The further we venture into the digital age, the harder it seems to be to keep customers brand-loyal. The average value of a lost customer is a whopping $243 but this is a cost that can be curbed with the right efforts.
Loyalty, influence, and engagement
So in terms of what you can do in order to create more loyal customers and gain new ones at the same time, there are first a few questions you need to ask:
- How close are they to switching to a competitor (can you consider them ‘loyal’)?
- How much influence does this individual have over their social following?
- How likely are they to engage with or respond to you online?
Don’t underestimate the value of influencers
An engaged customer is more likely to share their experiences (positive or negative) online. Combine this with a high influencer score and you either have free advertising, or your name can become quickly tarnished depending on what the sentiment is. A recent study found that, while a satisfied customer shares a good experience with 9 other people, a dissatisfied one tells 22 others about their bad experience. Considering that 84% of consumers trust organic marketing (such as recommendations from friends and family) over any other type of advertising, it is vital that you don’t underestimate the role of influencers amongst your customer base.
Engaged customers are also worth more to you in terms of revenue. In fact, a fully engaged customer delivers a 23% uplift in share of wallet, profitability and revenue compared to the average customer (Cap Gemini), and engaging with them back can boost brand loyalty, with 62% of millennials stating that – if a brand engages with them on social networks – they are more likely to become a loyal customer.
How audience analytics can help
So how can you utilise audience analytics to your advantage? Our cutting edge software solution Discovery Engage identifies three key attributes about your audience members to help you to identify who to prioritise and target marketing/offers at:
- Loyalty Level
- Influence Level
- Engagement Level
For example, a customer (let’s call him ‘Bob’) engages highly with your brand, but also with one of your competitors. He has a significant social following and a high influencer score. Bob is your ideal target for influencer marketing – he is on the edge of leaving you for a competitor and needs a reason to come back. He engages highly with brands and is likely to influence the decisions of many others in your target audience. Armed with this insight, you could offer him: “Earn store credit when friends use your personal 10% off code BOB10”. This way you are not only offering Bob an incentive to shop with you again, but you are also encouraging brand evangelism and hence increasing your audience reach.
Now you know the three key insights you need to win consumers’ loyalty, what are you waiting for? Find out more about Discovery Engage today.