Do You Know Your Customers Better Than Your Competitors?

by Natasha Ambavle |

Did you know, companies that adopt data-driven marketing are more likely to have an advantage over the competition and increase profitability? In fact, a recent Forbes article states that they are six times more likely to be profitable year-over-year.

So, what is this customer data that drives success? In simple terms, it’s knowledge about your customers, but not just any knowledge. First-party data that your customers share directly is the most accurate and timely data. You can have the best product and most creative marketers, but without customer data, your messaging and experience will always miss the mark. And, today’s fierce competition has pushed brands to either adapt or get left behind. Success boils down to who knows the customer better and who can put their first-party data into action to deliver individualized, relevant experiences based on their preferences, behaviors, and lifestyle.

It Takes a Strategy

Collecting customer data isn’t a one-and-done exercise. Customer’s needs change. Do you have a way to continually engage customers and deliver value in exchange for them sharing specific data about themselves?

A good loyalty strategy can give you a way to add value throughout your customers’ journey while learning more about them along the way. The more you learn, the better you can serve them, and the less likely they are to choose a competitor.

Show Customers, You Truly Know Them

It’s not enough to just know your customers better by collecting first-party data. You have to be able to effectively use that data to deliver value-based interactions across your customers’ journey. Annex Cloud’s Loyalty Experience Platform™ has more than 100 pre-defined integrations to seamlessly push robust loyalty data across your infrastructure to individualize every engagement across every touchpoint. This makes it easy to show customers you’re not just collecting their data, you’re using it to customize their experience no matter how they engage with you—through your ecommerce site, emails, social, mobile app, POS, and more.

Engagement Is Key

How engaged your customers are is a key indicator of how well you know them, and how well you’ve used that knowledge to meet their unique needs. And it works—engaged customers spend 200 percent more than non-engaged customers.

Loyalty gives you many different ways to keep customers engaged between transactions. Consider user generated content, surveys, contests, gamification, and more. This engagement builds stronger bonds that keep customers coming back.

Competition Is Healthy and Inevitable

If you’re in business, you’ll have competition. It’s what keeps the checks and balances in our ecommerce system. But if you’ve done your due diligence in understanding your customers and keeping them at the core of everything you do, there’s no reason to be intimidated. In fact, your competitors can actually help you grow.

Here are a few reasons why competition can be good for your business.

  • Source of Inspiration – Instead of considering them as competition, think of them as inspiration. Critically and theoretically study their business practices, marketing, customer base. What are they doing successfully that you could put a new spin on or add value to?
  • Boosts Morale – Imagine beating 50 participants and winning a competition! You have reason to be elated. Now imagine, from a hundred players in a market, a customer consciously and repeatedly chooses you. Competition helps boost company morale and acts as confirmation that your marketing strategies and your brand as a whole are meeting an important need and are value.
  • Competition Pushes You to Do Better – Competition keeps you on your toes, always looking forward. There’s no resting on your laurels if you want to stay relevant, and competitors push you to always look for ways to improve.

Loyalty is a great way to offer unique benefits that your customers can’t find anywhere else, improving retention, accelerating growth, and building lasting bonds.

So, are you ready to get to know your customers better? If not, your competitors will!

Contact Annex Cloud to find out how loyalty can transform your relationship with your customers.

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