It's not a one-size-fits-all scenario — the way consumers are being affected by these economic changes vary based on their unique situation and businesses need to be conscious of the types of marketing they're using as it could be the difference between a one-time visitor and a lifelong customer.
What is data telling us?
This is a great time to focus on the positive ways you can serve your customers. For example, data is showing that 72% of eCommerce transactions are done via a mobile device which means, it is important for retailers to prioritize a mobile-first strategy. When developing email marketing campaigns, businesses should keep this in mind and put plenty of emphasis on designing them with mobile compatibility. This includes things like external links, dynamic content, and the ability to unsubscribe.
On top of that, it’s important to stay close to the customer. Previously, retailers were experiencing a lack of available inventory, but now there has been a switch and they are starting to see an excess of inventory and less consumer purchases. The way to counteract this is through unique personalization.
"Start taking your customer data seriously. Making any decision that isn't backed by data in some way, is a gamble and a potential risk to your business."
Achieving personalization through segmentation
Especially now, consumers are demanding a “made for me” approach, they refuse to be treated like just another number on a list. In a competitive environment, customers will be quick to switch brands if they feel they aren't being seen or understood — that's where personalization comes in.
This is also where customer data becomes extremely important. By aggregating and enriching the data you already have (i.e. demographics, location, and purchase history) you can begin to segment your customers into unique groups that all have different needs. Some of the most high-impact customer segments include:
VIP Customers — Those who have purchased recently, buy frequently, and spend the most. These customers are ready to buy (or they likely will again soon) and contribute to a large portion of your revenue. This presents a valuable opportunity to hit them with the right message at the right time.
Lapsed Customers — 70% of customers return in the four months following their second purchase, whereas 60% of first-time buyers do not return at all within that same time frame. Automated lapsed customer campaigns are a powerful tool for customer retention.
Promotional Offers — Wishing a customer a happy birthday or recognizing an anniversary of a big purchase is not only incredibly personal, it gives you the perfect opportunity to provide a special discount or other offer that will bring them back.
Post-Purchase Retention — It is six to seven times more expensive to acquire a new customer than retain an existing one. The timeline to get that customer back in the store or online is important as well, because 51% of repeat purchases occur within 60 days.
Securing the right tool for data driven marketing
Right now, outdoor and specialty retailers have the opportunity to understand an entirely new dynamic about their customers. Data is becoming more widely accepted, yet it is still in the early stages. The key is understanding how to use that data, segment customers, and integrate preferences into the things they buy. All businesses, no matter the industry, should be taking their data seriously — making any decision that isn't backed by data in some way, is a gamble and a potential risk to your business.
At Ascent360, our comprehensive data driven marketing platform is designed to ingest all your customer data and cleanse it to remove any inaccuracies or duplicates so you can easily turn it into valuable segments & reach the right customers at the right time, with the right product.
Start building and maintaining stronger relationships with your customers by utilizing your data and keep them coming back during an uncertain economy (& beyond!).