Thursday, June 30, 2011

Customer Analytics

Customer Analytics is a buzz word now,but how can it help  companies to market more effectively. In today's world tech savvy customers use spam filters to avoid marketing emails  they don't  want.

therefore in this new environment, marketing  process should be based on analytical  framework to do a target marketing instead mass marketing. it really makes difference !!!!

Here are some important component of that framework..........................

Analytically driven Customer Segmentation 
This process involves dividing the customer base into groups, who are similar in a specific way and can be targeted as a whole.It enables the marketing companies to target the group efficiently and with right resources
The overall benefit is a profitable campaign as you know your target better.

Grouping is done based on process which identifies specific needs and preferences. therefore these groups are hand picked for specific campaigns and programs. Having said that,it helps in more positive response than mass campaign.

Predictive Modeling
This component predict future customer behavior based on past activities. It provides insight into behavior patterns of  a company's best and worst customers. It also predicts company's best and worst customer and the customers that are likely to leave.

Marketing Optimization
Based on above 2 factors, we can handle marketing challenges ( budget constrains,channel constrains,customer contact policies ) more efficiently.

In a Nut shell ..................

  • Increase response rate,customer loyalty and ROI.
  • Reduce campaign costs.
  • Decease customer attrition.
  • Deliver right message to the customer.

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