Are you taking care of your most valuable customers?

As a marketer, you intuitively know that some of your customers are long-term, loyal and profitable. You also know that some customers are a drain on your margins because they always go for the low-cost offer.

Naturally, you want to reinforce the first group so that they don’t drop out—because once consumers switch to another company, industry surveys show that 68 percent of them will not come back.1  But if you can’t see which customer is which, you can’t engage them appropriately and proactively.

Loyalty programs leave a significant portion of their members unengaged

While 63 percent of consumers participate in payments rewards programs, only 19 percent use rewards programs regularly.2  One reason is that too many marketers take a less-than-proactive approach to managing their loyalty programs. Does this scenario seem familiar?

We got a new customer! And they opted into the Loyalty Club! Now I can check out their purchases and transactions, and really get to know them.
First, I'll get them on the 3-a-week mailing list. It's pretty generic, but they definitely won't forget our name!
Six weeks later -- Hm, that new customer hasn't bought anything lately. I'll have to ask Sam from IT to pull the behavior logs one of these days. At least they'll get the discounted shipping offer we send to every-one in the club each month.
Four months later -- Huh. That customer never bought anything else. And now they've opter out of our club. Darn. I wonder why they changed their mind?

Once a customer opts in, don’t waste the opportunity. Use your loyalty program metrics and web analytics to track their purchases and level of engagement with your brand. Follow up with actions and offers to deepen that relationship, not just maintain it. Analyze the data from all of your customer engagements to uncover the best relationship-building strategy for that particular customer, and develop next best actions based on what is most likely to get a positive response.

Why aren’t the right insights coming into focus?

You have so much data sitting in so many different systems. The data scientists who could wrangle that data for you are scarce and already overloaded with requests from across the company. And the analytics tools you have at your fingertips don’t do the full job, which means you don’t have the comprehensive and up-to-date understanding of your customers that you need. That makes it tough to engage with the right people at the right time.

According to an industry study, 92% of respondents use data and analytics for sales and marketing purposes.3  However:

63%
of business-to-business companies polled said it takes too long to get meaningful reports and analysis from their data.

33%
said data is not accurate, it’s too difficult to make strategic and operations business decisions from, and it’s too difficult to do predictive modeling/forecasting with existing data and data models.4 

Conclusion: Marketers like you aren’t getting what they need from their data because their tools aren’t up to par.

In addition, factors such as intensifying competition, soaring customer expectations and channel proliferation and complexity make it more difficult than ever to acquire, grow and retain customers. It’s time to rethink marketing strategies and systems.

View your role as a marketer in a new light

What if you could become self-sufficient and get the cognitive insights you need delivered directly to your own, easy-to-use dashboard?

  • No advanced skills required.
  • Dynamic updates included.
  • Insights configured and prioritized so you don’t spend time seeking or interpreting unimportant and irrelevant data.
  • Actionable outcomes configured for easy understanding, while allowing you to dive deeper if you like.
  • Customer behaviors, trends and predictions revealed before your eyes, enabling you to target the right customers with timely action.

To get there, you need an analytics solution with three key features:

analytics

Rich, prepackaged customer analytics specifically designed for marketers

prioritization

Cognitive recommendations for prioritized marketing campaigns

cloud deployment

Cloud deployment option with pre-integration for swift, seamless, end-to-end action

With the right analytics tools, you have a clear path forward: dig into the customer list, re-tune it through an easy filtering step to match tactics to the particular customer cluster, and bring at-risk customers back into the fold.  From the user-friendly interface, you can swiftly push those target lists into campaigns through your system of engagement.

Best of all, the cognitive technology in the solution “learns” as it analyzes more of your data, so you get results and recommendations with pinpoint accuracy. The analytics solution generates an almost intimate understanding of customer characteristics and demands, infusing that understanding into your marketing process.

Time to check out the Loyalty Club numbers... Yikes, people are unsubscribing like crazy. That's odd. We've been bombarding them with our very best offer!
OK, I'm changing that now. We're only going to send emails to members when we have a relevant message for them, or if their engagement pattern triggers an action on our part. No more random emails.
Free shipping offers only go to high lifetime value customers who are at risk of leaving. Unless it's the annual Black Friday promo, that goes to everyone.
There. Everything's updated. I wonder if Sam in IT is free for lunch?
 

Sharpen your marketing vision

See clearly and stay ahead by:

Understanding

  • What are your customers’ important characteristics and behaviors?
  • Why do some customers leave, stay or change their engagement level?
  • What are the common attributes of a target audience, and how do you find those attributes?

Anticipating

  • Who is most at risk of leaving and why?
  • Are you picking the right customers for a campaign?
  • Which customers are most valuable?

Taking action

  • Group and segment customers in meaningful ways
  • Translate insights into actionable, targeted marketing lists
  • Incorporate a deep understanding of customers and clients into daily work
Example image with many charts and relevant summaries about customers and their behaviors

Advanced models in IBM Watson Marketing Insights continuously reveal new customer behaviors.

Declare independence from traditional analytics

IBM Watson® Marketing Insights delivers on this vision today. Now you can easily access pertinent customer insights without relying on the data wranglers. Leverage smart, predictive marketing to get ahead of customer attrition, rather than looking in the rear-view mirror at customers who have already left.  Focus your efforts and precious investments on customers that have high lifetime value potential.

Next steps

Find out more

Learn more about IBM Watson Marketing Insights and its advantages for marketing.

Read the white paper

Check out our white paper on becoming a customer-centric organization.

Mobile, Email, Chat, Social

Get the solution brief

See how IBM® solutions put high-impact customer insights at your fingertips.

Sources

1 “Digital Disconnect in Customer Engagement,” Accenture Consulting, March 2016, https://www.accenture.com/us-en/insight-digital-disconnect-customer-engagement#block-keyfindings

2 “The Edge of a new Frontier: 2016 North America Consumer Digital Payments Survey,” Accenture Consulting, https://www.accenture.com/t20161013T024052__w__/us-en/_acnmedia/PDF-34/Accenture-2016-North-America-Consumer-Digital-Payments-Survey.pdf#zoom=50 (PDF, 2.8MB)

3 ”Going Beyond the Data—Turning Data from Insights into Value,” KMPG, July 17, 2015, www.slideshare.net/kpmg/kpmg-going-beyond-the-data-overview-2015

4 “Analytics-As-A-Service Concept Test,” Data Intensity and Researchscape International, June 2015, www.dataintensity.com/surveyfinds-data-analytics-too-slow-to-deliver-value-for-most-companies

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