As an entrepreneur or business leader, no matter the industry, rivalry prevails. In the world of 'B2C,' the thought of building a customer base and retaining it is daunting. Marketing and advertising must provide that allure to draw-in consumers and keep them loyal. However, there are ways and means to ensure you have the best chance at inspiring customer loyalty via data-driven research.
"Expanding your customer base and improving retention is essential for growth and success. But achieving these goals depends on how well you understand your customers. This is where data insights come in," says Achille Traore, CEO of White Label Loyalty. As a new business owner, it is vital to not make generalisations about your customer base, "When you understand customer behaviours and preferences, you can tailor your marketing efforts to specific groups." Traore continues with an example, "Let us say you are a retailer, and your data shows that a certain demographic tends to purchase more frequently during the festive season. With this information, you might invest in targeted marketing leading up to the holidays, such as email campaigns with personalised recommendations based on past purchases." Data insight can help you pinpoint certain groups directly and attract specific customers at various times or portray a sense of individually talking to customers.
After tempting customers into making their first purchase, the key to success is ensuring they return. Data is a vital component in this as well - "you can also use data insights to power engagement campaigns and product strategies. Top FMCG companies are enriching their customer databases by gathering data like full-basket purchases, retailer interactions, and buying patterns. Using this first-party data, they will be able to drive their business forward in the cookieless era." Here Traore notes the power data can hold when engaging with a consumer. It can pinpoint previous preferences, permitting marketing campaigns to be designed based on individuals.
Loyalty program technology can also play a huge role in retention, and this is not simply an amped-up version of a paper loyalty card you receive in your local coffee shop. Once again, data is at its core. Achille Traore comments, "Another way data insights can improve retention is by helping brands identify customer churn. Loyalty program technology can identify patterns that indicate a customer is likely to churn, such as a decrease in purchase frequency or engagement. Armed with this information, you can take action to prevent it, such as sending targeted offers." This kind of targeted marketing is handy for those new to the business, as it allows them an edge over competitors, "brands need to invest in data collection and management tools - such as loyalty platforms - which make it easier to find insights hidden in data. By making sense of all the information you are collecting, you gain a deeper understanding of your customer's needs and preferences."
The potential of data is unrivalled, but it can be overwhelming, as acknowledged by the experts "Data insights are valuable for businesses. But accessing them can be a challenge. One of the biggest hurdles brands faces is the sheer amount of data they generate. It is too difficult to manually extract meaningful insights and identify what is truly valuable. Plus, if data is inaccurate, inaccessible, or incomplete, it only leads you down the wrong path. That is why many businesses are turning to customer loyalty programs as a solution." Data has potential when used accurately and aligns with tech to become a power couple.
Based on our chat with the CEO of White Label Loyalty, it is evident that data insights are more than just a boost, in Achille's own words "In today's competitive business environment, data insights are not just a nice-to-have, but a necessity. Any business that is not collecting first-party data and using insights to improve their strategies will get left behind." But getting your data game down pat will be a sound investment for any up-and-coming entrepreneur as "The result? Happier customers, increased engagement, and a stronger bottom line."
