Establishments like retail stores and restaurants have always had a tough time authenticating the ROI of their online and offline marketing campaigns. This has given online ecommerce companies an advantage over brick-and-mortar businesses for years.
Recently, however, WiFi analytics and marketing platforms have leveled the playing field, allowing physical locations to collect real-time tangible campaign data from actual customers. More importantly, when used properly, this data can provide a significant return on investment.
Until now, retail and restaurant managers had to pay companies a large sum of money to obtain accurate and detailed customer profile data. While this information provides a good look into customer demographics and psychographics, there are two main issues:
- The data collected is only a snapshot in time. If you’re looking for consistent data, you’re going to have to continue purchasing it.
- The data collected is typically from a small sample size of customers.
Fortunately, a WiFi analytics and marketing platform can eliminate the issues. You’ll consistently receive real-time data, build accurate and detailed customer profiles, and you will see it from a very large sample size of your actual customers. And you can do this at a fraction of the cost of purchasing data from traditional companies.
Customer profiles can allow you to make much smarter marketing decisions and engage with your customers on a more personal level, driving higher customer spend and loyalty, saving on costs, and boosting ROI.
Now that you know you can quickly and easily collect all the valuable data you want, let’s take a look at the actual value customer profiles can add to your bottom line.
Turning Customer Profiles into Increased Revenue
Knowing who your customers are can make all the difference in the world when it comes to your marketing strategy and results.
By collecting detailed customer profile data, you can create marketing campaigns that will speak much more clearly to each of your audience segments. This allows you to not only define and differentiate your most valuable customers, but to speak to them in an effective way that they will understand and engage with, persuading them to keep coming back. As you’ll see below, this can make a tremendous difference in your profitability.
You’ll be able to:
- Identify your ideal customers in terms of value, and market to them effectively
- Classify other audience groups you may or may not have previously identified
- Measure ROI and optimize messaging for each audience segment
- Develop new products, services, menu items, deals and promotions
As you begin using your customer profile data to segment and effectively message your customers, you’ll see much more success increasing your per-person averages and customer lifetime values, filling your locations with buying customers, and increasing your bottom line.
Multiply Results with Personalized Marketing Messages
With detailed customer profiles gathered through your WiFi marketing hub, personalized campaigns not only become entirely possible, they’re easy to set up, maintain and measure. You can target your messaging by profile information like age, gender, geographic location, visit times, length of stay and several other demographic and behavior data points with messaging that speaks to that particular segment.
According to Mindfire, Inc., a marketing automation company, in a study of 650 multi-channel marketing campaigns, personalized campaigns consistently and overwhelmingly beat out static campaigns in generating a high response rate from recipients. And according to The Direct Marketing Association, 77% of ROI comes from segmented, targeted and triggered campaigns.
In our free guide, The Value of a Customer Profile, we go into detail around the monetary value of customer profiles, showing how a chain of 5 restaurants could increase their customer visits by an additional 480 visits a month. Then we factor in per-person averages and cost to acquire a customer and show how just one marketing message per month could bring in an additional $80,000 in annual revenue.
We further explain that increasing customer frequency – of just 10% of their customer profile base – could take that number and increase it dramatically, to an additional $417,600 in annual revenue.
Then we factor in personalized messaging and behavior-driven marketing, and that number increases even more. You can download the guide here to see all the details. It’s truly an eye-opening read.
Save on Costs
Not only will customer profiles help you in terms of getting customers to come back more often and spend more, they can help save you money in costs as well. We’ve already talked about the costs of collecting customer profiles using WiFi technology being a fraction of the cost of purchasing data from traditional companies.
You’ll also save money on advertising costs. In an Ayman Farahat and Michael Bailey study conducted on targeted advertising, they found, assuming the cost per 1000 ad impressions (CPM) is $1 USD, that:
- The marginal cost of a brand-related search resulting from ads is $15.65 per search, but is only $1.69 per search from a targeted campaign.
- The marginal cost of a click is 72 cents, but only 16 cents from a targeted campaign.
Targeted advertisements, no matter the channel, will typically yield higher results for lower costs, dramatically reducing your cost per customer acquisition.
By collecting customer profile data, and using WiFi analytics, you’ll be able to not only identify your high-traffic days and times, you’ll begin to be able to better predict them. This will allow you to bring on the right amount of staff at the right times, avoiding overstaffing and loss of payroll dollars. In addition, you’ll be able to make smarter purchasing decisions, keeping your items as fresh as possible and decreasing the likelihood of running out of a product – the dreaded ‘86’.
It’s Time To Get Started
The value of customer profiles can be seen from several different angles. With the emergence of WiFi technology, it has never been easier to passively collect this valuable data and act on it.
Customer profiles can be extremely valuable, giving you a greater understanding of who your best customers are, allowing you to speak to them when, where and how they want to be spoken to. This drives engagement, familiarity and loyalty between you and your customers, driving solid increases in PPA and CLV and saving on costs.
But remember, if you can do it, so can your competitors. Get a head-start on your competition. With the amount of competition out there, especially in the restaurant and retail sectors, customer profiling can be one of the easiest methods of gaining a strong competitive advantage and ensuring lasting success.