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Creating a multidimensional profile of your best customers lends itself to better interactions and strategies that are conducive to strong revenue generation.
In fact, the more you know about your customers, the more likely you are to excel above the competition.
Data-driven business development is far more than a buzzword. It is a proven methodology that equips businesses to create experiences, products, and services that fit to a T by taking into account implicit queues from customer interactions, and voiced opinions specific to how the product or service measures up against their needs and wants.
But simply knowing that data adds value is not sufficient to transform the way a business operates. Before putting in place a data-driven customer experience strategy, a business must identify the types of data that matter most, and the best means to obtain accurate and actionable customer information in a timely manner.
Furthermore, the business must be ready to come up with actionable insights conducive to the betterment of the business as a whole.
Leverage Customer Data to Enhance Customer Experience
Let’s take a look at 6 different types of data that are readily available to most business organizations and can be utilized to define the best ways to serve customers, improve margins, increase business leads, and maximize repeat engagements.
Your Loyalty Metrics
One of the favored mechanisms to measure customer loyalty is the Net Promoter Score (NPS). While not perfect by any means, its simplicity makes it highly effective in capturing a high response level that facilitates a better picture of perceived value among a large sample of your customer universe.
Another key benefit from the Net Promoter survey is how it opens the doors to an early conversation, helping businesses discover and address issues proactively. This type of engagement conveys a high level of customer commitment that often results in a higher sense of brand affinity and increased potential for repeat business.
The NPS is not the only means of measuring loyalty, but combined with other tools and metrics, it has a proven track record of equipping businesses with actionable insights that can help in meeting the gap between what the customer wants and what the brand is delivering.
It is surprising and saddening to realize the high number of businesses that make little to no effort to capture contact information from their customers. Having the ability to contact customers in a cost-effective, persuasive, non-spammy fashion is central to the success of a business.
The discipline of maintaining a two-way conversation with the customer is not only a booster for customer loyalty, but it also serves as a means to amplify a message, create brand recall, and gain incremental business by using shareable promotional campaigns.
Capturing contact information can be as simple as keeping a customer list on a spreadsheet, or as complex as having customer management software that can track transactions and analyze behaviors, while equipping your business to trigger interactions such as email marketing or reminders for the sales team to contact key customers via phone.
Some organizations are able to capture contact information in a natural way, through the business requirements of the transaction, such as companies that provide housekeeping services. In contrast, other industries such as foodservice may need to be more proactive in order to grow their customer list at a healthy rate. In these instances, it makes sense to create rewards programs or other promotions distinctly designed to capture customer data, such as email and address.
If you are capturing a Net Promoter Score, then by now you know if a customer is likely to recommend you to a friend. But do you know why? Getting to the heart of the matter in the area of loyalty drivers is one of the most important strategic moves when it comes to capturing customer sentiment.
Consider adding a follow-up question to your NPS, or a full survey targeted exclusively to your promoters and designed specifically to ask questions regarding preferences that lead to brand advocacy and repeat engagements.
Know what your customers love, and use this knowledge to enhance their future experiences and to capture new customers by highlighting loyalty drivers in your advertising and promotional material.
Passive Customers and Potential Promoters
As you probably know by now, those customers who fall into the passive category when rating their Net Promoter surveys are the ones most likely to shift their attention and dollars to your competitors.
Thankfully, you no longer need to allow for this to happen with your arms crossed. Thanks to your NPS, you know who they are, you know how to reach out, and through follow-up surveys you may know why they are not fully enamored with your brand.
Utilize this powerful insight to create business processes designed to woo them back, as well as strategic revisions aimed at correcting any shortcomings they may have conveyed in follow-up surveys. You know what you are missing and you know how to fix it. Take your business to the next level by helping your passives start afresh and fall in love with your business to the point of joining your most enthusiastic and loyal promoters.
Geographical / Location-Aware Data
Something as simple as knowing where your customers are from can help you refine your advertising strategy by connecting the dots and targeting, for example, potential customers within a zip code that corresponds to high-spend transactions or high volume with superior review scores.
Refining your outreach strategy by utilizing data already available to you can save you money and improve your results per dollar allocated to advertising and marketing.
Product Preferences and Customer Sub-Groups
If you have strong and well-populated customer profiles, and you are able to track their POS transactions in association with their profile, then you can begin to identify opportunities based on preferences and dislikes.
Knowing what your customers are buying or failing to purchase can help in the management of a tighter inventory, is useful in optimizing services and menus, and reduces waste by equipping those tasked with inventory to closely manage their minimum PAR.
Data matters more than ever, and it is easy and affordable to access it, analyze it, and implement changes around it. Take the time to maximize this opportunity by putting the tools in place to capture metrics and analytics that can help you transform the way you serve your customers.