Customer analytics

Customer analytics

Customer analytics is a process by which data from customer behavior is used to help make key business decisions via market segmentation and predictive analytics. This information is used by businesses for direct marketing, site selection, and customer relationship management. Marketing provides services in order to satisfy customers. With that in mind, the productive system is considered from its beginning at the production level, to the end of the cycle at the consumer. Customer analytics is playing a very important role in the prediction of customer behavior today and takes place among social sciences.[1]

Contents

Uses

Retail

Gathering customer data and implementing it into some type of application that can enhance insight and improve the decision making process is a common application of customer analytics used by retailers.

Community

Municipalities utilize customer analytics in an effort to lure retailers to their cities. Using psychographic variables, communities can be segmented based on attributes like personality, values, interests, and lifestyle. Using this information, communities can approach retailers that match their community’s profile.

Customer relationship management

Analytical Customer Relationship Management, commonly abbreviated as CRM, enables measurement of and prediction from customer data to provide a 360° view of the client.

Predicting customer behavior

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.

Data mining

There are two types of categories of data mining. Predictive models use previous customer interactions to predict future events while segmentation techniques are used to place customers with similar behaviors and attributes into distinct groups. This grouping can help marketers to optimize their campaign management and targeting processes.

Future

By continuing to improve customer prediction techniques it will become a necessity rather than a convenient commodity for businesses to use customer analytics.[citation needed] With this valuable information there is an opportunity to fine-tune retail operations and store manager decisions. Rapid decision making will increase in speed and effectiveness in the future as tools and information become more easily accessible.[citation needed] The possibilities are still emerging, but applications in political races, jury selection, and developing clinical trial communities are areas that customer analytics could be used in the future.

See also

References

  1. ^ Kioumarsi et al., 2009

Wikimedia Foundation. 2010.

Игры ⚽ Поможем написать реферат

Look at other dictionaries:

  • Customer experience — (CX) is the sum of all experiences a customer has with a supplier of goods or services, over the duration of their relationship with that supplier. From awareness, discovery, attraction, interaction, purchase, use, cultivation and advocacy. It… …   Wikipedia

  • Customer centricity — is a strategy to fundamentally align a company’s products and services with the wants and needs of its most valuable customers to maximize profits for the long term. Customer centricity refers to the orientation of a company to the needs and… …   Wikipedia

  • Customer relationship management — (CRM) is a widely implemented strategy for managing a company’s interactions with customers, clients and sales prospects. It involves using technology to organize, automate, and synchronize business processes principally sales activities, but… …   Wikipedia

  • Customer feedback management services — Customer feedback management (CFM) online services are web applications that allow businesses to manage user suggestions and complaints in a structured fashion. Methodology There are different approaches, or methodologies to feedback management… …   Wikipedia

  • Customer attrition — Customer attrition, also known as customer churn, customer turnover, or customer defection, is a business term used to describe loss of clients or customers. Banks, telephone service companies, Internet service providers, pay TV companies,… …   Wikipedia

  • Customer dynamics — is an emerging theory on customer business relationships that describes the ongoing interchange of information and transactions between customers and organizations. These exchanges occur over a wide range of communication channels, such as phone …   Wikipedia

  • Customer experience analytics — (CEA) uses software to identify and analyze customer behavior patterns within and across multiple access points. CEA solutions use sophisticated data modeling techniques to analyze customer experiences with a company. Customers contact companies… …   Wikipedia

  • Customer Journey — (ugs. „Die Reise des Kunden“) ist ein Begriff aus dem Marketing und bezeichnet alle Berührungspunkte eines Konsumenten mit einer Marke, eines Produktes und einer Dienstleistung. Inhaltsverzeichnis 1 Überblick 2 Ziel/Nutzen 3 Funktion …   Deutsch Wikipedia

  • Customer intelligence — Contents 1 What it is 2 CI and CRM 3 Process 4 Example sources of data for CI 5 Benefits …   Wikipedia

  • Customer lifetime value — Contents 1 Definition of Customer Lifetime Value 2 Calculation in customer retention cases 3 Uses and Advantages of CLV 4 References …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”