At a time when the market is flooded with options for a single commodity gaining an understanding of the customer behaviour is highly important, according to experts. This was one of the prime topics discussed at the summit hosted by the Internet and Mobile Association of India (IAMAI).
Sharing their viewpoints during a panel discussion at the IAMAI Indian Affiliate Summit 2022, the experts also echoed the need for having a strong data bank and the ability to analyse it for gaining an increased customer lifetime value.
According to Anita Nayyar, COO-Media and Communications, Patanjali Ayurved, there are no specific steps to increase brand revenues from the customers. As per her, it mainly depends on the brand’s category or stage of the life cycle.
“If as a brand, I am not relevant and I don’t give relevance with benefits, and with benefits I don’t engage with the consumer, we are nowhere because if such is the case, we’re not even in the mindset of the consumer,” she said.
Nayyar also pointed out that understanding consumer behaviour is the key and since all brands are at different stages and deal in different product categories, the Customer Lifetime Value is going to differ from one brand to another.
As per Shashank Bhagavathula, Advertiser Account Director, Taboola, “In a span of three or six months, if we are able to identify that any customer who has come from ‘x’ channel or any ‘x’ category based on data, then we can also identify what led to the sale in terms of the coupons or the influencers or the cost-cutting through data.”
According to Sudeep Bansal, VP-Growth, Wow Skin Science, “Being a D2C brand that has data, we know who the customer is, how the repeat rate is, how is the retention rate of the customer, it’s important for us to understand the customer behaviour so that we can decide how much to invest and also strategise well which can lead to incentivising the repeat behaviour.”
Bansal went on to emphasise that earlier, data was a problem for many traditional brands, but in the case of new-age brands, data is not only available but is being used for driving transactions and building consumer love.
Citing an example of how CLV can mean different things to different brands, Bansal said, “A consumer can order a Coca-Cola from Swiggy once in two weeks and a Wow Skin Science product once in two months. Therefore, there is no one-size-fits all in terms of CLV.”
Additionally, Bansal also stated that for all brands operating in a category where there is a lot of competition, then customer belief becomes really important.
Moving ahead, Abhishek Gupta, SVP- Growth, MamaEarth, also highlighted that if a brand is not clear about its purpose, then it will not be able to deliver in the long run.
“On the data analytics side, there are two things that MamaEarth has been focusing on until now. One is - analysing the data, making the cohorts and the other is narrowing down these cohorts and targeting the customers on a personalised level to increase CLV coming from Facebook and YouTube, among others,” he said.
Adding to this, Patanjali’s Nayyar said, “Data has been existing since the beginning of time, but today brands are building their databases and then applying technology to make sense of the acquired data.”
Wow Skin Science’s Bansal also pointed out that today’s consumers are very flirtatious. If a particular brand doesn’t resonate well with them, they eventually shift on to the readily available options.
“As data science is advancing, understanding consumer behaviour becomes really important. Not only this but having data banks is also necessary to help the brand further in coming up with strategies and techniques, not just for segmentation but also for nudging the consumers at the right time to lead to further conversions,” he said.
Furthermore, Gupta also pointed out that since MamaEarth earlier focused mainly on online mediums and influencers for promotion, the brand faced a lot of difficulty in attributing the sales figure to any specific channel. “When the company decided to expand their overall media mix, we could determine the geographical impact through granular data and incremental revenue from each channel,” he said.
Patanjali’s Nayyar also echoed the need for having data available on one dashboard since attribution becomes a hassle for brands, especially when it comes to digital mediums.