3. Converting one-time buyers
Having a customer buy once and then disappear is a frustrating challenge every brand faces. Acquiring a customer is only half the battle — turning your new customer into a repeat buyer is the real trick, as brands bring in the most revenue from repeat buyers. So how can companies encourage multiple purchases?
Using the data you have available on first-time buyers, identify their personas and then decide what might bring them back. A great place to start is right at the beginning, with follow-up offers and communications. If you serve the customer a compelling welcome series, they’re far more likely to make another purchase. A one-size-fits-all welcome email is a missed opportunity. A far more successful method to drive repeat purchases is by personalizing the welcome series across channels. If a customer bought a pair of hiking boots, follow up by serving them ads for active gear on their preferred channels, then send them an email containing hiking tips.
4. High-value customer acquisition
All customers are not created equal — some may make one small purchase and never buy again, while some will make many big-ticket purchases over the course of months or years. Given the cost of acquiring customers, focusing on finding the ones who resemble your current best customers is a winning strategy.
Doing this starts with knowing who your best customers are. Rich profiles with a range of data including demographics, geographics, psychographics, product preferences, and other historical and predictive attributes like average order size and lifetime value can be used to make lookalike audiences as a basis for finding similar customers. At the same time, good data hygiene can make it easy to ensure that acquisition efforts don’t include existing customers (since nobody likes to receive an offer for something they already have).
5. Promotion reduction
Almost every company has fallen into the promotion trap. It starts off innocently, with a few promotions here and there, then quickly plunges into a promotional downward spiral. Excessive discounting to encourage immediate sales only trains customers to wait for the next promotion, discouraging any future full-price purchases.
The remedy for this problem lies in your customer data. Instead of offering every single customer the same discount, identify the price and promotional preferences your customers have based on past behavior and predictive models. Break your audience up into segments by discount preference and run some tests to see what works. Customers who only buy on discount should receive promotional offers, but with a few variants so you can determine the least amount of discount that will still encourage them to buy. Customers who typically pay full price, on the other hand, represent a segment where you don’t need to offer many promotions, and can reserve it for times when you really want to make an impression.
The foundation under it all
Of course, to tackle any of these problems requires a solid foundation of customer data. It can be tricky to know where to start when trying to drive value from customer data, let alone getting the data into a place where you can even use it. This is where a Customer Data Platform (CDP) comes in.
A good CDP will help make sense of chaotic data, turn it into valuable insights, and fuel personalized marketing campaigns and brand experiences that customers come back for. The first step is getting access to accurate data, followed by deriving intelligence from it. Based on those insights, plan the campaigns and experiences you’ll use to serve your customers and then tweak and refine based on what is or isn’t working — the results of those tests feed back into the customer data foundation adding in new findings, creating a loop toward stronger personalization and deeper customer satisfaction. Today, personalization is just table stakes, and brands that don’t cater to that demand risk losing customers. Even when marketers work off of customer behavior, the data is often so convoluted or difficult to access that it’s easy to miss the best opportunities. Look for a CDP that’s purpose-built to help leap over hurdles in customer-centric marketing by providing access, insights, and connectivity to the right downstream tools to power personalization at scale.
Interested in learning more about using data to personalize your customer experiences? Check out our guide.