Issue 70 - Is your customer using your product?
Ask yourself one question: Is my customer using my product? If you can’t answer that question then you’re missing out on key opportunities. Your customers are very important to your business so there are many reasons why it’s important to have an up-to-date list of your customers. Inaccurate or incomplete customer data will affect both sales and marketing performance.In this issue of the SaaS Tattler we look at the value of having an up-to-date list of your customers and how you can use this data to grow your business.
Your customers are a valuable source of information. The more you know about how your customers use your product, the easier it is to target them with appropriate offers. Customer Success is about being proactive, so having the right information makes it easier to resolve any problems ahead of time. In this guide by Info Entrepreneurs, they outline tips on identifying your most valuable customers and ways you can upsell.
What Makes Your Customers Valuable?
Analysing your customers allows you to identify those who best fit your business priorities. These will depend on your strategy - for example, if you are launching a new product your aim might be to build sales as quickly as possible, whereas if you have cash flow problems you might value customers who pay quickly.
However, most businesses want customers who are as profitable as possible. Customers tend to be more profitable if they:
- Buy high-margin products
- Pay full price without negotiating discounts
- Place a small number of large orders rather than many small orders
- Do not cancel or amend orders
- Pay on time, without being chased for payment
- Do not require extensive after-sales service
By analysing your records you can assess how profitable each customer is. In some businesses, just a few customers are responsible for almost all the profits. Some of your largest customers might be among your least profitable. You may even find that there are some customers you would be better off without.
You should also try to look ahead. For example, a business customer that is expanding might become more profitable for you in the future. It's important to anticipate changes and how they might affect different customers.
What else can you do with customers who use your product? You can thank them. Keeping your customers happy is the key to keep them coming back. Making this usage data actionable can help your business create brand advocates. In this article, Jennifer Lonoff Schiff offers 6 tips to keep your customers happy.
1. Thank them -- with a coupon/discount or a gift. "To keep our customers happy we send a postcard after their first order," says Tanner Agar, CEO, The Chef Shelf, an online retailer of specialty foods and chef/restaurant branded products. "It's a thank you, hand signed by the CEO, and has a $5 coupon."
Another way to say 'thank you' to a particularly good or loyal customer? "Send personalized gifts," says Bryce Maddock, cofounder and CEO, TaskUs, which provides customer care and back office support to companies. "Lots of companies send their customers gifts, but [generic thank-you] cards and standard gift baskets are [often] forgotten." Instead, he says, "customize gifts around your clients' personal interests, which you can get by asking them or even doing a little social media stalking."
Knowing which features of your product people use most is actionable data that should be applied to any marketing strategy. Your users are telling you what your future customers want. As well, your current customers are giving you great information about who your target market should be. In this article by the Harvard Business Review, they help you identify what your customers want before they do.
Know your customers.
One example is Foursquare, which makes customized offers according to how many times consumers have “checked in” to a certain retail store. Another is Walmart, which acquired the social media technology start-up Kosmix to join its newly formed digital strategy unit,@WalmartLabs, in capitalizing on consumer SoMoLo data for its offers. Among the unit’s projects is finding ways to predict shoppers’ Walmart.com purchases on the basis of their social media interests. Walmart is also looking into location-based technologies that will help customers find products in its cavernous stores. The apparel retailer H&M has partnered with the online game MyTown to gather and use information on customer location. If potential customers are playing the game on a mobile device near an H&M store and check in, H&M rewards them with virtual clothing and points; if they scan promoted products in the store, it enters them in a sweepstakes. Early results show that of 700,000 customers who checked in online, 300,000 went into the store and scanned an item.
Who better to improve your product than your customers, so get them involved in the process! There is a difference between an automated email asking for feedback and a personalized email. By knowing who is using your product you can make the extra effort to reach out to your most engaged customers. In this article, Alice Default offers 6 tips to make your customers feel awesome.
3. Involve customers in your product
Because your active customers are using your product on a very regular basis, there’s a big chance they know a lot about your product too, and even have things to teach you about it. Don’t be afraid to reach out to them to ask for their advice, like Feedly did.
In June, Feedly asked its community to help them understand a crash because they couldn’t figure it out for themselves.
We asked our customers to choose the keyboard shortcuts they wanted when we first introduced them.
The Best of Customer Success Today
Uberflip has embraced a focused and structured approach to drive customer success and better customer engagement, while dramatically reducing churn. Uberflip: a Case Study in Scaling Customer Success.
Knowing how to differentiate and personalize the customer experience requires honest feedback. Here’s how to gather it quickly and with a high response rate – in real time. You’re Getting the Wrong Customer Feedback – And Too Late.
Building customer loyalty is hard; but it is would eventually result in establishing credibility and trust to your business. Earning Customer Loyalty – The Complete Guide.
Every week I issue this roundup of relevant articles from the customer success industry so we can learn from each other and share best practices. If you like what you read here, please consider forwarding to others. New reader? Subscribe.
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