Data is everywhere. The influx of information is constant. By consolidating data sources, eliciting product ideas from consumers and using analytics to meet retailers’ changing needs, brands can set themselves up to build a lasting relationship with their consumer. They will be better positioned to create targeted, personalized marketing, innovative new products and the customized experiences that today’s consumers’ demand.
True brand loyalty is more than a points system; it’s the ability to engage your audience, create emotional connections and exceed their expectations that will create lasting relationships.
A customer-centric business model equals increased profitability. Analytics will get you there. Here’s how to benefit:
Improve customized offerings for customers
Thanks to the popularity of digital channels, consumer product brands have 24/7 access to product browsing activity, social media engagement and location. From a consumer perspective, I think we can all agree that the amount of information, brands and products available online is overwhelming. The ability for a brand to compile data from multiple sources to create a personalized experience for each consumer has shown to skyrocket brand loyalty. A great example is Netflix, a company that stands by the idea that better recommendations are the key to building brand loyalty. Chief Product Officer at Netflix Neil Hunt said that improving recommendations by 10% in 2014 led to a 1% decrease in subscription cancels, which is worth $500 million/year to the company. After that, you can sit back and let word of mouth work its magic. I mean, don’t tell me you haven’t seen Stranger Things???
Meet changing needs
With increased amounts of data and analytics comes increased market fragmentation, which can make product development somewhat of a challenge. Use that segmentation to your advantage and that same analysis can help to eliminate guesswork. How? Take Lay’s for example. They recently launched a play on words program called “Do Us A Flavor” that asked its customers to vote for new Lay’s potato chip products. By utilizing this crowdsourcing process, the brand created a direct channel for feedback from their most dedicated audiences, almost guaranteeing their new product to be a hit.
Build stronger bonds
Until recently, supply chain management has been notoriously slow to implement analytics into its manufacturing operations. Things are now starting to shift as the rising diversity of sales channels, social media for example, is driving changes as what people say about a service or a product can completely forecast or indicate a change in demand. This is especially true for Consumer-Packaged Goods, such as food and beverages, footwear and apparel, things that have to be replaced frequently. 20-25% of CPG are replaced or changed each year. The need for data management, organization and a streamlined process to allow these products to scale and change in order to meet consumer and retailer’s needs can make or break a brand in a competitive market.
What can you do?
Aggregate your data, utilize a data management platform; software that will suck up, sort and spit out data in a way that is useful for gaining marketing and consumer insights. If all else fails, seek expert help. After all, data is a powerful tool to building brand loyalty and today’s consumers are busier than ever. They are savvy shoppers, making cross-platform purchases and favoring companies that offer the most seamless and customized experience. They aren’t just shopping but are looking for ideas and inspiration on a brand’s website as well as their social media channels. Each interaction is an opportunity for a brand to gain a new loyal customer. When executed properly, analytics allow companies to target specific purchasing behaviors, predict trends and create a personalized experience with each consumer.