It’s a well-researched topic in the world of loyalty marketing that it costs more to acquire new customers than it does to retain existing ones. It’s also no surprise that loyal customers spend more than new ones. Research shows that “customers that are actively engaged with brands and their loyalty programs make 90% more frequent purchases, spend 60% more in each transaction and are five times more likely to choose the brand in the future.”
This highlights that retaining and continuously engaging with your existing customer base is one of the most cost-effective ways to increase profit margins. Yet, many brands are falling short when it comes to employing initiatives to achieve this very goal.
Customers who feel like a brand is listening to their needs and using their data wisely are more likely to engage and purchase again and again. One way to continue and encourage this positive trend in purchase behaviour is through personalized, relevant product recommendations. Interestingly though, only 34% of brands personalise all of their product recommendations at the segment or individual level.
Customers now expect brands to use their data wisely to shape offers and promotions. By better understanding the data and what motivates your customers, you can engage with them in ways that deliver swift, positive impacts on your bottom line. Yet, 44% of brands do not use past purchase and location data to tailor new product recommendations.
By integrating real-time purchases with historical purchase data, including frequency and value, as well as demographics and lifestyle data you can tailor your communications and recommend the best next purchase/service for your customers at a truly individual level.
At the end of the day, you want to deliver the right offer at the right time to increase customer retention and deepen the connection they hold with your brand.