Not getting enough from your investments in data? Look into more personalization.
Worldwide online buyers are expected to reach 2.14 billion by the end of 2021 according to Statista. The increasing number of online consumers has prompted a higher demand and tougher competition in online marketing. Having an online presence may bring in sales, but it doesn’t guarantee to give you an edge among your competitors.
Digital marketing becomes more cutthroat as the spotlight settles on it. Marketers are expected to bridge the gap between consumer demand and customer experience. The demand for marketers with digital and data skills has been rapidly increasing, with analytics skills up at 46.1%.
Knowing what your customers want based on previous transactions is far less challenging than figuring out the right way to present them with options. Yes, keeping track of your customers’ historical data helps you understand the cause of the current marketing situation, but it doesn’t create a demand generation for your business. Marketers need flexible and innovative strategies to withstand the ever-changing market and consumer behavior.
Data drives sales
Data-driven marketing is one of the emerging trends among businesses today. It utilizes customer data to create predictive measures and improve customer experience. But the growing concern on data privacy poses a challenge for businesses to get smarter and more creative in using these consumer data.
Large raw datasets undergo data mining to uncover certain patterns and relationships. This enhances your initial bulk of data as it determines consumer behavior and interests.
With the influx of online consumers, all these data can get overwhelming especially if they are sourced from various channels. So, then what do you do with all this available information?
You have these data analyzed and use it to your advantage. Data analytics can essentially increase your sales with its predictive feature. It not only provides a clear understanding of your past and current transactions but also offers definitive steps to improve your business. Being able to anticipate what your customers need gives you leverage to outsell your competitors. The goal is to stay relevant in the market. You can only do so if you use updated customer data and quickly analyze them to keep up with the trends.
Importance of a customer data platform in CX
This is where a customer data platform (CDP) comes into play. A CDP manages all your data coming from multiple sources and analyzes them, creating customer segments based on consumer behaviors. It automates data analysis and provides data-driven insights.
A customer data platform can revolutionize your customer experience because it produces a unique profile for each of your customers.
Customer service is one of the seven factors that affect consumer loyalty according to KPMG. Consumers may initially choose the brand that’s cheaper but come back to the brand that provides better customer service because it maximizes the value for their money. A personalized customer experience is a must for your business to keep up with the competition.
A customer data platform fundamentally increases retention rate through an ultimately personalized customer experience produced from targeted marketing campaigns.
In a survey conducted by Infosys, more than half of the respondents are highly in favor of personalization, while 86% of the respondents who have experienced personalization stated that it, to some extent, affects what they purchase.
Providing a personalized customer experience optimizes your business’ ROI. And since it is easily construed as an invasion of privacy, your marketing strategy should assure your customers otherwise. Make your consumers feel heard instead of stalked.
Other than personalization, here are other tips on improving customer service for online shoppers:
1. Develop creative yet clear content for your products
2. Schedule your marketing emails and avoid bombarding your customers with irrelevant promos and announcements
3. Provide as many payment options as possible and be transparent with the shipping schedule
4. Utilize all available social media platforms
5. Take customer feedback seriously and take accountability if necessary
Data is key in today’s modern marketing, but it will render useless unless properly utilized. A survey by Aberdeen reported that companies that use a customer data platform perform better in terms of customer lifetime value, customer satisfaction, and customer retention compared to companies that do not have their own CDP. This is because collecting data from many different sources allows them to create accurate customer profiles which in turn lets them hyper-personalize their customer experience. The survey also states that CDP users “enjoy 9.1x greater annual growth in customer satisfaction rates and 5.7x greater annual increase in customer lifetime value” or the total client spend during the company’s relationship with that buyer.
As different marketing technologies are developed, bigger budgets are required. Marketers need to continuously evolve their strategies and tactics to keep up with the competition and remain relevant in the industry. And with the increasing costs of different marketing data platforms, it is crucial to find the right ones to grow your business.