Did you know that increasing customer retention rates by 5% increases profits by 25% to 95%? In today’s competitive business landscape, everyone is racing to gain their customers’ attention and increase customer loyalty.
The companies currently winning the customer loyalty race are using data to gain insight into their customers’ wants and needs. And they’re personalizing every interaction with customers, at every touchpoint.
But personalizing customer experiences at scale is easier said than done. So how do you get started? You can take a page out of the playbook of those excelling at personalization, like Formula 1. Let’s look at three innovative ways they’re using data to wow customers.
1. Find ways to use data to engage with your customers digitally
Formula 1 knew that they needed to adapt rapidly to the needs and preferences of their expanded fan base. Designing personalized digital experiences were key to doing just that, especially considering that only 1% of their over 500 million fans are able to attend in-person races each year.
Based on these insights, Formula 1 worked with Salesforce to create interactive fan experiences on social media and the race broadcast, where fans are able to vote on the “Driver of the Day” after each Grand Prix. The voting makes fans feel like part of the race, and provides F1 with a way to learn more about their fans.
Salesforce also uses those insights to create data-driven videos that help fans experience races more deeply and continue to feel a part of the story. With an average of 189 countries voting for the “Driver of the Day” activation each Grand Prix, F1 now has more data to better understand their global and growing fanbase.
2. Use customer data to offer personalization across all channels
Almost two-thirds of customers say they expect companies to adapt experiences to match their changing needs and preferences. Brands can use customer preference data to create highly personalized experiences that are both context- and location-dependent.
Formula 1 team McLaren Racing has tapped into this desire for personalization by giving customers customized experiences. For example, when fans sign up for the McLaren Paddock Club, an in-person luxury experience at a race, the Brand Experience Team has immediate access to their names, engagement history, driver preferences, and past purchases.
This allows for a highly personalized experience from the moment they walk on site. McLaren has all the details on hand, such as the guests t-shirt size, to make more memorable experiences. After the race, the team at McLaren Racing can then use customer data to tailor personalized follow-up communication, like emails that suggest merchandise based on previous purchases or mention the fan’s favorite driver.
Strategies like these build customer loyalty and trust.
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3. Use data to give teams a 360-degree view of customers
Companies need to treat their customers as individuals to win customer loyalty. This is made possible when every department shares the same customer view. Sales, service, marketing and other teams can interpret the customer’s holistic needs in order to deliver consistent experiences that wow. Formula 1 is using the power of Salesforce to unify the fan experience across departments, drive efficiencies across their organization, and optimize decision-making.
Having a single customer view across teams doesn’t just improve the customer experience, it also helps your bottom line. A unified platform helps reduce costs by up to 27% by eliminating the need to maintain multiple systems. Sales, service, and marketing all do best when they share a 360 view of customers.
For example, Formula 1’s internal teams use Salesforce to communicate with each other and create a standardized sales process that everyone can understand and follow. Sales representatives all have access to the same information, so it’s clear where prospects are in the sales lifecycle and what internal partners are responsible for at each event. With service data connected in the same platform, sales has deeper customer insights to share with potential partners and scale growth.
Win the race to customer loyalty
If you’re ready to use the power of data to enhance customer loyalty, you can start by using your existing data to engage digitally, and then offer personalized experiences that benefit your customers. Finally, make sure that your teams have a unified view of the customer, and can collaborate to strengthen the sales, service, and marketing cycles. As demonstrated by Formula 1, when done right, these strategies can transform a brand’s relationship with its customers, ensuring long-term success and loyalty.