Understanding the behavior of your customers, their preferences, buying habits, and the overall “personality” of your target demographic can help supplement brands in several different ways. All of them contribute to the personalization of the customer experience. They also create marketing strategies that build brand loyalty and customer loyalty.
There are four distinct ways that supplement brands can leverage user data to grow their businesses and develop more brand loyalty. These strategies help a business invite more feedback from customers. And it allows supplement brands to create products that better meet their customers’ needs.
Create Personalized Experiences
Just selling products isn’t enough in today’s competitive supplements market. More and more, buyers want a connection to their preferred brands and a more personalized experience. This kind of engagement comes from brands demonstrating that they share the same values as their customers. And, in order to determine what those values are, supplement companies need a deeper understanding and analysis of their customer data.
Much of this can come through technology tools, such as Google Analytics. And through social media interactions between customers and a representative speaking for the “brand voice.” The most successful companies at this have an active social media presence and engage in back-and-forth with customers. These interactions help the marketing department get a better picture of the “personality” of their target customer, and how to better create a suite of products that address that customer’s needs.
In fact, according to Forbes’ Path to Personalization, research determined that 40% of executives report that their customer personalization efforts have had a direct impact on maximizing sales. Personalization of marketing initiatives also leads to higher profits and larger “basket sizes” for online retailers.
In order to maximize the effectiveness of a personalized campaign, companies need the right data. The ability to successfully leverage that insight into authentic interactions with their customer base will be key.
Understand Changing Tastes of Customers
Knowing the needs and wants of their customer base helps supplement companies better develop new products to meet their customer needs. Tastes and behaviors can change quickly. Through social media and consumer group websites, communicating about new products or a better supplement can be almost instantaneous. A direct relationship between customers and brands helps these brands better understand what customers want, and respond accordingly.
For example, many women in their 30s and 40s may be looking for safe weight loss products. Men of this demographic may be looking for ways to boost testosterone levels or reduce hair loss.
Having solid customer data about the wants and needs of supplement consumers, allows companies to develop products in response to these needs. Plus, open communication and feedback from users helps companies “tweak” and improve existing products, adding value for their customers. A responsive company helps build trust from their customers. In addition to having a better reputation as a supplement company, customer data can help the company better plan new product launches, minimize the risks associated with new products, and pinpoint the right strategy to introduce these products to the right customers. Developing products that better fit the market increases customer engagement and overall satisfaction, create repeat buyers and brand advocates.
Forecasting Sales
Tracking sales among different demographics, different markets, and across different times of the year helps companies more accurately forecast future sales. When supplement companies use customer data to track sales, the companies are better able to spot patterns and respond accordingly. Plus, knowing when people are purchasing, what they’re purchasing, and how often, companies can ensure that they have enough of the right products available.
Price Products Correctly
There’s a “sweet spot” of pricing for every product, and supplements are no different. Customer data from a company’s own buyer base, parid with comparisons of pricing and products from competitors helps determine the highest price that a market can tolerate.
Understanding what buyers are willing to pay allows companies to establish pricing elasticity, from knowing which products are good ones for price increases and which ones will be best for promotions and sales. The right pricing encourages repeat buying and confirms the value of the product to the consumer.
Final Thoughts
In 2020, Outlier, a customer data analysis company, commissioned the Annual 2020 Retail & CPG Customer Behavior Survey. According to this survey, a whopping 91% of respondents agreed that tracking customer behavior data is important for companies to remain competitive. In addition, 85% of respondents noted that, while the data is important, it’s only as useful as a company’s ability to use the data. Understanding the information that customer data gives companies and determining the right way to apply customer data can make a difference in the success of supplement companies.
Data analysis of customer buying patterns and understanding their needs is an important investment for many businesses, one that gives information that pays dividends.
