In response to a 2018 PwC report, buyer expertise has turn out to be the holy grail for retailers. The excellent news is that right this moment’s consumers are keen to pay as much as 16% extra for a custom-made purchasing expertise. The unhealthy information? Round 17% of them will dump a model after only one unfavorable expertise and 59% gained’t return for those who disappoint them greater than as soon as. Ouch.
Prospects anticipate a seamless, customized retail expertise and a hassle-free purchasing journey, which is a tricky job for retailers when buyer wants and preferences are so particular person. As a retailer, how have you learnt your clients and make them really feel seen, heard, and beloved? How do you employ what you understand about them to create customized purchasing experiences (on-line and instore), that make them love you again and hold shopping for?
The solutions lie in your buyer knowledge and the way successfully you employ it.
The worth of buyer knowledge
You may already be gathering knowledge about clients and their buying selections, preferences, behaviors, demographics, and experiences. Maybe you’re monitoring web site visits and clicks, analyzing social media interactions, monitoring buyer evaluations, or recording buy historical past. Your e mail campaigns and the best way clients reply to them are a digital treasure trove of details about the kinds, promotions, language, or content material that make clients come again to your shops (or your web site) to browse and purchase.
But when that knowledge is fragmented, inaccurate, incomplete, or siloed throughout channels and programs, it gained’t be of a lot worth. A Buyer Knowledge and Expertise Platform (CDXP) may also help reveal the secrets and techniques, enabling you to enhance buyer engagement and drive gross sales.
determine your finest clients
You’ve in all probability heard of the Pareto precept, in any other case often known as the 80:20 rule. At Lexer, we regularly see manufacturers stunned to be taught their prime 20% of shoppers drive 70-80% of gross sales. Specializing in buyer loyalty is extremely vital for the long-term success of your model.
If you happen to’re unable to get an entire and clear image of who your clients are, you may be spreading your self skinny wooing all of your buyers, when you possibly can be actually delighting essentially the most profitable ones. Chances are you’ll find yourself spending beneficial time, cash and assets making an attempt to draw and hold low-value buyers and miss alternatives to indicate your ‘large spenders’ some love.
By pondering past the demographics of your general buyer base and, as an alternative, optimizing your advertising efforts to deal with solely buying clients like the highest 20%, you cannot solely cut back acquisition prices, but additionally acquire extra beneficial clients with longer-term potential for what you are promoting.
Listed below are 4 key steps to assist buyer acquisition utilizing knowledge analytics.
1. Determine your hero merchandise for buyer acquisition.
Some merchandise are higher than others for attracting new, long-term clients. By figuring out the merchandise that your clients most continuously buy first, you possibly can acquire a greater understanding of what attracts your ideally suited first-time consumers.
2. Choose your highest worth buyer audiences for every hero product.
Now you understand the product classes that mostly purchase high-value clients. You additionally know {that a} small variety of clients make up a considerable amount of your income. The following step is to investigate the purchasers who’ve bought your focused acquisition merchandise and construct lookalike audiences round their profiles. First, construct a segmented record of all purchasers of a goal class. Then, layer on extra variables to enhance the viewers’s high quality and worth.
3. Construct high-value lookalike audiences out of your high-value buyer segments.
Constructing a number of lookalike audiences at rising sizes (e.g. 1%, 1-2% and 2-5%) can present beneficial perception into the scale of your addressable market and the way effectively you possibly can purchase market share.
4. Goal every high-value lookalike viewers with advert artistic for the product they had been constructed round.
Preserve every viewers in separate advert units so you possibly can consider each’s relative efficiency. Be sure you experiment with completely different placements and advert models by making a separate advert set for every variant and viewers mixture within the marketing campaign. Together with a number of advertisements underneath every advert set can even give you beneficial insights.
Closing the hole between knowledge and buyer experiences
When trend retailer THE ICONIC wanted a greater understanding of its clients, the corporate turned to Lexer and its partnership with Amazon Redshift. Connecting CRM and ecommerce knowledge from Amazon Redshift to Lexer’s CDXP enabled steady real-time updates to thousands and thousands of buyer identities within the platform. This knowledge, additional enriched with beneficial demographic data, rapidly generated significant and usable buyer insights for the retailer.
THE ICONIC’s then Chief Advertising Officer, Alexander Meyer, mentioned the partnership has been a win for buyer satisfaction and understanding. “Our clients are on the coronary heart of all the things we do and having a extra holistic understanding on how, why and when they’re purchasing with us permits us to not solely higher serve their wants however enhance our buyer satisfaction as an entire.”
Equally, TGV Cinemas, the cinema vacation spot of selection in Malaysia, desired a CDXP resolution that utilized enriched, segmented buyer insights whereas enabling the crew to rapidly and precisely make selections for furthering their objectives, primarily based on their high-volume, fast-paced enterprise mannequin.
The TGV crew applied Lexer, met a three-month stay deadline and achieved key enterprise objectives:
● Buyer knowledge was housed in a single easy, accessible interface for all groups, serving to take away the IT bottleneck. Knowledge was enriched with related attributes about clients, together with days between cinema visits, most well-liked cinema location, and the language of the final movie seen.
● There was elevated transparency relating to buyer motivations to affix member packages and sequential experiences, serving to drive visitation for varied segments.
● Customized and automatic advertising campaigns had been executed inside half-hour, down from 2-4 days.
● Enterprise methods enabled by KPIs had been constructed round accessible knowledge factors and high quality insights, fairly than assumptions.
The significance of a single buyer view
A single buyer view—or unified, cleansed, and standardized buyer profiles—are created by aggregating a number of sources of knowledge and reorganizing that knowledge to color a complete image of every particular person buyer inside a CDXP. In different phrases, it acts as a “single supply of reality” for all the shopper data to which what you are promoting has entry to, together with:
● Demographic data
● Buy historical past in all offline and on-line channels
● Customer support interactions
● Internet and cellular looking actions
● Electronic mail engagement
In contrast to conventional, channel-focused knowledge administration programs, a CDXP reorganizes knowledge to assist a customer-centric enterprise mannequin, offers each crew with the flexibility to self-serve buyer insights primarily based on that knowledge, and improves the standard of current knowledge in addition to knowledge assortment strategies for the long run.
This data is sourced from direct integrations with ecommerce programs, point-of-sale programs, e mail advertising and advertising automation platforms, like Dotdigital or different retail programs, and thru batch file uploads and versatile APIs.
For instance, when main Australian males’s footwear model, Aquila wanted to find out how paid social advertisements had been impacting in-store purchases, they enlisted the assistance of Lexer and digital efficiency company, DataSauce. By using their enriched single buyer view from Lexer’s CDXP and a Fb Offline Conversions API, Aquila was in a position to see precisely how and which on-line social advertisements had been driving buying selections in shops. Armed with these insights the Aquila crew was in a position to confidently double down on their social media advertising technique.
Last ideas
At Lexer we imagine nice manufacturers are constructed on nice buyer experiences. It’s vital for retailers to have the ability to make the most of buyer knowledge and work with applied sciences that assist guarantee it’s out there to each crew throughout the group. Not solely will this assist inform buyer perception and engagement however may also drive incremental gross sales. Lexer is the main CDXP for retail tech stacks and a strategic Dotdigital companion. Attain out to see how Lexer may also help you make the most of your buyer knowledge successfully throughout your group.
