Speedeon Data Blog

Engage and Retain Your Customers With Data Models

Posted by Rachel Pankiw on Jun 16, 2017 1:41:46 PM

 

An email retention campaign can be a cost effective option for marketers who wish to keep their customers engaged and maintain brand awareness. In fact, 89 percent of marketers used email as part of their overall retention efforts in 2016, according to the 2017 DMA Statistical Fact Book. Acquiring new customers can be a long, costly process, which is why more companies are investing heavily into CRM systems and loyalty programs to ensure customers (and their wallets) stay put. It can be a challenge though to determine which customer segments to invest marketing resources into or how to properly gauge the impact your retention efforts are having on your bottom line.

Whether your goal is to generate additional revenue from existing customers, or prevent costly churn, high quality customer data can help ensure you’re focusing the right resources into the marketing channels that are most appropriate for each customer segment.

Perhaps you wish to identify incremental purchases that will help drive basket size and grow sales within a particular product category that’s needed for a crucial KPI.  A data model can be used to analyze past purchase behavior and uncover hidden trends and patterns within those shoppers who best fit your targeting criteria.

Response models can also be developed to identify both cross sell and upsell opportunities in addition to ranking customers based on the likelihood that they will respond to a particular offer. An RFM model can be particularly useful for determining who your best customers are as it looks at key attributes, including how often they shop, how much they spend, and how recently they interacted with your brand. 

Since models are predictive in nature the use cases for them are countless.  Are you trying to entice a seasonal customer to become a more frequent shopper? An RFM model can be implemented to develop a boomerang offer that encourages an additional trip to receive exclusive savings.  Do you wish to identify the optimal promotion that will encourage customers to redeem their offer while still maximizing your profits? A model can also be used to create an escalating offer across different customer segments that answers that exact question.      

Today’s customers require personalized, shopping experiences catered to their unique needs. Innovative retail customer experiences are critical for establishing and maintaining brand loyalty. High quality customer data can be extremely beneficial for retention efforts as well as generating additional revenue from existing customers. Regardless of your particular campaign objectives or current challenges, a data model can help you develop more integrated, cohesive messaging. By creating personalized offers based on customer preferences and past purchase behavior, you’ll be able to develop omnichannel communications that resonate with your customers, ensuring they stay put.

 

Topics: Customer Data, Data Modeling, Customer Retention, Customer Strategy, Data Driven Marketing

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