Customer Analytics - Uses

Uses

Retail

Although until recently over 90% of retailers had limited visibility on their customers, with increasing investments in loyalty programs, customer tracking solutions and market research, this industry started increasing use of customer analytics in decisions ranging from product, promotion, price and distribution management.

Finance

Banks, insurance companies and pension funds make use of customer analytics in understanding customer lifetime value, identifying below-zero customers which are estimated to be around 30% of customer base, increasing cross-sales, managing customer attrition as well as migrating customers to lower cost channels in a targeted manner.

Community

Municipalities utilize customer analytics in an effort to lure retailers to their cities. Using psychographic variables, communities can be segmented based on attributes like personality, values, interests, and lifestyle. Using this information, communities can approach retailers that match their community’s profile.

Customer relationship management

Analytical Customer Relationship Management, commonly abbreviated as CRM, enables measurement of and prediction from customer data to provide a 360° view of the client.