Driving Customer Value With Data Analytics
To truly understand your customers and provide a quality service that is relevant to their needs, you need insight into their habits and behaviours. The data that your business ordinarily captures through customer transactions can hold the secrets to unlocking additional value from your customers. Using data analytics to develop deep insight at the individual customer level delivers intelligence about the characteristics, preferences and behaviours of your customers. The technology allows you to obtain significant leverage that is not available through existing human-only observation. This leverage provides the opportunity for mass-personalisation – the ability to systematically capture and use data-driven insight to meaningfully personalise every individual customer experience in the way which best suits each customer’s unique needs. Mass personalisation is an emerging frontier for innovative organisations.
The Power Of Targeted Direct Customer Engagement
It’s amazing that many key business decision-makers still consider marketing primarily in terms of basic advertising, media and website content. The tools available today to efficiently create and deliver personalised and targeted direct engagement marketing offers to customers, mean that this method of marketing is incredibly powerful and effective. Using data analytics, we can identify each customer’s preferences and habits and then structure personalised offers specifically for each customer, delivered in a form and at a time that is optimised for that customer’s own activities. Personalised offers also create the ability to track and monitor the success and effectiveness of each offer at the individual customer level, and then respond where required to optimise the offer.
Marketing is not all about winning new customers, but rather some of your most valuable customers are those which were previously high-value customers, but have become inactive in recent periods. A key strategy in driving customer value is identifying previously high-value customers which have become inactive and, via direct customer engagement initiatives, seeking to provide compelling personalised offers to reactivate those customers. This type of targeted customer reactivation marketing has a high return on investment (ROI) and a very low marginal cost. The nature of the offers are structured as a win-win so that the customer receives compelling value and the business a profitable sale. With personalised direct customer offers there is no large upfront cost and the offer only has value where the customer generates the value that the business is seeking. It is a low-cost, low-risk strategy with a high ROI.
Influencing Customer Behaviours To Drive Value
Data analytics can also be used to a powerful effect in influencing specific customer behaviours. Analysing customer spend levels, participation in offers/promotions and product selection decisions, we are able identify the key drivers of customer behaviours at the individual customer level. Once known, we are then able to use that specifically to drive increased visitation and sales. For example, we identify each customer’s average spend level and their individual responsiveness to discount rates. For those customers that have a high responsiveness to discounts we can then find the optimal offer for each customer to boost their purchases above their existing average level by providing a quantity-based discount offer.
The Leading Edge – An Exciting Fusion Between Technology And Human Intelligence
Data analytics can provide many valuable insights about a customer’s preferences, needs and behaviours. However, there is still a very important role for humans in the process. Until now, an organisation’s customer services and intelligence has generally been either largely human (e.g. the local coffee shop where the owner and staff know all their customers well, but there is no system to capture and track the intelligence) or largely technological (e.g. uber where the individual driver does not know anything about any customers, and the system knows everything about every customer). The leading edge in customer analytics is a powerful fusion which connects both human and technological elements together to create an even more consistent, relevant and personalised experience for each and every customer, every time. It’s an exciting new frontier in customer analytics, and we look forward to helping our clients, big and small, leverage all that our customer analytics service has to offer.