CUSTOMER ANALYTICS & REPORTING

Customer analytics is a technique for measuring customers ‘activities relative to business value and performance. Organizations that do not carryout customer analytics are existing by perception and are not data driven. With focus on Artificial Intelligence, Robotics and change in business strategies, analytics will have relevance and value for all businesses.

Customer Data

Customer data is one of the most important considerations for any serious business. Any company that wants to succeed should value customer data for decision making and also for projections, planning and shaping strategies. Customer data are drawn from the following sources:

·     Sales data

·     Receivables data

·     Traffic on website

·     Competitors Customer base

·     Predetermined demographics data

·     Estimation of the market in population

Importance of Customer Analytics

Customer data/analytics is important for

·     Business Planning

·     For budgeting

·     Sales prediction

·     Market diagnosis

·     Business expansions

·     Product design

·     Complaints management

·     Competitive edge

·     Innovations and creativity

·     Talent Management

·     Performance Management

·     Strategies formulation

Data Processing

Before analysis and designing of metrics, there is need to carryout data processing. This includes gathering data (data mining), data cleaning, data arrangement (sorting), data analysis (composition analysis, trend analysis, correlations analysis etc) and computing metrics

Customer Metrics

Customer metrics are formulae applied in measuring vital components of customer activities. There are important metrics in Customer Analytics. I will mention just two (2) here

Customer Loyalty Index = No of customer customers with repeat purchase over 6 months

                                               ________________________________________________________

                                               Number of customers at the point of measurement

This is required to know if your customers are one-time buyers or loyal buyers. It is possible that a company is making sales, but with low loyal customer base. Such company is exposed to competitive disadvantage. The higher the CLI (customer loyalty index), the more stable a business can be.

Customer’s Value Index (CVI)= Total Revenue/No of customers

 i.e. how much the company makes per customer.

This is very important to know how much the company earns per customer. Revenue per customer can be used to predict sales in subsequent year. It can also help to determine customers who are active or not. It also determines customers that perform below average in terms of revenue. Inactive customers and those who performed below average sales can be followed up. I can also help design products for different categories of customers.

What else we can learn together?

·     Designing Customer Dashboard

·     Customer Predictive Analytics

·     Customers Descriptive Analytics

·     Business Intelligence Report

·     Customer Care Analytics

·     Efficient Marketing

·     Emotional Marketing

·     Digital Marketing

·     Marketing Disruptions

·     Market Reports

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