Jan 30, 2023
Find Your Actual Loyal Customer and Boost Sales
Dividing our customers into uniform rules and a limited number of criteria won’t help identifying customers and making effective strategies.
It is important to identify what kind of characteristics loyal customers have in order to make loyal customers. Who would you define as a more loyal customer, a customer who bought 1,000 dollars worth of goods at once or a customer who made 100 dollars purchases each? Who would you define as a more loyal customer, a customer who bought 10,000 dollars worth of goods a year ago or a customer who made 100 dollars purchases until yesterday? Dividing our customers into uniform rules and a limited number of criteria won’t help identifying customers and making effective strategies.
Retentics segment customers using clustering techniques which are based on machine learning.There are a lot of famous clustering techniques but Retentics developed a model that is more suitable for e-commerce businesses. Retentics AI segment customers in a few groups, estimate whether the divided groups’ purchase cycles are representative for all customers, learn itself and decide which customers to include in which customer groups. Thus, the number of segments can be different based on the particular e-commerce. In other words, AI in Retentics considers numerous variables that humans can’t and offers the most efficient segmentation model that is useful to one’s business.
With auto analysis, clients in Retentics can easily find out optimum segmentation models once they upload the data. From the Retentics, we can figure out the purchase pattern, cohort analysis, item journey and retention by each customer group. This helps sort out the distinct behavioral patterns of loyal customers from regular customers which is the exact pattern we have to induce from regular customers in order to convert them into loyal customers.
Lately, Retentics developed another machine learning model that predicts who can turn into loyal customers based on customers’ behavioral patterns and demographic information. With the advanced model, Retentics could sort out prospective loyal customers from regular customers who’s ad response rate(repurchase rate) is 6 times higher than that of regular customers. Of course, Retentics AI can give more accurate predictions as clients provide more additional information.
As Retentics tells you what, when and to whom you should send a message, you can manage efficient CRM cost reduction, sales increase and design perfect customer experience.
Written by: Zack Lim
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