How to Use Data to Increase Customer Engagement

Posted on: September 18th, 2019

It is likely that in your day-to-day interactions with customers, you have collected a significant amount of data. For example, you might have data on demographics, lifestyle, and purchase history. To remain competitive, brands need to utilise data to reach their customers and encourage engagement and repeat purchases. Customers are growing to expect personalised and unique experiences from brands. There are three key ways that you can use this data to increase customer engagement.

Target your advertising spend

Gone are the days of using a mass-market approach for advertising. Instead of trying to reach the most potential buyers as possible, data is making it possible to reach potential customers on a niche level to boost customer engagement. For example, you can target potential customers on Facebook by age, income, job description or personal interests.

Furthermore, utilising data for advertising allows businesses to create accurate market segments to match their target demographic. Marketing towards people within this demographic leads to increased conversions and customer engagement. These people have already shown an interest in your product or service.

Create personalised experiences

According to a study by The Boston Consulting Group, businesses see up to a 10 per cent increase in revenue by creating customised experiences. When people follow your business on social media or sign up to your email marketing list, they are indicating their wants and needs. You can leverage this data to provide personalised recommendations for better customer engagement.

One of the best ways to make your customer feel valued is by creating customised and personalised experiences. Whether you provide product recommendations based on previous purchases or individualised coupon offers, you can use personalisation to build loyalty, drive repeat business and increase customer engagement.

Predict future behaviour

Did you know that you can use data to predict future buying behaviour? If you, for example, have an online store, you have data on browsing history, buying patterns and preferences. The abundance of data can then be used to create predictive models to understand what your customers may want in the future to keep them engaged long-term. As a result, you can use this data to minimise the risk of your next product/service offering being a failure.

Data is playing an increasingly important role in the customer journey. Brands need to utilise this information to drive engagement and increase profitability. With customer data, brands can distinguish themselves from the competition and use a tailored approach to build customer loyalty and boost customer engagement.

Creating a culture of innovation can also help you meet changing customer demands and predict changes in the market.

 

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