The next stop on Qubit’s breakfast series was our very own New York City. On a warm sunny day, fashion entrepreneurs, business executives and journalists gathered atop the beautiful NoMad Hotel rooftop to learn about how the fashion world leverages data and analytics to prepare for the holidays.
Points-based loyalty systems, introduced by airlines over three decades ago, transformed the travel industry overnight. The prospect of a free trip to a dream city was enough to entice customers to stay loyal to an airline. It was just that simple.
If marketing has one goal, it’s to reach consumers at the moments that most influence their buying decisions. That simple reason is why Amazon started offering targeted product recommendations over a decade ago to consumers already logged in and ready to buy.
Customer retention is not a new problem. However, with big data solutions and new marketing technologies, there are now innovative approaches that can be taken to solve the problem. As a result, many companies are seeing their retention marketing budgets rise as personalisation and optimisation efforts start to drive impressive ROI in this space. Some say it’s seven times more expensive to acquire a customer than to keep one; whether or not that’s true, it can’t be argued that acquisition costs are increasing and more focus needs to be directed at keeping current customers on board.