There are countless ways loyal customers are lured away by competitors. And that’s why savvy marketers count on customer retention strategies to anticipate behaviors, engage customers, reward loyalty and retain loyal customers longer.
The most successful weapon to fight customer attrition is a personalized customer experience unique to the individual. — Business2Community, Nov 2015
Customer Retention Strategies — Benefits
Marketers use customer retention strategies to track purchase frequencies, identify patterns and anticipate behaviors. If a customer hasn’t visited when expected, marketers tempt the individual with an offer she can’t refuse.
Successful loyalty programs are built on data-driven customer insights. Segment and treat consumers who are most valuable differently than those who are less profitable. — TargetMarketing, Nov 2015
Marketers engage customers with offers they care about. These offers not only tempt customers, but add that special treatment which consumers expect. Marketers also engage customers with offers on items that complement items purchased. And by rewarding loyalty, encourage purchases.
Customer Retention Strategies — Challenges
Analytics for customer retention strategies include: customer segmentation; market basket; and recency, frequency, monetary. The details are available in the transaction data, and the analytics can be tailored to customer segments, or even individuals. Customer retention is not rocket science. But the data management and data mining are complex and require a deep-dive into transactions and complex joins with customer and product data.
Even if CMOs recognize they need to build stronger relationships with consumers through data analytics, many still struggle sifting through vast amounts of data, coming up with actionable insights and implementing them. — IBM Big Data Hub, Nov 2015
A problem marketers run into is they don’t have the skillset to understand and manage data, along with tools to analyze and gather data. Many business analysts lack data management skills. They can’t manage complex data, or aren’t trained in data mining. So they create inappropriate and error-filled analytics. And in-house reporting tools fail when data is out of reach or too complex. Marketers don’t get the customer picture they need and lose confidence in both the statistics and the supporting data.
Customer Retention Strategies — IDP
Effective use of customer data is a competitive weapon. And the foundation to successful customer retention strategies is accurate, reliable data. But your data is challenging, and that you have limited resources.
Given the delicate nature of business-customer relationships, you will have considerably lower churn by improving your relationships with customers through personalizing their experiences. Start by referring to them by name, then use their personal data you’ve collected to show you know them and care about them. — CustomerTHINK, Apr 2018
At IDP, we remove the requirement that business analysts manage complex data. We bridge the gap between data management and analytics. So analysts focus on the statistics and not on data.
We manage large data volumes with complex structures and we integrate disparate data sources to build rock-solid analytical data sets. And we always collaborate with marketers to generate actionable results.
When the supporting data is rock solid, then customer retention strategies become much, much easier!