For as long as merchants have been hawking their wares, businesses have been trying to understand their customers. But in the era of big data, customer analytics has ushered in a new, unprecedented era of profitable opportunities from being able to “know thy customer.”
More than ever before, customer analytics allows you to know your customers, know your best customers, and find more of them. You can more accurately define your best customers, and the process in which you sell to them. Thus you can simply replicate the process to find more like customers, and dramatically grow your business.
Here are 7 essentials for using customer analytics to create unprecedented business value.
1. Growth Opportunities
Customer analytics is an increasingly powerful tool for identifying growth opportunities, and creating new business value. It gives you deep, new insights into your market, company and products.
2. Discover the Truth
Analytics allows you to prove or disprove what you believe about your customers, market, company and products. For example, you might believe your best customers are a younger demographic, but delving into the data reveals a different truth. Insights like this can be particularly powerful for niche markets.
3. Demographic Information
To truly leverage customer analytics, you need to capture all the demographic information: age, income, education and more: any information that describes a customer as a person. Gather more data by better leveraging underutilized sources of this information, such as warranty registrations.
4. Purchase Behavior
Customer analytics allows you to understand everything about how your customers act and their purchase behavior. What kind of products do they purchase? At what price? How often? You’ll need a system to collate this information, as it often comes from many different databases, such as CRM, ERP, financial, etc. You can then use this information to create more effective and better-targeted messaging and offers.
5. Marketing Data
Customer analytics also reveals insights about your marketing processes, and how you can improve them. In B2B companies, for example, marketing admissions system can track pre-purchase behavior, campaigns, offers, and more. This reveals how to more effectively target customers and leads in the future.
6. Data Quantity
One mistake companies make is failing to capture all the data. For example, if your warranty database captures 20% of customers, what that really means is you’re missing 80%. And the portion is likely not representative, and thus misleading. It’s essential to capture as much possible- if you’re not capturing 100%, you can capture more!
7. Data Quality
Another error companies make is having partial or dirty data. Companies often only capture certain fields. For example, if your system is lax about collecting price information, you won’t know revenue. It’s essential to have complete records, and ensure that your data is hygienic.
And remember the most important step – take action! Certainly the biggest mistake companies make is that after analyzing the data, they fail to act on it. It’s very important to have someone on your team doing analytics, or have an outside agency do it. Once you’ve analyze the data, you must act on it to create value.
The future will offer you more information than you ever imagined possible about your customer. Furthermore, the information will get increasingly specific and precise, as you can capture every detail of every activity. The companies that put effective processes in place today, will be the market leaders of tomorrow.