It is the age of informed and proactive customers. Nowadays, with just one click, customers can have all the information they need. This has led them to more opportunities and choices, making them less likely to remain loyal to one brand, but rather, to experiment with different ones. The advent of social media has also encouraged them to share their experiences on online platforms. This is good news for both customers and companies. Marketers now have the opportunity to track online customer activity and develop strategies to keep the customers loyal to their brand. McKinsey found that “executive teams that make extensive use of customer data analytics across all business decisions see a 126% profit improvement over companies that don’t.”
There is no doubt that customers are the most important part of a business. A solid customer base is needed to run a successful business. At the same time, it is important to pay attention to competition. If you don’t do well in delivery of services or start providing poor quality goods to your customers, you will lose them to the competition. Definitely, the loss of clients, however minor, can have a negative overall effect on the success of the business.
Currently, analytics are heavily under-exploited by companies despite the benefits. According to a research conducted by Broadway Business, the satisfaction rate of a company’s use of analytics to create a competitive advantage was just 32%. The report further discovered that although the primary area for use of analytics was to improve customer loyalty (58%), the least adopted customer analytics practices were using data for insights (38%) and using social media to determine customer sentiment (35%).
It is essential for businesses to retain their customers at all costs. This can be tough, but with the advent of big data analytics, companies have had an easier time understanding their customers and learning new ways to keep them coming back. In fact, there is no shortcut. To keep your existing customers, you need to know them. In this way, you will be able to offer exactly what they want.
Big Data analytics and Customer Retention
It is good thing to know that your business has all the data you need to truly know and understand your customers. The key is to make sure you have the required big data analytics to get the most out of the data at your disposal, depending on the type of business you are in. Accurate analytics will give your business the capability to derive critical behavioral insights you can act upon.
Sometimes, acquiring a new customer can cost your business hundreds of dollars. It is a lot cheaper to retain the ones you already have. If the operations of your business call for the ability to process high-velocity, high-volume data with minimal latency or if you deal with live data that needs to be used while still in motion, stream processing can help you out. This type of data processing solution gives you the access to continuous/live data that you can integrate with historical data for more context.
Implementing better big data analytics helps you increase customer loyalty. You will be able to act upon the insights you get fast, giving you an opportunity to meet the needs to the consumer effortlessly. Here are some of the big data strategies your business can use to derive insights from customer satisfaction, drive customer loyalty, and be more competitive:
It is important to be agile in your approach to delivery since technology is always changing the requirements of the customer. It is up to your analysts to adjust and keep up. With big data agility, your business will stay ahead of the changing needs and priorities.
Quality over quantity
It doesn’t matter how much data you’re capturing. The key is to make sure that out of all the data you capture, choose the most relevant to the current situation. It is essential to emphasize on quality rather than the quantity of data.
Avoid blind spots
You need to capture what influences the customer’s experience and behaviour; you will miss critical information if there are blind spots resulting in an overall skewed picture of customer experience and behaviour.
Big data can provide you insights on customer experience and behavior. You can use the insight to understand your customers better, which allows you to cater to their needs and requirements effectively. Knowing your customers well and offering exactly what they need allows you to retain them.