Customer analytics is the key to unlocking actionable insight that can multiply your revenue. In this blog post we cover the key benefits and outcomes from investing your valuable resources in customer analytics. Let’s get started.
What is Customer Analytics?
Customer analytics is the process of tracking and analysing the behaviour of customers to improve business results.
By understanding who your customers are, what they want, and how they’re interacting with your business, you can create more effective and profitable products and services.
Customer analytics can also help you identify and address customer issues early on, so you can keep them happy and loyal. In addition, customer analytics can help you measure the effectiveness of your marketing campaigns so you can improve customer lifetime value and also determine the areas that need improvement. By using customer analytics, you can improve your business performance and reach your goals faster than you ever thought possible.
Customer analytics can be performed on CRM data, web data, social media, customer support interactions, retail store data and more. When business questions are posed, it’s often customer data that are analysed and unlocked to derive insight. And it’s the actions taken that result in better outcomes.
What can you expect from Customer Analytics?
- Increased sales. By understanding customer needs and preferences, businesses can improve the design and delivery of their products or services. This can lead to increased sales and profits.
- Improved customer satisfaction. By understanding the needs of individual customers, businesses can create more satisfying experiences. This can lead to increased loyalty and repeat business.
- Improved customer retention. By understanding how customers interact with their products or services, businesses can improve the customer experience and drive them to stay with the company longer. This can lead to increased profits and decreased marketing costs.
- Reduced customer churn. By identifying and addressing customer issues early on, businesses can reduce the number of customers who churn or leave the company. This can lead to increased profits and decreased marketing expenses.
- Increased Market Share. With a clear understanding of your customers in the context of the market, you can seek to acquire meaningfully, retain effectively and grow your market position faster than the competition.
- Reduced risk of business failure. By understanding which customers are most likely to defect or cause trouble, businesses can identify and address problems early on, preventing them from becoming bigger problems down the track.
Types of Customer Analytics
There are numerous ways to multiply your revenue with better customer analytics depending on your industry, department, the data available and the business questions you seek to answer.
Looking Back vs Looking Forwards
- Descriptive Analytics delivers insight on what happened in the past i.e. how campaigns performed, what customers did, how much they spent. Depending on organisational maturity, descriptive analytics helps businesses to review performance against the plan.
- Diagnostic Analytics helps businesses understand the roots of a problem. i.e. why did the campaign fail, why did traffic increase but conversion rate decrease? Drill-down, data discovery, data mining and correlations help to answer the ‘why’.
- Predictive Analytics looks at past and present data with the aim to gain clarity on eventualities of future events. i.e. Predicting customer churn, conversion, stock on hand needed etc. Regression analysis, multivariate statistics, pattern matching, predictive modelling and forecasting help to answer what’s likely to happen in the future.
- Prescriptive Analytics looks to answer the art of the possible as we look to the future i.e. what should we do to make X happen or what can we do to result in Y. It includes techniques such as graph analysis, simulation, neural networks, complex event processing, recommendation engines, and machine learning.
Use Case Approach To Customer Analytics
- Improve the customer experience with Customer Journey Analytics: to optimise conversion by looking at the complete journey from start to end.
- Increase customer spend with Customer Lifetime Value Analytics (CLV) with CLV: to understand customers at an individual and segment level, before taking action to improve CLV and business revenue and profit.
- Deliver meaningful uplift with Customer Campaign Analytics: to increase engagement by channel e.g. email analytics seeks to understand what’s driving customer engagement and conversion, while social analytics seeks to understand the depths behind monitoring and listening.
- Deepen your customer understanding with Customer Research Analytics: to understand the insight from qualitative research to understand the what and the why behind customer feedback.
- Level up the customer experience with Customer Experience Analytics: to understand what has or is happening, in order to improve the customer experience for short and long term business outcomes.
When it comes to Hexdon’s approach to customer analytics, there are various platforms available. We’re a Bloomreach CDP partner and selected them due to their experience as the World’s No1 Commerce Experience Cloud. They specialise in Customer Engagement, Search and Content to deliver incredible use cases for customers and also business results.
Increase investment in Customer Analytics
There’s no question that businesses can multiply revenue with customer analytics. Investing in this area helps you understand your customers better, and it can help you create better products and services. But doing customer analytics correctly is tricky – and that’s where our team can help. We have years of experience in the field, and we know how to use the right tools and techniques to get the most out of your data. Check out one of our successful client engagements here.
We start by understanding your business goals. After that, we develop a plan that takes into account your current data and your desired outcomes. From there, we deploy the right analytics tools and strategies to help you reach your goals. And if there are any issues along the way, we’re always here to help.
So if you’re looking for a way to improve your business, contact our team – we can help you get started on the right track.
Book A Call Find Out More