Consumer analytics is an overview of business analytics that focuses on insights that tell you more about your customers. Financial and operations analysis tend to narrate the ongoings inside your business. But the implementation of customer analytics will help paint a realistic story of the external affairs. Mainly about where customers come from what impacts their decisions.
Importance of Consumer Analytics
Every company aims for expansion, so it is logical that its customer base also grows. Even though monitoring the activities of all these customers is difficult and precarious, knowing the patterns in the customers’ behaviors provides the necessary direction for decision-makers to plan their business strategy.
When this massive database is accessed, reaching customers becomes practically impossible. The problem is solved when customer analytics comes into play. It can be broadly defined as a systematic study by which the data gathered from the customer base, along with customer behavior, is used to identify, attract, and retain customers. It forms the cornerstone of business marketing strategies and key decisions. By integrating advanced techniques like data visualization, predictive modeling, Information management and market segmentation
How Does ConsumerAnalytics Work?
When it comes to putting customer analytics to work, there are three steps that you need to look into. These are:
- Data collection
- Validating Data
- Data analysis
Collection of Data
Customers are inclined to make several touchpoints with your brand. Data collection is the process of gathering data from all the channels of customer interaction. These channels include:
- Website analytics: You can glean abundant information from your website visitors. Tools like Google Analytics and Mixpanel can help you gather this data. Some tools like CrazyEgg help optimize advanced information like heat maps and session recordings.
- Customer Service Calls: By focusing on customer service calls, companies can learn the kind of queries a customer would ask. This would help identify challenges. These are the qualitative data used for in-depth behavioral analysis.
Data Validation
All collected data has to go through proper validation. Without this process, all directed efforts toward customer analytics can be deemed. Design an adequate and official validation mechanism to ensure the accuracy of your data. Keep these points in mind:
- Always have a dedicated resource in your data operations team whose primary job is to validate data.
- Ensure that data is complete and no fields are left blank for later analysis.
Analysis of Data
Before working on consumer analytics through data, one thing to remember is that you must have your customer personas in place. This is done by cross-validating the gathered data with use cases. You can also create a predictive model for your business eventually. It acts as a crucial cog in identifying customer choices that directly impact the company. These choices may vary, but overall, they can talk about how customers discover your product.
Benefits of Customer Analytics
Increasing Efficiency of Marketing Strategy
Paying close attention to the individual customer experience (CX) provides marketing insights beyond quantitative data. The key is diving deep into metrics like page views and time on page, which is great for spotting trends and identifying problem areas.
Reduce Customer Churn
Every marketer knows that retaining your current customers is considerably cheaper than acquiring new ones. This is a universal fact for SaaS companies where subscription renewal is an integral factor in driving up sales numbers. Staying on top of customer analytics helps boost the customer churn rate and helps maintain a strong relationship with existing users.
Increase Sales
The reason for every investment and strategy ultimately comes down to sales. When you truly understand consumers and their motivation to buy, the process of increasing sales becomes convenient. Mastering the concept of ecommerce customer analytics helps you understand whether users are making purchases, identifying what’s driving or preventing transactions. This can help in validating product decisions and prioritizing updates.
Validating Product Features
Monitoring customer analytics is essential. It aids in deciding which product updates and features must be prioritized. For instance, tracking the user flow and customer touchpoints, like call-to-action buttons, landing pages, and points of exit, help you understand what the customers are hoping to find. Use these insights as the basis for a new navigation feature. Feature usage metrics help in establishing a sense of what your users are most interested in.
Personalized Customer Experience
Personalization is truly the mark of a marketer who understands the modern customer. Consumer analytics help understand which touchpoints in the customer experience are most important for personalized marketing. Teaching the important lesson of how you can implement these specialized interactions across the customer journey. Creating personalized customer content is tricky, further emphasizing the importance of having spot-on data that will effectively drive conversions and engagement.
Why Choose Consumer Analytics?
With consumer analytics, the customer is in the palm of your hands. Businesses can increase response rates, customer loyalty and the all important ROI by contacting the right customers. Not only that, reduce campaign costs by targeting those customers who are most likely to respond. Consumer analytics ultimately predicts which customers are likely to leave and developing the nifty campaigns which would ultimately help in retention.Â
We hope that this comprehensive guide answers all of your questions about consumer analytics. Feel free to reach out and comment if you have any questions!
Featured Image: CX Today
