Updated June 16, 2023
What is Customer Analytics
Customer analytics is the process that gives organizations to have a deeper knowledge of customer behavior, which can be used to make business decisions. Customer analytics helps to convert your data on customers into something which is of value to the organization. It converts your data into a marketing tool to help turn all obstacles into opportunities. Customer analytics is the backbone of all marketing activities, such as predictive modeling, data visualization, information management, and segmentation.
Importance of Customer Analytics
The use of Customer analytics is becoming more important in today’s world. This is because customers are becoming more powerful and connected than ever. Customers are now armed with much information and can access information anywhere and anytime. This makes the organization use customer analytics. Furthermore, customer behaviors are changing rapidly in today’s world. For example, suppose you understand the customer’s buying habits and behavior. In that case, you can predict future customer behavior, which will help you to launch relevant products at the right time for the customers. This will also increase the profit of your business.
Benefits of Customer Analytics
- Customer analytics will help you to increase the response rate.
- Customer analytics will lead to increased customer loyalty, and thus, in turn, it increases the return on investment.
- Customer analytics reduces the campaign costs of the organization by targeting the right customers at the right time.
- It will help decrease attrition by predicting the customer’s expectations and delivering the exact product.
- Segments the customers more effectively and helps to understand the customers better.
Basics of Customer Analytics and Customer Life Cycle
Customer analytics helps unlock customer details and expand your business, increasing the return on investment. This covers a brief introduction to Customer analytics, why it is used in companies, how it is used in an organization, and the pros and cons of Customer analytics.
Customer Life Cycle:
The customer Life Cycle explains the steps a customer passes through while purchasing or considering a product or service. This cycle is depicted as an eclipse, and the customer should pass through this customer life cycle again and again to achieve the company’s goal. This includes an explanation of the term customer lifecycle, an introduction to the customer life cycle, and a calculation of the customer lifecycle value (CLV).
- The classic view of the customer life cycle.
- Customer lifetime value measurement.
- Return on the Customer’s lifetime value.
- CRM and customer equity perspective.
Customer Onboarding is acquiring new customers for an organization more effectively. Banks and credit unions use the most effective strategy to improve customer relationships. This includes the following topics.
- Definition of the Onboarded customer.
- Elements of Customer Onboarding.
- Tactics to onboard and engage new customers.
- Customer Onboarding process.
- The secret to successful customer Onboarding.
- Frequent customer Onboarding mistakes to be avoided.
The Customer Onboarding Process for a Typical Bank:
Customer Onboarding is a process that helps banks accurately get customers faster. This explains the steps for successful Onboarding in banks that will lead to best-in-class implementation. The steps are given below.
- Appoint a Program leader.
- Include all new account openers.
- Acquire the right households.
- Collect insights from day one.
- Communicate with the new account holder early.
- Connect with the new account holder often.
- Personalize dialogue.
- Start with a simple Thank You.
- Build engagement before selling.
- Don’t forget your brand.
- Provide personalized offers.
- Start your communication with Snail mail and Email.
- Integrate all possible channels.
- Leverage your local presence.
- Build custom jump pages.
- Integrate video as an engagement tool.
- Maximize digital retargeting.
- Selling on mobile.
- Measure results.
- Test and learn.
- Don’t try to boil an ocean.
Customer activation helps motivate customers to move on to the next stage of the customer lifecycle faster. Customer activation will help you to find out.
- Whether your current marketing is toward the target.
- Whether there is a need to rearrange your budget plans.
- If there is a need to improve your team’s effort.
- How to move customers toward your goal.
Why use customer activation software, tactics to get started with customer activation, benefits of customer activation, and measurement factors of customer activation?
The Importance of Customer Activation:
Implementing a proper customer activation will help to increase the number of repurchases of the customers, strengthen its relationship with the customers, and act as an effective means of marketing. This topic covers why customer activation is considered necessary in organizations. It also contains case studies of customer activation.
Cross-selling is one of the best marketing strategies which suggests related or complimentary products to a customer. It is the easiest method of marketing. Here you will learn the definition of Cross Selling, the advantages of cross-selling, tips for successful cross-selling, effective cross-selling tactics, and the Importance of cross-selling.
How do we Cross-sell Effectively??
Tips to make cross-selling effective.
- Know your customers before cross-sales.
- Sell only relevant items.
- Make your cross-selling offers sound natural.
- Estimate your operational costs.
- Combine this tactic with other marketing strategies.
- Bundle products.
- Use product copies of cross-selling offers.
An upsell is a marketing strategy that makes the customers spend more money by purchasing a more expensive model in the same product category or getting an added feature to the purchased product.
Campaign Life Cycle
This covers the topics what customer lifecycle marketing, steps to manage customer lifecycle marketing, steps for a successful marketing campaign, and elements of the campaign lifecycle is
Stages of Campaign:
This contains the stages of the campaign lifecycle.
The execution of a campaign is one of the critical stages in the campaign lifecycle. The execution should take place at the correct time frame. If something is not executed at the right time, it will be a loss for the business.
This contains the following headings.
- The campaign lifecycle.
- Execution phase.
- Hurdles were faced in the execution stage.
- Tips to overcome the hurdles in the execution stage.
There are different types of channels available to do your campaign activities. But you should select what is best for you and your organization.
- Social Media
- Public relations
- Targeted landing pages
All these channels are explained in detail; each channel is given a case study or example.
Campaign assessment will help you know whether the campaign worked well, whether the participant’s expectations were met, and other related questions. Campaign assessments can be classified based on their purpose.
There are five types of campaign assessment.
This article what is customer analytics gives a brief conclusion to the topic of customer analytics. It tells us how important it is to use customer analytics in today’s world, what will be the causes if you don’t use customer analytics in your organization, what are the uses of customer analytics in your business, and what will be the next stage of customer analytics and how are the technological advancements in the field of customer analytics. Finally, it also lists the popular customer analytics tools or software that can be used for your organization.
This is a guide to What is Customer Analytics. Here we discuss the introduction, importance, basics, customer lifecycle, and benefits of customer analytics. You may also look at the following articles to learn more –