Category: Customer Experience

As the world becomes increasingly competitive, companies must focus on customer satisfaction and loyalty to succeed. While customer acquisition is essential for growth, customer retention is even more critical. Retaining existing customers is essential for the long-term health of any business, as loyal customers tend to spend more, refer more, and cost less to retain.

In this blog, we will discuss marketing retention vs. acquisition and why current trends show that retention is much more important. We will also explore how a Smart Customer Data Platform (CDP) can help companies boost retention.

The importance of Customer Retention

The cost of acquiring new customers is significantly higher than retaining existing ones. According to a study by Harvard Business Review, increasing customer retention by just 5% can increase profits by 25-95%. This is because loyal customers tend to spend more, refer more, and cost less to retain.

Additionally, loyal customers provide valuable feedback and can help businesses improve their products and services. Therefore, it is essential for companies to focus on retaining existing customers.

Customer Retention vs. Customer Acquisition

While customer acquisition is necessary for growth, it should not come at the expense of customer retention. Many companies make the mistake of focusing too much on acquiring new customers and neglecting existing ones. However, research shows that companies that focus on customer retention tend to be more successful in the long run. Customer retention should be a top priority for any company that wants to grow and thrive.

The benefits of focusing on retention over acquisition

Focusing on customer retention over acquisition can provide a number of benefits to companies, including increased customer lifetime value (CLV), improved customer loyalty, and reduced marketing costs. By retaining existing customers, companies can increase CLV by encouraging repeat purchases and reducing churn. Additionally, loyal customers tend to refer others to the company, which can help reduce marketing costs associated with customer acquisition. By prioritizing retention, companies can create a positive cycle of growth that leads to long-term success.

How a Smart CDP can help boost retention

A Smart CDP can provide a comprehensive view of a company’s customers, allowing them to personalize marketing messages, improve customer service, and identify opportunities to upsell and cross-sell.

For example, let’s say a retailer collects data on a customer’s purchase history, browsing behavior, and preferences. With a Smart CDP, the retailer can use this data to send targeted marketing messages based on the customer’s interests and behavior. They can also use the data to recommend complementary products, provide personalized promotions, and improve customer service by addressing the customer’s specific needs and concerns. By using a Smart CDP, the retailer can create a more personalized and engaging experience for their customers, which can lead to increased loyalty and retention.

WHY FLYDE?

Do you want your company to move on to the next level? A CDP is the key tool that will allow you to maximize the potential of your data and grow your business. Having control over all your data is now very simple.

Moreover, if you do not have IT or Data Scientist teams, this tool will allow you to outsource this function. And if you have them but want to reduce their workload and give more autonomy to your marketing and business teams when it comes to working with data, implementing an easy-to-use CDP would be the best option for your company. It will allow any single member of your company to use it, as this softwares are prepared for them.

Understanding your customers’ needs and desires is essential to building a successful business. However, it’s not enough to simply ask your customers what they want. To truly understand their needs, you must identify the jobs or tasks they are trying to accomplish. This is where the Jobs-To-Be-Done (JTBD) framework comes in.

In this blog, we’ll see how to improve your JTBD strategy with a Customer Data Platform (CDP). By using a CDP, you can gain a more comprehensive understanding of your customers and their behaviors, which can help you improve your JTBD strategy.

Why Understanding JTBD Is Crucial for Your Business

Jobs-To-Be-Done (JTBD) is a framework that helps businesses understand the needs and desires of their customers by focusing on the jobs or tasks that customers are trying to accomplish. By understanding your customers’ JTBD, you can design products and services that meet their needs and differentiate yourself from competitors.

How to Improve Your JTBD Strategy with a CDP

A Customer Data Platform (CDP) is a data management tool that allows you to collect, unify, and analyze customer data from multiple sources. By using a CDP, you can gain a more comprehensive understanding of your customers and their behaviors, which can help you improve your JTBD strategy.

Here are four ways to improve your JTBD strategy with a CDP:

1. 1. 1. 1. Collect and unify customer data from multiple sources: A CDP allows you to collect and unify customer data from multiple sources, giving you a more comprehensive view of your customers.
         2. Analyze customer data using the JTBD framework: Using the JTBD framework, you can analyze customer data to identify the specific jobs your customers are trying to accomplish.
         3. Personalize marketing and product recommendations: By using the CDP to personalize your marketing and product recommendations, you can better meet your customers’ JTBD and increase engagement and sales.
         4. Optimize inventory to better meet customer needs: By understanding your customers’ JTBD, you can optimize your inventory to better meet their needs, reducing waste and improving your bottom line.

Case Study – How could a retailer improve their JTBD strategy with a CDP?

A retailer uses a CDP to collect and unify customer data from multiple sources, enabling them to gain a comprehensive view of their customers and their behaviors. Using the JTBD framework, the retailer analyzes the data to identify the specific jobs their customers are trying to accomplish when they shop for clothes, such as looking for stylish and fashionable clothes, prioritizing comfort and functionality, or finding clothes for specific occasions.

The retailer uses the CDP to personalize their marketing and product recommendations to better meet their customers’ JTBD. By creating targeted email campaigns and personalized product recommendations, the retailer increases customer engagement and sales, leading to higher customer loyalty and repeat purchases.

Additionally, the retailer is able to optimize their inventory to better meet their customers’ needs, reducing waste and improving their bottom line. In this way, using JTBD and a CDP can help fashion retailers to better understand their customers and improve their business results in a highly competitive industry.

Conclusion and Next Steps

In conclusion, understanding your customers’ JTBD is essential to designing products and services that meet their needs. By using a CDP to collect, unify, and analyze customer data, you can gain a deeper understanding of your customers and improve your JTBD strategy. To get started, consider implementing a CDP and using the four strategies outlined in section two to improve your JTBD strategy. With a more customer-centric approach, you can differentiate yourself from competitors and build stronger, more loyal customer relationships.

WHY FLYDE?

Do you want your company to move on to the next level? A CDP is the key tool that will allow you to maximize the potential of your data and grow your business. Working like the big multinationals in the market, which already have this type of software, and having control over all your data is now very simple.

Moreover, if you do not have IT or Data Scientist teams, this tool will allow you to outsource this function. And if you have them but want to reduce their workload and give more autonomy to your marketing and business teams when it comes to working with data, implementing an easy-to-use CDP would be the best option for your company. It will allow any single member of your company to use it, as this softwares are prepared for them.

There are new technological solutions constantly appearing for companies to take control over customer experience. But which one should I choose? Is there really a difference between this platforms?

In this blog we would analyze the differences between Customer Relationship Management (CRM) platforms, Data Management Platforms (DMP), and Customer Data Platforms (CDP). We would also the reasons behind the latest boom of CDPs in the US, with estimations rising up to a $15.3 billion market for 2026.

What is a CRM?

A Customer Relations Management platform, is a platform where you can store Basic Data from you leads. It is a must for any sales team, as it helps to store and structure information of your customers.

What is a DMP?

A Data Management Platform, is used to unify data in order to create and segment audiences, in really specific ways as the information integrated comes from different data sources.

What is a CDP?

A Customer Data Platform is a software that enables companies to unify every single piece of data obtained from customers (Including the data you have in your CRM), and unifies it with 3rd Party Data (or data obtained from the market in which you operate), to portray a 360 profile of your customers, in order to segment, personalize, and predict with the use of ML/AI.

Technological Evolution: From a CRM to a CDP

CRM (1990s)

CRMs emerged at the end of the last century as a way of storing basic customer information online. They were a very important step, sales teams were able to use them to have databases with leads and to carry out campaigns through them.

Today they are still a great help for lead management and lead storage, a great support for sales teams, but they do not cover all the needs of the contemporary company.

Nowadays, companies need to have a database that covers all possible customer data, not only basic information (age, sex, forms of contact, etc.), but they also need to enrich this information with behavioral and attitudinal data (product preferences, forms of purchase, contact times, favorite types of promotions, etc.).

DMP (2000s)

This is how the DMP (Data Management Platform) was born, with the intention of gathering all the information about your customers in a single platform, not only the sales data, but you could unify this data (extracted from a CRM), with behaviors and attitudes of your customers.

So with a DMP your company can create audiences and segment them in hundreds of ways so that your advertising or marketing teams can target their campaigns to much more specific audiences.

The DMP was the next step to CRM as it was much closer to the online personalization that companies were looking for.

CDP (2020s)

The unification of all possible customer data opened up a world of possibilities, but the key piece of the puzzle was missing, converting this data into actionable data. CDP was born to integrate all the aforementioned data with ML, allowing companies to know their customers like never before. It allows you to have a detailed picture of each customer as an individual so that you can personalize your campaigns to the extreme.

The 360-degree customer profile that you will obtain using a CDP allows companies to segment, personalize and predict behaviors with the use of Machine Learning. Customer Data Platforms thus emerge as the ultimate solution for omni-channel customer management, multiplying the knowledge you have of your customer to levels never before imagined.

WHY FLYDE?

Do you want your company to move on to the next level? A CDP is the key tool that will allow you to maximise the potential of your data and grow your business. Working like the big multinationals in the market, which already have this type of software, and having control over all your data is now very simple.

Moreover, if you do not have IT or Data Scientist teams, this tool will allow you to outsource this function. And if you have them but want to reduce their workload and give more autonomy to your marketing and business teams when it comes to working with data, implementing an easy-to-use CDP would be the best option for your company. It will allow any single member of your company to use it, as this softwares are prepared for them.