There is an ongoing need for brands to deliver better customer experience. Better customer experience not only aids happy and engaged customers, but also drives customer retention. Customers nowadays have become intelligent with their choices. Most customers would leave if they had other choices that offered better experiences. This significantly affects customer retention goals of a company. It is also imperative to maintain elevated customer experience standards. Once customers are exposed to improved digital experiences, their expectations for all other experiences are reset to a newer upgraded level. According to a Forrester research, 61% of customers are unlikely to return to a website if they do not have a satisfactory customer experience.
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Importance of Data-led Strategy for driving marketing decisions
Most brands invest heavily in collecting customer data from multiple sources. This customer data is divided into several cohorts:
- Zero-party data: Customers proactively provide this information during registration, under preference center or while describing purchase intentions for specific products.
- First-party data: Comprises data collected about customer behavior, actions, social profiles or data stored in CRM.
- Second-party data: Data purchased from other sellers that directly collect this data from customers in the form of website/mobile app activity, surveys or social behaviors.
- Third-party data: Data purchased from data aggregators that collect information indirectly from multiple sources which may not be highly reliable.
The quality of collected data heavily impacts the outcome of your strategies. Most brands state that they do not see any improvement in customer satisfaction in spite of investing in personalization. Forrester research says that although 89% companies are investing in personalization, customers state that only 40% of that information is relevant to their tastes and interests. This indicates a strong caveat in customer data analysis and marketing decisions based on it. Brands often focus on data-driven marketing strategies which means they make the decisions first and then try to find industry data to validate them. Instead, industry experts and analysts state that brands should be data-led in their approach so that better marketing strategies can be devised after thorough analysis of first-party data collected. The same Forrester study states that out of all the brands surveyed, only 11% focused on data-led strategies while 48% of them made data-driven decisions. Implementing a strategic loyalty program naturally helps create a strong data-led marketing and customer retention strategy.
Benefits of individualization
Understanding their customers is pivotal for brands. One should not expect to reap benefits of customer satisfaction by simply creating personalized experiences based on customer segments. While segmentation is a good start, brands should further classify customer data real-time by listening, measuring, assessing and capturing intent of customers across all channels to create individualization. Individualization differentiates customers as individuals rather than generic segments based on age, gender or demographics. Brands like Amazon, Sephora, Marriott and Netflix focus heavily on data-led strategies that create Individualization for customers.
Individualization has the following benefits:
- Data from rich customer profiles is leveraged to create highly personalized experiences across all touchpoints. A golden rule of personalization is to be overt when collecting data but covert when delivering personalization.
- Customer data is assessed real-time so it calculates true customer intent hence serving a more relevant and targeted customer experience.
- Gathering customer data from every touchpoint helps deliver a richer and relevant customer experience seamlessly.
- Thorough focus is put on content intelligence as much as customer intelligence. This ensures that all interfaces of customer interaction serve highly personalized content.
Annex Cloud’s robust and intelligent customer loyalty platform allows brands to deliver rich customer experiences by making data-led decisions and creating individualization for their customers across all touchpoints. Check out our latest whitepaper on how Personalization helps with retaining your most valuable customers.