Customer Data Platform is the software; this article shows you three ways to make it a money-making machine.
If you're like most marketers or business people, for that matter, you're always on the lookout for ways to increase customer loyalty and drive more sales. You may have heard that a customer data platform (CDP) can help with that, but you're probably not sure exactly how. In this post, we'll explain how a CDP can help you build up customer repurchases and referrals, and we'll give you some tips on getting started. Keep reading to learn more!
Identify your most valuable customers
It's important to remember that "most valuable" does not necessarily mean those who are paying the most. That segment may also be costing you the most. While valuable customers should always add to your bottom line, there are many ways they can help your business outside of timely payments and frequent purchases and the occasional promotion.
Use raw data to analyze more factors that can make a valuable customer segment. Recency, Frequency, Monetary value (RFM) modeling can give you six new segments to consider, and that is just table-stakes. Building on top of this analysis is a deeper look at your customer segments; you can see how to encourage and support your prospects.
You can discover a secondary need for your product. At VIEWN, we not only define valuable segments but also analyze customer personas using machine learning and AI. These out-of-the-box features go deeper than segments, allowing you to evaluate the larger data set and find factors that can influence a purchase- giving marketers even more creative ways to delight the customer.
If attitudinal surveying and customer feedback processes are added to personas, you can get the data to tell you WHY a customer bought. Do your customers buy from you because they feel alignment with business values, aspirations you deliver upon, or healthy and clean product features? It's amazingly powerful for your business in creating a converting connection with the customer.
With your new segments and personas, try these tactics
1 Use small, frequent gestures of appreciation
When it comes to letting your clients know you appreciate them, the little things count — not necessarily the big ones. Don't get me wrong, shared experiences with clients like attending sporting events, concerts (I got to see U2 once.), or nice dinners go a long way in building a relationship, but those are often saved for a smaller portion of your customer base.
Thoughtful gestures across your entire client base, regardless of their MRR, can accomplish the same results as bigger ticket items but at a much broader scale. Little gestures like inspirational social media posts and email workflows understand how often your prospect should be nudged.
Promotions and Discounts geared toward retaining customers offered on social media can go a long way in terms of customer acquisition costs. That small investment in the relationship shows your client that you're listening to them beyond the task at hand and evokes an emotional reaction invaluable to your relationship.
Your CDP comes in handy by tracking subscription behaviors and adding them to the appropriate customer profile using identity mapping. Further, with the total customer journey defined, you get more refined target audiences to which you advertise. This refinement in audience definition creates effective advertising with less expense. Who couldn't use steady revenues?
2 Understand what makes your customer tick
As accelerators say, you must meet a need or, as accelerators say, "solve a problem." Having a solid grasp of your customer's pain points and preferences can help build trust between you. A few helpful questions to ask yourself when assessing how well you've gotten to know your client is:
Do you understand what their challenges are?
Are you in touch with their needs? How have those need changing recently?
Why are they using your solutions? What outcomes are they trying to achieve?
How can our product make my client look like a hero in their organization?
Many customers know what your solution is intended for at the initial point of sale but may lose sight of those initial goals after using the product a few times. Being clear on those goals from the start and keeping track of when those goals change can help you remind your customer what they can achieve with your solution and create greater success over time.
With a CDP. You can tailor customer experiences over different channels. For example, you can create meaningful content in an email, click on mobile, then walk into your shop to meet a friend. You do this with a CDP by analyzing the data down to the SKU, campaign performance, and all the timing-based needs.
3 Adding subscriptions
We've learned that consumers like subscriptions for convenience and entertainment value. A recent report from Attest, a consumer research platform I read in which 78% of Gen Z said they would pay an annual subscription fee to have 24/7 access even if it meant missing out on some other types, shows there might be something worthwhile behind this idea!
I've got several subscriptions, as I'm sure everybody has. Your customer experience needs to extend to how you interact with customers. Disney + has been phenomenal uptake and is one of the best examples of handling subscriptions well. They make it easy to cancel or put their service on hold. They don't try and hide it. Within a couple of clicks, you can put it on hold.
It's important to develop a strong relationship with your clients to feel like they are getting the best service possible. This relationship will help build customer loyalty, leading to more business, especially during tough economic times! The following tips should be helpful strategies when developing these types of personal connections.
More and more marketing teams are turning to CDPs to get more capabilities from their marketing technology. Unifying customer data together from different marketing applications gives you insight into how to grow sustainability by focusing on retention and referral channels. Shopify owners want actionable insights, something to tell them where to go and what to say to help them grow the business without spending more on advertising.
A CDP can help you build up customer repurchases and referrals in a few ways. First, it can give you a better understanding of your customers to target them with more relevant messages. Second, it can make creating customized experiences for each customer easier. Third, it can help you track the success of your marketing campaigns to learn what works and what doesn't. If you're ready to start taking advantage of all that a CDP has to offer, reach out, and I can help you get started in connecting any of these initiatives. Thanks for reading!