Today’s business strategy is about integrating some new insights and forging a comprehensive plan for success. According to a study conducted by McKinsey, companies that use customer analytics extensively are more likely to generate above-average profits. If they do not stop there, they also outperform less analytically oriented peers, stay at the forefront of the entire customer lifecycle, and enjoy much superior customer loyalty. How exactly does analytics help businesses?
Much of the credit for this success is attributed to how responsive companies today are to customer needs and their focus on establishing systems and guidelines that are relevant to customers. Analytics provides insight into customer preferences for companies that tailor their content and messages to stay relevant to customers and wait for a timely opportunity to make offers that fit their customers’ needs. They use their insights to create better and more relevant and valuable interactions that make even new customers loyal so they come back for more, again. They also retain the unwavering loyalty of long-standing customers through these measures.
Important ways in which businesses remain relevant to customers include the following:
timeliness: The time to determine relevance is when the customer shows interest in your product and not at another time. Your sales plans, goals and metrics have no relevance to a customer. Pitch your product when a customer wants something similar and sit back to watch the deal being struck.
Customization: Use analytics to understand the mapping of a customer’s decision making journey, understand the possibilities and areas of friction with the customer’s interests.
extrapolation: Extrapolate the insight offered by analytics to cover your demographics of customers at a high level of granularity using a wide range of attributes such as behavior, demographics, location, age or even the customer’s stage of the purchase journey. Use them to create personalized messages that talk to them about what they are only looking for down to a color or size.
Segmentation: Use data to define customer segments using broad criteria and delve deeper to make your message personal and relevant to each group based on its characteristics and attributes. These may be thank you notes, feedback requests, new offers of similar products that offer them a special discount or other personal incentives.
Employee Orientation: Companies need to educate and orient their employees to provide customers with personalized experience, whether they provide a service or respond to a query. They must be willing to learn and be flexible in carrying their learning from one customer interaction to another to revise their approach.
Understanding the customer’s intention: Successful companies learn to spot positive signals about the customer’s intent or negative signals about their refusal to engage with their behavior. This ability to spot a customer’s intentions and read them properly qualifies an insurance company for success. Insurers today benefit from third-party data that provides deeper insights into customer health needs, lifestyle choices, and risk-taking behaviors, such as recreational activities, travel choices or even weight, to decide how to tailor a policy to suit a client’s particular needs . Data today can help businesses predict intentions by using prediction analysis based on past or related purchases made by other customers, leading them to purchase a specific next product, encourage sales sales initiatives, and offers.
Rewarding customers for volunteer data: Customers today tend to disclose data willingly and without any incentive. Companies are offering happy freebies and benefits to customers who are willing to share data that reveals their priorities, habits and tastes.
Upsell or cross-selling select customers: Brands treat high value customers differently. Calling customers are dealt with a wide variety of options and choices as the call agents offer them relevant products and services or even an upgrade.
Most companies see tremendous value and multiplied return on investment with such a relevant approach. They need to recognize that real insight from analytics will not be possible without collecting detailed, relevant and useful information about customers that can be converted into real-time business information. It is also extremely critical to the success approach of getting all customer-facing agents, representatives, managers and others to subscribe to the same attitude and approach when dealing with customers.