There is no doubt that GDPR (General Data Protection Regulation) has made prospecting and customer acquisition more of a challenge.
Depending on which study you believe, and what industry you’re in, acquiring a new customer is anywhere from five to 25 times more expensive than retaining an existing one. Post GDPR maybe it will be even more expensive! Therefore, it is paramount for brands to retain the customers who are already contributing positively to the bottom line and just as importantly to discover which ones have the potential to grow.
However, it is key to employ customer data analysis to discover…who are these ‘good’ customers, what do they look like, are there any further growth opportunities within these customers or are they maxed out (e.g. what is your share of wallet in each customer spend category).
Other opportunities for growth within your base may well come from some discovery analysis across the data and market research etc. Are there other customers who look similar in many ways but are not on the same level of contribution or displaying the same patterns of behaviour yet, what do you need to say and offer them to change that and look to cross-sell and upsell?
Getting your data sorted and accessible is fundamental to any analysis project so that the relevant approaches and techniques can be deployed to understand who is most likely to buy which service/product and use this to target direct communications and trigger best next actions across the digital and contact centre channels.
Sometimes it will be ‘external factors’ such as an individual’s media consumption, or their interests and attitudes rather than their transactional history, that help to understand their needs and we are able to use such data attributes from data sets that we licence in many analysis projects.
Often growth is stunted at the very start of a brand relationship or customer journey because new customers do not use or activate the service. Knowing why someone does what they do is often the missing link. Organisations will often be able to look at the first product purchased and then to look at what other people did who bought this first etc. etc.
Therefore, capturing why customers bought what they did helps to pitch the next communication/offer using motivation and language which the recipient recognises. Obstacles to activation are very useful too (e.g. unclear set up and how-to instructions etc.) and can also lead to actions and communications to get the customer underway.
To maximise customer lifetime value, we work with our clients to understand and map out the range of customer journeys and identify when is the best time (e.g. understanding email opening times, previous web behaviours etc.) and what is the best message to convey. Often, this involves capturing and integrating the customers’ behaviours across all channels (to increase our understanding, track the success of the campaign and importantly to be able to re-contact if they drop out of any buying processes) to ensure a data driven customer experience.
Our involvement also means working with our client’s other partners across digital and non-digital media to help them increase their understanding of the existing customers, targeting digitally and non-digitally look-a-like prospects.
Beyond customer growth, it is also important to understand customer churn and customer lapsing (make sure churn and lapsed are defined and understood internally). Not all customers are equal, and this also is true of all lapsed or switched customers, and so you need to identify which you want to reactivate or winback.
It is also important to capture at the point of leaving or via surveys, why they are lapsing or leaving (e.g. service failure, life circumstances change, price etc.). Depending on what you discover, you may be able to devise remedial service improvements and develop appropriate and effective reactivation, retention and possibly win-back plans… Anaylin has plenty of experience in all these areas of working with clients and their partners in planning who to target, what to offer and how to execute across many industries.
In addition to the client data management and customer data management systems, Anaylin also offers a fully orchestrated multi-channel campaign management solution to ensure the messages are getting to the right customers at the right time and through the right channels.
Anaylin is a customer data management company that applies customer data analysis and insight to bring sense and value to your data. We subsequently help clients prioritise and execute strategies and action plans. We are steeped in experience of growing customer value and in customer retention and enticing them back.