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How to Improve Your Customer Retention Strategy

How to Improve Your Customer Retention Strategy

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As tech continues to evolve, advertisers need to capitalise on customer insight to retain customers. By taking a personalised approach, they can meet the more sophisticated expectations of contemporary consumers.

Today, advertisers have a new set of challenges as the rise of digital commerce and shifting consumer expectations wipe out many of the assumptions behind the old strategies. Consumers make their most significant connections with a brand online, which demands a substantial shift of mindset away from the old conventions that governed sales and marketing for decades. Brands have to realise that in the digital-first world the consumers themselves are now their best advocates.

Digital has put more choice in the hands of consumers

The dominance of digital channels has given consumers incredible choice and the ability to compare prices and specifications like never before, thanks to comparison websites and the enhanced features of search engines. Potential customers also have access to tips and advice on a huge range of niche websites and platforms that address the concerns and dilemmas of consumers considering a purchase.

The advent of GDPR has also led to a major reappraisal of how marketing departments should use personal data. The new regulation ended the free-for-all approach, putting more power into the hands of consumers about how their information is used. Yet consumers who trust that their data will be employed to benefit them directly are more willing to share it.

In the GDPR era it seems obvious that increased personalisation is the most effective route to keeping customers happy and by extension, to successful outcomes from marketing tactics. Consumers will not only welcome what has direct relevance to them as individuals; they will remain engaged because such content makes their lives easier without being intrusive.  

Personalisation is critical

Meanwhile, marketers also face attitudinal changes, such as the yearning for greater authenticity and the growth of skepticism about claims made by major brands.

It’s clear that personalisation is essential for all service providers if they are to compete in a tough market. What will keep consumers interested and lead to greater revenues and greater loyalty, is not an unpleasant level of familiarity that means you are followed around the web by a sanitation company because you are thinking about a new bathroom. No, it is being treated as an individual rather than just one of a million numbers on a sales sheet.

Almost every business is personalising its communications but with artificial intelligence (AI), the personalisation of content goes to the next level. Amazon, supermarkets and major travel companies are the most obvious retail giants using advanced data-crunching technology for personalisation, continuing engagement with consumers. Their use of technology allows them to remember who the consumer is, their habits and probable next purchases.  As AI learns more about each consumer, the brand can market to them in helpful ways that make life less stressful.

With smart insight platforms your customers will help you boost trust in your brand

This is where customer feedback is frequently overlooked. Smart, agile, invitation-only review platforms plug into a consumer-facing organisation’s systems and provide two important capabilities.

One is to deploy machine learning and natural language processing to comb through thousands of pieces of feedback, providing a retailer or services company with rapid and otherwise unobtainable insights into what may be fast moving trends among its customer base.

This may uncover surges in demand for particular products, problems with delivery in certain areas, as well as the particular concerns of individual consumers to which a response or resolution can be provided very quickly and publicly.  When a brand responds publicly on such a platform to an individual, everyone can see that it takes personal concerns very seriously.

The power of AI behind platforms boosts the speed at which insights are delivered for brands and consumers alike. We know that reviews are now remarkably influential, with more than 90% of consumers saying they read them before making a purchase.

The second advantage of leveraging customer insights is that each consumer who contributes becomes a brand’s best advocate, offering a far more persuasive and authentic voice than hired bloggers and vloggers.

Since only real customers can leave feedback on an invitation-only platform, consumers trust what they read and have more faith in the organisation. They can see that a holiday company or recruitment agency is prepared to accept the posting of negative reviews and is far more transparent and honest. Consumers are much more likely to stick with a brand that continues to be open about customer feedback and acts on it.

Smart insight platforms are the best engines of authentic personalisation out there

Customer attitudes and habits are changing, so marketing has to be more personalised, more authentic and maintain consistency across every channel – mobile, app and website. By embracing smart, agile insight platforms, consumer-facing organisations can leap forward to meet the more sophisticated expectations of contemporary consumers. They will use the power of consumer advocacy to speak to current concerns and changing demands in concise, highly personalised ways.  

This is critical when potential customers have access to so many information sources and are bombarded with marketing content that makes them deeply sceptical. Through the power of AI, customer feedback is turned into hugely valuable insights that are highly potent tools of personalisation.

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Steph Heasman

Steph Heasman

    Steph is Feefo’s director of customer success, responsible for delivering an unparalleled customer experience and driving maximum value for Feefo’s 3,500 clients. Steph has more than 10 years’ experience in customer service facing environments, most recently in Saas tech businesses, with a fast-paced startup culture that required a customer success strategy, to ensure retention and growth. Prior to joining Feefo, Steph ran the UK customer success team for Reward Gateway, a global engagement technology provider that powers brands including Groupon, American Express, Yahoo!, IBM and McDonalds.

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