Why Data is the Key to Customer Loyalty
Why data is the key to customer loyalty. With all of the customer data available to businesses today, many marketing experts question why so many businesses fail to leverage that data. This failure is especially bewildering given the fact that more and more mobile app users report having little patience for generic messages.
People today want to feel as if they are valued by those they do business with. A recent study found that three out of four consumers reported being frustrated by automated messages that don’t offer them anything meaningful.
In order to endear your brand to your customers you need to establish a relationship with them. This relationship must be built on trust and an understanding of what is important to your customers and how you plan to provide those things.
An increasingly mobile world means that businesses know where their customers are at any given moment as well as their purchasing habits. The ability to leverage this data is critical to the success of your business. However, leveraging this data only to send constant, cookie-cutter messages doesn’t make sense. Instead, you need to approach customers with the information they are searching for, not just with the things you want to sell.
Another way to let customers know that you value them is to be upfront about what they are signing up for when they download your app, for example. You want to be very clear about what you will use any data collected about them for and allow them to opt-out at any time. In the past, many companies worried that the more transparent they were about gathering information, the less willing people would be to download apps or join a rewards program. Turns out that the opposite is true. Consumers are more likely to share information when they understand that they will get something out of it.
Of course, once you earn a customer’s trust, you need to be vigilant not to break that trust and always keep their information secure. Again, many businesses worry that too many authentication codes or frequent password changes will turn customers off. Instead, these extra security measures let customers know that you don’t take their trust – or their information – for granted.
Finally, make anything you offer your customers worth their while. There is a whole lot of competition out there so only those businesses who stand out will retain customers. To keep your loyal base of customers it is critical that you offer relevant, personalized messages that speak to a customer’s needs and interests.