The recent surge of data over the last few years through time digital interaction and gathering and managing social media profile, have stimulated strongly the exponential growth of data.
There are now more opportunities to get to know your customers and well. When do they like to shop? What types of events are they attending or interested in? What products and services are they buying? What device do they use to make their purchase, booking or registration? Do they prefer to buy online or in store? And the list can go on…
Mountains of customer data are the mother lodes of insight. This is where the value lies. Learning about your customers and their behavior puts you in a worthy position to give them information that is progressively more valuable and convincing, thereby generating more revenue for your business. It has the gold potential to help you to: enhance customer engagement capabilities, increase customer loyalty, reveal unexplored profitability, reduce client churn and improve your conversion rates, relevancy and customer satisfaction.
Taking customer engagement to the money level
The most guarded customers are likely to give more money to businesses to which they feel more emotionally connected. Your customers want to be able to communicate with you on their terms. And since no conversation is one-sided, it is key and your responsibility to bring something of value, trustworthy and consistent on the table. You have to make every customer contact counts.
Measuring data alone is pointless if no action is taken. Therefore, it is essential to create the appropriate interventions based on your steady and yearly tracking customer engagement results. In doing so, you will guarantee capitalizing on your customer relationships and acquiring the benefits of higher sales, growth and profitability.
Customer loyalty means a sustainable business
Is there a lifetime customer value in the midst of all the data mining? Finding such value can improve your acquisition costs. By learning to surprise, delight and engage with your customers, they will be more than satisfied and more than loyal. They will go out of their way to relate with your business, readily promoting your undertakings and will be there for you during good and bad times. It will ultimately mean more business for you.
Make money by saving customers
You worked so hard to draw the customers and offer them your amazing product or service through a subscription-based program. And yet, you can’t figure out why a certain amount leaves you every month. While this is upsetting and justifiably so, you may never fully eliminate customer churn completely. Understanding the churn rate is a critical first step in identifying what is not working out. This brings about knowledge as to where your attention is needed, retain more customers and eventually increase your revenue in the process.
Conversion rates, relevancy and customer satisfaction
Through Basket Analysis, it is assumed you can anticipate your customers’ future behavior through past performance, including purchases and their preferences.
You can also obtain profiles by delving into your customer purchasing pattern, studying the demographics and psychographics. This will allow you to create products that they need and want.
Segmenting your customers is one of the best uses of data mining. It can improve your conversion rates, allowing you to draw your promotional focus strongly to a very specific market alone. It can also help you to clearly identify your competitors in each of those segments, allowing you to tailor-made products and promotions that satisfy the needs of that audience.
In fact, you can go as far as predicting what are the features your audience may want through data mining. Nowadays, spotting the holes your customers are demanding to be filled is how truly innovative products are created – solving your customers’ problem in a way they never imagined.