The era of Personalised Marketing: Treating every consumer differently!
When you go out shopping or you browse online, today, you will find different products and services in the same genre. Such has been the case that building customer loyalty and advocates for any brand has become really difficult. A recent study showed that up to 80% of profits can be achieved from 20% of loyal customers for any brand. So, how will any brand owner try to build a loyal customer base with the help of technology and automation?
You will need an Automated Customer Engagement tool that will help you to achieve efficiency when it comes to interacting and understanding your customers. There are different types of marketing campaigns, which any brand runs to target its customers. One such campaign is called Multi-Segment Campaign, where you analyze your customers on the basis of Recency, Frequency and Monetary Spend, and reach out to them differently!
What is RFM Analysis?
Let’s say that there is a retail store that deals in clothing and accessories. There is one customer, who visits the store once every month and makes a purchase of INR 2000 on every visit. There is another customer who visits the same store once every three months and usually makes a purchase of INR 7000 on every visit. Well, if both of these customers stop coming to the store, the Brand Recall strategy can never be the same.
33% of your consumers can forget your brand if you do not personalise their experience. Hence, you will need to employ different strategies to call back these two types of customers to your store. That is where automated Recency, Frequency and Monetary (RFM) analysis of your customers come into play where the system will segment each customer, automatically right after their visit to your store.
With this analysis in place, you can set different customer recall campaigns for different customers, and each campaign can also have different incentives. If the first type of customer has not come back in a month, one can set an incentive of 15% Off on minimum billing of INR 3000 and use the same to upsell and call back the customer, whereas the second type of customer will not be targeted since their usual lead time between 2 visits is 3 months!
The Need of the Hour!
There are multiple reasons why these kinds of automated campaigns and analyses become important and why all kinds of brands should employ these tactics.
- Increase the ROI of each and every campaign: It is always beneficial to run a campaign, which is customer-centric and targeted. This helps in minimizing many kinds of marketing communication costs and increases conversion. A recent study showed that segmented campaigns had a 14.31% higher open rate and saw the conversion of 101% more than that of generic campaigns.
- Make a personalised experience for every customer: Personalization is the need of the hour in the 21st century. Majority of the brands lack effort and technology to back this requirement. Hence, with an advanced CRM tool, you can start understanding the Customers’ buying behavior, drive them to your place through multi-segment campaigns and increase the LTV of these customers to make them your brand’s advocate.
- Your customer retention is bound to go up: With automated multi-segment campaigns, you can start reaching out to your customers in an Omni-channel fashion, be it Facebook, Instagram, Instant Messages, WhatsApp, etc. A CRM tool helps you to bind your customers, and this kind of campaign helps in greater conversion as the system will be reaching out to the customers on the basis of their preferences.
- Your Customers’ frequency of Visits will go up: With automated brand recall based on automated Segmentation, you can set up objectives of decreasing the lead time between two visits of a customer, upsell new products and services to customers, and also work on tactics to convert visits of customers.
So, if you’re looking to maximize your Returns on Marketing Campaigns, drive more customers to your store, increase their Lifetime Value and enhance their experience with your brand, you should look at an Automated Customer Engagement engine that will help you to achieve these objectives.