Customer service has come a long way, with data increasingly dictating how organisations relate with their existing and potential customers.
Long gone are the days when organisations solely depended on walk-in customers hence the need to woo clients by all means necessary. Data is at the heart of mapping potential customers and also understanding the evolving needs of existing ones.
Traditionally, businesses collect data manually through surveys, customer feedback forms, and direct customer interactions. This process can be time-consuming and prone to errors. But today, businesses are relying more on technology in data analysis to map out customers. According to different research, 60 per cent of business owners currently believe that AI implementation will drive sales growth, while 64 per cent see it as a means to improve customer relations. Another 22 per cent of firms are aggressively pursuing Artificial Intelligence (AI) integration across various technology products and workflows. The new technology is vital in gathering and analysing vast amounts of data, which helps to drive consumer insights and enables quick, efficient decision-making. A good example is Amazon, which uses AI to personalise customer experiences and drive revenue growth.
The company’s recommendation engine, which uses collaborative filtering and machine learning algorithms, accounts for about 35 per cent of its revenue.
Data analysis is typically done using simple statistical methods, such as averages or basic segmentation. Insights are often derived from historical data with limited real-time analysis. Leveraging a data-led customer-centric approach in marketing involves using data to deeply understand your customers, predict their needs, and create tailored marketing strategies.
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By mapping out customer demographics and other relevant data, you can anticipate what customers want and deliver personalised experiences that resonate with them.
One way is the use of demographic data, which is information like age, gender, income level, education, location, and occupation from various sources such as surveys, customer profiles, and social media analytics. You can also collect behavioural data on customer behaviour, including purchase history, browsing patterns, social media interactions, and customer service interactions. Psychographic data, on the other hand, helps you understand customer attitudes, interests, values, and lifestyles. This data can be obtained through social media, surveys, and third-party data providers.
By using a data-led customer-centric approach, you can ensure that your marketing strategies are aligned with your customer’s needs, driving higher engagement, satisfaction, and ultimately, conversion rates.
The writer is also a part-time lecturer at a local private university