Keeping your customers happy isn't only about selling a product or providing a service that meets their needs.
Building and increasing customer loyalty is an ongoing process that requires the knowledge and understanding of your customers all through the sales funnel and beyond.
Customer Experience (CX) is a key competitive differentiator. Projecting a positive image of your brand is essential to the CX. This drives loyalty. In fact a Gartner survey shows that CX drives over two-thirds of customer loyalty, outperforming brand and price combined.
Gartner’s definition of customer loyalty is: "the degree to which a customer is likely to continue doing business with an organisation. Loyalty builds up over multiple interactions and is the result of customer satisfaction, positive customer experiences, and the value realised from using the organisation’s goods or services. Customer loyalty also drives existing customers to select one company’s products or services over its competitors, yielding collateral benefits for retention, growth, and brand advocacy.”
Customer Data Platforms and customer loyalty
Building growth and retention requires a robust ecosystem. A Customer Data Platform (CDP) is not only robust, its pre-built capabilities help eliminate silos by connecting to your existing internal systems.
A CDP aggregates customer data in real time. It has the power to predictably segment and profile data - making the marketer's job a lot easier than it was even five years ago.
A CDP's ability to 'slice and dice' customer data and put it in the right context allows marketers to identify high value customers. These are customers that have shown an interest in your product or service and are considered close to converting.
For example, someone visits your website and subscribes to email updates. They then return to your website a few more times to look at a product or service they're interested in. This implies the customer is closer to converting. The CDP will profile accordingly allowing marketers to plan and implement customer acquisition strategies that will encourage customers to convert.
We've seen that high value customers are important to businesses. But what about high risk customers?
These are customers with a high risk of churn. In other words, they’ve stopped using your product or service. There’s no longer an emotional connection to your brand. What do you do with these customers? Ignore them so you can focus on attracting new ones? A CDP can identify high risk customers and segment them in readiness for a retention strategy. This happens in real-time. It gives marketers the right data at the right time with a 360 view of behavioural, transactional and demographic information.
In addition, CDPs lead with 'privacy in design'. This means they’re designed with privacy laws in mind. Personal Identifiable Information (PII) like name, address, email etc. are protected and anonymised accordingly. With your customers knowing their data is in safe hands, trust and loyalty is promoted.
Personalisation is now a staple of all marketing communications. A Salesforce survey shows that 70% of consumers say that how well a company understands their individual needs impacts their loyalty.
Customer Data Platforms aggregate data, create profiles and deliver a single source of truth. Marketing messages can be personalised for every touchpoint based on where the customer is in the sales funnel. This allows marketers to implement seamless personalisation strategies that build trust and loyalty, and create happy customers. This in turn creates brand advocacy.
In summary, CDPs build trust and loyalty by:
- Centralising data and eliminating data silos
- Identifying and segmenting high profile customers
- Identifying and segmenting customers at risk of churn
- Giving marketers a real time 360 degree view of customer data
- Supporting customer privacy
- Creating brand advocacy through strategic personalisation
Sitecore’s Customer Data Platform, which is part of the Composable DXP, delivers customer intelligence for the digital ecosystem. It improves insights and segmentation for effective targeting and personalisation.
At Codehouse, we have a fully certified development team who have been trained in delivering Sitecore CDP. So whether you're currently using Sitecore, or it's on your radar for a future transformation project, get in touch.