20th Sep, 2019
Denave, Team, Designation
Customer is the king!
Though this is not a new phrase for marketers, it makes more sense than ever today, given the fact that we are living in an era of customer-focused marketing.
This is the age of informed and smart customers with ample opportunities and choices on their fingertips. It has given rise to the idea of ‘testing and trying’ experiments. In this experimentation social media is also playing a pivotal role – bringing the world together and connecting all with the thread of thoughts, views, opinions and feedbacks. While this is definitely a good thing for customers, it augurs well for companies as well. It gives marketeers an opportunity to track customer purchase journey and develop sound and realistic marketing strategies.
When your customers are totally swamped with the choices, there is no place for guesswork – clearly you can’t afford trial and error strategies. Further, with the noticeable shift to a more data-driven digital set-up there is no breathing space for marketeers to wait and watch. The digital disruption riding high on this huge reservoir of data is popularly categorised as structured and unstructured but they also fall under tapped and untapped categories. “Whitespace” is what we call these unknown spaces, basically customer database that has not been discovered and which may be significant for achieving sales goals.
Whitespace discovery, at the core, functions around leveraging data pertaining to market, products, customers and more. Advanced analytics techniques can help? Yes, it can help companies generate actionable insights about what will happen next, through both internal as well as customer-facing applications. It certainly reduces cost, increases revenue, and enhances customer satisfaction scores. With the help of Data Analytics, a robust sales strategy can be devised that goes a long way into converting decisions into ‘informed’ decisions and adding both quantitative and qualitative value to the business. However, only 37 percent organizations feel that they are leveraging advanced analytics to create value – this clearly reveals significant missed opportunity.
Advanced analytics techniques essentially help to:
- Integrate the data you collect to create buyer persona
- Conduct customer journey mapping to understand your customer better
- Customer segmentation of potential customers basis requirements, characteristics, and behavior
- Efficient allocation of resources and manpower for attaining specific goals
- Stay ahead of your competition by analyzing customer purchase journey and deliver what you customers actually needs
- Personalize customer communications
- Reduces cost while maintaining process adherence to acquire customers
- Identify upsell/cross-sell opportunities
Delving into basics
Let’s have a quick rundown towards 5 types of analytics techniques that helps bringing you closer to your next new customer:
- Prescriptive Analytics – “prescribes” next best action by analysing a variety of options. It further suggests implications of every decision and improve decision-making.
- Predictive Analytics – “predicts” what might happen in future, as per the current situation. This could be next best offers, churn risk and renewal risk analysis etc.
- Descriptive Analytics – “describes” patterns within a certain segment of customers. This technique provides insight into what has happened historically and will provide you with patterns and trends to be able to investigate in detail.
- Diagnostic Analytics – “diagnoses” why something happened, like looking into churn indicators and usage trends amongst customers. It mainly looks to past events, focusing on causal relationships and sequences.
- Outcome Analytics – “outlines” insights into customer behavior that drives specific outcomes. This approach focuses on consumption patterns and the associated business outcomes. It can be used to understand your customers better and learn how they are using your products and services.
Three golden rules
- Gather multiple data points to make relevant recommendations and avoid assumptions
- Leverage social proofs where you can by pulling in positive testimonials from surveys and social media comments, to your marketing communications stronger
- Turn insightful data into concrete action, simply by observing, learning and acting
Ultimately, the challenge of the vast data volume that large businesses have, is also a big opportunity now. Bringing together structured and unstructured historical data across the organizational silos and combining it with advanced analytics tactics that facilitates whitespace discovery, new customer acquisition becomes fairly easy.