When times are tight, exploiting the customer data at your fingertips can help your organisation do business more productively and efficiently, writes Prakash Durgani, Vice President of APAC & Japan, Twilio Segment.
Has the coronavirus crisis given your business a nasty knock? You’re far from alone. Around Australia, enterprises of all sizes and stripes have seen their forecasts and growth plans thrown into disarray and their bottom lines pushed into the red.
As the economy progressively reopens, the race is on to rebuild and return to profitability; a difficult proposition in the recessionary climate in which we now find ourselves.
Recent data released by NAB showed the depth of the challenge. The bank’s monthly business survey for May revealed businesses conditions were at a level last seen coming out of the GFC. Business confidence, meanwhile, had dropped to a reading last seen around the trough of the 1990s recession.
Only five per cent of businesses stated they were unaffected by the virus while over a third reported a major negative impact. Against this backdrop, finding ways to maintain or increase sales and optimise operations has become an urgent imperative.
Harnessing the power of customer data
Making greater use of customer data across the organisation can help businesses to do so – and a growing number are doing so.
According to the CDP Institute’s most recent Customer Data Platform Industry Update, industry revenue for CDPs as a whole will land at US $1.3 billion by the end of the year, a 30% increase over 2019.
So how are companies in these sectors using the wealth of information they’re collecting via their customer data platforms to give themselves an edge in the post-COVID economy? Here are four ways.
Measuring and lowering customer acquisition costs
Using the marketing budget effectively is an imperative in most organisations. In tough times, when the finance department has the red pen poised over every line item, never more so. A customer data platform can be used to demonstrate where the digital marketing dollars are going and provide insights into how they can be allocated more efficiently, towards audiences which are most likely to give you their custom.
Repeat business is the lifeblood of every successful enterprise. We’ve seen this demonstrated during the coronavirus shutdown, when the loyalty of regulars helped thousands of small businesses around the country stay afloat. A customer data platform can be used to explore the correlation between specific actions by a business and customer retention. That intelligence can be used to reduce customer churn and keep buyers coming back, again and again.
Improving your offering
No product or service is perfect. Finding ways to improve your offering can help you increase turnover and profits and one of the ways you can do so is by reaching out to customers. A customer data platform can generate insights into how your product or service is being used, what’s working well and what could use some work.
Delivering personalised marketing
No one likes to be treated like a number. Digital technology has seen a rise in personalised mass marketing in recent years and, done well, it can be a great way to boost customer engagement and sales, without increasing the advertising budget. A customer data platform can be the engine which enables this to happen. The wealth of highly specific data it can deliver can be used to create digital assets and marketing collateral which more effectively mirror the traits and interests of buyers and potential buyers.
Putting customers at the heart of your recovery strategy
Australian businesses are facing uncertain times, as the economy contracts in response to the COVID-19 crisis, and consumers collectively pull in their belts. In this climate, data technology which helps your enterprise up its game and improve its ability to capture and keep customers is likely to prove a sound investment in the future.
By Prakash Durgani
Vice President Asia Pacific and Japan