Customer acquisition assumes top priority for every organisation operating online. But a bigger challenge is to retain the onboarded customers. In today’s world where customers have a variety of options to choose from, capturing their preferences and delivering personalised solutions/experiences have become crucial. The depth and width of customer engagement has emerged as a key metric for an organisation’s success. Much of this success depends upon how organisations utilise the vast pool of data at their disposal. Given the number and type of transactions that consumer-focused businesses make, they can draw interesting and fruitful insights through an analysis of customer data.
In a recent event organised by MoEngage, an online marketing platform that engages users across channels, leaders from consumer tech companies talk about improving user engagement through the use of analytics….
There are basically two metrics that make a lot of sense in our business – one, of course, is how many users are coming back to the platform. Keeping track of returning users provides an insight into how the platform and the content are being received by users. Another metric is the time that a user spends on a particular content in terms of engagement, loyalty, etc.
Interestingly, the journey, from data to information, and to insight, does not happen overnight. It requires a lot of time, number churning and analysis. Based on this, strategies for programming, content and user acquisition are formulated.
To know and evaluate the customers’ journey at our platform is very important for us. What made the customer open the app in the first place, what all does she/he click on, how much content has she/he consumed, did she/he explore other pieces of content as well – all this allows us to cross-sell as well. We try to leverage recommendations that come from machine learning and engines that we have built.
In our business, a key metric that we look at is the frequency at which orders are placed in a year by a customer – basically, how frequently a customer comes back to us.
Typically, grocery buying takes place in two modes – there could be a particular set of products that a customer repeatedly purchases like vegetables, fruits and staple foods; and then there is another set that a customer keeps discovering as new products get introduced on the platform. To cater to the first set, we have built a feature called smart basket. It is based on an algorithm that predicts what you are running out of, on the basis of your past orders. This feature has been operational for the last five years, and we keep innovating and adding new elements to make it smarter.
For instance, if we observe a noticeable shift in a consumer’s purchase from a regular product to its organic variant, we will start pushing the regular product down in her/his app page and she/he would see organic products appearing first every time she/he looks for that product.
One of the biggest metrics for us is to analyse how many people flew with us again in the last three to six months. This helps us in understanding how many customers we have managed to retain, which ultimately adds to top line and bottom line.
We currently focus and cater to four to five segments. There are millennials, first-time travellers, business travellers who typically take the morning flight and return the same evening, family travellers and leisure travellers. It is important to understand each of these segments and look at the data pertaining to them very closely. The analysis has brought forth deep and meaningful insights for us. For instance, we observed that somebody who is on a short trip and travelling alone is fine to sit anywhere in the plane and does not want to pay extra for the seat of choice or to buy a meal. This enabled us to focus on unbundling of services. Such insights help in identifying a pattern and figuring out what to offer, when and to which segment. It also highlights the fact that we cannot have one solution for all our users.
Further, it is imperative to realise that there exists a very thin line between a great user experience and an intrusive one.