The present-day world is flooded with data. In 2020, the amount of new data generated every day reached 2.5 quintillion bytes, and this number is only continuing to grow. Obviously, this volume of information is not generated solely by individuals. A considerable amount is created by businesses. From purchase history to customer feedback and comments on social media - all these data snippets are gathered by companies every day.
However, without proper and thorough data analysis, the collected information may be of little to no value for any company. Therefore, this article is aimed at providing an in-depth look at how data analytics strategies may be used to enrich customer experiences and, most importantly, build strong customer relationships.
Data analytics creates a unique view of customer
It’s no secret that, when used the right way, data analytics allows transforming customer relationships. In fact, it enables companies to see their brand through the customers’ eyes. By thoroughly examining customer behavior, their buying patterns and preferences, the company gets to know its customers better. This knowledge can be further used to create more personalized sales offers, build more targeted marketing campaigns and enhance communication strategies.
Data analytics allows tracking trends
Data analytics removes the guesswork out of understanding the trends in your industry and the customer expectations. By gathering and analyzing purchase histories and customer interactions with your promo campaigns and feedback, the company gains total visibility into both the purchase process and market trends. Having all these data at hand, businesses can see what products or services are popular now and predict those that are going to be popular in the future. Data analytics allows companies to be one step ahead of their competitors and ensures that the required products are always in stock.
Data analytics helps to increase the customer lifetime value
The customer lifetime value is a central factor that directly influences the profitability of your business. If your customers are loyal to your brand and keep returning to make repeated purchases, it means that your company can boast healthy customer retention rates and high revenue. However, if the lifetime value of your customers is low, data analytics may help boost it. The massive amount of data your company collects can provide powerful insights not only into who your customers are, but also into the strategies that will work better to retain them. By using your data to create a personalized, omnichannel customer experience, you can ensure that your customers will stay with you longer.
Data analytics makes customer support better
Gathering and analyzing data that comes from all existing channels - phone calls, emails, chats, website forms, social media - provides the ability to identify the most common issues and questions that customers experience. With this information, the company can automate responses for common support inquiries. This allows the customers to receive replies instantly, and the company will not need to hire more staff. Moreover, a comprehensive evaluation of customer feedback provides the ability to lessen the number of support inquiries by improving the drawbacks of the service or product and, as a result, increases customer satisfaction rates.
Data analytics enhances marketing personalization
Customers respond to personalization these days as never before. Data analytics allows your company to personalize every interaction with a customer to a great extent. It enables your marketing team to analyze the target audience based on demographics, age, gender, education, the technology they prefer, personal interests, beliefs, and stages of the sales process. These insights help tailor highly personalized and emotionally charged marketing campaigns that will appeal both to individual buyers and specific customer segments.
Ultimately, data analytics has a great potential to improve the quality of your customer service and maintain loyal, even lifetime, relationships with customers. Collecting and analyzing large amounts of business data manually can be daunting, and in some cases almost impossible. One of the ways to automate this process is to implement the right CRM solution, one that’s equipped with powerful reporting tools. EspoCRM is an open-source platform that allows you to optimize the data management processes and get valuable insights into the performance of your company. The software provides companies with the necessary functionality to gather, analyze and use data to improve customer experience, build loyalty and make data-driven decisions.