Big data has changed the way businesses operate. The data available today lets an organization know all it can about the customers, and develop marketing programs based on that information. The data that lets your company attract new clients and partners can also be used to retain existing customers. If you happen to be in the retail industry, here is how you can use the available data to enhance customer retention percentages.
Customer retention is as important as acquisition
Majority of businesses today focus solely on acquiring new customers through their marketing programs. The strategies for retaining customers are rarely discussed with such enthusiasm. In a competitive environment, customer retention is as important as customer acquisition, which is why the effort that goes into getting a new customer should also be put into retaining a loyal customer for the business.
Four stages of the customer retention cycle
The customer retention cycle for a business can be divided into four phases, and in each phase,businesses can use data analytics to offer the best solutions to their clients. The four phases are – acquire, grow, nurture and serve. In the first phase you attract new customers using mobile coupons, QR code campaigns and SMS campaigns, while the second phase uses customer data to provide location-based offers, cross-selling and loyalty programs.
The third phase involves nurturing the business-client relationship via proactive notifications, delivering loyalty program details and payment info via mobile. The last phase would be to gain feedback, and make changes in the offers made to the customers to suit their specific needs.
Better insights with data
Data is what gives the business a better insight into customer behavior, which means that businesses can also get a better idea about what makes customers leave. Businesses can also combine the demographic and transactional data to get a better idea about what drives customers to purchase a specific product and stick to a specific brand. This information combined with the geographical location of the customer and offers and promotions specific to that region, enables customization of offers to the client, to improve the conversion and retention rates.
No matter how high the quality of product, poor customer service can be a major setback for businesses. This is especially true for the hospitality industry, where service is key. One negative experience and the customer will likely not return. Restaurant and hotel chains can make the most of data analytics to find the constraints and bottlenecks in offering great customer service.
What’s important is that customer retention is an important process that needs a business’ proper attention. How you deal with the customer is something you determine based on where the customer is in the retention cycle.