Customer Data: Using Available Information to Drive Business Revenue
11 Nov 2019
Data is increasingly a vital factor in today’s businesses. With the sheer amount and complexity of data, some businesses hire data management services to help then make sense of available information in efforts to drive revenue. The smart use of data is the key to succeeding in today’s increasingly competitive market.
Here are three ways to use data to effectively engage customers at each stage of their purchasing journey.
Improving Customer Acquisition
One of the advantages of online retail is that brands gather a considerable amount of information about how consumers live, shop and buy. This allows marketers to target potential customers based on factors such as demographics, product usage and socioeconomic status instead of simply taking a mass-market approach.
Armed with behavioural insights, marketers can group purchasers according to distinct consumer profiles; in turn, they can now come up with marketing segments that match the demographic they are trying to reach. This enables their clients to target their advertising budget more accurately and efficiently. For you, as the business owner, that’s great news – after all, spending your advertising and marketing budget on individuals who are more likely to buy your product or service is an excellent way to increase sales. When you concentrate your efforts on reaching individuals who have already shown an inclination to buy your product, you are one step closer to boosting your ROI – and consumer data gives you the power to do exactly that.
Pricing is one of the challenges of introducing a new product. Pricing too high drives away potential customers, and pricing too low affects profit margins and customer perception. Aside from research on the competition and market opportunities, data such as behaviour, demand, past transactions and customer demographics helps you determine an ideal price range for your products or services.
Increasing Customer Retention
Although attracting new customers is important, retaining them is just as important. According to a study by The Boston Consulting Group in 2017, retailers who create curated consumer experiences for shoppers see an increase in revenues between six to 10 per cent. Customers who are happy with their purchasing experience are more likely to become loyal consumers of your product or service. What’s more, satisfied, loyal customers are more likely to refer your brand to others, thereby boosting your sales even more.
Approaches such as personalised discount offers and product recommendations help drive customer loyalty and repeat business. Data points like demographics, lifestyle and prior purchases are pieces of information that are vital to the success of your curated customer experience. This is an ongoing process, so you must regularly refine your offerings based on every interaction made with your customer.
Data plays an important role in all parts of the customer journey, from identifying new customers to building loyalty with existing ones. By knowing how to use customer data, you can target the right market and improve your relationships with current customers, ensuring that your business is set for financial success.
Learn How to Maximise Data with Romax’s Data Management Services
Since 1997, Romax has been a trusted supplier of direct marketing and data management services to organisations like BBC, the NHS and Reed Exhibitions. We are passionate about providing the best client service, so we take the time to get to know our client to find the best solutions and deliver winning results.
As one of the data management specialists in the UK, we conduct an exclusive 22-point check on all data that arrives. We then advise you on how to improve data accuracy and reliability to enhance your marketing campaign.
With Romax, your campaigns and data are in safe hands. Enquire today by filling out our contact form or calling us on 020 8293 8550.