Retailers’ interactions with prospective customers have been transformed by collecting consumer data and using it to boost income through retention and upselling. You can use customers’ interests and experiences to produce 5-8 times the return on investment of a company’s marketing expenses and increase revenues by 10% or more. However, you’ll need a clear plan and a robust data plan for this to work.
“Customers no longer build relationships solely on loyalty. When customers experience a customised and relevant engagement with a brand, they apply those same standards to all of their other brand interactions.” notes short-term business loans expert Shane Perry of Max Funding.
Keep reading to know how data becomes a powerful tool in assessing your consumers.
Maintaining High Standards for Data Quality is Essential
Data is collected every time a consumer interacts with your business, and this data is used to provide more customised shopping experiences. However, the technologies utilised to boost consumer interaction must be analysed and cleansed carefully to use the information effectively. Ineffective use of customer data might result in a customer’s next interaction being their last.
Retailers who collect and use consumer data have issues since the information originates from various sources, which might be corrupted. For instance, you may have a wealth of information on your customers that have been amassed over a long period. However, if you don’t know where the information came from or how it was gathered, it might be erroneous or out of date.
Data issues often fall into one of four types, as outlined below:
- Enormous amounts of data.
- Incomplete or missing information.
- Errors in the data.
- A wide range of data points.
Enormous Amounts of Data
Is it possible to have too many files? It’s a legitimate thing to ask, in my opinion. What matters most about the data in your hands is rendering it usable to improve revenue and engagement. With massive volumes of data, businesses can locate the most relevant information to each consumer and then create hyper-personalised experiences that encourage them to act.
Incomplete or Missing Information
High-quality data is needed to engage clients using data analytics. There is a risk of doing more damage than good if you don’t know where the data comes from or how it was acquired. Your customers’ micro-segmentation is the ideal approach for businesses to leverage consumer data to their advantage. As the phrase goes, if you customise for everyone, you customise for none.
Errors in the Data
According to a 2016 IBM research, the annual expenses of poor data quality in the United States is $3.1 trillion. A lack of quality data may have a significant detrimental impact on businesses. Consider the ramifications of marketing to a particular client based on false data. Most likely, that customer is going to leave you.
Availability of high-quality data allows you to segment and customise client interactions, resulting in long-term customers. The best way for businesses to ensure long-term consumer satisfaction is to use software solutions with a proven track record of delivering extremely accurate customer information.
A Wide Range of Data Points
Most businesses have many ways to collect information on their customers, including CRM systems, IoT, mobile applications, marketing automation, emails, and web forms. This means that the volume of consumer data will increase as user contacts increase. Since 73% of customers buy on many channels, businesses need to use technological platforms to access highly accurate customer information.
Higher Profits are the Result of Better Personalization
A comprehensive perspective of the consumer is essential when developing a strategy for customer interaction. This is critical to ensuring client happiness and long-term loyalty by offering tailored experiences.
Marketing Data Fitness helps humanise your marketing data and make it “fit for purpose.” Our personalised Bootcamp targets to create a data policy that outlines what marketing activities your data should support and how you want your data to emerge. We put in a lot of effort to ensure it becomes marketing-ready.
Contact us to know more about this fantastic opportunity!
This post has been provided by Jacob Horner, a Sydney-based freelance writer. Jacob can be contacted by emailing him at [email protected]