Customer analytics is a widely used practice in today's modern businesses. It’s an umbrella term for the processes and technologies that are aimed to give organizations clear-cut customer insight, which is necessary when devising marketing strategies according to changing industry trends. It also helps a brand to know its audience so that it can offer what’s in most demand.
Considered as the backbone of all marketing strategies, customer analytics consists of many unique techniques such as:
- Predictive modeling
- Data visualization
- Market segmentation
- Information management
Why is customer analytics crucial?
In today’s global corporate environment, customer analytics is essential. Global customers are much more empowered and closely connected now than ever before. They have access to all types of information anytime and anywhere they are. They make instant decisions on-the-go regarding what to buy, where to shop, how much to pay, etc.
This makes it extremely important to visualize how the customers behave while interacting with your products and brand in real-time and respond accordingly. The deeper you go by analyzing your target customers' preferences and buying habits, the more accurate your predictions about their buying behaviors will be.
What to do with customer analytics?
By using critical data from customer analytics, you can:
Get to know where all your customers are coming from
Gathering customer data is nothing new, but knowing the source will give you full analytical power. With a myriad of new sources, knowing exactly which channels your customers are coming from can let you focus on the most profitable avenues and maximize results.
Increase response rates
With customer data, you know what your potential customers are interested in. Once you're capable of offering what they want, you can optimize the customer responses to work in your favor. This will increase sales and boost revenue generation.
Gain customer loyalty
When you successfully meet the changing needs of your customers, you encourage them to stay loyal to your brand. Proper customer analytics data will also help you to meet this goal by keeping track of the customer demographics in light of evolving market conditions.
Customer analytics also helps to:
- Reduce the marketing campaign costs by only targeting the most prospective customers.
- Decrease customer attrition rate by identifying the customers that are likely to leave and implement the right strategies to retain them.
- Deliver the right offers and information by effectively segmenting customers based on their needs and priorities.
Leveraging data to remarket or retarget to optimize conversions
If you don’t enjoy the desired results from your business over time, there may be a need to think of remarketing or retargeting to bring business back and be visible to your most prospective customers. Customer analytics data can help you to devise a retargeting plan and develop your new marketing strategies that align with the information you're receiving.
Customer analytics based marketing strategies
Let's take a look at some of the options you have to leverage retargeting based on the consumer data and how to optimize performance to drive business success.
Building proper brand awareness for your new website
If you are launching your brand new site, the primary goal is to build brand awareness. It's one of the basics of retargeting and is also the fastest to set up. You display the same ad to everyone who visits your site, which is basically a code placed at a key area of your site (usually the header or footer) that runs site-wide.
Remarketing to customers who already converted on special offers
There may be a few customers who have already visited your site and converted. You can consider them as remarketing goldmines as they are already familiar with your brand and products. You can keep them engaged with your brand through mailers and can also urge them to take part in referral programs.
- Offering a loyalty bonus
This is a great way to reassure customers that you appreciate doing business with them. Offer some special discounts or coupon codes to the loyal customers who are there to purchase again. However, it's not ideal to remarket to these people with the same generic ads. Try to create a variety of enticing ads to prompt them to come back and save money, ultimately building greater brand loyalty.
- Using leading remarketing platforms
Google has launched its comprehensive remarketing platform and the businesses are making full use of it. Some businesses have witnessed 300%-400% extra conversions. In addition, you can reduce the cost per click (CPC) by leveraging these retargeting strategies.
- Adjusting seasonally
From customer analytics data, you can see if your rate of traffic has changed significantly over weekends or holidays. For some businesses, this seasonal shift of traffic may fluctuate highly and it is important for you to understand this pattern. If you can effectively create a remarketing list of the customers based on these statistics, you can use this list to send them reminders mails of offers for the next season when they think of a similar product or service. Today, even PPC ads can be custom-tailored to remind the customers about the items they left in the cart or purchased previously.
Segmenting your ads based on user groups
Segmenting your user-base in terms of demographics, location, device used and other attributes is now possible. This is an excellent marketing strategy that helps you efficiently optimize success. For example, you could send an ad targeting clothing shoppers in a particular region based on the weather conditions in that area.
Similarly, each network has a unique set of criteria. So, by understanding your market well, you can make a bigger impact on retargeting efforts to give your business a new direction. Understanding marketing is the key here and relevant customer analytics play a vital role. The new age marketing strategies are often intuitive and fully data-driven; and those who possess expertise in them surely have an upper hand to find success even in tightest market conditions.
Lalit Sharma is an SEO consultant who runs a SEO house called Ranking By SEO. He is specialized in link building and other SEO related activities. You can find him on Twitter, Google+ and on his personal blog.