Customer needs are changing every day. It is highly important that brands drill into their data in order to improve their business.
This article will explore the issue in great detail…
Let’s get started,
Nowadays it isn’t unheard of for brands to roll out their customer loyalty schemes in order to grow a business, strengthen their relationships and remain relevant in crowded marketplaces. The future is full of technological change such as being able to play online book anywhere on one’s mobile. With today’s technological advances, the ways that shoppers prefer to buy goods and interact with different services are evolving and changing.
There has been a rise in omnichannel which has pushed brands to operate across all sorts of digital and mobile channels. This has paved the path for better customer service and has given customers a chance to shop anywhere at any time.
With all the good that digital transformation has done to us, we have become out of touch and lost our connection with “our local corner store” to e-commerce’s detriment, new brands fighting to compete and the world of same-day delivery. Every consumer is becoming spoilt and presented with so much choice that traditional retailers have had to add so much more value to every step of the customer journey.
Nowadays, even the tiniest of user experience inconsistencies will be noticed and can cause customers to look for other shopping needs. In an instant customer loyalty can be turned into something cheap.
As customer dissatisfaction is on the rise to being the most likely thing to change brand profitability, it is paramount that companies begin to address the issue. The State of the Nation’s research has discovered over £140bn of revenue is affected a year. No longer can companies just rely on offers and discounts to add to their customer program thinking that they will be able to cut through the market.
Simple guidelines need to be followed to enhance engagement and facilitate long-lasting relationships between consumers and brands.
One of the most important things about building a strong client relationship is to know your customers like the back of your hand. In today’s day and age, companies can get a deep understanding of the behavior of their customers by collecting data and analyzing it, particularly through the use of mobile devices.
Digging into customer data allows businesses to get both timely and highly valuable insights into what customers are looking for. Determining what people want is puts companies in the position to better target customers with promotional material, thereby boosting their conversion rates and brand loyalty.
One need only look at one of the largest nightclub operators, The Deltic Group, for a prime example. This company has been able to deliver marketing materials that are personalized across multiple brands through the use of bespoke mobile applications. As the company was able to digitize their marketing platforms, they were able to recognize which club staff were most able to purchase during nights out, or what food they craved after leaving the bar.
Any company needs to stay right on top of the latest tech trends. Machine learning is one of these and can be fed with new data to improve it. It has the capability to find a needle in a proverbial haystack, plus it will do it in real-time. Consumer habits can be tracked, predictions can be made and AI can be constantly improved leading to more successful customer loyalty down the line.
Another brilliant type of technology is mobile ticketing. Mobile tickets allow brands to gain a lot of insight into individuals, helping to best target them accurately. Those that can use this tech will be able to prevent “ghosting”, i.e. means whereby people can identify who their customers are. It can serve as a major driver of customer loyalty for a business.
It is true – one cannot stagnate if they want loyal customers. As an example, Russian bank Tinkoff has made a great choice to position themselves as lifestyle service providers, offering a wide range of lifestyle services along with their original services such as cinema or restaurant reservations.
Conversely, some brands lose out from failing to innovate. The best example that comes to our mind is Kodak – a brand that became notorious leaders of the photography market in the 1970s yet they struggled to adapt their business into one to cater to the emerging rise of digital cameras.
As a result, the company filed for bankruptcy in 2012. This example illustrates the need to innovate and adapt to the change in customer behavior.
In order to get rid of customer loyalty decay, there needs to be a focus on staying relevant to consumer needs. Brands need to focus on their digital marketing strategies and dig into data insights. Success is there if organizations make the most of their customer data.
Got any tips for developing customer loyalty? We’d love to hear from you. Tell us about them in our comments section below.