Without a successful customer-driven marketing strategy, your business will struggle to reap the potential benefits of targeting customers. Or, your business may not even know how to optimize segmenting and targeting customers because of the overwhelming amount of customer data available today.
Acquiring a new customer can cost five times more than retaining an existing customer. Additionally, loyal customers are 5x as likely to repurchase, 5x as likely to forgive, 4x as likely to refer, and 7x as likely to try a new offering. In other words, by focusing on retaining your existing customers, you can increase your profits. To focus on your customers, your business needs accurate data.
Collecting and understanding customer data is a critical step in taking effective actions and therefore, building more loyal customers. Read this article to learn about customer-driven marketing and how you can implement it in your business.
What is Customer-Driven Marketing?
A customer-driven marketing strategy is shifting your focus from product to customer. To focus on customers, you’ll first need to collect the behavior, interactions, preferences, and every single data of your customer. After this step, by consolidating and analyzing this data, a Customer Data Platform helps your business with insights and next actions that help you build your customer-driven marketing.
Since satisfied customers are more likely to become repeat customers, your marketing strategy should be geared toward reaching those who would benefit the most from your product or service. A customer-driven marketing strategy includes identifying your target market and reacting to their needs. It should also detail ways to retain customers and use them to help you gain additional business.
How to Implement Customer-Driven Marketing Strategy?
All in all, customer-driven marketing is on the rise and we all should start paying more attention to it. Here are 5 steps to implementing and adopting one in your business:
1. Target Your Market
To implement a customer-driven strategy, you need to first target a specific market segment. Identify common demographic characteristics within your customer base. The more you know about your customers, the easier it is to develop a strategy that will appeal to these characteristics. You can also use various tools including CRMs or CDPs to segment your customers more efficiently.
2. Meet Customer Needs
Now that you have successfully got to the point where you understand your customers’ needs and segmented them, it’s time to meet their needs. Examine each need closely and determine how your product or service can meet those needs. For example, if you understand your customers’ need is to receive a high level of service, you might decide to offer free deliveries or extend the hours of operation.
3. Build Customer Loyalty
Now it’s time to build strong relationships with your customers to increase their loyalty and therefore their lifetime value in your system. Loyal customers are prone to shop more frequently and refer new customers. To build customer loyalty, you should benefit from the knowledge you gained in previous steps. As stated before, Customer Data Platforms help you gain this knowledge and understand your customers. Formaloo Customer Data Platform also gives you insights and actions you can take to build this relationship and loyalty within your customers. Using Formaloo, you can build gamification marketing to engage your customers with your brand and build loyalty.
4. Utilize Customer Feedback
Use feedback from your customers to make changes or improvements in your customer-driven marketing strategy. For example, your customers may indicate that they want better support or a better customer return policy. Make any necessary changes and use your marketing strategy to get the word out to show that you’re focused on serving your customers.
Let’s Get Started!
To begin, you won’t need tons of fancy marketing tools to adopt the customer-driven marketing strategy. Start with CDP tools like Formaloo that help you understand your customers, segment them, take actions and build customer loyalty throughout your business.