Understanding Your Customer with Advanced Analytics
For centuries, retailers have been trying to understand what customers want (product and price) so that they could win their business. We have used category management tools, RFM Models, customer segmentation, and customer personas among other things. Unfortunately, we have been handicapped by imperfect and incomplete data due to limitations in the technology available to us at the time.
Now, because of advancements in storage and analytics, we can read all of the signals that the customer is leaving for us, across multiple channels and social networks.
Turning these signals into action is a 3-step process:
- Gather – You need to collect and scrub all of the data. There may be additional data that you don’t currently collect that may be useful, so you’ll need a strategy for collecting that also.
- Analyze – You need to analyze the data to identify activities and trends to understand what influences the customer to take action. You’ll need to understand the customer’s triggers—whether those are product, price, promotion, pacing, peer pressure or some combination.
- Deliver – You need to get the results back as actionable information, so you can influence the purchase decision. This can be on line, in the store, on a smartphone, on a social network, or in a call center.
It’s up to you. How will you deal with turning all of your data from so many different sources into actionable information that helps you better engage/satisfy/retain your customer?