We have earlier discussed how big data can help companies in reaching the right kind of customers with more focused ad targeting campaigns. Businesses try hard to acquire more customers. However, acquiring a new customer costs as much as 5 times more than retaining an existing one. Although some churn is always unavoidable, its certainly possible to keep it at a minimum.
Big data savvy companies such as P&G use in-store and e-commerce data, and turning it into “smart data” for managing its brands better. Through various touch-points, such companies are gaining much more information about their customers than at any time in history. This is a win-win situation for both the parties, as it boosts sales figures while providing a better value proposition and superior experience to the consumer. Does it mean that if you know more about your customer then they are likely to stick around for longer? Well, having access to more information to base your retention strategy upon is certainly better than having none of it at all.