Customer Analytics

Customer Analytics refers to the processes and technologies that give organizations the customer insight necessary to deliver offers that are anticipated, relevant and timely. It has become an integral part of the work system of any organization in the world. EXIN Media brings for you the importance of Customer Analytics.

Customer analytics is becoming critical. To understand why, consider this: Customers are more empowered and connected than ever. And becoming more so. Customers have access to information anywhere, any time— where to shop, what to buy, how much to pay, etc. That makes it increasingly important to predict how customers will behave when interacting with your organization, so you can respond accordingly. The deeper your understanding of customers’ buying habits and lifestyle preferences, the more accurate your predictions of future buying behaviors will be – and the more successful you will be at delivering relevant offers that attract rather than alienate customers.

Customer analytics is often managed by an interdisciplinary group made up of business owners from different departments within the company, including marketing, sales, customer service, IT and business analysts.

Forecasting buying habits and lifestyle preferences is a process of data mining and analysis. This information consists of many aspects like credit card purchases, magazine subscriptions, loyalty card membership, surveys, and voter registration. Using these categories, profiles can be created for any organization’s most profitable customers. When many of these potential customers are aggregated in a single area it indicates a fertile location for the business to situate. Using a drive time analysis, it is also possible to predict how far a given customer will drive to a particular location. Combining these sources of information, a dollar value can be placed on each household within a trade area detailing the likelihood that household will be worth to a company. Through customer analytics, companies can make decisions with confidence because every decision is based on facts and objective data.

The most important thing to remember is the fact that the goal of customer analytics is to create a single, accurate view of the customer for the group to work with and make decisions about how best to acquire and retain customers, identify high-value customers and proactively interact with them.  Failure to have enough accurate data can make any insight derived from analysis wildly inaccurate.