There is a lot of talk about “customer experience” and “brand loyalty” these days, and for good reason. It costs six to seven times more to sell to a new customer than it does to sell to an existing one, so it makes sense to focus effort on nurturing and optimizing your relationship with your customers. But that is hard to do if you don’t know much about your customers to begin with, or if the information that you do have is spread across various disparate and disjointed systems and databases.
Know Your Customer, Gain Advantage
Companies today are recognizing that they must truly know their customers in order to manage customer relationships. As a result, the notion and discipline of Customer Profile Management has become an important advantage and a vital component in effective marketing campaigns and customer loyalty strategies.
A Broader View
The key to customer profile management is the ability to collect and understand customer information in ways that make a difference – building a broader and more strategic view of your customers that includes demographic, geographic, and psychographic characteristics, as well as buying patterns, creditworthiness, and purchase history. The trouble is that in most organizations today, customer information is spread across multiple systems and is often incorrect or out of date. What is needed are systems and strategies that bring that data together and utilize it in ways that are holistic, strategic and profitable.
Maximize Customer Lifetime Value
Once a customer profile has been established, each interaction with that customer presents an opportunity to learn more, and make adjustments and decisions that maximize the overall lifetime value of each customer. Collecting, adding to, and constantly reevaluating customer profile data is a powerful tool and activity for improved marketing, decision-making and profitability.
Manage and Thrive
Customer profile management is quickly becoming a necessity rather than a convenient technique for customer analytics since it enables more accurate forecasting of buying habits and lifestyle preferences that can have a very real bottom line effect on organizational performance. This data mining and analysis can consist of many elements like credit card purchases, magazine subscriptions, loyalty card membership, surveys, and registrations. Using these and other categories, profiles can be created that identify a company’s most profitable customers and gain new advantage with new developments in customer analytics and marketing.