3 Principles To Help You Rethink Your Approach To Customer Data
Customer data encompasses a broad spectrum of information about the people and businesses your organization serves. COVID-19 has and still affects businesses in a variety of ways - and as you begin to reopen and navigate a pandemic world, it’s a great time to revisit your customer data.
1. Communicate clearly
Whatever your industry, your customers likely start with a level of distrust. For example, a Pew Research Center survey of U.S. adults revealed that 81% think they have little control over companies collection of their data, and an equal proportion think the risks outweigh the benefits. An alarmingly small 6% said they had a “good understanding” of how companies are using their data.
Personalised communication is less about you as a company and more about your customers – their wants, needs, and attitudes in the moment. Uncovering customer needs from data is even more important during times of rapid change, and it’s a key differentiator in customer connections. Salesforce research [recommend viewing dashboard on desktop] found that 71% of consumers say companies who show sensitivity to the current climate are more likely to earn their loyalty.
Customers also told us they are willing to share information with companies that inspire trust by clearly communicating how, when, and why they’ll use the data. In fact, 58% of respondents to our State of the Connected Customer report said they agreed with the statement “I’m comfortable with relevant personal information being used in a transparent and beneficial manner,” while only 17% disagreed.
2. Revisit old assumptions
During the early months of the COVID-19 crisis, brands scrambled to adapt their messaging – for example, by removing things like high-fives and finger-licking that no longer fit into a world of social distancing. After that, many rose to the moment with campaigns that were more down-to-earth. For example, Toyota pivoted from a sales-promotion campaign to a series of videos emphasizing home and family with the tagline, “We Are Here For You.” Revamped campaigns better reflected customers’ changing needs: one survey revealed people want to hear messages that were “safe” and “hopeful” from brands.
Recognizing no two crises are exactly alike, researchers at Harvard studied how customer attitudes and behaviors change during downturns. They saw broad changes both in behavior and how categories of products and services were perceived. Some customers remained optimistic, while others (often, but not always, younger people) threw caution to the wind and “lived for today.” Meanwhile, some “nonessential” products such as makeup and skin care are seen as even more important by many sheltering-in-place today.
Recent Salesforce research [recommend viewing dashboard on desktop] shows how fast consumer sentiments change. Between May 1 and July 1, customer optimism rose six percentage points, confidence rose five points, and trust rose six points. More than ever, marketers need to examine customer data and adapt rapidly to shifts.
3. Practice long-term thinking
There’s ample evidence investing in fundamentals such as R&D, workforce training, and brand advertising during tough times yields long-term benefits. The same goes for customer relationships. If you can afford it, reorienting around longer-term key performance indicators (KPI) and more holistic measures of health will provide long-term dividends.
Now is a time when most B2C and B2B companies are dealing with price sensitivity. Discounts and other concessions are common. There is wholesale revision in annual targets, as relatively few companies can maintain their pre-pandemic momentum.
Shifting from a topline-focused KPI such as net sales or profits may not work anymore. However, short-term pain can yield long-term gain. Recall the components of customer lifetime value (CLTV): revenue x frequency x retention %. If you’re willing to be patient, shifting to a focus on retention and loyalty through superior empathy and service will overcome a (temporary) dip in revenue.
As we all navigate a new normal, your business and your customers have probably changed due to the pandemic. Now is the perfect time to revisit your customer data and start fresh in the New Year.