No business can be successful without a solid customer base. Customers are the driving force of business. Any business owner can tell you that customer retention is a low-hanging fruit but not customer acquisition. Understanding how you to lose your customers is the key to creating loyal ones. Customer retention is also about retaining the right customers at a justified price. So the foremost step to this would be to know who are the right customers and how to retain them cost-effectively. Analytics can help you in your customer loyalty in 3 steps.
- Customer Understanding
If we analyze any business data, we would be surprised to find that they are organized around products or business. Customer centric data organization is the rarest of rare in business world. Though each business understands the value of its customers, product-centric rather than customer-centric promotions are the norm. These promotions would have been planned with little or no knowledge about the customer’s individual preferences. Analytics can help you change this. With data, you can understand what your customer is looking for, their preferences, their dissatisfaction/satisfaction, the developing trends and can take informed decisions to rapidly respond to an opportunity or the changing scene.
Offers or discounts are often offered as an retention strategy but do businesses know whether the customer requires or is interested in the product? Data mining and models can help you cluster your customers in to specific groups according to their behaviour. Infuse data in to your retention tactics to plan your loyalty program and get a positive response. Analytics can help you uncover the correlation between customer behaviour and purchasing trends.
- Informed Decisions
Data can help you understand the way to lose your customers. You can go a step further and understand which customers are likely to be a churn and the probabilities. Loyalty takes effort because your customers receive a lot of promotional products/services everyday. Historical data can help you find the behaviour of customers and profitability of products. So rolling out your timely, targeted, personalized promotions can be made easy with analytics. With the data in hand, the probability of creating promotions likely to be accepted is more and the probability of losing your customers is less.