With the year’s busiest shopping season upon us, here is one question every person in your marketing department should know the answer to:
Do you know who your best customers are and what makes them special?
Customer analytics – a data-driven, statistical approach to identifying your best customers in clearly quantifiable terms – can answer several key questions about your customers including:
- Who are your best customers?
- What makes them special?
- What is the polarity between your best and worst customers?
- What is your customer attrition rate year over year?
- Do you lose more of your best customers than those in the bottom deciles?
- What is the impact on revenue from attrition of your best-customers?
- How frequently do your best customers order from you? How does that compare with the order frequency of your average customers?
- Is your SEO and pricing strategy working well and delivering customers but customer retention is sub-optimal?
- Do you have a ‘narrow customer band’ or a ’80/20′ problem – i.e. 20% of customers driving 80% of revenue?
- How does the order basket differ between your new customers & your old customers?
- Do you know the cost of acquiring new customers? How does it compare with the cost of retaining your existing top customers?
Our Customer Analytics service can answer these questions, and more, using de-identified customer transaction data that includes only the following data elements:
- Customer ID
- Date of First Purchase
- Total # of Purchases to Date
- Total Items
- Total $ Spent to Date
- Average Order Amount ($)
- Average Items per Order
- Date of Last Purchase
The results of our analysis can inform your efforts across all functions of the company including marketing, sales, merchandising, inventory management, customer service, etc. Our data-driven analysis will help you:
- Formulate your customer acquisition strategies
- Identify the cost of the promotional offers you can afford to extend across your best and least-profitable customers
- Support your product inventory and merchandising efforts
- Inform your growth strategies and more.