How Consumer Good Brands Can Collect Customer DataCustomer data ·
How much do you know about your customers?
99% of businesses are groping in the dark – especially those relying on third-party retailers to reach their customers.
Surprised? It's the harsh reality that many businesses face in today's retail landscape. When companies depend on retailers like Amazon to sell their products, they often find it hard to understand who their customers are and what they truly want. This lack of customer data can have significant implications for businesses, hindering their ability to make informed decisions and tailor their offerings to meet customer needs.
Customer data is the lifeblood of any successful business. It provides crucial insights into consumer behavior, preferences, and purchasing patterns. With this valuable information, businesses can create personalized marketing strategies, deliver exceptional customer experiences, and identify new market segments for growth.
62% of retailers, according to IBM, report that information and data analytics gives them a competitive advantage. However, without access to customer data, companies are essentially operating blindfolded, relying on guesswork rather than data-driven strategies.
But fear not; there is a solution that can help companies bridge this data gap and unlock valuable customer insights. Layerise, a robust customer registration and experience platform, offers a comprehensive solution to this problem. By leveraging Layerise, companies can tap into over 40% of their retail and marketplace customer base, transforming them into new sales opportunities.
In the following sections, we will delve deeper into the challenges companies face with retailers and customer data, explore the importance of customer data for businesses, discuss strategies to collect customer data, and ultimately show you why Layerise is the perfect solution to unlock the power of customer insights. Let's dive in and discover how knowing your customers can revolutionize your business.
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The problem with retailers and customer data
Giants like Amazon make money by understanding their customers and delivering your products to them. They are the middlemen here and are unwilling to share that rich customer data resource with you. It poses a significant problem for businesses that rely on retailers to reach a broad customer base and drive sales.
The implications of this lack of access to customer data are far-reaching and impact businesses in multiple ways. Let's explore the challenges that arise from this problem and how it hampers companies' ability to understand their customers and make data-driven decisions.
1. Limited customer insights
When companies cannot access customer data, they are left with a limited understanding of who their customers are, their preferences, and their behavior. Without this crucial information, businesses cannot create personalized experiences, develop targeted marketing campaigns, or effectively address customer needs. They miss out on the opportunity to tailor their products and services to meet specific customer requirements, resulting in a less satisfactory experience overall.
Take an e-commerce clothing retailer, for instance. The retailer struggles to curate personalized recommendations or offer targeted promotions without knowing their customers' preferred styles, colors, and sizes. As a result, customers receive generic suggestions and may feel frustrated by irrelevant offers.
With limited customer insights, the retailer misses the chance to provide a seamless shopping experience tailored to individual preferences, potentially leading to reduced customer satisfaction and lower conversion rates.
Or consider a food delivery service that lacks access to customer data and finds it difficult to understand customers' dietary preferences, favorite cuisines, or delivery habits. Without this information, the service cannot offer personalized recommendations or discounts based on customer preferences, leading to a one-size-fits-all approach.
For example, a customer who prefers vegetarian options might receive irrelevant promotions for meat-based dishes. The service misses the opportunity to create a tailored experience by suggesting popular dishes from preferred restaurants, accommodating dietary restrictions, and providing a seamless ordering process. As a result, customers may feel less engaged and seek alternative delivery options that better meet their needs.
On the other hand, businesses that get the data outperform their competitors. According to the McKinsey Global Institute, data-driven organizations have a 23 times higher chance of acquiring customers, are six times more likely to retain those customers and experience a 19 times greater likelihood of being profitable.
2. Incomplete customer profiles
Customer data helps build comprehensive customer profiles, which is essential for effective segmentation and targeting. Without access to data from retailers, companies struggle to create accurate and detailed customer profiles. It leads to a fragmented view of their customer base, making it challenging to identify key customer segments and tailor marketing efforts accordingly.
Understanding different customer segments' demographics, preferences, and behaviors is crucial for driving business growth and maintaining a competitive edge.
3. Limited customer engagement
Engaging with customers beyond the point of sale is critical for building long-term relationships and fostering loyalty. However, companies selling through retailers miss out on opportunities to engage customers meaningfully without customer data. They cannot offer personalized recommendations, exclusive promotions, or targeted communication based on customer preferences. This lack of customer engagement limits their ability to enhance customer satisfaction and loyalty, leaving room for competitors who can provide a more personalized experience.
4. Impaired decision-making
Data-driven decision-making is vital for businesses to stay competitive and adapt to changing customer needs. However, companies face challenges in making informed decisions without access to customer data.
They rely on guesswork or limited information, leading to ineffective strategies, poor product development, and missed opportunities. Access to customer data is crucial for identifying trends, understanding customer preferences, and making data-backed decisions that drive business growth.
6. Missed opportunities for growth
One of the significant implications of not having customer data is the missed opportunities for growth. Customer data provides insights into new market segments, emerging trends, and untapped customer needs.
Without this valuable information, companies selling through retailers may fail to recognize potential growth areas or pivot their strategies to seize market opportunities. They remain confined to a limited understanding of their existing customer base and struggle to expand their reach and capture new customers.
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How to collect customer data
Collecting customer data becomes crucial in a world where customer data is critical to understanding your target audience and driving business growth. While companies selling through retailers may face challenges in accessing customer data directly from the retailers, they can employ several practical strategies and methods to collect valuable customer insights.
Let's briefly explore some practical tips and techniques for collecting customer data:
Surveys are a powerful tool for gathering customer data as they allow you to ask your customers questions and gain insights into their preferences, needs, and satisfaction levels. Here are some tips for conducting effective surveys:
Keep surveys concise and focused on increasing completion rates.
Use a mix of open-ended and closed-ended questions to gather both qualitative and quantitative data.
Offer incentives such as discounts or exclusive content to encourage participation.
Use online survey tools like SurveyMonkey or Google Forms to create and distribute surveys efficiently.
Loyalty programs incentivize customer loyalty and provide an avenue for collecting valuable customer data. Here's how you can leverage loyalty programs to gather customer insights:
Request customers to provide their contact information, demographic details, and preferences when they sign up for the loyalty program.
Monitor customer behavior and track their purchases to understand their preferences and buying patterns.
Offer personalized rewards and promotions based on the data collected to enhance the customer experience and drive repeat purchases.
Leverage loyalty program software like Smile.io or LoyaltyLion to streamline program management and data collection.
Your website can be a treasure trove of customer data. You can gain insights into customer behavior, preferences, and engagement using website analytics tools. Consider the following:
Install a robust web analytics platform like Google Analytics to track and analyze user behavior on your website.
Monitor metrics such as page views, time spent on the site, bounce rates, and conversion rates to understand how customers interact with your website.
Utilize heatmaps and user session recordings to visualize how customers navigate your site and identify areas for improvement.
Implement tracking pixels and cookies to gather data on customer browsing habits and create personalized experiences.
Social media listening
Social media platforms provide a wealth of information about your target audience. You can gather valuable insights by actively listening and engaging with customers on social media. Here's how:
Monitor brand mentions, comments, and conversations about your industry or products on Twitter, Facebook, and Instagram platforms.
Analyze sentiment analysis tools to gauge customer sentiment towards your brand and products.
Engage in social listening by actively participating in relevant conversations and addressing customer concerns and feedback.
First-party customer data
First-party customer data is a valuable asset that provides businesses with accurate and reliable insights into their customers' preferences and behaviors.
Here are some effective strategies for leveraging first-party customer data:
1. Encourage customers to opt-in for email newsletters, updates, or promotions:
By offering incentives and valuable content, businesses can encourage customers to share their contact information willingly. This opt-in process allows businesses to gather email addresses and other contact details to establish direct communication channels. With permission to contact customers directly, businesses can send targeted emails, personalized offers, and relevant updates, further enhancing customer engagement and building stronger relationships.
A fashion retailer could offer a 10% discount on the next purchase to customers who sign up for their newsletter. This incentive encourages customers to provide their email addresses, allowing the retailer to send personalized emails showcasing new arrivals, exclusive offers, and styling tips based on customer preferences.
2. Implement tracking pixels or cookies on your website.
Tracking pixels or cookies are small snippets of code placed on your website. They help collect behavioral data and preferences as customers interact with your site. For example, tracking pixels can track page views, clicks, and conversions, providing valuable insights into customer browsing patterns and interests. By analyzing this data, businesses can understand which products or content resonate most with their audience, optimize website experiences, and tailor marketing campaigns accordingly.
An online bookstore can use tracking pixels to gather data on customer browsing patterns. Suppose a customer visits the mystery fiction section multiple times. In that case, the bookstore can tailor its website experience by highlighting new mystery releases, recommending similar titles, and sending targeted email campaigns featuring discounts on mystery books.
3. Utilize purchase history and transactional data.
Businesses can leverage the power of customer transaction data to gain deep insights into customer preferences, buying patterns, and product affinities. Businesses can identify customers' favorite products, recurring purchases, and even cross-selling or upselling opportunities by analyzing purchase history.
This information allows businesses to create targeted marketing campaigns, personalized recommendations, and loyalty programs that align with individual customer preferences. Businesses can enhance customer satisfaction and drive repeat sales by understanding their customers' purchasing habits.
A grocery store can analyze customer transaction data to identify buying patterns. Suppose a customer regularly purchases organic produce and dairy products. In that case, the store can create personalized offers for organic brands, provide recipe suggestions for healthy meals, and even offer loyalty points for purchases in these categories. This tailored approach strengthens the customer's satisfaction, promotes repeat purchases, and enhances their overall shopping experience.
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The value of first-party customer data
First-party customer data has several advantages over third-party data or data from retailers. It provides businesses with accurate and reliable information directly from their customer base. Here are the key advantages of first-party customer data:
Trust and privacy: Customers are likelier to trust businesses that collect data directly from them. With increasing concerns about data privacy, having permission-based first-party data helps maintain trust and compliance with privacy regulations.
Take an online clothing store, for instance. By collecting first-party data directly from your customers, such as their preferences, sizes, and style preferences, you build trust with them.
When customers know that their data is collected with their consent and used to enhance their shopping experience, they feel more comfortable sharing information. They are more likely to trust your business. That builds a strong foundation for a long-lasting relationship based on trust and compliance with privacy regulations.
Accuracy and relevance: First-party data is collected directly from your customers, ensuring higher accuracy and relevance. It enables businesses to make more informed decisions and personalized experiences based on customer preferences and behaviors.
Let's say you operate a subscription box service for beauty products. By collecting first-party data from your subscribers, including their skin type, beauty preferences, and past purchases, you can curate highly accurate boxes that are relevant to their needs.
That ensures that each subscriber receives products they will genuinely enjoy and use, leading to higher customer satisfaction and retention. With accurate and relevant first-party data, you can make informed decisions and deliver personalized experiences catering to your customer's preferences and behaviors.
Deeper insights: By combining first-party customer data with other sources, such as website analytics or surveys, businesses can gain comprehensive insights into customer behavior, preferences, and segmentation. It allows for more effective marketing strategies, targeted campaigns, and product development.
Suppose you own an e-commerce platform that sells home decor items. Combining first-party customer data with website analytics and surveys can give you comprehensive insights into your customers' behavior, preferences, and segmentation.
For example, by analyzing purchase patterns and survey responses, you may discover that a particular segment of your customers prefers eco-friendly and sustainable products. With this information, you can develop targeted marketing campaigns and product offerings that resonate with this segment, leading to higher engagement, conversion rates, and customer loyalty.
Long-term customer relationships: First-party customer data facilitates ongoing engagement and personalized communication. With a deeper understanding of customers, businesses can nurture long-term relationships by offering relevant recommendations, tailored promotions, and exceptional customer experiences.
Say you manage a fitness app that offers personalized workout plans. With first-party customer data, such as exercise history, fitness goals, and progress tracking, you can provide ongoing engagement and personalized communication.
For instance, you can send workout reminders, congratulate users on achieving milestones, and offer tailored recommendations for workout routines or nutrition plans based on their data. Using first-party data to understand your customer's needs and preferences, you can nurture long-term relationships, encourage customer loyalty, and foster community within your app.
By employing these strategies and prioritizing first-party customer data, businesses can understand their customers comprehensively and unlock the power of personalized marketing, enhanced customer experiences, and data-driven decision-making.
With all that covered, let’s see how Layerise comes in to help your business.
Create a loyalty program and watch your customer base grow and thrive
Read how to turn all your products into a point of sale. Empower D2C opportunities after a products is sold through a retail store
Introducing Layerise: A comprehensive customer registration and experience platform
Layerise is a robust platform beyond conversion, empowering businesses to transform their retail and marketplace customer base into new sales opportunities. With its comprehensive features, Layerise helps companies understand their customers better, engage with them effectively, and provide personalized experiences throughout their customer journey.
With Layerise, you get features like:
Real-time customer support: Layerise offers real-time customer support, enabling businesses to interact with their customers directly, gather feedback, and address their queries or concerns. This direct engagement fosters a deeper understanding of customer needs and preferences.
Contextual customer data: Layerise's platform encompasses various contextual customer data, including demographics, product models, maintenance schemas, etc. This data enables businesses to create comprehensive customer profiles, gain insights into customer behavior, and tailor their marketing strategies accordingly.
Smart interactive storytelling: Layerise enhances customer engagement through smart interactive stories enriched with visuals and videos. This interactive format educates customers about products and services and provides businesses with valuable data about customer preferences, interests, and engagement levels.
Benefits of Layerise
Let's dive deeper into the benefits that make Layerise the perfect solution for companies seeking to know their customers:
1. Comprehensive customer onboarding
Layerise provides businesses with the tools to deliver comprehensive customer onboarding experiences. Businesses can ensure a smooth and positive onboarding process by guiding customers through the setup and usage of newly purchased products.
2. Personalized learning paths
Layerise's platform supports personalized learning paths, enabling businesses to provide customized content and recommendations based on each customer's unique needs and interests. This personalized approach enhances the overall customer experience and drives engagement.
3. Dynamic content
Layerise's platform supports dynamic content that adjusts based on user interaction and progression. By tailoring content based on customer behavior and preferences, businesses can deliver highly relevant and engaging experiences that resonate with their customers.
4. Data analytics for insights
Layerise utilizes data analytics to deliver insights into customer behavior and engagement. Businesses can refine their strategies, optimize marketing campaigns, and enhance customer satisfaction by analyzing this data.
5. Monetize customer relationships
The platform lets you monetize customer relationships by creating new revenue streams and increasing lifetime value. With Layerise, you can directly sell related products and services to engaged customers already interested in your brand. Additionally, it helps you generate revenue through personalized marketing campaigns and secure sponsorships by showcasing your products or services to relevant audiences.
By considering Layerise as a solution, businesses can bridge the gap, unlock valuable customer insights, and succeed tremendously in today's competitive market.
Starved of customer data? Not any more
The lack of access to customer data for companies selling through retailers is a significant problem hindering their ability to understand customers and make data-driven decisions. Throughout this blog, we have emphasized the importance of customer data and provided practical insights into collecting it. To bridge this gap and unlock valuable customer insights, we recommend considering Layerise as a solution.
This comprehensive customer registration and experience platform addresses the challenges of not having customer data from retailers. With features such as real-time customer support, contextual customer data, and smart interactive storytelling, Layerise empowers businesses to engage with customers, gain insights into their behavior, and tailor marketing strategies effectively. By leveraging this customer data platform, you can turbocharge the value you obtain from your customer base, transform them into new sales opportunities, and enhance overall customer experiences.
Don't miss out on the opportunity to collect valuable first-party data, understand your customers better, optimize your marketing campaigns, and deliver exceptional personalized experiences. Knowing your customers is crucial for business success in today's competitive market. Empower your business with Layerise and embark on a customer-centric journey toward growth and success.
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