Customer analytics: Using data to improve your bottom line
Every customer wants to feel important. By using predictive analytics, statistical modeling and data mining tools to find patterns, you can create a targeted marketing campaign specific to each client and prospect. In the past, telecommunications companies were forced to make educated guesses on consumer preferences. But now, big data provides almost endless information as to who uses your services and how.
Customer analytics can answer the following five questions, which will help you create a personalized consumer experience to increase loyalty.
Who is the customer?
Most telecommunications companies are already collecting and analyzing basic demographic information such as age, gender and geographic location. Businesses that gather more detailed information often have a higher conversion and customer retention rate than those who ignore it. Learn about your clients' more complex demographic information such as occupation, income, residential history and purchase history. By using customer analytics to identify subsets of your audience, you can then segment your market and narrowly target promotions to the needs of specific consumer types. For example, by knowing which customers work from home, you can target them with offers for premium Internet packages.
How does the customer use social media?
You can learn detailed information about your customer's tastes and preferences by mining social media profiles. By searching social media platforms for specific keywords, you can paint a very detailed picture with the companies the customer follows, the posts that they like and the information that they share with their friends. You can also assess the best modes of communication for reaching your audience. Consumers with active Twitter accounts could be specifically targeted via sponsored tweets, while those outside the Twitter sphere could receive sponsored Facebook posts or emails.
What devices do the customers use?
Strategy Analytics predicts that by 2020, each person will own an average of four mobile devices, totaling 33 billion devices worldwide. As the Internet of Things becomes more of a reality, it will be even more important to know what devices your clients use so you can design optimized marketing materials and programming. Customers use devices for different purposes; for example, most smartphone users are not watching hours of video programming. If you are targeting every device with every message, then you are missing out on opportunities for personal engagement.
What do your customers care about?
For telecommunications companies, premium content is often an untapped market. However, in order to create content that is interesting and relevant to your customers, you first need to know exactly what they care about. By collecting detailed analytic information such as hobbies, favorite sports teams and television programs, past purchases and preferred vacation destinations, you can identify new opportunities for marketing products to customers. You can then develop additional content to retain them, such as behind-the-scenes interviews, detailed statistics of players, sneak peeks, bonus scenes and season packages for sports.
For example, a customer who looks up golf scores frequently on their mobile phone or tablet while commuting to and from work is likely to be interested in an offer for a mobile streaming package for an upcoming PGA masters tournament. Telecommunications companies can make targeted offers based on customers' interests and preferences, those offers have a higher likelihood of being accepted.
What products and services do your customers subscribe to?
Bundling is an essential marketing tactic for telecommunications companies. However, in order to create optimal bundles, you must know exactly which products and services each client is already purchasing. You can then put together packages that will be appealing for the customer and cost effective for the company. Additionally, this information allows you to cross-sell and upsell services as well as target promotional campaigns to specific customer groups.
Collecting data isn't enough to advance your business. Companies must successfully use information to create targeted programming and marketing campaigns. According to Forrester Research, only 12 percent of companies are using the data that they have. Is your company among the 88 percent leaving money on the table?
Read Driving customer loyalty through network service quality to discover how telecommunications companies can provide a differentiated customer experience while driving greater business performance.