Each time your customers interact with your business, they are telling you something, both by means of their actions and the data created by these actions.
This data “speaks” for your customers even when they don’t.
An action or inaction is akin to a customer putting up their hand. Seeing the raised hand and reacting to it appropriately is how you maximise the value of your customers and grow your business.
Sounds good, BUT … How do I listen to my customers? How do I react to what they are telling me?
TURN DATA INTO KNOWLEDGE
A goldmine of untapped customer data lies unused within your business – turning this data into customer insights is how you start tapping into this rich resource. However, insight is a nice to have, pretty graph in a report no-one ever reads unless it is actionable. (Definition, actionable: adjective: able to be done or acted on; having practical value)
Creating insights which are actionable is a difficult task that even seasoned analysts struggle with.
So how do you create actionable insights from your customer data?
Using data to understand how you customers behave when they interact with your business is the key to generating truly actionable insights, because the actions are based on your customers and how they “behave”.
UNDERSTANDING CUSTOMER BEHAVIOUR
Customer behavioural analytics and segmentation allows us to understand when, how often, how much and what customers buy or do when they interact with your business. Customer interactions can be based on purchases, visits, logins, promotional responses or any other relevant customer events, or combinations thereof.
Analysing customer behavioural is one of the most basic, yet powerful marketing concepts, but is often forgotten or simply not used. Interestingly enough, this is where Amazon started their journey. But that is a topic for a whole blog in itself, which we will address at a later stage.
Behavioural analytics is powerful because once you understand how your customers behave you can influence, react to or change their behaviour using the most appropriate form of relevant and targeted customer engagement or communication.
You can’t change a customer’s age, sex, gender, income or product preferences, but you can certainly influence or change their behaviour. Behaviour also cuts across demographics e.g. a 65 year-old grandmother can purchase as much, and as often as a 30 year-old male without any children. Targeting you customers based on demographics alone means wasted opportunities.
USING CUSTOMER BEHAVIOUR
Customer behavioural analysis and segmentation is a potent marketing tool because it provides a multi-dimensional and dynamic view of your customers across the following key dimensions:
- Understanding Customer Lifecycle = “the right message, to the right customer at the right time”
- Understanding Customer Engagement = “ability to drive repeat behaviour”
- Understanding Customer Value = “where to invest time, effort and money”
- Understanding Changing Behaviour = “pro-active, surprise & delight vs. reactive, often too late”
Each dimension provides actionable insights. However, when the dimensions are combined the insights become even more powerful, allowing you to engage more effectively with your customers in the most targeted and appropriate way. Click here for more information on each dimension.
One thing is for sure in order to retain the right customers, offer an excellent customer experience, improve customer loyalty and grow your business, you have to know your customers better than ever before. This means creating complete customer profiles that help you understand, react to, and measure your customers’ behaviour at every touch point across multiple channels.
Customers these days have more power and choice than ever before. Listen to your customers and react to what they are telling you, before it’s too late.
HOW DO I GET TO KNOW MY CUSTOMERS?
Customerlink will give your business a competitive advantage through the power of customer behavioural analytics – the quickest and most cost-effective way to understand your customers and grow your business.
Don’t have customer data? We can still help you!
To find out more about customer behavioural analytics and boosting business growth, keep an eye on the blog or get in touch for an obligation-free discussion about your business needs.