Using data to keep customers coming back
Using data to keep customers coming back
Strategic use of the data your customers agree to share can be a catalyst for better communications. By using customer-data tactfully you can increase the likelihood of customers returning. Research has shown that acquiring a new customer costs 5 to 6 times more than keeping existing customers. So, strengthening these relationships is a must.
Of course, you must always do this in a compliant way.
Use of data to build relationships with your customers
Organisations that demonstrate an understanding of customers by serving them relevant content have an increased chance of delivering relatable, effective campaigns.
Data drives this insight; it’s integral to personalised communications.
The successful use of a Customer Relationship Management (CRM) platform within sales and marketing teams can be what underpins successful communications.
Often, customer data collected within the CRM platform is used for campaigns that are delivered using a combination of communications channels. This could help segment your customers for different targeting. For example, birthday messages, offers or just to re-engage audiences.
Direct Mail has proven to be effective when used in combination with other media, you can see research on this within the report “Driving Effectiveness with Direct Mail”.
Using Recency, Frequency, Value (RFV) analysis for smarter sales
If your customer has enjoyed a positive experience after buying your product or service, there’s a clear opportunity to prompt them to buy again.
This is where data comes into its own: Recency, Frequency, Value (RFV) analysis. An RFV model could capture when a customer last purchased, how frequently they purchased within a given time-period and the amount they spent within that time period so you can tailor communications appropriately. Analysing this data will allow you to construct a more detailed customer segmentation.
RFV analysis can be used to provide insights that could help you to understand future value and purchase behaviour of your customers. This may allow you to upsell new products or cross-sell other products. You can also use this information to identify the most profitable customers and deliver targeted marketing campaigns to that audience.
