Customer insights help brands to truly understand their audience by analyzing vast amounts of customer data. Insights provide marketers with an explanation as to why customers behave in a certain way, and without them, brands will fail to understand the ever-changing customer behaviors, needs, and expectations that are key to delivering personalized, seamless experiences. By utilizing customer insights effectively and focusing on driving greater consumer engagement, brands can achieve greater conversions and return on investment (ROI). In fact, according to research from Microsoft, “organizations that leverage their customer behavior to generate insights outperform their peers by 85% in sales growth”.
However, marketers today have access to an unprecedented amount of data, yet many still don’t have insight as they fail to leverage their customer data to gain an advantage over their competitors. Results from our recent Digital Divide whitepaper showed that across UK and US marketers, an average of 42% of the data collected relating to product satisfaction, shopping experience, preferred channels, preferred frequency of contact, and personal likes and dislikes isn’t being used. This reflects the scale of the opportunities missed by marketers as they waste their biggest asset, their customer data.
To help you get the most out of your customer data, we’ll explore 4 examples of how you can use customer insights to improve your marketing.
Improve the customer journey
Customer insights can shed light on a manner of things, including the channels used by your customers to interact with your brand, their first interaction, and where they drop off. This information is extremely valuable when mapping your customer journeys. Every customer will take their own unique journey when interacting with your brand, so, by using customer insights when planning customer journeys, common issues such as identifying purchase barriers and understanding customer emotions are easy to overcome.
Deliver personalized experiences
Personalization is no longer just a nice-to-have for brands, it’s a must have. Customers today expect personalized experiences as standard, with some going as far as to say that they’d leave a brand if they failed to deliver. But how can you ensure you’re tailoring your interactions to each customer if you don’t know who they are? You guessed it… Customer insights.
As we’ve already established, customer journeys are increasingly complicated and as a marketer, you’re often left in an unenviable position.
Delivering a truly personalized experience means delivering the right message, to the right person, at the right time, and via the right channel. By utilizing your customer insights, you can unlock a range of information relating to your customer’s interests, preferred channel, and most active time, maximizing your chances of nailing the brand experience.
Let’s take cart abandonment as an example. Say a customer abandons their cart at the checkout, well if you know said customer is most active between 9pm and 10pm and prefers communication via email, then sending an SMS reminder at 11am is unlikely to be effective in recovering their cart. Similarly, if you know they are avid app users, you can use this insight to trigger app push notifications at the right time.
Better your targeting
Whether your brand targets one demographic, or several, it’s imperative that you understand the nuances of your target audience. By developing your understanding of your existing customers, customer insights can give you a better view of your target audience(s). This will ensure you’re better equipped to anticipate their behaviors and feelings, thus increasing the likelihood that your marketing communications not only align with your existing customers, but also attract the ideal leads for your business.
Boost customer loyalty and improve retention
All of the above ultimately leads to one thing, improved customer loyalty. Competition is fierce and customers are more fickle meaning that brands need to do everything they can to boost their customer loyalty, thus increasing retention.
In order to truly optimize your customer retention strategy, you need to drill deeper into your customer insights and segment your audience according to loyal, lapsing, and lapsed customers. Without this information, it’s impossible to deliver the most relevant retention experience to each customer. For example, if you know a customer is loyal and has shopped with your brand for years, offering them a free gift with purchase or a voucher as a thank you for their loyalty could be a nice touch. Alternatively, if you know your customer is lapsing, bring them back from the brink by offering them a discount off their next purchase as an incentive to re-engage with them.
Customer insights will only be as reliable as the data they’re based upon. If your data is fragmented, unorganized, and incomplete, it’s likely that your insights won’t paint as accurate a picture as they should. This could lead to wasted time and budget as you base your marketing strategy on inaccurate information. For example, if you fail to keep track of your returns, it could appear that a customer is extremely loyal due to frequent purchases, however, if they regularly return their items, then you may end up overestimating their loyalty. That’s why an essential element of customer insights is using superior quality data.
Having one unified system in which all data is stored can help improve data quality. Fragmented systems lead to fragmented data, but if your systems are unified and everyone is singing from the same hymn sheet, you’ll increase your chances of success.
Technologies such as a Customer Data Platform (CDP) are a great way of de-duplicating, cleansing, and unifying your customer data in a way that makes it easy for you and your team to understand your customers. A CDP such as Upland BlueVenn can import data from unlimited data sources and unifies this data into a Single Customer View (SCV). The SCV acts as your golden record for each customer and keeps up to date to ensure all transactions, interactions, and preferences are captured and are readily available for marketers to derive meaningful insights from.
- Unify customer data from unlimited sources into a trustworthy Single Customer View.
- Gain transformative customer insights through friendly, drag & drop analytics.
- Automate personalized cross-channel journeys at scale.
- Deliver personalized, one-to-one omnichannel customer experiences