Managers can get complete user feedback through these functions, so as to provide data support for product and service improvement and give better optimization strategies.
As mentioned in the previous article, Voice of the Customer is the beginning of improving customer experience. How should we respond to the voice of the customer after we have obtained it? Let’s take a look at how Prada, a popular global brand, does it?
They purchased Mordern Research in 2020 to enhance their public relations capabilities, competing data analysis capabilities and insights, such as brand health and core event (fashion week) tracking.
More importantly, that year they tracked 92 million pieces of information about the brand in a variety of ways, information that spanned 183 aspects of the subject.
Based on this information, Prada started to strengthen its interaction capabilities and began to lay out its online communities on social media platforms. This improves efficiency while increasing user retention. If the VOC (voice of the customers) is a mandatory course for DTC brands, and online customer community is the final solution.
Many brands have actually started doing this Private Domain thing (building up one’s own online communities where people can market and sell products and services directly to customers and support them on everything they need), and here are some of the things they’ve learned:
Cost of acquiring new customers is 6-7 times higher than retaining existing customers; 5% increase in customer retention accompanied by 125% increase in profits – from Bain & Company
Likelihood of selling to existing customers: 60-70%; likelihood of selling to new customers: 5-20% – from Marketing Metrics.
Customer loyalty is worth 10 times more than a single purchase – from White House Office of Consumer Affairs, Washington, D.C.
At present, the connection between brands and users is more on social media, and the connection ability is relatively not as strong as IM, but now there is a trend to shift to IM tools.
WhatsApp is a super IM tool with over 2 billion monthly active users, and Meta official keeps laying out its commercialization ability. Just a while ago, Zuckerberg also elaborated the business value of one-on-one reach in Private Domain through the Cloud API thing, and even we learned that Procter & Gamble Group achieved hundreds of millions of dollars of net income through Private Domain in Brazil in 2021.
Last year in China, transactions in WeChat Private Domain were already larger than some e-commerce platforms. It is believed that in the future, decentralized e-commerce forms will be realized through IM touchpoints like WhatsApp to achieve the same trading bonanza of WeChat ecology.