MARKETING METRICS BLOG SERIES: THE RELATIONSHIP BETWEEN PRODUCTS & CUSTOMER LOYALTY
Welcome back to our series helping retail marketers improve their data literacy and get more from their data. In this part, we look at the relationship between products and customer loyalty and why such insights can really boost customer acquisition, retention, and engagement strategies.
Why is the relationship between products and customer loyalty important?
You’ll know your best-selling products and categories, but there’s so much more to be gained from insights like:
Which products are the true heroes – the ones that lead to the highest number of subsequent orders and create the most loyal customers. Contrast these with the one-hit wonders, great at acquiring those one-time customers who you never see again! It's insight like this that allows you to drive up repeat purchases.
Which products are converting well and which poorly? Which are viewed the most but bought the least? And which are those hidden gems which are viewed least yet bought most? You'll want to get these into the spotlight.
Which products and categories lead to the fastest time to second order?
And what about different customer segments? Which products have been bought by different segments? Which products have the worst return rate by customer segment? When, where, and why are these happening?
What are your best-selling product combinations? It's a cracking way to increase basket size.
The right tech will enable you to obtain the answers to these questions quickly and easily and a good marketer will use data insights to inform marketing, personalisation, and website optimisation strategies.
How to use product and customer loyalty insights
Analysing the relationship between products and customer loyalty makes sense tactically and strategically. Short-term actions to maximise product sales can be identified from the insights - product promotions, channel and platform optimisation, personalised messaging, for example. And, at a strategic level, the insights help to inform product and category reviews, as well as drive merchandising and pricing decisions.
We’ve now covered four of our top five metrics or insights marketers should be looking at to boost customer acquisition, retention, and engagement. If you missed any of these blogs, or the one about improving data literacy, catch up here:
If you've got any questions about the topics covered in this blog series do get in touch. We love to talk all things data and are genuinely happy to help.
The final blog in this series reveals how to use changing device usage to optimise your platforms. You can read it here. If you’d like to be alerted when new blog posts are published follow us on LinkedIn.
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