Maximising the value of customer data

Posted: Friday 20th February 2015 in Retail Strategy, Thought Leadership.
Data collection

Utilising customer data can add value to your business

Businesses have the opportunity to gather huge amounts of data on their customers, yet the majority aren’t. Something as simple as Facebook login allows businesses to get data on demographics and user likes, which in turn can be used to drive promotions at smaller customer segments, and so reduce advertising spend.

Collecting the data is just the first step; coming up with innovative ways to mine the data and use it effectively is the tricky part. Below are a few simple ways you could be maximising the value of the data that is freely available to you.

Track online and offline behaviour as one

By requesting users’ email addresses in-store as part of their purchase you can start to create a profile of their habits. Simultaneously collecting email addresses online, using website signups for example, allows you to tie the data together creating a more holistic picture. Information such as what items customers have purchased on-line or what items they have added to the basket but then abandoned will help you tailor your advertising and promotions to smaller customer segments.

For example, when a customer has purchased a certain product in-store, your online store can offer an upsell that your marketing team have identified goes well with the item purchased. Based on these two factors the customer can be emailed a number of days later, with ‘why not also buy this?…’ messaging.

Being able to tailor your promotions to individual users will increase customer life time value, and being able to do these promotions automatically will save you a lot of hassle!

Learning from social

As well as offering users an easier sign up process, this option can give you a wealth of demographic and customer insight that can be mined to give your business the edge when it comes to targeted advertising.

By identifying your customers’ likes you can identify your competitors within your market, for example as a fashion retailer you can see which other brands your followers are following. This allows you to target your audience with your own promotions when your competitors are running theirs, minimising the value of their advertising.

Family connections

By identifying if any of your customers’ family members are also signed up to your website you can then start cross selling your products. “Your sister added this to her cart but never purchased – could make a nice Christmas present!”

A wealth of data is there, the trick is knowing what to look for and how to use it.

If you have any questions or want to know more contact Chris Dickson on 0208 428 5300.