A recent analysis by McKinsey shows a dramatic change in consumer confidence as we move through the COVID-19 pandemic. Consumers are focusing on essentials, which is unlikely to change quickly even when the lockdowns are over.
If you sell food and basic groceries, then your revenue may well be above average .However, for every other type of business, including different types of retail, there is an upcoming change in consumer behavior that you need to address. The best approach is to create a far more personalized experience for customers so you can focus on building a better relationship over several decades.
But how do you switch focus from individual transactions to building a long-term relationship with your customers? You have to learn about their preferences and behavior. And for this, you need data analytics.
Understanding customer behavior in more detail will lead to some obvious benefits. Moreover, there are several other ways that analytics can help your business recover from this crisis, including:
- Proactivity and anticipating needs: With detailed knowledge of your customer, you can predict what they need and when. For retailers, this can mean timed and personalized deals sent when the customer is shopping. For subscription services like internet or telco, it can help anticipate which customers you are about to lose so that you can plan an intervention.
- Mitigating risk and fraud: Analytics can help flag unusual transactions where something doesn’t feel right — an essential feature for financial service companies. Take Monzo, for example. They know their customers so well, they warned them of a data breach at Ticketmaster even before Ticketmaster knew about it.
- Delivering the right products: Innovation, new features, new services, and other ideas can be trialed and checked to see how they influence customer behavior.
- Personalization and customer service: Offering customer service that treats everyone like a valuable individual to your brand rather than just another customer is a powerful message. It will increase customer satisfaction and encourage customers to spend more on your brand.
- Optimizing the customer experience: Designing the control and process of all operations based on customer preferences will dramatically improve the customer experience with your brand.
By working through these opportunities, you can use analytics to improve sales, customer retention, performance, and growth dramatically. For example, at Teleperformance, we help our customers by implementing analytics algorithms such as recency, frequency, monetary value (RFM) and market basket (MB) analyses to achieve target goals. We have also created customized platforms, such as TP Recommender, which helps predict customer behavior for sales and upsell engagements. Some of our clients have accomplished a 30% to 50% increase in orders using these advanced solutions.
I invite you to visit our Sales Solutions Resource Center for the complete list of services offered under Teleperformance’s Enterprise Business and Direct-to-Consumer Sales Solutions.
In a recent Teleperformance webinar, “Post-Pandemic: The Race for Revenue Starts Now,” we explored the critical next steps in a post-pandemic world within revenue generation, including diversification, E-commerce support, field sales displacement, and scalability. Click here to watch the webinar on-demand.