In this digital era, customers are having many options at their fingertips to get the information for their required product such as what to buy, from where to buy and how much to pay for the product, what are the competitive products available in the market, etc. As the market is competitive now, companies/organizations should take the correct steps to attract customers to serve the right products to them. To attract customers, identify the different segments of customers, and retain customers, customer analytics plays a major role. It is a systematic process that helps to learn the behaviour of the customer and helps the profitable customer to retain. Customers use different valuable insights in their sales to capture these data.
Why It’s Important
There are various reasons why companies need business analytics solution. This helps them to process pricing, promotions, and marketing management. Companies use various intelligent and smart software to gather these customer information and product information and convert them into useful insights which can be helpful to create correct strategies to pull customers through various marketing strategies.
Companies gather important information such as the customer’s name, and contact details with the list or the category of product the customer love to purchase. With this information, companies use predictive analytics to anticipate customer behaviour, which helps to build a holistic view of the customer through 360-degree customer view analysis. This helps companies to strategies the customer retention process through various customer engagement activitie.
Companies that understand their customers’ buying behaviour and preferences can easily predict the customer journey and upcoming requirements. Without analytics consulting services, the successful productivity of the companies might not work. The following are the major three reasons that explain why customer analytics is important.
- Customer acquisition: Learning customers’ behaviour helps companies to design their sales and marketing strategies that fit the requirement of their right customers. By targeting the right audience and customer companies work on their cost pattern. Companies also do personalize marketing campaigns which lead to retention of their customers and pull the new audience into their wings.
- Higher Customer Satisfaction: Through predictive analysis, companies can strategize for the future. They can learn the interest based on earlier transactions and can plan through predictive analysis. They can also see the upcoming risk if there are any and strategize further to retain the customers via working on the cost side, that will increase the satisfaction level of the customers by taking proactive measures to increase the customer lifetime value.
- Customer engagement: Customer analysis also helps to plan the personalized experience of the customer based on their buying history. Customers also love when they receive personalized engagements from the companies. Customer engagement also helps to nurture customers relationships.
- Better Customer Service: Customer service is one of the important components to deal with the customers to understand their involvement process with the product and the company. It is a crucial process to create a satisfied and loyal customer, brand credibility, and product advocacy. To understand the areas to improve and create new processes, customer analysis plays a vital role in it. Metrics like customer satisfaction rating, customer retention rates, and overall ticket closing times make clear understanding of the processes, which is possible only because of the customer analysis.
- Better Brand Awareness: Customer behaviour helps to understand the likes and dislikes of the customers from all the angles which leads to create a better marketing awareness strategy. It also reduces campaign costs by targeting the right customers.
- Increase sales and Revenue: Customer behaviour analysis and predictive analysis will help to retain the customers which helps the customers to be happy and retain leads to increase the sales and revenue of the company.
What to focus on while doing Customer Analysis
As we know customer analysis is a process to target the market, focus on the needs, and identifies how the product can meet the market and customers’ need, the following will help to understand the pattern which needs to be focused on while doing the customer analysis.
- Customer: Who are the present customers and from how long they have been associated with?
- Customer Buying Criteria: Focus on the customers buying criteria information such as price, quality, convenience etc.
- Purchase Process and Pattern: This process will help to understand the pattern habit of the customers such as when the customer buy products, the list of regular and added products, during which time of the month the customer buy products etc.
- Discover Customers need: If the company has information about the customers’ needs it will help the company to serve them better. This kind of information requires personal and emotional information, and a satisfaction rate with the product and service.
- Analysis of the product: Once the company gets the information related to the customer, they need to analyse the data to understand the product’s attributes, features, and results such as feedback from the customer on the products, and overall rating on the products. It will help them to make the product much better and more competitive to the market.
Customer Analytics is like a seed to growth of any businesses if implemented in the right way and right time, targeting the right customer mix. During the marketing audit, customer analysis plays an important role by targeting the customer profile, product and understanding the processes and strategies applied for the product such as price, distribution, and promotion.