We've all wondered at some point what would happen if the Sun went out or even what would happen if the Sun disappeared. But have you ever stopped to think about what would happen if the Sun had never existed in the first place? Would life on Earth be possible?
The answer is a resounding no. Without the Sun, the Earth would freeze, photosynthesis wouldn't be possible, and our air wouldn't be breathable, making its existence fundamental to ours.
Now let's translate these questions to the business world: what would happen if a company didn't have customers? Would its existence be possible? Just as the Sun is the epicenter of our universe and necessary for our survival, customers are the center of businesses, and without them, it would be impossible for organizations to develop. Without demand, there is no business, that's clear. Therefore, it is essential for organizations to place the customer at the center of everything they do and to be oriented towards their needs in order to survive.
In this article, we will discuss the concept of Customer Centricity to effectively attract and retain customers in an omnichannel world and the importance of data throughout this process. Let’s get started!
The reality is that, although many companies swear that their customers are at the core of their decisions, most are far from achieving this. In fact, only those truly committed to customer orientation and placing the customer at the center of their universe stand out.
Think about it, it’s no coincidence that Amazon or Apple, for example, are considered the best companies for their customers and enjoy repeated business. What do they do differently? What’s their secret? Essentially, these are Customer Centric companies: they orient their strategies around the customer, ensuring that all actions revolve around them. It’s a culture, a philosophy in which products and services align with customer needs to provide the best experience while maximizing the company’s benefits. It’s a win-win strategy where both the consumer and the company benefit.
All of this sounds great, right? The big challenge is that we live in a changing, digitalized, and highly competitive world where differentiating yourself and captivating consumers is increasingly difficult. Getting chosen among thousands of other options and amidst numerous stimuli, impacts, and communication channels is not an easy task. Think about it, user behavior has drastically changed: they have gone from interacting with brands solely through physical points of sale to being able to do so in many more scenarios.
That first interaction, in a completely multichannel world, can occur in the store itself, on an outdoor billboard, on social media, in web advertisements, or by reading Google reviews. Therefore, you need to get things right from the start, as that first contact between your brand and the user is more important than ever. And it’s not just about that initial approach; loyalty is something you must seek every day because your customer is loyal until they’re not. Given the immense offering, you can’t relax because, even if you have very loyal customers, you need to earn their trust constantly if you don’t want them to switch to your competition in the blink of an eye.
And now you may be wondering, in this scenario, what process should be followed to attract, retain, and maintain users?
It all depends on where the user is and when you can capture their attention; the key is to be there for them always, offering a seamless shopping experience available 24 hours a day. The key to effectively attracting and retaining customers is to offer them an integrated and consistent shopping experience across all channels. This means that the customer should feel like they are interacting with a single brand, regardless of the time, place, and channel they are using, whether it’s from their mobile device, their computer, a physical store, or a phone call. Today, users are omnichannel; whether it's physical or digital, you need to be able to respond to them and send the same message without friction between them.
Some sectors, such as food or construction, have greater exposure at the point of sale because they have customers who prefer to continue shopping physically. In these cases, the in-store experience is a key point to attract and retain users.
Supermarkets, for example, often use visual merchandising techniques to attract consumers’ attention and guide them through the store to buy more. They also offer loyalty programs, such as points cards, exclusive discounts, or special promotions for members. These programs use different retention and loyalty techniques not only to encourage the customer to return and thus promote recurrence but also to nurture them and gradually impact them with relevant content so they become familiar with the company’s benefits and values, feel connected to it, and choose them as an option when planning their purchase. These plans are adapted based on the type of customer (according to their habits, preferences, frequency, etc.), helping to know them better and personalize their experiences to retain them effectively.
The construction and decoration sector also has a very physical channel: the products they sell often need to be seen and touched to be sure of purchasing them, requiring a personalized experience with close and knowledgeable attention to advise on tools, materials, sizes, measurements, colors, etc.
However, omnichannel also means that these sectors offer a digital experience for customers who want it. Most companies have online sales platforms and pages where customers can make their purchases from the comfort of their homes and receive delivery at home or pick up their products in-store. These platforms often have tools to facilitate product searches, secure payment options, various exclusive promotions for online shoppers, and online advisory services to help customers make the right decisions about the products they need.
In this way, all channels, both physical and online, mutually support each other so that all interactions are consistent and designed to offer a smooth, personalized, and satisfying shopping experience across all channels.
For example, La Sirena (food and frozen goods), a company with mostly physical customers, ran a TV campaign, a mass communication channel, to announce their exclusive online promotions and offers. This allowed them not only to double online sales but also to introduce their regular customers to a different type of experience they weren’t used to, opening up more possibilities for them, such as shopping online but picking up in-store.
On the other hand, some companies increasingly lean towards the digital experience, so attraction and retention are mainly carried out in these digital channels. Online stores often use techniques such as email marketing, SEO, social media advertising, influencer marketing, free shipping, exclusive discounts, loyalty programs, and advisory chatbots to attract users and convert them into customers. For example, many clothing stores offer a welcome discount code for the first purchase of users who register on their website.
All of this, without sacrificing the physical store: in this age of digitalization, there is a tendency to think that physical establishments will disappear, but as we have seen, the opposite is true. The key is for both channels to mutually enhance each other and give the user the ability to choose one channel or the other in their purchasing decisions based on convenience and preference.
In the midst of this digitalization, all companies have access to a large amount of data that they can use to greatly enhance the shopping experiences of those customers they want to retain, providing them with personalized and exclusive service that connects them to their brand.
Thus, they have information about what their customers buy, what they don’t buy, how often they do it, at what time of day, on which days of the week, how much they spend... This allows them to better understand their needs and preferences, anticipate future purchases, and offer something very personalized based on their interests.
For example, if a customer always buys products from a certain brand or category, the company can offer recommendations for similar or complementary products that may interest them. Additionally, they can customize promotional offers and discounts to match each user’s needs, thus better connecting with them. Also noteworthy is the personalization of the browsing experience: companies can use all this customer data to adapt the user interface of their website or mobile app, displaying products, promotions, and recommendations that best suit their preferences and needs.
Information from each channel, whether physical, online, third-party, or legal, is unified, resulting in a 360º view of each user. With this deep understanding of consumers, segmentations can be carried out more easily, and personalized campaigns can be targeted at each segment both collectively and individually.
Furthermore, data helps reinforce the much-needed omnichannel approach. It ensures that the customer can see online the same as in the physical store. For example, a user with available promotions, a purchase history, items in their cart, or a wishlist can access that information when they visit the physical store, elevating the shopping experience to the highest level.
It’s a fact that data is extremely important for better understanding your customers and offering personalized and relevant experiences. However, it’s important to remember that data alone is not enough: it must always serve the business, meaning it should be used to make informed and strategic decisions that help achieve the organization’s goals.
Data analysis strategies must be aligned with the company’s objectives, and the results should be interpreted and applied effectively since data is not an end in itself but a tool to help the business make sound decisions and improve the customer experience.
By using Machine Learning and Artificial Intelligence algorithms, purchase habits can be clustered and segmented to identify different customer groups, but it’s the business that must identify who those customers are and what needs they have. For example, in the construction sector, these algorithmic models could identify a segment of customers who buy wood, electrical supplies, some plumbing items, and a bit of paint, but it’s the business that will say: this is the kitchen installation team. From there, combining the information provided by the data with business expertise, personalized campaigns can be executed to have an impact. The important thing is to work, exploit, analyze, and transform all that data into effective solutions while always keeping the customer at the center of decisions.
To obtain all this data and continue providing customers with these personalized experiences, it’s essential to know how to collect it and ensure its maximum privacy. But how can you ensure that all this information is used transparently and responsibly? Privacy is built around three main pillars:
Legal: It’s crucial to understand the playing field, the regulatory framework, what can and cannot be done, and what should and shouldn’t be done. There must be a legal department to advise and work with a CDO to establish guidelines to ensure compliance with GDPR requirements and the privacy of personal data so that no misuse occurs. This pillar provides legal assurance and ensures that users know at all times what is being done with their data.
Cultural: This is the most important of all. It’s one thing to know at the Data level what can/should or shouldn’t be done with the data, but it’s essential that employees and collaborators know and act accordingly. For example, if a customer provides their phone number so you can call them when a product of interest is in stock, to have that personal data and use it, the customer should sign a series of consents to share their information legally. Then, those data must be entered into a secure database and follow regulatory processes to ensure they remain compliant.
Technological: This is the last line of defense to ensure the correct use of data. It’s the execution phase, where everything that can and should be done is carried out. Here comes into play data governance, identifying a data steward, and implementing a proper technological base.
All of this is a significant challenge for retailers because without data, they can’t do anything, but they must be able to collect it in a way that doesn’t intimidate the customer, use it well, and ensure that users can always consult what is being done with their data and for what benefit. This often works in their favor because the more data they have about the user, the more they can personalize and customize all the available options for them.
In Summary, in an increasingly competitive and multichannel world, it’s essential to put the customer at the center of everything you do and develop a Customer Centric strategy to attract, retain, and keep them effectively. We know it’s not an easy task to be chosen among so many options and maintain their loyalty in a changing environment. Therefore, it’s crucial to get things right from the start and always be there for them, offering a personalized, integrated, and consistent shopping experience across all channels, 24 hours a day.
In this whole process, data becomes indispensable to understand and know consumers better and thus be able to customize their experiences to the maximum.