Gathering data about your users and using these to develop your audience can bring you many benefits. In this piece, you will learn how audience development can help you improve in many different areas, from product development to user satisfaction.
There are different perks coming from leaning towards your audience and shaping your business model towards your users and their needs. We have chosen to focus on the four main benefits audience development can bring you, which will hopefully work as a motivation for you to start collecting audience data.
Your customers can be a great source of ideas, both for new product development but also for additional features. At the same time, you can have your users test new products or beta versions of products ask their feedback to make your final versions of your products even better.
Many companies fully exploit the value of users’ feedback in their product development process. LEGO is a great example of this. The brand has created a website where customers can submit and vote for ideas which are then actually implemented by designers and marketers at LEGO.
By collecting users’ data and their opinions, you will be able to create a more customized experience for your users. This way, your offer will better satisfy their needs and make them have a better customer experience. The more satisfied, the more likely your users will spread positive word of mouth about you and your products.
One of the most famous examples of this is Apple’s use of NPS®. By daily analyzing their NPS® performance, Apple was able to promptly contact customers who had recorded a negative score, and understand what they could do better. By doing this, they continuously improved their customers’ experience and gave a boost to positive word of mouth. This attention and care for customer satisfaction brought $25 million in additional revenue in a year.
User retention is another audience development benefit. By listening to your users and improving your offering you will prevent your existing customers from churning.
Remember that existing customers are extremely valuable, as they spend 67% more than new ones. What’s more, acquiring new customers can cost 5 to 25 times more than selling to an existing one.
This audience development benefit surely has good effects on marketing efficacy.
Thanks to audience development, you will better know where to reach your customers and on which channels you should invest more efforts and/or money. On the one hand, you will be able to target potential customers, and on the other, you will be able to better communicate with existing ones.
These are only some of the audience development benefits we have decided to highlight in this piece. As you can understand, you can gain so much by leaning towards your audience and making decisions based on your users and their needs.
Get your hands on our new white paper “Audience Development: Develop your audience and grow your business” and learn all about the benefits you can achieve with audience development