The basic idea of the Customer Journey is simple. The Customer behaviour should be understood as well as possible from the first contact with a brand or a product up to the purchase decision, and be controlled. Thanks to Advanced Analytics respectively Marketing Analytics can be used today to evaluate targeted information about customers on their customer journey. This allows key questions to be answered - "Which channel and which measure attract attention?" and "Which interaction and customer experiences lead to follow-up actions?" The goal of the customer journey is to provide the customer with the right information at the right time or to address them in the right way individually.
In the age of Digitisation the customer journey is gaining in importance. The process of the customer journey is becoming more complex and at the same time offers more possibilities for design. Today, it is no longer just about guiding customers on their customer journey, but about better understanding their behaviour. This is because the habits of customers have changed just as much as the insights into business processes that are linked to them. In this respect, an improved understanding of the customer journey and customer behaviour also results in a optimal Adaptation of marketing measures and business strategies.
An important finding that emerged from the Data analyses could be won: The measures to acquire a new customer are six to seven times more expensive than those designed to retain existing customers.
For this reason, efforts to increase customer satisfaction, to continue the customer relationship and to encourage existing customers to repurchase are, if only for economic reasons, the The royal road of the customer journey. Consumer goods that are bought new after a certain time are accordingly among the preferred items for which the Customer Journey turns. This is especially true for luxury goods such as cars or high-end electronics.
For a leading car manufacturer, we were able to successfully predict the point in time when their customers were thinking about a new purchase by analysing vehicle data. On this basis, customers can be approached in a targeted manner with tailor-made offers.
In another project, we were able to specifically identify for one of our clients the causes of change that were most likely to lead to the Outflow (Churn) of its customers. In total, we were able to identify over 90% of all churn customers. This made it possible to take individual countermeasures to encourage customers to buy again.
The dilemma of chocolate bars and toothpaste
Particular importance is attached to perishable goods and the Fast Moving Consumer Goods one. The latter are used because of their high Repurchase frequency also called "fast-moving consumer goods". These include consumer goods such as food, cosmetics, hygiene articles, tobacco products, newspapers and other goods for daily use. Since customers buy these goods spontaneously, they quickly lose their topicality or their shelf life is limited, inventory planning plays a central role for retailers.
The big dilemma of chocolate bars, toothpaste and shaving foam: customers hardly engage with the Fast Moving Consumer Goods product group on the net. Accordingly, it is difficult to obtain a data basis and develop a functioning marketing strategy. One of the key technologies that can lead to a deeper understanding of the customer journey in this case is Big Data. Machine Learning in stationary retail can be extremely profitable.
The right data makes the difference
If a manufacturer of perishable goods such as sushi knows that the customer journey of its customers is strongly dependent on the weather, it can adapt to this. If demand increases by 15 % in good weather, he can order more fresh ingredients accordingly.
It is equally crucial to know what concrete effects marketing measures have. Let's assume that the sushi producer decides on a flyer campaign and sends an offer to all of its existing customers by post: from past campaigns, the producer already knows that this campaign will lead to 37 % of all the existing customers approached deciding to place an order. If the flyer campaign takes place in good weather, the customers can Synergy effects and the turnover will be further increased.
In this way, companies that continuously expand their data stocks can predict their sales development very accurately. This helps them both to increase sales and to avoid losses due to overstocking.
Data analyses provide a glimpse into the future
The example clearly shows that a data-based Customer Journey from a pure marketing instrument to a strategic tool. The more precisely a company can assess the behaviour of its customers, the better it can adapt its business model to the customer journey. In the context of a data strategy, we also speak of "Data2Value"because this is how real added value is created from the data.
Predictive analytics enables forecasts about the probability of future events. The prerequisite for this is that companies collect data that is relevant to the customer journey. This can be achieved through intelligent touchpoint management. This is not only about online touchpoints such as a company homepage or an online shop. As the example of the sushi manufacturer shows, customer touchpoints can also be traditional measures such as flyers, the effects of which can be recorded using data technology.
The advantages of a digitalised customer journey
Without data intelligence, the customer journey will no longer function in the age of digitalisation. As a result, customers are now more than ever at the centre of corporate interest. From the Customer centricity This results in a number of advantages with regard to the customer journey:
- PersonalisationIndividual customer approach becomes possible and a conversion is therefore probable.
- Measurability of effectiveness: The success of marketing measures is no longer left to chance, but becomes a measurable variable.
- Improvement of existing customer care: Customer profiles make it easier to address needs and find the perfect moment to continue the customer journey.
- Increasing customer satisfactionThe better the customer journey is understood, the better a company can respond to its customers' needs and the more satisfied its customers will be.
- Increase the willingness to recommend: The personal recommendation of satisfied customers is worth more than any other marketing measure.
These five key benefits of a digitised customer journey require a Basic requirement. Namely, the realisation that the customer journey does not end with the purchase of a product. Especially in the dawning age of the networked Internet of Things and the networked production products represent an interface between companies and their customers. More than ever, the question of how the customer journey continues after the purchase of a product will be decisive.