Customer analytics is a process by which data from customer behavior is used to help make key business decisions via market segmentation and predictive analytics. This information is used by businesses for direct marketing, site selection, and customer relationship management. Marketing provides services in order to satisfy customers. With that in mind, the productive system is considered from its beginning at the production level, to the end of the cycle at the consumer. Customer analytics is playing a very important role in the prediction of customer behavior today and takes place among social sciences. Customer Analytics is the key to unlocking the hidden value of your data. Itâ€™s the difference between passive, reactive marketing and agile, active marketingâ€”where every step is sure, every goal is rooted in relevance, and every insight learned makes your next endeavor that much smarter and more successful.
Customer feedbacks are received through surveys and web forms. These provide an excellent source of explicit segmentation variables. These also help to determine purchasing needs for products and services.
The most common forms of segmentation include demographic, psychographic, and geographic segmentation using customer characteristics like age, gender, race, lifestyle, attitude and geographic regions. Behavioral attributes can also be leveraged for segmentation: product usage, buying cycle, purchase history, online activity, responsiveness to marketing materials, etc. By incorporating behavorial components into traditional segmentation techniques, organization can target and market customers far more effectively.
1. Demographic variable: age, gender, race, etc.
2. Geographic variables: state, city, locality, etc.
3. Psychographic vairables: lifestyle, personality, values, attitudes, etc.
4. Behavorial variables: buying stage, benefit sought, product use, reaction to marketing messages (click, ignore, visit site) etc.
5. Past Business history: purchase history, frequency, amount etc.
6. Contextual segmentation: the use of customer behavoir and business history to segment according to the customers motivation or need to purchase or use a product / service.