If you happen to be running a business, then you probably collect purchase history data on your customers. The thing to remember is that while you may collect the data, the way you keep it maintained will actually make all the difference in the world.
Customer Connections
If you are going to be using customer database to help foster loyalty and promotions, it needs to be managed well. Maintaining current and relevant purchase history is one step. Integrating the information into promotions and customer service is the heart of the process.
If you really want to understand how to use the customer information effectively, then you need to look at a good example. Let's talk about FreshDirect for a moment - a company that has had great success in utilizing that demographic information to improve loyalty and provide great service. They were in fact highlighted in a Business Week's Interactive Case Study as they attribute a great deal of their success to utilizing customer purchase history. Check out the Business Week article on FreshDirect for more information on that scenario.
How it Functions
FreshDirect uses their customer data in a way that would seem almost elementary to most but it is actually quite effective. Similar to most other online retailers, customers will need to make an account. When the customer has a decent purchasing history on certain products, FreshDirect takes that data and uses it to offer virtual service. A good example would be a customer that has a habit of ordering a certain cleaner every time who fails to add it to the cart on the current shopping spree. FreshDirect will actually ask the customer if they meant to purchase the item. This is a great example of providing a personalized service for the customer.
The process and use of a customer database seems extremely logically. If you start to brainstorm outside the box, one can imagine the numerous customer service possibilities.. Think of a customer who is brand loyal to Heinz ketchup. Considering the Heinz company is also the maker of mustard, Jack Daniel's Marinades, pickles, gravy, and a dozen more commodities, a company can use brand loyalty to cross promote. If a customer purchases ketchup, hotdogs, and buns, it would make sense to suggest Heinz pickles. It's using the strategy of Amazon, which suggests a product to try based on recent purchasing.
This can of course be used in stores as well as online promotions. Knowing which customers purchase which brands on a regular basis can help a company to invite those customers to participate in various promotions. It could be the introduction of a new product, a sale, or a traditional brand. Make sure you offer customer service based upon information they would run across through shopping rather than through intrusive advertisements. This will make customer service and solutions extraordinary.
Customer Connections
If you are going to be using customer database to help foster loyalty and promotions, it needs to be managed well. Maintaining current and relevant purchase history is one step. Integrating the information into promotions and customer service is the heart of the process.
If you really want to understand how to use the customer information effectively, then you need to look at a good example. Let's talk about FreshDirect for a moment - a company that has had great success in utilizing that demographic information to improve loyalty and provide great service. They were in fact highlighted in a Business Week's Interactive Case Study as they attribute a great deal of their success to utilizing customer purchase history. Check out the Business Week article on FreshDirect for more information on that scenario.
How it Functions
FreshDirect uses their customer data in a way that would seem almost elementary to most but it is actually quite effective. Similar to most other online retailers, customers will need to make an account. When the customer has a decent purchasing history on certain products, FreshDirect takes that data and uses it to offer virtual service. A good example would be a customer that has a habit of ordering a certain cleaner every time who fails to add it to the cart on the current shopping spree. FreshDirect will actually ask the customer if they meant to purchase the item. This is a great example of providing a personalized service for the customer.
The process and use of a customer database seems extremely logically. If you start to brainstorm outside the box, one can imagine the numerous customer service possibilities.. Think of a customer who is brand loyal to Heinz ketchup. Considering the Heinz company is also the maker of mustard, Jack Daniel's Marinades, pickles, gravy, and a dozen more commodities, a company can use brand loyalty to cross promote. If a customer purchases ketchup, hotdogs, and buns, it would make sense to suggest Heinz pickles. It's using the strategy of Amazon, which suggests a product to try based on recent purchasing.
This can of course be used in stores as well as online promotions. Knowing which customers purchase which brands on a regular basis can help a company to invite those customers to participate in various promotions. It could be the introduction of a new product, a sale, or a traditional brand. Make sure you offer customer service based upon information they would run across through shopping rather than through intrusive advertisements. This will make customer service and solutions extraordinary.
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