Analytics as a Game Changer in Customer Loyalty
Analytics has become a key game changer for sector’s growth and customer experience and loyalty is just one of them. Companies strive towards gaining customer loyalty and invest hefty for developing growth strategies and with the advent of E-commerce industry customer loyalty has become a hard nut to crack. Out of many parameters, easy returns is the most effective one to maintain better customer journey. The more convenient is the return process the better chances are there of the customer retention and also it benefits vendors and manufacturers equally by saving reverse logistics cost and recouping maximum recovery value.
Easy returns not just build up better customer relationship but also provide data to enhance the same as well. Data obtained from return can be utilized to understand the mindset of customer and predict their demands. Apart from size and fit issues, there are many other reasons behind returns which actually give better insight to customer experience and allow manufacturers to upgrade their product quality. Data analytics tool such as big data use this information and creates a report on the basis of which it becomes a lot easier to identify future trends giving companies an edge over their competitors.
Advantages of using Analytics
• Improved Brand Integrity: When customers are asked to provide their comments on return they find the brand sincere towards them and products quality and also this gives a boost to brand integrity resulting in improved customer loyalty.
• Prevention in Further: Both in short and long run customer returns benefit the retailers and brand from facing high return. The data received from customers allow the retailers to act fast and prevent a further return by cross-checking the lot and forwarding the information to the brand will leverage brands to rectify the mistake in the production of next lot. If the issue is with material/ingredients brands can consider this data to modify it and improvise the quality of their product.
• Identifying High-Value Customers: With the data accumulated from returns retailers and even brands directly identify and segment their high valued customers who will make high purchases and return less. Such customers can be offered better services and liberal return rules enhancing their loyalty towards brand and retailers.
In a nutshell, analytics offers an opportunity to brands for upgrading product quality to customer expectations, cater high valued customers with better service, reduce return rates and enhance their customer loyalty.