OFAD 131 –

CUSTOMER
ANALYTICS
THE 4 TYPES OF BUYERS
 #1 - The price buyer
 The price buyer is the person that shops based on price. Price is the most important
thing they are looking for.
 They are price sensitive.
 They’re not the sort of people you might have in your client base.
 #2 - The value buyer
 The value buyer buys based on value.
 Price is still important, but the value of what they get is of even more importance.
 That’s most people. That’s your clients.
 #3 - The relationship buyer
 This buyer values the relationship the most.
 This is great in our profession because we are in the relationship business. We are
selling an ongoing, recurring service.
 These are the buyers that will pay you a premium price because they truly value what
you do.
 #4 - The Poker Face Buyer
 These buyers are the most annoying types of buyers you can get.
 These are the buyers that seem to be price buyers, but they are actually value or
relationship buyers.
POKER BUYER EXAMPLE
 I bought a car a year ago, and when I bought the car, I knew exactly what I wanted. I
was very specific. I had one in mind, but when I shopped around on the internet, I
found two different car dealers had exactly the same car, the one I wanted.
 I decided to email them both. I ended up getting them to compete with each other. I
saved over 300,000 on the price of that car because we went backwards and
forwards with emails. I wasn’t a price buyer. I would have paid full price, but they let
me play that game. They let me compete with them and keep reducing the price bit by
bit.
LESSON 2:
CUSTOMER
CENTRICITY
What does it mean to be customer-centric?

Customer centricity demands that the customer is the focal point of

all decisions related to delivering products, services and experiences
to create customer satisfaction, loyalty and advocacy.

A customer-centric approach means putting the customer at the

forefront of every decision you make as a business.

The customer experience should be the starting point for any new
initiative, improvement or change you make.
HOW IS STARBUCKS
CUSTOMER-CENTRIC?
 Starbucks is renowned for its relentless commitment to delivering an
exceptional customer experience. One of the core initiatives that
exemplifies this is the Starbucks Rewards Program.
 The program offers personalized rewards and discounts, encouraging
customers to keep coming back.
 In practice, this means actively gathering intel on your
customer through surveys or social listening, analyzing that
data and proactively giving your customer what they want, or
what they don’t yet know they want.
Examples of customer-centric brands on social

Social media is a perfect complement to your customer-centric

strategy. Whether you’re connecting with your customers to
triage when something goes wrong or communicating with them
about a new product or trend, social is the perfect arena for
relationship building.
 Brand #1: Nike


Nike maintains a dedicated Twitter account
solely for customer support which helps them
to keep their marketing messages separate
from their support interactions. It also brings
forth a major benefit to their customers — it's
clear where they should go when they need
help.
How to become a customer-centric company on social

1. Get competitive - Being customer-centric means being the best choice

for your customer. But you can’t measure your success unless you know
what your competition is doing.
2. Never miss a message - More than three-quarters of customers
expect a business to respond within 24 hours on social media. Without
the right tech behind you, that’ll take some pretty fast typing. Luckily,
there are tools available to help you manage your inbox without missing
a message.
3. Listen before you speak - he first step of customer centricity is
understanding your customer.
Becoming a customer-centric company
A customer centric strategy is a great way to develop brand
reputation.

By listening to your customers’ needs, understanding and

empathizing with their pain points, efficiently solving their
problems and going above and beyond where needed, your
brand can become their forever fan favorite.
HOW CUSTOMER
ANALYTICS WORKS
 Customer analytics is often managed by an interdisciplinary group of
leaders from different departments, including marketing, sales,
customer service, IT and business analysts. To obtain meaningful
insights, the group must agree on which business metrics can
comprehensively view the customer experience.
 Customer analytics starts with raw data and ends with intelligent
business decisions. Before the data can inform decisions, it must pass
through three stages: collection, organization and analysis.
1. Collection
- First, organizations must take in raw customer data from various sources, such as
marketing tools, CRM systems or third-party sources. Such data may include the
following:
 Demographics.
 Purchase history.
 Web and social media activity.
 Contact center interactions.
 Advertisement engagements.
 Survey responses.
2. Organization
-Next, organizations must format the customer data to work in a
customer analytics tool because unorganized data may produce an
inaccurate customer profile.
-A customer data platform (CDP) can help organizations store and
organize their data in a central location.
3. Analysis
- A customer analytics tool helps organizations make sense of their
collected data and can display trends in the form of charts and graphs.
For example, the tool can combine demographics, purchase history and
social media data.
CUSTOMER ANALYTICS BEST PRACTICES
Organizations can use the following best practices and customer experience metrics to
create successful customer interactions.
 Target customers across all channels and analyze how to distribute a product or
service.
 Assess and understand customers in relation to the brand and whether a customer is
satisfied. This can be achieved through a combination of quantitative and qualitative
surveys.
 Engage with customers at the right moment through the right channel.
 Predict churn rate and take actions to extend a customer's lifetime value.
 Spot trends in big data and analyze online behavior to increase sales.
 Optimize the customer journey through personalized selling and market segmentation by
assessing which customers might buy one type of product versus another.
WHAT IS THE IMPORTANCE OF CUSTOMER
ANALYTICS?
In the current scenario where customers are more empowered and linked with companies
than before; customer analytics has evolved as a critical parameter. The more a company
knows about its customers’ habits and preferences; the more successful they become at
delivering suitable recommendations and attracting new customers.
Customer analytics is of growing importance as:
 Companies can understand their shortcomings as well as opportunities using the
customers’ behavioural records.
 When consumers have access to all information like where to purchase from, what to
purchase, how to make payment, etc.; customers’ preferences help companies interact
with them more efficiently.
 Precise knowledge of customers’ buying patterns and preferences helps design future
products and services that would bring profit to the company.
 360-degree data analytics enables
companies to gain a holistic viewpoint of
customers, which helps design marketing and sales strategies to bring new
customers.
 Customer satisfaction is important to retain customers for the website or company.
Predictive customer analysis helps build innovative techniques to improve customer
satisfaction.
 Well-designed customer analysis helps increase customer loyalty, further increasing
the ROI.
 Well analysed customer analytics helps target suitable customers at the correct time,
thus reducing the campaign costs.
WHAT ARE THE MAIN CATEGORIES OF
CUSTOMER ANALYTICS?

 Customer analytics is a great tool for companies to

understand customers’ behaviour.
 To tailor different services and meet market challenges
according to the analysis, it’s important to understand the
main categories of customer analytics. The 4 main categories
are as follows:
DESCRIPTIVE ANALYTICS
1. Descriptive analytics provides an understanding of past customer behaviour by
describing:
 Customer details
 Customer browsing history
 Customer purchase and return information
 Transactional pattern, etc.
DIAGNOSTIC ANALYTICS
2. Diagnostic analytics helps predict root problems or why customers
behave in a certain way. It primarily helps understands the logic behind
customer behaviour.
Diagnostic analysis covers:
 Data discovery
 Drilling information
 Developing correlations between the pieces of information
 The diagnostic analysis helps answer specific types of questions and
discover new possibilities, reducing several challenges.
PREDICTIVE ANALYTICS

3. Predictive analytics takes into consideration past as well as current

data to draw patterns and define future possibilities. It is also helpful
in building models for revenue generation and maximising the ROI.
PRESCRIPTIVE ANALYTICS
4. Prescriptive analytics provides suitable action for a particular scenario. It also helps
build a personalized customer experience and chart the next set of actions for
individual users. It enables companies to understand:
 What buyers are looking for?
 Whom to sell a particular product?
 What type of products do consumers prefer to buy?
 How to increase the number of customers?
TOP CUSTOMER ANALYTICS
TOOLS
 Customer analytics tools are applications designed to offer insights into customer
behaviour. This helps customise marketing campaigns and build strategies to meet
customers’ specific demands.
 The top-rated customer analytics tools used for data analysis, data sourcing and
visualisation are Adobe Analytics, IBM Watson Customer Experience Analytics,
Google Analytics 360, SAP Hybris Marketing Cloud, SAS Customer Intelligence 360,
etc.
 TO SUM IT ALL UP
 Customer analytics plays a huge role in the growth and success of a business, as it
helps precisely understand consumers’ likings, preferences, and dislikes. Thus,
customer analytics can be helpful if a company is looking forward to improving its
marketing campaign, leveraging brand loyalty or increasing return on investment on
customer acquisition costs.
A well-planned customer analysis helps predict customers’ reactions to the product,
services, AD campaigns, and brand adaptation. In addition, it helps understand
customer experiences and satisfaction.