Customer Insight in Practice
Customer Insight provided the basis for success for the Marks and Spencer lunchtogo service. Using the Critical Lag strategy (outlined above), the company analysed the each customers ordering behaviour, mainly focusing on the frequency and time lapse between each lunchtogo purchase. Through statistical reasoning, EWA (the company hired by Marks and Spencer to handle their Customer Insight) developed a critical lag formula, which helped M&S to judge when a customer’s current lag since they placed their last order, fell outside of their statistically expected behaviour and heightened their risk of lapsing.
If a customer fell outside of this lag, M&S communicated with them via email or over the phone to find out the reason for this behaviour and therefore reducing the number of lapsed customers.
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