It’s accepted wisdom that better data helps businesses make better decisions. In McKinsey & Co’s How Retailers Can Keep up with Consumers, the firm recommends that retailers “use advanced analytics to make offers and decisions that are targeted and localized.” Here are two examples of ways SMBs can use customer insights in combination with other tools to develop customized offers for their specific audiences.
Combine customer insights with social media tools
McKinsey’s research shines some light on the real value of social media for SMBs. According to the firm, “peer recommendations carry ten times more weight than recommendations from salespeople.” The best way to earn those valuable peer recommendations is to create offers that your customers will act on and share with their social-network connections.
One of the best-known examples of using social media to drive store traffic and create social-media brand evangelists is Starbucks’ Pumpkin Spice Latte. Every autumn coffee chain serves content to promote the Pumpkin Spice Latte’s return. Devoted “PSL” fans on social media – including more than 36 million Facebook followers and 11 million Twitter followers – do the rest. They celebrate the return of their favorite fall treat, post photos of their PSL purchases, and ask the company questions about when PSL will be available in different locations around the world.
To create this type of promotion, combine your customer insights with your social-media listening to construct an offer that has value for your existing customers and is something they will be eager to share socially with their connections. Your store may not get national social media attention when you run your promotions, but if you plan well, you can win new customers based on social media referrals.
You can also sell more to customers who visit for your seasonal treats. As Fortune reported last fall, “Seasonal items have secondary effects on food outlets like Starbucks, increasing customer visits, visit frequency and the total amount spent, according to research by the NPD Group, a global information company.” PSL buyers spent an average of 17% more per visit than customers who didn’t buy the famous pumpkin drink.
Use customers’ location and attributes to evaluate new offers
Same-day delivery is gaining traction among consumers. It’s true that small retailers can offer a more personalized in-store experience than the typical big box outlet, but sometimes same-day delivery is the best experience and it’s increasingly an option consumers expect. It’s also an expensive offering for SMBs without enterprise-level logistics or access to a local delivery service such as Instacart that works with multiple retailers.
Should your business offer same-day delivery? You can use your Tranzlogic insights to map your customer’s home and work neighborhoods. The next step is to find out which services and shops deliver to those areas by crosschecking the relevant zip codes. If your competition offers same-day delivery in your customer areas, you may need to match that. If they don’t, you may decide to offer delivery if it aligns with your customer profile. For example, EConsultancy reports that 30% of Millennials look for same-day delivery, compared to just 5% of senior consumers. Combine your customer insights with information on same-day delivery demand in your sector and location to make smarter decisions about delivery options and other offers.
To learn more about the many ways Tranzlogic can help you build offers that can grow your business and increase customer loyalty, contact us at info@tranzlogic.com or phone number here.