There’s More to Marketing Than Predicting a Customer’s Next Purchase
Many brands and marketers are testing the potential offered in big data to predict a consumer’s next purchase. While valuable, there’s more to it than forecasting customer buying behaviors. The next question to answer is how can brands get customers to remain loyal. In today’s highly competitive marketplace, brands need to focus on winning customers from a competitor and keeping them from bailing when the competition offers better pricing.
As discussed in “Use Big Data to Create Value for Customers, Not Just Target Them,” posted by Niraj Dawar on HBR.org, there are many ways marketers use big data. Answering questions like who is buying, what products, and at which price points, offers valuable insight into the customer profile. Connecting other data, such as what customers are hearing or reading to what they eventually purchase can also be insightful. Such data improves marketing efforts and saves money by identifying customer needs and preferences. However, these efforts may not pay out in the end. Many industries, including travel and music, aren’t gaining much of a competitive advantage with such a narrow focus.
Big data may deliver better results when focused on understanding customer loyalty and relationships. Answering more customer-focused questions, like what does it take to earn loyalty and keep a customer from switching to a competitor, could offer a more strategic advantage. Focusing on the customer’s point of view, big data can be used to improve products and services or lead to new value-added services. Businesses like Yelp and TripAdvisor, for example, are using ratings to reduce customer risk.
Marketers Use CRM and Big Data to Develop Long-Term Customer Relationships
Marketers that use a customer relationship management (CRM) solution like Microsoft Dynamics are able to capture customer-centric data and use it to identify behaviors and trends. CRM provides an efficient way to manage marketing campaigns and customer responses. With a 360-degree view of the customer, marketers better understand buying behaviors including product preferences and trends. Tapping into other digital services, like social media sites, further strengthens customer engagement and loyalty. Meeting and interacting with customers on their channel of preference can lead to better sales, more interactions and longer relationships.
CRM offers a new way to look at big data, then use it to your competitive advantage. Contact AKA Enterprise Solutions for information about using CRM to understand your customer and identify what it takes for them to remain loyal and engaged.