We previously talked of the anthropological nature of customer analytics and how the digital realm enhances our comprehension of (sub-)cultures and more specifically for us, our customers. But what can you do with customer analytics?
In all its glory, customer analytics should drive the growth of your business. Most of us claim to be customer-centric businesses and once you get to the point that you have more customers than you can personally keep contact with, then you need to start leveraging the benefits of data to better improve the quality and efficiency of your interactions.
So in what ways can customer analytics drive the growth of your business?
Customer Analytics drives your market research efforts and product/service fit analysis
Product fit is at the intersection of customer analytics and market research.
When starting out, companies have a 50% survival rate at the 5-years mark and 33% at the 10-years mark. We can blame many factors for this. But aside from the stars not being aligned, that you didn’t have the right partner, or that the market wasn’t ready yet for your product (my favorite), chances are that the company just failed because of a lack of product fit with a targeted market.
Ideally, your product should fulfill an un(der)-served need of your customer.
Based on that statement, it’s not enough to just spit out raw numbers about a market’s value, profiles of your competitors and what will differentiate your offering. Similarly, it’s not enough to know all there is to know about your customers without having an idea of the market value you could grab by serving a specific need you’ve found.
Know your customers, but also know the market. It’s the equilibrium between those 2 that delivers the promise of providing the right product fit in a profitable market.
Customer Analytics drives the growth of a product and a community
Once you find that perfect niche and start developing a product, if all goes well new potential customers should be curious about it and start digging into what’s your value proposition and if that fits their need. You have to start delivering on what you promise.
Having a great plan does not entail great execution. In fact, execution is as important if not more than having that perfect idea. And customer analytics is a beacon into the development of your product.
How do customers at different levels of their journey (visitor, newly registered, regular customer), or with different profiles (demographic and psychographic criterias), engage with your product? How are they contributing to the development of your product and community – are they participating in the social layer of your product, are they the first to try out the new features, are they promoting your product in outside channels such as social medias?
Once you start integrating your growth objectives with customer analytics, you get the insights to understand how they are affecting the direction of your key development metrics. But they should also shed light on how to increase the quality and efficiency of the interactions you have with your customers and improve your business goals.
Customer Analytics drives the lifetime value increase of your customers and the decrease of their churn
Everyone now knows that a customer that makes a purchase is not engaged in only a one-time event, but is beginning a relationship that should provide them with a great experience.
We all talk of customer experience and how the small details are what differentiates the customer-centric businesses from the ones that just don’t get it. And we’re right, small details contribute to a great experience. But we should understand the big picture also – or more exactly, we should have a clear understanding of what’s the bigger picture for each customer.
Customers do not discover a need once they stumble on your website. It’s part of a process. They’re here because they have an overarching goal they want to achieve and you may just happen to be on that journey. Recognizing their journey, what their goal is, where they’re at in achieving those goals and of course what their next steps are – all of that knowledge puts you in the prime seat to deliver with the right value at this moment, but most importantly anticipate future needs.
You not only become the provider of a one-time product that serves a specific need, you become partners in your customer’s own goal attainment journey.
Customer Analytics drives your customer-centric marketing efforts
“When marketers can aggregate data from every channel, easily find interesting segments, run more tests and analyze results on their own, they not only find many more tactics to communicate with their customers, but they find the right tactics faster.” – The 3 things to look for in a customer-centric marketing tool.
I think that’s a very thought-provoking quote. In fact, it’s pretty much one of our own overarching goal. We know you have to deal with a ton of data (must avoid temptation to say “big data”) that comes from so many sources and that all that data do not necessarily fit together easily.
It’s really an architectural challenge that’s not easily solved. We recognize that and this is why a lot of our efforts when working with clients is put on improving integration – continuously improving integration. Because once you have that holistic and clean source of data, then you can really start exploring your customers in all their dimensions (demographics, psychographics, journeys and interactions), understand how certain segments behave and intervene.
And if marketing is about influencing behaviours, then a very detailed knowledge of your customers is imperative. Customer analytics is about creating a rich and almost bottomless source of insights on your customers and a platform from which you get immediate feedback on the success of the interventions that helps you reach your marketing goals.