Customer behavior is continuing to evolve due to COVID-19. As companies adjust their strategies to fit these new needs and wants, they must also remember to hold fast to some of the tried and true tactics previously deployed to keep existing customers. Loyal customers are more likely to repeat purchases, which ultimately drives revenue — according to a report by InMoment, 60% of customers would make frequent purchases from a brand which they are loyal to. The same report also found that 77% of consumers have had relationships with specific brands for more than ten years. Loyal customers will keep coming back, so it’s crucial that businesses continue to foster those relationships as we navigate these unprecedented times.
There are several ways companies can keep loyal customers coming back, including loyalty and rewards programs. But before marketers consider how they’ll plan on maintaining customer loyalty, they must first examine the latest customer data in order to understand key shifts in consumer behavior. Let’s take a look at how marketers can use location intelligence to inform their company’s customer retention strategy:
Start with Competitive Intelligence
While it may seem counterintuitive to look at your competitors’ customer retention metrics, competitive marketing intelligence can actually help marketers get a better sense of their customer’s complete journey. Where else do they frequently shop? By examining this type of data, marketers are able to uncover emerging shopping trends and consumer behavior patterns. Companies can then use this market research information to adjust their business models and practices. For example: an analyst might find that a company’s loyal customers are now frequenting fast-food restaurants, when they used to patronize popular casual dine-in restaurants — an insight that indicates these customers value convenience. The company can then use this information to determine how they can provide more “convenient options” — such as BOPUS (Buy Online, Pick-up In Store), curbside pick-up, and same-day delivery — to their loyal customers.
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Find Co-Marketing Opportunities for Loyalty Programs
Loyalty programs are often considered to be the best tactic for building customer retention as they can help increase purchase frequency. However, with the market saturated with companies using this method to keep their customers engaged, in order to stand out, marketers need to get creative with their loyalty program offers and create co-branded loyalty programs. According to Deloitte’s report on COVID-19 and customer trust, teaming up with alliance partners or competitors can help companies put their resources to good use. With location intelligence, marketers can identify their customers’ brand affinities and determine which other brands would be best to partner with for a loyalty program. When identifying a co-marketing partner, marketers will need to make sure that their customers are frequent visitors to the partner store. This ensures that loyal customers will be able to use their program rewards or offers at both stores.
Inform Customers About Product or Service Offerings
As part of their customer retention strategy, businesses should offer complementary products or services with their main product (also known as cross-selling). Are there upgrades to products or services that companies can now offer to existing customers? Marketers should also consider up-selling to engage loyal customers, a strategy that involves taking a current version of an existing product or service and offering customers the chance to purchase an upgrade.4 The best way to determine complementary products and upgrades is to understand what your customers are interested in. Insights from location intelligence provide marketers with the information they need to create personalized ad messaging and creatives. But, it isn’t enough to just determine their interests — marketers also need to get the word out. Where do your customers spend most of their time? Marketers can use location intelligence to reach their customers at home. Do your customers own smart TVs or spend a lot of time on their mobile phones? Then marketers should consider increasing product awareness with CTV ads and mobile ads. If your customers are venturing out, try DOOH ads or implement an omnichannel advertising strategy to inform them about your product offerings.
Building Customer Retention Post-COVID
In a post-COVID-19 world, it’s important to maintain relationships with your customers. Building a customer retention strategy is one way companies can increase customer trust, maintain customer engagement, and brand loyalty. Customer analytics gives companies the insight they need to understand the behavior of their most dedicated customers.