiles. A consumer profile for relevant audience segments helps websites and other channels gain 2 to 5 times higher effectiveness, according to Hubspot.
A consumer profile puts you in your target customer’s shoes, using data to predict what he’s looking for, what contact channels he prefers, the device he browses with and common interests and pain points with his demographic. Examine mobile and social media data to see what customers within your target demographic are searching for, the hashtags they use for social media posting and their favorite brands. In-person customer data may be gathered using app interaction while in a retail location or via beacon technology, which captures information, such as where customers go in the store, how often they visit and what they purchase.
Creating a Personalized Customer Experience
Personalized customer experiences make 78 percent of consumers feel more connected to a company, according to Demand Metric. Creating customer intimacy through data helps you own customer relationships and better predict their future needs. You can implement personalized customer experiences in several ways.
Digital experiences with a required or optional login give you the opportunity to personalize the content presented to the customer based on his preferences, the consumer profile he matches and other demographic information. Instead of reading general audience content, your customer has the most relevant messaging possible. Modcloth encourages visitors to register for an account with incentives, such as discount coupons, although the real win for consumers comes from the customized experience.
Personalized email is particularly effective, even if the only change you make is addressing the customer by their name. CMO Magazine reports a six times higher transaction rate with personalized emails, which provide many opportunities for delighting customers. Recommended product emails present a curated list of new and bestselling products to each customer on the email list based on past purchase history, website browsing data and consumer profile segmenting. Instead of going through your entire website and spending time sifting through not-as-relevant content, the customer gets exactly what he wants.
A personalized customer experience shows customers you won’t settle on a one-size-fits all approach for your market segment. Your customers get better customer support and more relevant information instead of getting frustrated looking for products and services appealing to their tastes, which also improves conversion. Data, when used appropriately, gives you significant avenues for tailoring your customer experience to the distinct market segments within your audience–for your benefit and theirs.