Most business analytics tools cannot explain verbatim what it is that they actually do. It’s difficult to overestimate the significance of the process of business analytics as it provides an overall picture of how your company works. It helps you make business decisions at all levels; sales, marketing, and HR.
Business analysis covers a wide spectrum of areas across the business as a whole. This article will discuss the process of business analytics in rewards marketing.
Any rewards marketing strategy aims to minimise expenses and save time spent selling a product or service. You can achieve these goals using a business analysis strategy.
So, what exactly goes into a business analysis strategy?
Target Audience and Returning Customer Analysis
A visitor turns into a client when they understand that the product or service solves their problem and caters to their needs. To find out the user’s problem or needs we need to analyse the target audience.
Understanding your client allows you to build a more detailed sales process and increase probability of a purchase.
How To Analyse the Client Database and Their Activity
The next step is to analyse the clients who’ve already engaged with your product or service and those who’ve made a purchase.
Loyale uses the following questions to study clients;
- When was the last purchase made?
- How many purchases were made?
- How much did the customer spend?
Loyale allows you to segment customers into tiers by the degree of their loyalty, each of them requiring a special approach. You may name the segments of your customers whatever you wish however for in the case of this example we will use the placeholder terms ‘Bronze’, ‘Silver’ and ‘Gold’.
Gold: VIP Clients – lots of purchases, the last purchase wasn’t made long ago.
Silver: Loyal – quite a few purchases, the last purchase was made quite a while ago.
Bronze: Newbies – 1-2 purchases, the last purchase was made fairly recently.
Lost Loyal: Made lots of purchases, the last purchase was made long ago.
Lost: Last purchase was made long ago.
Sleeping: the last purchase was made rather recently.
How to Turn Newbies into Loyal Customers
Make them aware of your product and its benefits and entice them to join your loyalty scheme. Create a mutually beneficial relationship with your new customers and foster brand loyalty.
How to Wake up the Sleeping Clients
If these customers aren’t re-activated soon they will enter the lost category. Offering personal discounts and special offers for these customers are a great option.
Customer reactivation is a useful tool to have up your arsenal. This is due to the fact that acquiring new customers cost significantly more than retargeting engaged customers.
Loyale makes this easy to do with its automations. Send notifications directly to your customers mobile phones reminding them to visit your stores.
How to Return Lost and Lost Loyal Customers
Want to get clients out of the danger zone? Offer the ultimate deal to re-engage these clients. However, if you want to find the real reason why they nearly left and eliminate it, you’d need to dig a little deeper. Loyale’s analytics dashboard helps you understand customer purchase behaviour in order to pinpoint these instances.
How to emphasise VIP clients’ status
It’s important to show such clients that their status gives them additional benefits. As these clients demand a higher level approach.
How to Calculate Customer Lifetime Value (LTV)
Customer lifetime value is the amount of revenue a customer generates in their lifetime. LTV measures the efficiency and pay-out of the business model, as well as forecast future revenue.
LTV can help with;
- Optimising promotional channel expenses
- Focus on acquiring new customers
- Figuring out how much to spend on customer retention
- What income to expect in the future
It is important to have a good understanding of your LTV as it will help give an idea about the points listed above.
With all the metrics you’ve gathered, you’ll have a deeper understanding of your company from your customers’ perspective. This will help you pinpoint your successes, fix your failures, and create loyalty programs that address both.