An inability to really understand your customer identities might be holding back your ability to deliver amazing customer relationships - and retention rates.
Want to think less like a marketer and more like your customers? Put yourself in their shoes. One fantastic way to do this and get to know someone better is by playing the "Never Have I Ever Game." Do this, and you’ll quickly find there are experiences that most everyone shares.
Not sure what I'm talking about? Here are three statements to get you started - read and repeat:
Chances are you answered “I have” to these statements. Chances are your customers would answer the same way. These are universal frustrations, after all; nothing makes you feel like a stranger more than someone failing to recognize you, and/or forgetting all of your previous interactions. Which means you know precisely what your customers think when your brand treats them with similar indifference - even if it is unintentional. It’s alienating, it’s insulting, and - in this culture of 24/7 engagement - it’s simply unacceptable.
Even so, it happens all the time… and it’s destroying your customer relationships.
Too many marketers are focused solely on courting new customers instead of honing a better, more intimate understanding of the customers they already have. The CMO Club and my firm, Signal, recently surveyed CMOs and senior marketers at top B2C brands across the U.S. about their marketing and customer experience priorities and found that 74% of executives cite ‘Growing new customer acquisition’ among their top objectives. However, while more than half of marketing execs say they’re unsatisfied with their brand’s performance on metrics like retention rate, customer lifetime value and Net Promoter Score®, only 44% ranked loyalty and retention as a top priority.
This disconnect is crippling the bottom line. Not only does it cost a lot more to bring a new customer up to the level of profitability of a lost customer, but customers who are highly engaged with a brand make 90% more frequent purchases, spend 60% more in each transaction and are four times more likely to advocate the brand to colleagues and acquaintances.
Building this kind of hyper-engaged, unfailingly loyal relationship depends on knowing our customers as well as we know ourselves. We must know their likes. Their dislikes. Their wants and needs. We also must recognize them throughout the customer journey, across the full spectrum of channels and devices, accumulating new information and insights about them each step of the way in order to supply the individualized interactions they demand.
To make better customer relationships happen, we need to leverage all of our rich first-party data - including CRM, POS, website and mobile app behavioral data - as well as in-store purchases, online transactions, loyalty program participation and service/support contact interactions. After all, we can’t offer personal and relevant experiences if we don’t harness customers’ historical data and real-time intent signals.
We need a unified view of the customer tied to a persistent, always-on identity asset that allows us to recognize customers across channels, and we need to apply that rich data to critical moments in engagement.
We need to get back insights from our tech and media partners in order to measure and attribute the success of our marketing efforts — and improve our customer experiences.
Last but not least, we need full ownership and control of our customer data and identity assets in order to retain control of the customer relationship, as well as thwart intermediaries who prevent us from understanding and optimizing the customer journey.
A customer identity solution fulfills these needs. Customer identity — the ability to recognize individuals on a 1:1 basis across devices and channels — ranks as the most essential asset for delivering personalized experiences, according to the CMO Club/Signal research that was conducted.
But the survey also found that most B2C marketers still don’t have all the pieces in place to effectively resolve customer identity. In fact, only 33% have integrated disparate platforms to create holistic customer profiles, just 25% can combine historical data and real-time customer context across platforms, and a mere 20% are able to identify individuals in the moment across all touchpoints.
These are major hurdles that brands must overcome. But it’s also a golden opportunity for aspiring CMOs to effect meaningful organizational change. By spearheading identity initiatives that tap the full power of the brand’s data, marketers can boost customer retention, drive revenue and fast-track their careers, all in one fell swoop.
If your company’s CMO never has ever used first-party data to target customers across channels or achieved a single view of the customer, it’s time to change the rules of the game.
This week, Future CMO Club member Patrick Judge shares with us who inspires him in the marketing industry and what top characteristics he believes tomorrow's CMOs must have to thrive.
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