However, there’s an ongoing disconnect between businesses and customers regarding the experience delivered. According to research, 90% of businesses and marketers claim they have already shifted to a customer-centric approach but only 17% of customers feel valued by the brands they do business with.
It’s time for companies to close this experience gap with the three key technologies that are defining 2018:
Predicting churn rates before customer attrition takes hold
Companies tend to spend more on customer acquisition rather than retaining what they already have even if it costs them 5 to 25% more.
But companies don’t have to choose between the two; it’s just a matter of balancing efforts on both sides and maximizing ROI. One solution to this problem is using the customer lifetime value to calculate how much value a customer can generate a business in the long-term.
Additionally, a technology that can predict churn rates now exists. With this, companies will be able to halt potential detractors on their tracks before they can leave or switch brands.
Using AI to detect anomalies and as an advanced marketing tool
When a business monitors their customers’ buying behavior, irregularities can be easily spotted. Nowadays, fraudulent actions are easier to notice because of artificial intelligence; the more your business grows, the more it becomes prone to anomalies. For example, a customer who has no history of buying items from luxury brands can’t be expected to add one to his or her cart. But this person has and you immediately crossed it off as questionable.
But what if that customer had earlier received a promotion and just wanted to congratulate himself or herself for a job well done? What if it’s bonus season and that customer just have extra cash to spare?
Advances in Artificial Intelligence and machine learning will open opportunities for more complex anomaly detection. Having this level of insight into your customers’ buying habits and potential, you can focus on creating optimized marketing strategies that deliver content and offers that are relevant and timely to encourage purchases.
Getting closer to IoT
Plainly speaking, Internet of Things (IoT) is connecting any device with an on and off switch—whether to each other or to the internet. This includes everything from cellphones, coffee makers, washing machines, headphones, wearable devices and almost anything else that switches on and off.
With 6.4 billion devices already connected to the Internet and 5.5 million new ones added every day, it is not impossible for the IoT to get a little bit closer to people. So far, there are a lot of innovation related to IoT that surrounds people in a daily basis like connected and smart TVs, connected streaming devices, connected car applications, wearables, and all types of smartwatches that all transmit data to a system.
A more advanced application of the technology is the ability to replenish supplies as needed. For example, if a driver activates his car and connects it to the internet, it would be possible for gas retailers to monitor when a specific car will need to gas up again. Or the drivers can check the gas prices on the area they might run out.
Similarly, refrigerators that come with smart cameras will be introduced to the market that will determine when an item will run out of then automatically adding it the consumer’s delivery list.