Why Customer Data Matters

The customer
data jackpot: The
undeniable link
between data and
revenue.

2The Customer Data Jackpot Introduction
thanx.com
The data revolution has become old news for companies
that do business online, however brick-and-mortar
businesses still have a ways to go when it comes to
collecting and using customer data.
This guide will introduce offline business operators (restaurants, car washes, cafes,
retailers, etc) to a new way of thinking about collecting and using customer data, the
math behind customer retention initiatives, and some examples of campaigns that
businesses like yours have run with their data. Ultimately, we want to open your mind
to the possibilities that await you when you use data to get to know your customers.
Questions? Email hello@thanx.com. We would love to help.

Contents. Introduction...................................................................... 02
The customers you already have................................. 04
Getting to know your customers................................. 06
Demographic marketing. Powered by data.............. 09
Marketing effectively to your customers................. 11
Using Transaction Data for Campaigns ............................................15
Using Behavioral Data for Campaigns...............................................17
Using Feedback Data for Campaigns..................................................18
Data-Driven Campaigns in Action.............................. 19
Conclusion......................................................................... 24

The customers you
already have.

5
thanx.com
The Customer Data Jackpot The Customers You Already Have
To attract new
customers, brands
pour valuable time
and resources into
untargeted marketing
campaigns, including
billboards, radio
ads, flyers, and print
advertisements.
But there’s something glaringly inadequate
about these traditional marketing channels:
They don’t drive predictable value for
businesses. “Spray and pray” marketing to
attract first-time customers often ends up
costing more money than it creates1
.
Dollar for dollar, it’s more lucrative to invest
in your existing customer base.
When you look at the lifetime value of a
customer, generally the costs invested in
advertising to a first-time customer aren’t
recovered until he or she makes a second,
maybe even third visit back to the business.
Adding to that, about 70% of customers only
make one purchase at a business and never
return.
Because of the costs associated with finding
new customers out in the wild, experts
conclude that it costs five to seven times
more to acquire a customer than to drive an
additional visit from an existing one. Dollar
for dollar, it’s more lucrative to invest in your
existing customer base – especially when,
according to research from Harvard Business
School, increasing customer retention rates by
just 5 percent increases profits by 25 percent
to 95 percent2
. A customer who already knows
and loves your brand might be prompted to
come by again just from a message, whereas
someone unfamiliar with your brand needs
a more enticing (read: higher-cost) carrot
dangled in front of him. In fact, 61% of
small-business revenue comes from repeat
customers, and repeat customers spend 67%
more than new ones3
.
For that reason, it’s fair to say that you can
sort people who walk through your doors into
two categories: the more valuable existing
customers, and the less valuable newbies.
Being able to distinguish between the two,
however, requires customer data.
1. http://www.marketingprofs.com/articles/2011/4547/avoid-the-high-cost-of-untargeted-marketing
2. https://hbr.org/2014/10/the-value-of-keeping-the-right-customers
3. http://blog.biakelsey.com/index.php/2014/04/03/biakelsey-and-manta-joint-report-smbs-shift-priority-to-customer-retention/

Getting to know your
customers: The case
for data.

7The Customer Data Jackpot Getting to know your customers: The case for data
thanx.com
Who are your customers? That’s quite
literally the million dollar question.
Customer data (transactional, behavioral,
and feedback) can help you uncover
important insights about who exactly is
spending money with you, where you can
drive more revenue for your business, and
how you can communicate most effectively
with your customers to prompt them to
interact with your brand.

8The Customer Data Jackpot Getting to know your customers: The case for data
thanx.com
By focusing on better
understanding the
customers you already
have, you can move the
needle more predictably
— and more impactfully —
than by marketing to new
customers or by treating
all of your customers the
same.
Using what you know about those customers,
you can market to them with the right message at
the right time. The result? Targeted, data-driven
marketing to your loyal customers increases
their frequency, spend, and lifetime value4
.
Not only are you avoiding spending valuable
Dollar for dollar, it’s more lucrative to invest
in your existing customer base.
money on untargeted marketing to unproven
new customers, but you’re able to make your
marketing dollars go further by using data
to speak meaningfully to your most valuable
demographic — the customers you already
have.
This is where the case for customer data is
made: by gathering data on the people who
visit your business, you’re better able to
retain them long-term, while increasing their
engagement with your business immediately.
In this sense, the customers you already have
are “low hanging fruit” when it comes to driving
growth for your business — you already have
their attention, now it’s time to double down
and get better acquainted with them (using
data, of course!).
Still not convinced? Read on to see exactly how
knowing your customers can pay off.
4. https://econsultancy.com/blog/64724-15-ways-for-companies-to-increase-customer-lifetime-value

Demographic marketing.
Powered by Data.

10The Customer Data Jackpot Demographic Marketing. Powered by data.
thanx.com
Want to gather customer data, but don’t know where to
start? There are three main categories of customer info that
will help you better and identify the types of people who will
respond to targeted marketing campaigns:
Transactional Data.
This is your basic information that
relates exactly to how much your
customers are spending with you,
how often they’re spending with you,
and how much they’re worth to your
business. To own this data, you need to
be capturing transaction information
every time a loyal customer spends
money with you.
01
Behavioral Data.
Beyond just the dollars and cents of
customers’ transactions, you can start
to get a clearer picture of who your
customers are when you understand the
nuances of their behavior. For example:
when during the week do they like to
visit? Do they stop by during a time of
day in particular? Are they referring
friends, have they subscribed to your
newsletter?
02
Feedback Data.
This is the data that customers actually
create for you – it reflects their
satisfaction with the experiences that
they have had with your brand. It comes
in two forms: quantitative NPS data, and
qualitative written feedback. While NPS
is pretty clear when it comes to divining
trends and other analysis (10 is great,
1 is bad, so on and so forth), written
feedback often requires another level of
interaction or some type of word cloud
to draw clear conclusions.
03
5. http://www.marketingprofs.com/articles/2011/4547/avoid-the-high-cost-of-untargeted-marketing

Marketing effectively
to your customers.

12The Customer Data Jackpot Marketing Effectively To Your Customers
thanx.com
Use customer data to better target and
personalize your businesses’ outreach.
You now know that your existing customers
are more valuable than potential customers,
and that leveraging the data you have on
them can drive up that value even more.

thanx.com
“Every product, every service, every business
either appeals or has the potential to appeal
much more strongly to a certain definable group
of people than it appeals to most people.”
- Dan S Kennedy, The Ultimate Marketing Plan

thanx.com
Once you start capturing
customer data, the question
becomes this: how do I nudge
my customers into more
profitable behavior, given that I
have all of this data on them?
The ability to segment customers by habit and history, track
store performance data and deploy high-ROI campaigns are
a few ways brick-and-mortar companies are using data-
driven insights to drive business.
Instead, segment customers in a way that allows you to craft
personal, timely messages. Using each of the three types
of data outlined in the last section, you can automate and
deploy high-value campaigns immediately (with predictably
strong results).
“...companies have been forced to adapt
their marketing outreach to customers’
growing demand for personalization,
[and] highly targeted campaigns have
become a standard necessity. If they
haven’t already, companies should
look at replacing their mass, blanketed
outreach with messages tailored to
each customer and based on specific
customer data.”
- Mark Smith, Marketing Profs

thanx.com
Using Transaction Data for Campaigns
VIP Campaigns
Targeting your high rollers can have the greatest
return of any marketing campaign you launch.
We’ve seen again and again that nearly 70% of a
merchant’s revenue comes from its top 25% of
customers6
– this appears to be true across all
offline businesses, with little variance. So, iden-
tifying top customers and flexing your marketing
muscle in their direction is sure to pull big levers.
What does this look like? Recognition comes in
many forms, but for people who have established
themselves as VIPs (usually based on some spend
threshold within a period of time), being generous
with an elevated experience can go a long way.
Special perks for VIP members need to be aspi-
rational enough so that non-VIP loyalists spend
more to strive for the coveted status, but not so
much to erode margin.
Ways to delight your VIP Customers:
• Special events for VIPs: Tastings, parties,
early-access
• Accelerated rewards when they pur-
chase with you
• Acknowledgement whenever they visit
your business (small free item)
• Skipping the line
01
6. https://www.colloquy.com/latest-news/why-vips-matter-more-than-new-customers/

thanx.com
Using Transaction Data for Campaigns
Winback Campaigns
Use visit data to understand when your customers
have tapered from their normal frequency, and then
send them a message to inspire them to come back.
Without data, it’s hard to know when a customer has
likely “churned” (stopped coming in), or if they’re just
a less frequent customer.
For example, when a customer who comes in every
week is absent for 3 weeks, that’s a clear deviation
from the usual, weekly visits you’ve come to expect.
However, when a customer who pops in once a month
hasn’t visited for 3 weeks, that’s no cause for alarm. In
these instances, these two customers shouldn’t both
receive a “come back and see us!” message — it would
be a waste of marketing dollars to extend an offer to a
patron who likely hadn’t churned anyways.

thanx.com
Using Behavioral Data for Campaigns
Timeshift Campaign
Do your customers like to visit on the weekends more
than weekdays? Do you have a morning rush, but then
slow afternoons? Using customer behavior data, you
can identify not only business-wide patterns, but you
can zoom into behavior at the individual customer
level.
Incentivizing a customer to break outside of their
normal pattern can drive additional revenue and
create new, profit-driving patterns. For example, a
customer who comes in for a coffee every morning
but doesn’t venture outside of that behavior could
be incentivized to try a lunch offering at that same
cafe — and maybe they turn into a loyal lunch
customer with a higher average check size (and
consequently higher LTV). Starbucks does this
very well with their “treat receipt” program:
customers who make purchases during morning
hours are incentivized to come back and
redeem a reward between 2-5 PM, effectively
driving traffic to slower times and encouraging
morning customers to experiment with their
afternoon offerings.
02

thanx.com
Using Feedback Data for Campaigns
Respond Directly to Feedback
Feedback is a valuable piece of the data puzzle for
offline brands. Guest experience isn’t just about giving
patrons a warm and fuzzy feeling – it’s a litmus test
for the health of your brand and the performance of
your stores. Soliciting customer satisfaction feedback,
especially when you can tie that to transactional
data, becomes an incredibly powerful way to collect
actionable intelligence.
From store managers to c-level executives, your
company can benefit from receiving and interpreting
feedback directly from customers. Brands use Net
Promoter Score and Feedback to gain a quantitative
view of customer satisfaction across all of their
locations as well as collect written feedback about
their business’ performance.
Studies show that responding to directly to customer
feedback makes customers 14% more likely to return,
proving that customers that leave feedback are
more invested in your business, and, when they
receive a response, will return more quickly.
The takeaway? Having someone in charge of
responding directly to feedback and monitoring
the NPS of your business is one way to ensure
that you’re doing everything you can to
acknowledge those who have taken time to
leave feedback.
While the process of responding personally to
feedback isn’t an automated “campaign” like
Timeshift of Winback, you can automate the
collection of feedback. Ditch paper cards and
untimely emails and make sure that customers
are asked for feedback after they’ve made a
purchase.
03

Data-driven
campaigns in action.
Want to see how businesses like yours use
customer data every day?

20The Customer Data Jackpot Data-Driven Campaigns in Action
thanx.com
Check out the following examples from
brands we love.

thanx.com
SusieCakes VIP program is
icing on the cake.
a cake or a dozen cupcakes
$10 off
All businesses have VIP customers that
make up a significant chunk of their
revenue, but CA-based bakery SusieCakes,
with 18 locations in CA and TX, has a very
enthusiastic group of hardcore loyalists.
In fact, almost half of their revenue comes
from the top 10% of their customers! To
celebrate these active guests, SusieCakes
makes sure they’re recognized every time
they walk into a SusieCakes store. From free
cake inscription to free birthday goodies,
VIPs know that they’re appreciated. it’s
no wonder that SusieCakes has seen such
massive growth in the past few years!
Loyalty Program:
program members
40K+

thanx.com
Lou Malnati’s drives business
to weekdays.
your purchase made
Monday - Thursday
$20 off
Lou Malnati’s is a popular Chicago-based
destination made popular by their delicious
deep dish pies, with over 40 locations in IL
and AZ.
With dining rooms packed and long lines
during the weekend, they didn’t want to
drive anymore traffic to already overloaded
times (ah, the curse of popularity!). That’s
why they shifted their reward redemption
schedule to Monday-Thursday, effectively
driving their most loyal members to try a
less popular time and even out foot traffic.
Genius!
Loyalty Program:
program members
83K+

thanx.com
Mixt keeps customers
coming back
your Mixt meal
$10 off
Mixt is a popular SF-Based salad spot,
famous for their fresh and creative salads.
They have extremely loyal customers who
visit daily for their lunch fix, but when their
customers lapse for whatever reason, Mixt it
prepared to win back their hearts (and lunch
orders). With an automated “Winback” offer
being sent to people who have lapsed from
their normal visit cadence,, Mixt keeps loyal
customers from turning into past customers.
Loyalty Program:
program members
30K+

24The Customer Data Jackpot Conclusion
thanx.com
The bottom line? There’s an undeniable
relationship between data and revenue.
02
Collecting and using customer data to
drive customer spending is easy with
a digital loyalty program that does the
heavy lifting for you. With a data-cen-
tric loyalty program, businesses can
cut through the noise of untargeted
marketing and reach out directly, and
impactfully, to their highest-value (and
highest potential) customers.
03
With Thanx, businesses leverage data
collected from their loyalty program
to launch data-driven campaigns like
VIP, in addition to collecting priceless
customer feedback directly through
the app. When it comes to staying com-
petitive in the increasingly challenging
restaurant space, having actionable
customer data can give brands the
edge they need to keep their custom-
ers happy, loyal, and as a result, keep
operations profitable.
01
Automated, data-driven campaigns
have the ability to speak personally to
your customer base and change their
behavior in positive ways.
Conclusion.

If at any time you would like to speak
with someone to get more details around
any topics in this guide, please email
hello@thanx.com. We would love to help.

Why Customer Data Matters

More Related Content

What's hot

Similar to Why Customer Data Matters

Recently uploaded

Why Customer Data Matters