Whether the economy is sluggish or booming, it's loyal customers, and therefore your customer loyalty strategy, that present the best sales opportunities, in both B2B and B2C.
In these uncertain times, customer loyalty is a challenge. That's why 25% of sales professionals have prioritized existing customers over prospecting for new ones in 2022, according to HubSpot, with resounding success: 74% of sales managers who relied on up-selling and cross-selling generated up to 30% of their revenues through these techniques.
Customer loyalty has to be earned, especially in an inflationary environment where customers look twice before they buy. You are therefore expected not only to be competitive, but also to offer a quality experience... because 86% of customers are willing to pay more for a better experience(source). And that means the quality of the data in your possession. Because how can you personalize, pamper and "treat" if you don't know much about your customer?
Data Quality for personalization
Unless you have a monopoly on your sector, you're a ghost if you can't talk to your customers as if they were unique. They're drowning in offers, promos and new products. If you fall in line with the ambient din, they'll tune you out, or worse, they won't even see you.
For a long time, personalization was just a little something extra. Today, it's no longer a differentiating factor for e-tailers and customer loyalty. It's a survival factor. As McKinsey explains, brands that have mastered personalization at scale generate 40% more revenue than others.
Of course, you can't personalize with erroneous, incomplete or obsolete data, because you'll miss out on every email campaign. You run the risk of sending "mommy-to-be" offers to a hardened single woman, or promotions for women's clothing to a man. That's the best way to get them to run away.
Data Quality is the breeding ground for this personalization that converts. You know who's in front of you, you can anticipate their needs, and propose offers that resonate with them. In short, you're doing " customer knowledge " in the truest sense of the word. You're no longer just another salesperson, you become HIS salesperson. You create a connection, you establish a relationship of trust. And that's where your customer loyalty begins. And customer loyalty remains the shortest route to growth, as this Harvard paper explains.
A concrete example of customer loyalty: the right data to personalize and sell
Let's imagine an e-commerce site, let's call it SportyShop, specializing in sports equipment. Mr. Dupont is a regular customer who has made several purchases of hiking equipment in recent months. He particularly likes the MountainPro brand. Here's how Data Quality comes into play for a customer loyalty campaign that triggers repeat purchases and builds loyalty:
- We start by collecting and cleansing data. SportyShop has put in place a robust customer data management system, with safeguards on contact forms to verify data entry in real time (on emails and phone numbers). This e-commerce company also processes its existing database on a regular basis, as 25% of the information becomes obsolete each year (moves, changes in telephone numbers, etc.). So the company knows Mr. Smith. It has his surname, first name, e-mail address, telephone number and postal address, as well as his purchase history, frequency of purchase, favorite brands and browsing behavior on the site.
- We segment. With comprehensive, reliable and integrated data, SportyShop segments its customer base. Mr. Dupont finds himself in the "Hikers" segment
- The trigger: a new collection.With winter approaching, SportyShop welcomes the new MountainPro collection, featuring clothing and accessories for winter hiking.
- The personalized campaign is prepared and launched. An email campaign is prepared for the "Hikers" segment. It features three special offers on the new MountainPro collection, and a 35% discount on a number of reference items from previous collections that had not been purchased by our hikers.
- The email sent to Mr Dupont is therefore personalized. It mentions his name, recalls his previous purchases and suggests items from the new collection that match his preferences. The verbatim is rooted in the hiking culture. Mr. Dupont receives the email, opens it and finds an offer that speaks directly to him
- Attracted by the suggestions, he clicked on the link, explored the new collection and ended up buying a MountainPro jacket and pants for winter hiking.
- SportyShop analyzes the campaign results. The team sees that Mr. Dupont, as well as many others in the "Ramblers" segment, have made purchases. It also notes which offers had the greatest impact, which suggestions were clicked on the most, and uses this information to fine-tune future campaigns.
- Mr. Dupont is satisfied with his experience. He found exactly what he was looking for without being bothered by uninteresting offers. He's more inclined to come back to SportyShop for his next purchases. He's even left a nice review on Google My Business!
Data Quality = operational efficiency = optimized cost = competitive selling price!
E-businesses that can rely on reliable data are less exposed to " operational blunders ". They're better equipped to achieve that well-oiled business machine that holds up over the long term.
Take delivery, that critical moment when your promise is put to the test. One wrong address and you're on your way to a frustrating (for the customer) and costly (for you) experience: lost parcels, unhappy customers, a damaged reputation, margins eaten away by returns... With reliable data, you're on the safe side: parcels arrive safely, customers are satisfied and inclined to come back.
Fewer errors mean less waste, less wasted time, controlled costs and, ultimately, the ability to remain competitive on sales prices without cutting into margins. Customers see the quality of the product, the match between price and value, and the quality of the experience. It's as simple as that.
Data Enso: the power of data to enhance your sales performance
Building customer loyalty, customizing at scale, limiting "operational blunders", optimizing costs, staying competitive on sales prices... Mastering and exploiting your Data capital means activating a cascade of business advantages that will put your e-commerce into orbit.
To support you, Data Enso has developed a range of Data Quality solutions to clean up your existing database and ensure the cleanliness of the data entered by your customers on your website's various forms. Give us a try!