The internet has revolutionized how companies target buyers and drive sales. The most successful businesses have increased their e-commerce sales by targeting an individual’s specific preferences and needs through a rich, 360-view customer profile. Here are three ways to make the most of your wild and wooly customer data.
Creating customer profiles is a first step. Data driven profiles inherently provide more value and detail than a simple top line view, such as “parents of a newborn are the ideal customers for diapers.”
Explore how ideal customers approach the buying process. This involves more than looking at the when and why of specific purchases. Besides collecting data from every transaction, visualize the path pre and post sale to gain a deeper understanding of how your consumers are engaging. Also, work to understand the following: How do customers identify a problem or need which drove them to a product search? When and how will first time buyers repeat their purchase? And, how can the product turn into a longer-term service or create upsell or cross-sell opportunities for other products in the portfolio?
Tip: Collecting and analyzing first-time buyer profiles allows you to build look-alike audiences from non-purchasing segments.They can can then be effectively engaged to buy products for the first time. Using these look-alikes will also deliver insights on how often they react to marketing content and/or promotions.
The Pareto Principle states: “20 percent of your customers create 80 percent of your revenue.” With this in mind, spending considerable time and effort nurturing that 20 percent is a logical choice for marketers. But how do you best define who falls into that top 20 percent? Enter RFM scoring. By understanding and segmenting customers by how recently they bought from you, how frequently they buy and the monetary value they bring to your business, you can start identifying customers which have significant lifetime value to your business.
RFM scoring is critical, and using that data to develop better customers in the future is the true power of predictive analytics.
The marketing world is data-driven—but data is useless unless it is quickly actionable. The quicker those data insights are actioned, the sooner you can win new sales and stay ahead of the competition!
Forrester reports 74% of firms say they want to be “data-driven,” but only 29% are actually successful at connecting analytics to action. Actionable insights appear to be the missing link for companies that want to drive business outcomes from their data.—Forbes
For those who don’t have the advantage of TouchCR’s predictive analytics, we offer a few tips for deriving actionable insights from your e-commerce data:
How does TouchCR approach profile building?
In short, it’s a combination of many elements covered above. They start by quickly generating RFM scores, which identifies your best customers. They then create personalized profiles by merging data like demographics, psychographics and more. In fact, TouchCR’s enhanced customer profiles pull from nearly 80 different data points. Location data, account web tracking and email analysis are just some of the data which powers TouchCR’s industry-leading customer profiles.
For more information on how customer profiling, scoring and actionable data insights can increase your sales, contact TouchCR today to schedule a demo.