Today, companies are seeking to significantly improve their marketing efforts to increase revenue. According to a research study, companies expect to expand their marketing budgets by 8.7% in the next year.
As shoppers continue to make online purchases, they expect businesses to cater to their needs and provide them with the best deals. Marketing leaders understand this demand and also feel the underlying pressure to deliver a better return on investment.
To succeed, marketers are implementing the next best offer approach. This marketing technique adds the most value to the customer, in return increasing the company’s customer lifetime value.
This model involves analyzing data about a customer’s shopping habits and presenting relevant discounts or product selections. For this strategy to work, your team must first gain key information about the customer. Then, offer the right product or service in a personalized fashion using an appropriate communication channel at the right time.
Big data can help you gather pertinent information about your customers. It’s the foundation for acquiring the right target audience.
The key is to learn why and how they buy. To gather this data via your website, survey your last 50 paying customers. Avoid any purchasers who bought your product over six months ago; they probably forgot about the purchase and may feed you incorrect information.
What current/previous products and services did they buy?
What are their channel preferences and usage?
Keep the survey short and simple. People dislike long questionnaires with convoluted inquiries. Also, use neutral language. You don’t want to lead your customer to a particular answer.
If set up correctly, behavioral analytics infrastructure, like CoolaData, can produce your team some insightful reports. Remember, you don’t need to know everything. Start with what you’ve collected and then add more details later.
Action Step: Create a website survey to collect customer data.
Generally, next best offer means cross-selling to your existing customers. It requires your team to learn your customers’ preferences. Consumer data can be collected through various inbound and opt-in methods.
The well-known brand Amazon does a great job at recommending products to its consumers. Referred to as “item-to-item collaborative filtering,” the retail giant uses an algorithm to customize the experience for returning customers.
To select the right products, use simple user behavior data: what items did they buy in the past, which items do they have in their online shopping carts, and what items have they rated and liked.
When you understand your customer’s needs, you can offer better product selections. Thus, translating into more money for the company’s bottom line.
Action Step: Build a recommendation system to offer customers the right products.
Businesses executing next best offer marketing tactics must determine how they can build brand loyalty. It’s important to think through the operational and organizational implications for delivering targeted offers to each customer.
Monetate notes that marketers see an average increase of 20% in sales when using personalized web experiences. When customizing products, offer deals and discounts based on past purchases to entice consumers.
For instance, when a customer buys a wedding dress, offer the person complementary items, like shoes or accessories, at a discount. When you personalize the offer, your customers are more likely to take advantage of the deal.
Be consistent with your language. Test your website content to ensure consumers are responding to the personalization. Establishing trust and consistency will make customers come back. This helps consumers realize that your next best offers are great deals and not just mediocre offers.
Action Step: Offer complementary items to personalize the customer experience.
In this Information Age, businesses interact with their customers through various channels. When properly managed and analyzed, data can be an essential input to knowing when and where to approach your customer.
Understand how your customers shop online. Your team should provide a coherent experience. For example, customers should receive similar shopping experiences on all their electronic devices, including smartphones and tablets. So, building a mobile-friendly website is critical.
The next best offer method can guide your sales representatives when interacting with a customer. CoolaData, or similar analytics platforms, can inform the rep whether it’s the appropriate time to suggest a next best offer. Focusing on timing ensures that your sales team doesn’t sell the customer twice or too soon.
Action Step: Design a mobile-friendly website, and use analytics to offer products at the right time.
The strategies for crafting next best offers are evolving. Personalize your website to meet customers’ desires and to improve your return on investment.
Be flexible. Modify when necessary. Redefine your next best offer.