Customer insight marketing
Using behavioral insights to improve your offerings for the customer is called customer insight marketing. So as a company, you put these insights to use to better align your offerings with customer needs. With this, you can improve the:
- Improve services and service
- Increase sales
- Attract new customers
If you understand why and how a customer behaves, this information can be used. In fact, this behavior can be influenced. By mapping the customer journey, you can see the route the customer takes and how they behave. Customer insight marketing helps make the products or services better fit the target audience, as well as help improve the marketing strategy to reach the target audience.
Deploying customer insights
You can create a customer insight model from the collected data. What it will look like depends on the data analysis. There are several customer insight models that can be used:
- Impact Assessment: the relationship between the customer's behavior and the provider's actions are mapped, from which comes a predictive value of the action-behavior relationship
- Customers as Assets: Here you are going to measure the long-term value of the customer. To calculate the return, acquisition costs are included in the calculation
- Propensity Modeling: based on past customer actions, future behavior is predicted
- Cross-sell Analysis: Related products and services are linked for upselling and cross-selling in the future
- Critical Lag: Based on personal buying patterns, specific customer contacts are grouped together. Reaching them in a more personalized way encourages loyalty and increases retention
Deploying customer insights
So there are several customer insight models to use for your marketing strategy. Here it is important to look at which customers you want to reach. If you want to increase sales from regular customers, the Critical Lag model is what you are looking for. In fact, according to the Pareto principle, 80% of your sales come from 20% of your customers. So betting on these loyal customers is always a good idea.
In addition, Simon Sinek has developed the Golden Circle model. Where it looks at the intrinsic value for the customer. There are still a lot of companies that don't do this enough. Customer insight marketing actually looks at the intrinsic value of the customer as well.
