Get Predictive: Keep Your Customers To Yourself
If there is one pressing thing that should truly worry a marketer and the organization; it is the silence of the customer. In most instances, the dissatisfied customer may not inform the company, they will simply choose to walk away and take their business elsewhere.
Here are some stats that should support the statement above and drive the point home:
· 68% of customer defection takes place because customers feel poorly treated
· 95% of people who have a bad experience do not complain
· 13% tell up to 20 other people, while a satisfied customer tells only five other people
· It can cost five times more to buy new customers than retain existing ones
· 1% cut in customer service problems could generate an extra R200 million in profits for a medium-sized company over five years.
Enter Predictive Analytics
In the current economic landscape, the business with the most in-depth understanding of consumer behavior is the undisputed market leader. This understanding helps businesses to:
· Optimize their marketing campaigns
· Deliver memorable customer experiences
· Foster loyalty
· Improve customer retention
· And lots more…
In one of our earlier blogs, we had stressed on the absolute necessity to personalize customer interaction and engagement for better business. Contemporary marketing research validates the fact that personalization can not only increase sales by 19%, but also drive up customer engagement substantially. Progressive companies across the world are doing just that. Personalizing their campaigns. Period.
However, to personalize campaigns for maximum effect, marketers must gather and analyze data and subsequently, gain valuable insights. This is where predictive analytics delivers. With predictive analytics, businesses can be better equipped to improve the customer’s experience and retain him for life, thus minimizing churn.
Predictive analytics can identify experiential pain points during the customer journey and implement remedial solutions in time, thus negating customer churn. With Gamooga’s intuitive marketing automation solution (powered by a strong predictive analytics engine), businesses can gain actionable insights that can then send the customer the most contextual messages via the right channels at their strong moments of intent. This is a sure shot formula for increased conversions and a win: win situation for both the business, as well as for the customer.
It has been noted that predictive analytics helps businesses to study a customer’s past proclivities toward particular products to correctly identify the precise set of products to promote to him. This facilitates highly customized offerings to the most inclined customers or to the most potential future prospects.
Deploy real time marketing campaigns
Real-time customer recommendations gathered out of a CRM is further enhanced with a predictive analytics platform. It can provide individual customer predictions to help marketers match the product offers based on relevance, frequency, demographic data and purchasing data available for each individual consumer.
All of the above points help to enhance customer retention. However, it may be safe to say that any one single action cannot suffice to facilitate churn reduction and enhanced customer retention. Churn decisions may be a result of a melange of multiple good and bad experiences of a customer’s. By harnessing the power of predictive analytics, companies can identify the full path and sequence that they need to take to make the customer stay with their business.