You have thousands or even millions of customers and transaction records housed in your database. The data is useless unless you have a strategy in place to leverage the wealth of insights in your data. Admittedly, that’s easier said than done. Marketers are also challenged with developing and measuring cross-channel marketing strategies. It’s enough to make even the smartest marketer’s head spin. Here are a few quick tips to help make sense of it all.
KPIs are your friend
If you haven’t done so already, start by setting key performance indicators (KPIs) that are directly tied to your business objectives. For example, a restaurant will likely want to increase frequency and visits across multiple day parts. KPIs will help you create the right strategies and engagement tactics throughout the customer life cycle.
Identify key audience segments
Next, focus on identifying which customer groups will help you achieve your objectives. Work with your team and/or a marketing service provider to create buyer personas and drill down on customer segments by lifestyle and demographics. This will help you develop targeted offers and cross-channel communications. Also consider testing “what if” scenarios prior to implementing campaigns.
Utilize a real-time or near real-time technology platform to identify how your customers are responding to communications; then develop better communications strategies. Many marketers want to engage customers across channels and platforms, be it through mobile apps, smartphones, POS, gaming devices, or IPTVs. As behaviors change, you’ll want to collect and use customer intelligence to decrease customer attrition and increase customer advocacy. By tracking behaviors, you’ll form a clearer picture of customer groups and their specific behavioral purchase patterns. Behavioral segmentation will in turn drive incremental spend and increase marketing efficacy.
Measure what matters
Throughout the year, keep a keen eye on program performance regardless of the type of marketing program you’ve implemented. As loyalty marketers, we look at data in terms of active members, participation, spend, breakage, liability, and program costs. We know that leveraging data will drive program design and the loyalty program ROI. This in turn has a direct impact on our customers earn, burn, rewards, benefits, communications, tiers, and account pooling. ROI is in turn tied to the above elements and incremental acquisition, incremental spend, incremental retention, and incremental revenue and expense.
Reporting and customer intelligence analysis
Reporting and analysis of your cohesive communications strategy is essential to proving results and fueling future marketing strategies. Customer retention increases dramatically when your customer purchases multiple products and/or services from your business. Reporting will show if you are successfully up-selling or cross-selling and thus increasing product penetration across your customer base.
What other tips and tricks help you drive brand loyalty?