Understanding Customer Behavior and Ways to Predict It
Consumer data analysis is a crucial component in business when it comes to loyalty and retention rates. When we know why our customers choose the actions they do, when, and what their patterns are, these predictive analytics allow you to personalize the experience as well as enhance your ability to retain them.
In today’s world, automation makes the customer data platform more accessible. With loyalty and reward programs, we’re able to keep better track of repeat customers to define what actions they take. We can then shape our plans based on recognized patterns of those consumer data analytics.
By personalizing the shopping experience, you’ll retain a higher loyalty rate, and be able to respond with strong follow-up and customer service.
Why Customer Loyalty Matters
Here are a couple of startling facts from both American Express and Help Scout.
More than 50% of Americans chose not to follow through on a purchase due to bad service. And 33% said they'd consider switching companies after just one poor experience.
You can’t afford to overlook your customer analytics. In fact, by understanding your customer’s wants and needs, you’ll be able to pivot and adapt. We’re all challenged by the pandemic. Companies have been forced to do more business online as well as off.
By using loyalty programs, you’re gaining access to their behaviors, and able to see the patterns that play out each time they shop with you. This marketing data is gold. It would be foolish to overlook the opportunity to get this much insight.
We all know that retaining a customer is more effective than trying to reach a new one. By adapting and personalizing services, your customers will feel acknowledged, which goes a long way in continued loyalty and good word of mouth. According to Invespcro:
· It costs 5x as much to attract a new customer over keeping an existing one.
· The success rate of selling to a customer you already have is 60-70%, while the success rate of selling to a new customer is 5-20%.
The lifetime value of a loyal customer helps your business thrive. But, give them a reason, and they’ll happily head to your competition. The ability to incentivize your program means that your customers have more reason to remain with you. Whether it’s via referral bonuses, rewards with points that are redeemable, or even a more personalized experience, you’re able to connect individually with your consumer in a way that matters to them.
Another thing to consider is your ability to reach them easier. With a loyalty and referral program, you’ve got a direct line of communication to your clients which in today’s world can help you cut through the noise and be heard. When a customer feels heard, understood, and acknowledged, those good feelings translate into them becoming brand advisors for you and telling others about their good experience, which in turn can gain you new customers.
Consider the benefits of using a ease of use loyalty and customer data platform - Spoten. See how much it can help your company grow while gaining valuable insight into the people that use your product or service.
