One key to successful business analysis is understanding your customers’ experience and behavior with your video product and marketing efforts. When you closely track the performance of your customer engagement and their levels of satisfaction with your product, you’ll develop comprehensive insight that can inform your product development and marketing efforts to improve efficiency and effectiveness. Provide a good experience for your customers by giving them what they want, when they want it, in a way that adds value to their lives.
Key Customer Metrics
How do we measure customer experience and behavior? While there are countless ways to analyze and evaluate our buyers, focus on the metrics that paint a clear picture of what you’re doing right or what you need to change. The biggest benefit to being analytics savvy is knowing how to take action, and determining what action to take based on the data.
What are your most popular products, categories and interests based on your customers’ purchase histories? Identify the top sellers and ask yourself why those products are the most popular. Perhaps your marketing is laser targeted for one product but more general for another. What product categories are your customers most interested in. For example, if you’re in the health and fitness space, are your customers consuming more workout videos, or are they more focused on specific skills training or nutrition? Additionally, look closely at the video format that is most popular with your customer base. Do they prefer one-time purchases, subscriptions or video rentals? Think through how you can use this information to your advantage for marketing and product development.
Beyond the initial sale, there is a wealth of information that can be to your advantage even after the initial purchase has been made. Keep a close eye on customer activity after the purchase such as customer service requests, refunds and frequently asked questions. The best way to cut down on customer support time is by anticipating and addressing customer service requests and FAQs before a customer comes up with the request themselves. Additionally, understanding why customers may be refunding purchases is one of the best ways to identify and remedy a weakness within your product or sales flow.
When it comes to new customers, it’s a good idea to know how much you spend acquiring a customer, also known as the customer acquisition cost. If it costs you more to earn a new customer than your revenue gained from the sale, you may want to rethink your marketing campaign. Additionally, never forget the importance of customer retention.
It’s much more costly to acquire a new customer than retain an existing one (to the degree of 10x), so be sure to introduce new, compelling offers to your existing customers on an ongoing basis.
Do whatever you can to keep them happy and wanting more of your great video content.
Signs of a Good Customer
When identifying your best customers, it’s helpful to be able to separate your high value customers from your lower value ones. Not all customers are created equal! Is your customer a one-time-buyer or a returning customer that has or will purchase from you again and again? Customers with high customer lifetime value (CLV) is a goal every new business owner should strive to achieve!
Many businesses find that their customer purchases follow the Pareto principle, also known as the law of the vital few.
That is, 20% of customer will be responsible for 80% of your sales. Once you’ve identified the customers who are in your top 20%, take good care of them.
They’re valuable and you’ll want to keep them as a customer for a long time to come.
Finally, identify which customers are your most raving fans, and cultivate them as a brand ambassador for your products and business. Happy customers love to share their favorite products with their friends and followers. Getting testimonials or case studies from your brand advocates, and asking them to help you spread the word is one of the best ways to boost your social proof and drive sales with like-minded customers.
Areas for Improvement
There is always room for improvement with any business, and tracking performance of your audience and customers is a great way to identify those opportunities. Don’t be discouraged if you identify weakness in your product, marketing efforts and sales flow. Awareness is the first step to optimizing conversions and improving your customer experience.
Are some products not performing as well as others? Ask yourself why or why not. Not all products will perform equally, however, there is usually a good reason why one product is a poor performer while another is a top performer. Understanding the “why” can help you modify your product and tweak your marketing efforts accordingly.
Analyze your sales flow and look for areas where prospects tend to drop off. Do you have a website or sales page with a high bounce rate? What can you do to improve the flow? What are your customers doing at checkout? If you have a high cart abandonment rate, consider ways to lower abandonment and increase conversions.
Finally, identifying problem customers can be a key to business success. If, for example, your refund rates are high, or you have an unusually high about of customer service complaints, first take a close look at your business to see if those issues can be remedied. That said, if you identify problem customers the despite your every effort to increase their satisfaction, they continue to request refund or issue complaints, it’s ok to cut your losses and look for new, better customers..