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Even though more than 90 percent of the world’s data was generated in only the past two years—with an estimated 2.5 quintillion bytes of data created every day—much of the most valuable customer data remains “unusable” by brands.
The trouble lies less in data collection, and more in constructing a framework for building a holistic profile of every customer – from baseline identifying and demographic information to preferences and propensities to historic interactions. This does not come as news to approximately half of the brands in SEA, given that developing a 360-degree customer view has become a priority for them in 2019.
Brands most commonly use a 360-degree customer view to identify every customer across touchpoints and pinpoint, for example, what they are looking for, the likelihood of them making a purchase, and the factors that can move them to make that purchase.
In addition to personalizing engagement, brands also use 360-degree customer views to secure customer loyalty. A customer’s lifetime value is driven largely by a consistently positive experience – which is in turn informed by a comprehensive knowledge of the customer. For example, hotel chains are now able to analyze their customers’ preferences in order to provide a personalized experience for returning guests.
With an understanding of the past and the context of present behaviors, brands could leverage their data to map out a future relationship with the customer.
A 360-degree customer view also helps brands create more cost-effective campaigns. With a more targeted marketing outreach, brands can shift out of a “scatter-gun” approach and reallocate their resources towards the most effective channels. They can also build more relevant messages and user journeys for their target audiences. Given these benefits, how can brands start to think about their 360-degree customer view strategy?
To help make sense of the sheer volume of data, many brands will need to adopt the right analytics solution to extract accurate and actionable insights. With their increasing sophistication, these solutions have become absolutely critical to harnessing the value of large amounts of data.
Nonetheless, having a framework to understand how a 360-degree customer view works is essential for marketers to create an actionable omnichannel marketing strategy. To begin, such a framework provides a way to view data from a chronological perspective and develop a better understanding of the past, present, and future of a customer’s relationship with the brand.
To gather past information, brands need to consider a customer’s history in a way that provides meaningful context and insights. This can include data from purchases, past interactions on marketing or customer support channels, product views, app usage and engagement with marketing campaigns. This data traces a customer’s journey with a brand to date, pinpointing what exchanges took place as well as where – and how much – value was generated from conversions.
As advanced technologies become more readily available, businesses will have a greatly enhanced ability to take customer engagement to the next level and create customer experiences
Understanding the past should then inform the present and new interactions with customers. For example, when a high-end retail brand account holder steps inside a store, location-based technology on the customer’s phone could alert the on-ground sales team, who could then access information about the individual, such as past purchases and preferences so that the customer can receive an individually tailored experience.
With an understanding of the past and the context of present behaviors, brands could leverage their data to map out a future relationship with the customer. From a technology perspective, this is where artificial intelligence (AI) and machine learning come into play, identifying opportunities to deepen customer experiences and extract even more valuable insights.
For example, a bank may leverage AI and machine learning to generate in-depth customer journey analytics to identify the signals for when a customer will likely start house-hunting. Once the relevant triggers are identified, the bank can set up an automated campaign to deliver messaging for home loans to relevant customers.
Developing a 360-degree customer view is not a new concept; businesses have always sought to understand their customers better. But as advanced technologies become more readily available, businesses will have a greatly enhanced ability to take customer engagement to the next level and create customer experiences that are more personalized and valuable than ever before.
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