Predictive Analytics: Your Ultimate Guide to Know Customers’ Routines
In the world of marketing, having access to customer data is like having a treasure map to success. But what if I told you that knowing what customers need isn’t enough? What if I said that the key to unlocking repeat business, loyalty, and even tolerance for price increases lies in pinpointing exactly when customers need something? In a recent working paper, Harvard Business School Associate Professor Eva Ascarza and colleagues explored the benefits of incorporating a service into a customer’s routine. In this article, we’ll dive deeper into this concept, exploring the potential that lies in harnessing customers’ routines and why it may be the marketing platinum that companies have been searching for.
Ascarza and her team conducted an analysis of 2,000 ridesharing commuters, examining how incorporating the service into a customer’s routine affects their loyalty and value to the organization. The results were eye-opening, revealing that customers who have made a service part of their routine have higher value to the organization, tolerate price increases better, and remain loyal even when things go wrong. This suggests that being a part of a customer’s routine has a significant impact on their perception of a service and their willingness to continue using it.
For companies, this is valuable information. It means that understanding and harnessing a customer’s routine can be a compelling way to gain a competitive edge. By analyzing customer data, companies can identify trends and patterns in behavior, pinpointing the exact moment when a customer may need a particular service. For example, a company offering meal delivery services may determine when a customer is most likely to place an order based on their daily routine. By targeting the customer with marketing messages at this specific time, they may be more likely to convert and become a loyal customer.
But how do companies go about identifying a customer’s routine? Ascarza and her team suggest that it starts with data collection. By tracking customer behavior over time, companies can begin to identify patterns and trends. They can use data analytics to identify peak usage times, repeat order patterns, and even customer preferences. With this information, companies can create targeted marketing messages that speak directly to the customer’s specific needs.
The benefits of using customer routines to inform marketing strategies go beyond just increased revenue. As Ascarza points out, when a service becomes part of a customer’s routine, it can have an emotional impact as well. Customers may begin to associate the service with positive feelings and memories, creating a deeper emotional connection. This emotional connection can be incredibly valuable, leading to increased loyalty and customer advocacy.
The importance of knowing when a customer needs a particular service cannot be overstated. By understanding and harnessing a customer’s routine, companies can create targeted marketing messages that speak directly to their needs, increasing the likelihood of conversion and loyalty. Ascarza and her team’s research confirms the value of incorporating a service into a customer’s routine, showing that it has a significant impact on their perception of a service and their willingness to continue using it. For companies looking to gain a competitive edge, the concept of understanding and utilizing customer routines may be the marketing platinum they’ve been searching for.