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.
Read more about this topic: Customer Insight
Famous quotes containing the words customer, insight and/or practice:
“A good customer should not change his shop, nor a good shop change its customers.”
—Chinese proverb.
“I shall speak of ... how melancholy and utopia preclude one another. How they fertilize one another.... Of the revulsion that follows one insight and precedes the next.... Of superabundance and surfeit. Of stasis in progress. And of myself, for whom melancholy and utopia are heads and tails of the same coin.”
—Günther Grass (b. 1927)
“Nonwhite and working-class women, if they are ever to identify with the organized women’s movement, must see their own diverse experiences reflected in the practice and policy statements of these predominantly white middle-class groups.”
—Kimberly Crenshaw (b. 1959)