Customer data is the behavioral, demographic and personal information about customers collected by businesses and marketing companies to understand, communicate and engage with customers.
Where is the benefit of collect all this information? The most important is how you analyze and obtain new and relevant insights for your business
In this installment we look at the basics of customer data and its aplication in your business. Keep Reading!
The most important: Analyzing Customer Data
Customer data analysis is a major undertaking.
It’s one thing to collect customer data, but it’s a whole new ballgame to derive actionable insights from it.
One of the biggest challenges with analyzing large sets of customer data is to analyze qualitative information as it is subjective and varies from person-to-person.
But before we get into how to you can analyze qualitative information, let’s understand how data mining can help analyze quantitative data.
Analyzing Quantitative Customer Data Using Data Mining
Data mining uses the concepts of statistics, artificial intelligence, and machine learning to analyze large sets of data and identify underlying patterns. You can use the following data mining techniques to extrapolate actionable insights:
- Outlier Detection
- Regression Analysis
At Ladorian we are specialists in qualitative data analysis, helping retailers and businesses to increase sales of advertised products by 30% through personalised messaging based on Ladorian’s prime time algorithms.
Analyse customer profiles by gender and age, in different time slots and on different days.
Identify hotspots with heat maps, get to know the customer journey in your shops, and discover recurring profiles.
¡Make real time decision based on customer traffic data in each of your points of sale!
How does it helps to create a in-store marketing strategy?
Once we have analysed the information, we obtain different patterns related to the behaviour and needs of our customers.
This allows us to create advertisements based on predictive models, known as intelligent advertising or smart content.
Advertising adapted to the profile of our customers and in real time at the point of sale.
And how do we communicate this advertising to our customers? Through a Digital Signage System
Benefits of Customer Data Analysis
Here are five ways in which analyzing customer data can help you know more about your customers, brands, and offerings:
- If you have already created buyer persona templates, based on the customer data analysis, you can make the necessary tweaks in these templates to keep them updated.
- Segment your customers based on their geographic, demographic, or psychographic characteristics.
- It helps you understand the needs and pain points of your customers and tailor your product messaging accordingly. You can also improve your narrative to justify the price-benefit aspect of your product.
- It can assist you in streamlining your marketing campaigns.
- It can also help you increase customer lifetime value and reduce churn.
To summarize, we looked at the concept of customer data and some different ways you can collect customer data and learned all about analyzing and validating this data plus the benefits of doing that.
Hope this article has helped you understand the basics of customer data.
¡You can now start collecting and analyzing your data to improve your business strategy and ROI!