Data Analytics – Customer Analytics
For most businesses, the primary means of growth involves the acquisition of new customers which involves finding customers who previously were not aware of your product, were not candidates for purchasing your product, or customers who in the past have bought from your competitors. Some of these customers might have been your customers previously, which could be an advantage (more data might be available about them) or a disadvantage (they might have switched as a result of poor service). In any case, data mining can often help segment these prospective customers and increase the response rates that an acquisition marketing campaign can achieve.
Customer acquisition solutions like response modeling, campaign analytics and segmentation rank order prospects and identify population clusters that are most likely to respond product campaigns. Through the use of predictive models, test and learn frameworks, and tracking mechanisms businesses can support a multitude of tailored offers that not only enhance market share but also successfully reduce acquisition costs.
Research shows that acquiring a new customer can be 7 to 8 times more expensive that retaining an existing customer. Also since customer acquisition costs are very high, customer retention and customer value management are very important in domains like credit cards industry, insurance industry and retail.
Predictive analytics provides the power to assign the likelihood of attrition to existing customers. Industries can then identify the profitable customers amongst those that have a high likelihood of attrition and implement programs to proactively retain these valuable customers. Proactive identification of likely attriters combined with proactive retention programs can add millions by way of incremental customer revenue.
Fractal Analytics, an analytics outsourcing firm based in India has deployed several CRM analytics solutions particularly for customer acquisition, attrition management, customer retention, customer value management and customer segmentation for clients in verticals like banks, insurance firms, retail and CPG.
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Tags: Attrition modeling, Consumer Analytics, Consumer behaviour, CRM Analytics, Cross-sell model, Customer acquisition, Customer Analytics, Customer Attrition, Customer Retention, Customer Segmentation, Customer Value Management, Fractal Analytics
