ASSESS. SEGMENT. ANALYZE
The goal of a customer insight strategy is to improve customer profitability and increase customer lifetime value across all channels. The most effective customer insight strategy is designed to identify who are your most valuable customers and which customers to focus on for growth by understanding the buying behaviors for each customer segment.
With a fact-based foundation, you can create and execute more targeted programs to deliver the superior experience your customers expect in today’s omni-channel world.
Assess The Data
Like most organizations, your problem is not enough data, it’s too much, in too many places, of all different kinds. Key areas to consider when developing your customer master data and analytics strategy are:
- What customer data do you need to collect?
- How do you make sure it’s accurate and consistent data with no missing values?
- How can you create an integrated picture of your customer with data from multiple channels and sources?
Clear Peak’s customer experience consultants and data scientists take care of this for you. We blend all of the information together to build a comprehensive data foundation for your organization. This database and the establishment of data governance processes to maintain it are the underpinnings of all of your insight efforts from this point forward.
Segment Your Customers
You can’t be effective by treating all customers the same way. Each one has different needs, diverse interests, and strong preferences. You need to segment them into logical groups, which are often called “personas”, who demonstrate similar buying behaviors.
Clear Peak’s advanced analytics will help you identify the most important characteristics of your key customer groups and build fact-based, defensible personas that become the foundation for developing targeted campaigns, creating value-added loyalty programs, and predicting every aspect of your customer interaction throughout the customer engagement journey.
Analyze Your Customer’s Behavior
In the words of the inimitable Yogi Berra, “If you don’t know where you’re going, you’ll end up someplace else.” As a successful organization, you have an overall business plan. But do you have an operating model to measure the performance of your marketing programs and conduct analysis of your customer interactions? Most organizations don’t. As a result, you’ll probably “end up someplace else.” It’s not likely that’s what you want.
A Customer Experience analytics strategy will help you develop actionable insight to improve the customer experience and develop more loyal and profitable customer relationships by:
- Tracking performance against key metrics in the areas that matter most
- Providing valuable insight to your customer’s historical buying behaviors and predict their future behaviors.
Customer Story: Specialty Retailer
After experiencing declining sales for each of the past three years in one of their major categories, a specialty retailer was interested in understanding the impact of discontinuing the category. Their existing analysis provided a forecast of sales in that department, but they were unable to project the overall impact on their business.
- Defined the key business questions that needed to be answered to make critical business decisions for the category in question.
- Developed a customer propensity model to understand customer spend in the category and total revenue at risk by propensity segment.
- Conducted category correlation analysis to provide insight to customer purchasing behaviors and identify impact on spend in other categories.
While the original forecast identified a direct sales loss of $50M for the category if discontinued, the propensity and correlation analysis identified nearly $1B in revenue at risk to the overall business for the high, high-medium and medium propensity segments of customers. With this new insight, the client chose not to discontinue the category and further developed a campaign strategy targeted at the core group of customers of the category which had been previously unidentifiable.
Our combination of commercial experience understanding and business analytics skills could be just what you need to take your business to a new level of success. The next step is up to you.