When it comes to enhancing customer experience, personalisation is everything. Your customers now demand more choice, across more channels and all delivered with a personal touch. Mass mail order based on generic segmentation is becoming increasingly more expensive, and retailers are looking to a lower-cost, more targeted strategy to replace mass mail.
Customers now expect a proposition that is personal to them, based on their buying behaviours, browsing habits and personal preferences. So in this omnichannel age, where relevance is crucial, how can you “the retailer” improve customer relationships, loyalty and brand engagement? And how can you integrate the various sources of customer data “online, social and offline” into a comprehensive and fully integrated single view?
Modernising your customer retention
In today’s competitive environment, customer loyalty and retention is the new battleground. According to management consulting firm Bain & Co., it costs five times as much to acquire new customers than it does to keep current ones, while the Pareto principle “also known as the 80/20 rule“ claims that 80% of your company’s future revenue will come from just 20% of your existing customers.
Using a tactic called next best action can help you deliver a personalisation strategy that creates meaningful and individual relationships with customers, while simultaneously enabling you to automate customer journeys. A statistical process, next best action uses the available data you have on your customers, including purchasing and communications history, to recommend the most appropriate action in the form of communication to each of your customers. A measurable technique, it can help you increase sales and lifetime customer value and, most importantly, drive down marketing costs.