Improving customer loyalty and retention in a chaotic world
Jeff Bezos, the visionary founder of Amazon, often emphasizes the concept of “customer obsession” as the center of Amazon’s remarkable growth strategy.
It’s easy to assume that every brand has adopted this principle, but the reality is that delivering on customer obsession demands more than mere acknowledgment — it requires relentless execution and unwavering focus.
The essence lies in meeting and surpassing customer demands at every step of their journey with a brand.
Navigating customer needs in an unstable landscape
Macro-environmental shifts have significantly influenced shopping behaviors, particularly within the retail sector. The onset of the “retail apocalypse” in 2010, which reached its peak during the pandemic, marked a pivotal moment in today’s world of retail.
Amazon played a substantial role, but equally impactful were digitally-native brands like Casper, Allbirds, and Harry’s.
These disruptors reshaped the landscape by bypassing traditional middlemen, enabling direct shipments from manufacturing plants to consumers. The consequence was an influx of brands into the market, and big box retailers found themselves struggling to adapt quickly.
This transformative period coincided with the evolution of marketing technology. Brands now have toolkits brimming with thousands of SaaS applications specifically designed to enhance various facets of the consumer experience.
The goal was clear – to convince customers not just to make a purchase but to foster a relationship that would endure through repeated transactions.
The so-called “retail apocalypse” signaled a departure from the days of direct competition between big box retailers and department stores.
A new wave of brands, with lower barriers to entry, surged ahead by strategically aligning themselves with this idea of customer obsession. But, the question lingering was whether this trend would persist. Has it?
In many ways, I think the answer is yes. Digitally-native brands continue to flood the market, now with even lower barriers to entry. Internet and TV personalities are leveraging their influence to establish brands, meeting their target customers wherever they are.
Examples like Logan Paul & KSI’s Prime energy drinks and Kylie Cosmetics showcase the immense success achievable.
However, the landscape is not without its challenges, and for retail brands to remain relevant, they must continuously innovate and adapt to customer needs.
Building customer resilience through proactive engagement
In the current market scenario, brands cannot afford an unlimited budget for acquiring new customers. So, how can a brand efficiently evolve its customer engagement strategy and endure amid the chaos?
Consider the SaaS applications I mentioned earlier. Though not the most glamorous anecdote, leaning into owned channels is one of the most cost-effective means of engaging buyers.
Channels such as email, text, mobile push, and direct mail provide brands with complete control over who they reach, when they reach them, and the content of their messages. However, the efficacy of these tools hinges on having a robust data strategy in place.
I’ve always believed that the key to an effective customer marketing strategy starts with the cloud data warehouse. It enables brands to adopt the best cloud data strategy that aligns with their business requirements rather than forcing them into a rigid data structure that doesn’t work for their organization.
When you look at retailers, major players like Spotify, Netflix, and Apple excel at using data within their marketing strategies, thanks to their vast resources. Surprisingly, smaller brands like Yeti, Resy, and Equinox have also showcased proficiency in executing database marketing strategies that delight their customers.
What do these strategies have in common? They:
- Leverage real-time engagement data collected on the website to guide customers down the sales funnel
- Incorporate customer support data to address users in dispute
- Understand the customer lifecycle to deliver thoughtful, personalized messages at every touchpoint
Fostering community and loyalty through value-based strategies
While these strategies might seem commonplace, brands must go beyond the basics for growth and differentiation in the competitive retail landscape.
Tools like Klaviyo and Shopify have undeniably made it more accessible for smaller brands with lean teams to execute effective strategies, but it isn’t enough to drive customer loyalty.
Consider the prevalence of anonymous web traffic — a recurring theme across many clients that Simon Data works with today. Addressing this challenge is crucial, especially as third-party cookies are going away, making it harder to track users across the internet.
So, how can brands proactively engage with customers who are browsing anonymously? Some tools help marketing teams identify anonymous users. Take, for example, Simon’s innovative solution that includes an identity graph that helps brands determine whether an anonymous browser is a known customer within their database.
Ultimately, this enables proactive engagement while respecting user consent, which plays a crucial role in today’s privacy-focused landscape.
For those identified as known customers, engagement becomes a personalized and meaningful interaction. For those who haven’t given consent, there are still ways to leverage the data by enriching it with HEMs and MAIDs to improve match rates in paid media channels.
Empowering marketing teams in-house with these capabilities facilitates a natural breakdown of silos, offering more control over the broader customer marketing strategy and significantly increasing the likelihood of conversion. This is the epitome of innovating for the customer.
Conclusion
Today, customer retention can make or break businesses. Jeff Bezos’ visionary concept of “customer obsession” is the fundamental strategy that has fueled Amazon’s success.
Brands must commit to understanding and fulfilling customer needs by delivering 1:1 personalization and building long-lasting relationships founded on trust (especially when it comes to data privacy) and value throughout the entire customer journey, delivering the right message via the right channels at their preferred time.
Accomplishing this requires access and centralization of real-time data, proper campaign orchestration, personalized engagement, active listening, and a commitment to delivering value consistently.
