The fact is that “73% of companies with above-average customer experience perform better financially than their competitors.” One of the best ways to improve customer experience is to personalize it. Here are 5 advantages you will have over your competition, if you use Customer Intelligence (CI).
CI allows you to know that a 25 year old has more in common with a 50 year old than with his own peers. That two people with the exact same salary of 80,000€ have completely different purchasing power. For example, Person A just had a baby and moved into a new house, while person B lives alone in an apartment. CI allows you to know your customers, their needs, their values, their stage of life and tailor your approach accordingly.
Here are 5 advantages you will have over your competition if you implement Customer Intelligence:
#1 Gain more customers
80% of customers are more likely to purchase a product or service from a brand who provides personalized experiences, while 71% of consumers feel frustrated when their shopping experience is impersonal. This means that with the insights you receive from Customer Intelligence you can change the layout of your website, the use of colors or the promotions and products showcased for specific people to increase sales. You can better tailor the shopping experience for your customers and snatch them from your competition.
Transactional, demographic, behavioural and psychographic data all goes into building a customer profile. You can know their history of browsing and purchases, their age, location and gender. More than that, Customer Intelligence gives insight into exactly how people interact with your product and why they make the decisions that they do. A team of psychologists helps make sense of huge amounts of data, by figuring out what triggers certain customers to buy, depending on their interests, opinions, and activities.
Once you know your customers like the back of your hand, you can have a tailored advertising campaign, that will work. Your customers will be segmented into tailored groups and then receive personalised addresses all over the web. Statistic show that personalized product recommendations increase conversions by 150% and average order value by 50%. This is what brings you together, attracts attention and makes the customer remember you out of the sea of competition.
#2 Foster loyalty
The customers you gain, will also stay. People want to feel connected, heard and acknowledged. For example, a leading airline identified customers who were wronged by delays or cancellation and offered them personalised compensation. This resulted in “800 percent uplift in satisfaction and a 60 percent reduction in churn for priority customers.”
If people feel that are more than just a business they are more likely to come back to you. First name addresses and discount codes on their birthday, makes them know you are listening and is what keeps them coming back. They will be satisfied because you will deliver what they want exactly when they want it.
More than that, CI helps you with building your user-flow on site. By collecting data about how the average user behaves on your site, you can make adjustments, simplify and improve the user experience. If you get it right, you will be the provider customers think of first next time.
#3 Save money
Users are segmented into groups based on different characteristics. One, for example, is behavioural segmentation. This groups people based on similar behavioural patterns, such as adding a product to their cart, after reading an article about it, but then discarding it. Having this information, you can now tailor a specific campaign just for them. This allows you to target more specifically and intelligently than you could have with a generic advertising tool.
If you know your customer base, you won’t waste precious dollars/ euros/ yen advertising to the wrong group. Every campaign will be targeted and thus more efficient. Targeted campaigns lead to better results such as a 53,5% higher average CTR that we achieved with Slovene giant Kompas.
More than that, if you provide a better customer experience by satisfying customers needs, you will have greater customer retention. A loyal customer base will result in you having to spend less on advertising as your return rate will be higher. Then, people will become your brand ambassadors as well and spread the good word for you.
#4 Predict the future
Your ginormous database allows AI to make predictions about the future based on patterns from the past. The power of predictive analytics allows you to anticipate the shopping habits of your customers individually and as a whole. You might not have to take it as far as Target, predicting a teenage girl was pregnant before even her dad knew, but anticipating your customer’s needs benefits you as well as them.
For example, if you know they are a new home owner, you can anticipate they will need a couch, a TV and a TV subscription. You can advertise these goods and services to him and John, as we can call him, we be glad – not annoyed – you reached out with those offers. Now you helped someone in need, saved money on useless advertising and earned money with a sale.
#5 Grow sustainably
You will stop relying on assumptions about your customers and your business. Because you will have real time insights based on data, you will be able to make informed choices for every stage of your business lifecycle. Predictions will allow you to cushion or produce extra to meet increased demand, staying one step ahead of your competition. There will be no radical highs or lows, because you will know exactly what is going on.
CI allows you to build relationships with your customers that go beyond a simple transaction. Thus, customers will be more likely to stick with you through thick and thin. You will also, in turn, be better able to satisfy their needs. Greater dedication to indirect and inferred feedback will give you insights into the consumers’ true opinions. Thus, you will be able to adapt instantaneously to match their demand. Times change and so do customers’ needs, but you will know exactly what to do to keep the good times rolling.