Webinar Recap: Strategies and Tactics to Improve Customer Loyalty
Companies are always looking for ways to grow their bottom line, and with inflation hitting hard, it has become even more important to focus on profitability. Creating better, more connected customer experiences is the way to do that.
People are always going to buy things, but what’s changing is how they buy, where they buy, and what they buy. The only true differentiator for a retailer is the experience they create for their customers.
A Changing Digital Landscape for Retailers & Consumers
It has been a challenging couple of years for retailers.
- Thanks to digital disruption, retailers have more data than they are used to, and they are struggling to figure out how to manage and harness that data.
- Privacy laws are driving more risks, and non-compliance is increasing costs.
- The economic downturn and inflation are causing people to rethink what they buy.
While retailers are grappling with all these challenges, consumers are undergoing their own transformation. With ready access to the information they need to make decisions, they have access to more choices than ever. In addition, social media is giving them a voice, and it has become a powerful tool, especially for negative experiences.
Consumers also want personalized experiences on any device or channel they choose to use, while also expecting brands to respect their privacy. This forces retailers to create experiences that reach across channels and devices consistently and seamlessly, while adhering to consumer privacy preferences.
Retailers Live and Die By the Shopper Experience
Consumers are willing to exchange their data and money for relevance and value. In fact, 83% will give their data for a valuable offer. Seventy-six percent will stay with a brand that makes them feel appreciated.
So how do retailers create experiences that consumers demand? The answer lies in connected data. However, many retailers find it hard to connect their data because it’s trapped in silos across the organization. These silos result in disconnected experiences.
There is hope, though. Retailers need to remove data blinds and connect the silos to use data efficiently and safely. They also need to consider how they can enrich all the first-party data they collect to create a more accurate, customer profile. With a unified profile, retailers don’t have to worry about sending the wrong messages.
Here are a few examples where data has helped drive innovative, automated, seamless customer experiences.
- Sephora used a next-best product algorithm to increase basket size and increase repeat purchases.
- Gucci created a handbag inside the Metaverse that sold out in minutes (and it wasn’t a real handbag).
- KFC took that feedback from social media and redeveloped their fries, asking consumers to “give them a try.”
Curated recommendations are another tactic where brands can apply connected data. In exchange for telling a brand their product preferences, consumers can receive a basket of products they like shipped to them regularly.
Make Data the Core of Every Decision
Retailers need to aggregate all their customer data to create a “golden record,” including data from point-of-sale (POS), CRM, loyalty, and customer service systems. They can then enrich this first-party data with second- and third-party data to create a complete, real-time understanding of customers.
Connected data empowers retailers to create seamless customer experiences. With data at the core of every decision, retailers know they are delivering what customers want and need, and doing it in a way that ensures they are adhering to privacy laws.
It’s making the connections that win customers’ hearts.
Watch the full webinar, “Strategies and tactics to increase customer loyalty and improve profits,” on-demand here.