LESSON 1

Customer Analytics Overview

TOPICS: LEARNING OUTCOMES:

 What is Customer analytics? At the end of the lesson,
 Why Customer Analytics? students must be able to:
 Importance of Customer o To understand why, consider this:
Analytics. o Customers are more empowered
 What can you do for Customer and connected than ever and
Analytics? becoming more.

Topic 1: What is customer analytics?

Customer Analytics is a process of

collecting, gathering and analyzing
customer data across a wide range of
channels, interactions, funnels and help
businesses make better business
decisions. Customer analytics help
businesses make better strategies, build
better products, and provide better
services to the customers. Important
steps in the customer analytics process
are data collection, data segmentation,
visualization, modelling etc. Companies
can use customer analytics for Direct
marketing, better brand positioning and better customer relationship management. With
proper analysis, one can provide a better experience to the customers, and make them stick to
the brand. The likes and dislikes of the majority of customers can make or break a brand/
product. So, knowing customer habits are important and a well-implemented Customer
Analytics strategy helps in predicting customer behavior.
Topic 2: Why Customer Analytics?
Customer analytics is the process of studying customer data accumulated across departments in
a company, for assessing, understanding and interpreting customer behavior across the various
stages in their buying journey.

Why analytics? Quite simply, it leads to better decisions. Informed decisions. Data-driven
decisions. It connects various data points and sets to identify trends, patterns, anomalies and
gaps. Luckily, the technology available today, does not do just that, but also presents the
findings in a way that a regular (right-brained) marketer like you and me can make sense of and
apply the insights and decisions to marketing action plans and execution strategies.

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The basic concept is simple enough. You have data –> you use technology to run
some analytics on it –> you get some actionable insight from it which will help you make better
decisions –> that can drive better marketing results & ROI.

So, what’s the catch? Well, there are a lot of different sources of data, there are lots of different
kinds of analytics (SEE BOX: Types of Analytics) and there are several use cases for which you
can deploy decision science solutions

Additionally, customer analytics:

Helps you increase customer response to promotions, strengthens customer loyalty and
consequently boosts sales revenues.

Tightens your overall campaign cost by letting you focus on buyers who are most likely to make
a purchase/perform a desired action.

Helps you identify unsatisfied customers and prevent brand detraction.

With customer data analytics, you can create a more effective and efficient set of campaigns
based on stage of buying journey, browsing behavior, purchase history, demographics,
geographical details and so on. It is key to note that an organization’s technology stack and
audience management capabilities play a key role in both data collection and analytics.

This is from an article on predictive analytics.

Topic 3: Importance of Customer Analytics

Customer analytics is becoming critical. To understand why, consider this: Customers are
more empowered and connected than ever. And becoming more so. Customers have
access to information anywhere, any time – where to shop, what to buy, how much to
pay, etc. That makes it increasingly important to obtain customer insight to understand
how they will behave when interacting with your organization, so you can respond
accordingly. The deeper your understanding of customers' buying habits and lifestyle
preferences, the more accurate your predictions of future buying behaviors will be – and
the more successful you will be at delivering relevant offers that attract rather than
alienate customers.

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Customer analytics can help in numerous ways. An overview of customer habits can
help in many ways. A well-defined strategy will help in customer acquisition, retention
and active engagement with customers.

Customer Acquisition
Gaining new customers is a vital part of any business, without customers there will be
no business. Effective marketing and sales strategies can help in gaining new customers.
Creating personalized and viral marketing campaigns are easy with the correct data and
insights.
Customer Satisfaction and Retention
Retaining customers is very important. By studying and understanding customer
behavior, we can perform predictive customer analytics. Techniques can be developed
to engage with the retained customers and improve their satisfaction.
Lower costs and Improve Revenue
Better customer analytics can help lower acquisition costs and operating costs.
Increased sales can also help in increased revenues. Consumers nowadays are very
much price-conscious, informed, and selective. So brands and companies need to focus
on selective targeting.

Topic 4: What can you do for Customer Analytics?

With customer analytics, you can:

● Increase response rates, customer loyalty and, ultimately, ROI by contacting the
right customers with highly relevant offers and messages.
● Reduce campaign costs by targeting those customers most likely to respond.
● Decrease attrition by accurately predicting customers most likely to leave and
developing the right proactive campaigns to retain them.
● Deliver the right message by segmenting customers more effectively and better
understanding target populations.

What to do with Customer Analytics:

Once we start tracking and collecting customer data, the data can be used to answer questions
and deal with challenges. Better business decisions can be made. Using data, we can personalize
content for users, focus on the promotion of campaigns to the right audience, and improve
product development, sales, and marketing as a whole.

Analysis of all types of customer channels should be performed, and we should understand how
our service or product is helping/ serving customers of different demographics. Customer
Analytics can help to promote the brand in a better way by understanding customer-generated
data like ratings, reviews, and feedback.

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While analyzing customer data, customers which are at risk of being lost should be targeted to
be retained to improve customer lifetime value. Customer segmentation can be implemented to
better target customers across all channels and groups.

ACTIVITY/
TASK

Answers on the activity/task shall be written on whole sheet/s of yellow paper

and must be submitted not later than the agreed deadline. Late submissions will not be
accepted and will result to a failing grade.

Essay:
A. Why do we need to study Customer Analytics?
B. Discuss the Customer Analytics benefits.
C. Are you agree with the saying “Customers are always right”, yes, or no? Why?

ASSESSMENT

(Short quiz)

RUBRICS FOR WRITTEN OUTPUT

This criterion shall include the reliability and
ingenuity of the output. Its reliability shall be
evaluated based on the truthfulness, while
Content 50%
ingenuity indicates the originality and
creativity of the incorporated ideas and
concepts.
This criterion encompasses the ways how the
Organization of ideas and concepts are presented. Coherence
30%
Ideas and structure of the content are the focus of
the criterion.
Grammar & This criterion shall include the grammatical
20%
Mechanics correctness, format and use of punctuations.
TOTAL 100%