Customer analytics is vital for just about any industry or market segment. By understanding how your customers (or constituents) behave and interact with your organization, you are able to better serve, and profit, from the interactions.
The proliferation in the number of channels by which customers communicate has resulted in marketers drowning in data and struggling to better understand their customers. Marketers have to continually deliver above-market growth and show measurable results.
Specific uses cases include:
- Clickstream Analysis: Analyze clickstream data to understand and optimize how consumers research and purchase products online and identify the next best action.
- Advertising Optimization: Optimize ad campaigns by measuring effectiveness and adjusting campaign tactics in real time, incorporating data from all channels including search, ads, email and logs.
- Recommendation Engine & Targeting: Generate consumer segments with similar behavior to target consumers in real time with relevant product offers and improve cross-sell based on usage patterns.
- Social Media Analysis: Gain insights into consumer behavior, intent and social relationships by analyzing online behavior, social networks and transaction data.
- 360° Customer View: Improve customer satisfaction and cross-sell/up-sell opportunities by integrating all relevant customer data into one dashboard, accessible across company divisions.
The key to effective customer analytics is first understanding customers, and then building products and services that best meet their needs. Some examples include:
- Online & Mobile
Online and mobile businesses have a need to improve the effectiveness of their website. Analyzing clickstream data provides rich insight into which pages are effective and which pages site visitors ignore. When combined with sales and conversion data, clickstream analysis can help you discover the most effective series of steps needed to encourage conversions, sales, and add-on purchases.
Increased competition and shrinking margins are compelling retailers to increase the amount of data they collect to gain a competitive advantage. Loyalty programs, customer tracking solutions, and market research, when combined with sales and inventory data, provides rich insights that drive decisions around products, promotions, price, and distribution management. Data driven decisions enable sales based on actual purchase patterns, instead of guess work.
- Financial Services
Banks, insurance companies, and other financial institutions are using customer analytics to understand the lifetime value of customers, increase cross-sales, and manage customer attrition, among other programs. The ability to understand how customers use different banking programs – credit and debit cards, mortgages and loans, and online banking tools – allows financial services companies to develop targeted campaigns and value added offers that increase customer satisfaction and profits.
- Communication Service Providers (CSPs)
Call Detailed Records (CDRs) contain a wealth of information such as the length of a call, number called, weather the call was dropped or not, etc. CDRs create massive amounts of valuable data for CSPs. The ability to analyze these massive volumes of data allows CSPs to develop customer focused promotions that attract and retain customers, reducing churn and increasing profitability.
SAMPLE USE CASES:
- Omni-Channel Pathway Optimization
- Purchase Affinity Analysis
- Customer Churn Analysis
- Marketing Channel Effectiveness
- Merchant Offers