The ability to collect and analyze vast amounts of consumer data can help companies develop more effective service efforts and retain customers.
While business growth has traditionally been focused on gaining new customers, innovative technologies that enable businesses to personalize customers' shopping experiences have made loyalty a more lucrative strategy, according to Retail Customer Experience. Retaining a loyal customer is roughly 10 to 20 times more valuable than acquiring a new, uncommitted patron and results in more sustainable growth, reports the source.
Consumer investments in mobile technology, such as smartphones, laptops and tablets have allowed brands to connect with customers anywhere at anytime. Additionally, loyalty programs enable companies to gather information about customers' shopping history and preferences. However, simply having access to this data doesn't directly translate to improved customer satisfaction and loyalty - marketers must know what to do with it.
A study by Columbia Business School found while most companies have adopted digital tools, many are still not sure how to measure data from them. Research revealed that 29 percent of marketing departments are not collecting enough, if any, consumer data from emerging resources to make valuable customer-driven efforts with it.