Understanding Your Customers is Key to Surviving Digital DisruptionPosted by
Loyal customers are one of your most valuable business assets, so it’s important to make the most of them. This is especially true in the age of digital disruption.
Digital disruption is all about using new technologies to get a competitive advantage over your rivals. It allows small businesses to punch above their weight. Nimble new players in your industry are using business intelligence tools like Customer Relationship Management (CRM) to woo customers. So, it’s important you keep up with the latest disruptive technologies.
CRM isn’t just about managing customer contact details. It’s also about building up a holistic view of your customers. This allows you to better meet and anticipate their needs.
Tying into your other business systems, this valuable customer information can assist with broader business planning. This ranges from generating leads and nurturing prospects to driving your marketing efforts, forecasting sales and tracking conversion rates.
A customer loyalty program can be a critical part of the equation. It helps you understand your different types of customers. Studying customer behaviour and purchasing habits also makes it easier to spot potential opportunities to strategically cross-sell and upsell without alienating customers by coming on too strong.
Understanding your customers
Once you better understand your customers it’s simpler to spot the telltale signs of someone who might be thinking about taking their business elsewhere. Managing churn is important, considering that it’s much easier to retain a customer than find a new one. That said, once you truly understand your customers you’ll know which ones are worth keeping.
Your most valuable customers aren’t necessarily the ones handing over the most money, which is why it’s important to understand customer life cycles and customer lifetime value. This includes calculating the cost of doing business with different types of clients, such as customer support.
You don’t want to waste your efforts on chasing the wrong customers; nor do you want to fight to retain customers when the time has come for them to move on.
Going on a gut feeling will only get you so far. There comes a time when you need to take advantage of disruptive technologies to truly understand what makes your customers tick.