What is Customer Analytics: Types, Best Practices & Tools

    What is Customer Analytics: Types, Best Practices & Tools

    by | Jun 13, 2024 | Analytics, Customer Experience

    Do you know? According to McKinsey, customer behavior analytics users see 85% higher sales growth and 25%+ gross margin in their business. understanding your customers has never been more critical.

    The key to staying ahead of the curve lies in utilizing the power of customer analytics. This data-driven approach allows businesses to gain profound insights into customer behavior, preferences, and needs, ultimately leading to smarter decision-making and more effective marketing strategies.

    In this comprehensive guide, we will delve deep into the world of customer behavior analytics, exploring its various types, best practices, and the essential tools that can empower your business to thrive in the digital age.

    What is Customer Analytics?

    Customer analytics is the systematic examination of customer data and behavior patterns to extract valuable insights of your retail store. It involves gathering and analyzing data from various touch points to comprehend customer preferences, identify trends, and optimize business strategies.

    This data can be collected from sources such as websites, mobile apps, social media, customer surveys, and more.

    Why Customer Analysis is Important?

    There are 5 main reasons of importance of customer analysis in businesses. Below are the reasons every business should have a look…

    1. Uncover the Voice of Your Customers

    • Listen to what matters: Analyze customer feedback from surveys, social media, and support interactions to understand their needs, frustrations, and preferences.
    • Identify recurring themes: Analyze trends and patterns in customer interactions to uncover common pain points and areas for improvement.
    • Gain deeper insights: Utilize sentiment analysis to understand the emotional tone of customer feedback and identify areas of dissatisfaction.

    2. Optimize Your Service Channels

    • Identify preferred channels: Analyze customer activity across different channels (phone, email, chat, etc.) to identify their preferred methods of contact.
    • Map customer journeys: Analyze the steps customers take to resolve issues and identify opportunities to streamline the process.
    • Automate routine tasks: Leverage AI and chatbots to handle basic inquiries and free up human agents for complex issues.

    3. Boost Agent Productivity and Performance

    • Identify skill gaps: Analyze agent performance data to identify areas where training and coaching are needed.
    • Provide real-time feedback: Utilize dashboards and scorecards to give agents instant feedback on their performance and areas for improvement.
    • Optimize agent schedules: Analyze peak call times and agent availability to ensure adequate staffing during busy periods.

    4. Measure and Track Success

    • Define key performance indicators (KPIs): Set clear and measurable goals for your customer service team, such as first response times, resolution rates, and customer satisfaction scores.
    • Track progress over time: Utilize data visualization tools to monitor your progress towards your goals and identify areas where you’re excelling or falling short.
    • Make data-driven decisions: Use your consumer analysis insights to make informed decisions about resource allocation, training programs, and technology investments.

    5. Personalize the Customer Experience

    • Analyze individual customer data: Gain insights into each customer’s needs, preferences, and purchase history to offer personalized support and recommendations.
    • Proactive engagement: Utilize predictive analytics to identify potential issues and proactively reach out to customers before they experience problems.
    • Tailor communication: Customize your communication style and content based on each customer’s preferred language, channel, and communication style.

    Types of Customer Analytics

    Certainly! Customer behavior analytics comes in various types, each serving a unique purpose to help businesses better understand their customers. Let’s break down these types in a more easy-to-understand way:

    Types of customer analytics for business growth

    Descriptive Analytics

    Descriptive analytics is all about understanding what has happened in the past. It involves summarizing historical data to provide insights into customer behavior.

    This type of customer analytics is foundational, as it helps in identifying patterns and trends.

    Diagnostic Analytics

    Diagnostic analytics goes a step further by analyzing why certain events occurred. It helps in pinpointing the root causes of specific customer behaviors or outcomes.

    For instance, it can uncover why customers abandon their shopping carts on your e-commerce site.

    Predictive Analytics

    Predictive analytics uses historical data to make forecasts about future customer behavior. By leveraging machine learning and statistical algorithms, businesses can anticipate customer actions and adjust their strategies accordingly.

    This is invaluable for proactive decision-making.

    Prescriptive Analytics

    Prescriptive analytics takes predictive retail store analytics a step further by providing recommendations on what actions to take.

    It helps in optimizing decision-making processes, suggesting the best course of action to achieve desired outcome.

    Cognitive Analytics

    Cognitive analytics is the most advanced type of analytics. It uses artificial intelligence (AI) and machine learning to mimic the human brain’s ability to learn and reason.

    This can be used to analyze complex data sets, identify patterns & insights that would be missed by traditional analytics methods, and make better decisions in real-time.

    7 Customer Analytics Best Practices

    To extract maximum value from consumer analysis, businesses like retail stores should follow these best practices:

    1. Define Clear Objectives

    Begin with a clear understanding of what you want to achieve through customer behavior analytics. Whether it’s improving customer retention, increasing sales, or enhancing the user experience, well-defined objectives will guide your efforts.

    2. Collect Quality Data

    Ensure that you gather accurate and relevant data from diverse sources. Clean and structured data is essential for meaningful analysis.

    3. Invest in Analytics Tools

    Choose the right analytics tools and technologies that align with your objectives. Popular choices include Google Analytics, Adobe Analytics, and customer relationship management (CRM) systems like Salesforce.

    4. Segment Your Customer Base

    Segmentation allows you to group customers with similar traits or behaviors. This enables personalized marketing efforts and tailored product recommendations.

    5. Embrace Predictive and Prescriptive Analytics

    Go beyond descriptive analytics to harness the power of predictive and prescriptive analytics. Predict future trends and receive actionable recommendations for optimal decision-making.

    6. Ensure Data Privacy and Security

    Protect customer data at all costs. Comply with data protection regulations like GDPR and ensure robust security measures are in place to safeguard sensitive information.

    7. Foster a Data-Driven Culture

    Encourage your team to embrace data-driven decision-making. Make data accessible and promote a culture of continuous learning and improvement. Unlocking the full potential of your e-commerce business requires the expertise of professionals who can delve deep into the data, extracting invaluable insights.

    These experts effortlessly transform raw data into actionable insights, providing you with a comprehensive understanding of your retail store’s health.

    Don’t hesitate to reach out to a trustworthy and reliable customer analytics service provider to enhance and optimize your e-commerce operations.

    According to Experience management, they analyzed customer behavior and got to know that 63% of consumers suggest companies to listen their feedback for improvement.

    Moreover, 62% of customers quote companies should care about their needs and requirement the most, and lastly 60% of them suggested businesses to treat them well if they want them to buy their products.

    Customer Analytics Examples for Different Industries

    Customer analytics goes beyond just collecting data. It’s about using that data to understand your customers’ behavior, motivations, and preferences. This allows businesses to make informed decisions that improve customer experience, drive sales, and foster loyalty.

    Here are some examples of how customer behavior analytics can be applied in real-world scenarios of different industries:

    Retail

    Understanding customer preferences: Retailers can analyze purchase history, browsing behavior, and loyalty program data to understand what products customers are interested in, how they shop, and what factors influence their purchasing decisions.

    This information can be used to personalize marketing campaigns, optimize product placement in stores, and develop targeted promotions.

    Optimizing inventory management: By analyzing sales data and customer trends, retailers can forecast demand for products and avoid stockout or overstocking. This can help to improve efficiency and profitability.

    Financial Services

    Identifying fraud: Financial institutions can use customer analytics to identify suspicious activity and prevent fraud. This can be done by analyzing transaction patterns and identifying anomalies.

    Personalized financial products: Banks and other financial institutions can use customer analytics to understand their customers’ financial needs and goals.

    This information can be used to develop personalized financial products and services.

    Healthcare

    Improving patient outcomes: Healthcare providers can use customer analytics to track patient data and identify trends.

    This information can be used to improve patient care and develop more effective treatment plans.

    Predicting patient behavior: By analyzing patient data, healthcare providers can predict which patients are at risk of certain conditions.

    This information can be used to intervene early and prevent these conditions from developing.

    Manufacturing

    Identifying product defects: Manufacturers can use customer analytics to identify product defects and improve quality control. This can be done by analyzing customer complaints and warranty claims.

    Predictive maintenance: By analyzing sensor data from machines, manufacturers can predict when maintenance is needed. This can help to prevent downtime and improve efficiency.

    Media & Entertainment

    Content recommendations: Streaming services and other media companies can use customer analytics to recommend content to users.

    This can be done by analyzing their viewing history and preferences.

    Understanding audience preferences: Media companies can use customer analytics to understand what type of content their audience is interested in.

    This information can be used to develop new content and programming.

    Education

    Personalized Learning: Analyze student data (grades, test scores, engagement metrics) to understand strengths and weaknesses.

    Tailor instruction to individual needs, recommending resources or offering targeted interventions.

    Predicting Student Success: Identify students at risk of dropping out or needing extra support based on attendance, behavior, and academic performance.

    Proactive interventions can significantly improve outcomes.

    Optimizing Course Content and Delivery: Analyze student engagement with online learning materials or performance in specific topics.

    Use this data to improve course content, identify areas needing more explanation, or adjust teaching methods.

    Marketing and Recruitment: Identify characteristics of successful students and target marketing efforts to attract similar profiles.

    Analyze website traffic and program inquiries to understand where potential students are coming from and what information they seek.

    Real Estate

    Understanding Market Trends: Analyze past sales data, demographics, and economic indicators to predict future trends in property values, rental rates, and market demand.

    This helps investors make informed decisions and brokers price properties competitively.

    Targeted Marketing: Analyze buyer demographics, search history, and property preferences to target marketing campaigns.

    Recommend properties that closely match buyer needs and personalize advertising for different segments (first-time buyers, families, investors).

    Improving Property Management: Analyze historical maintenance records and tenant data to predict future repairs and optimize maintenance schedules.

    Analyze tenant satisfaction surveys to identify areas for improvement in property management services.

    Optimizing Pricing Strategies: Analyze comparable properties, market conditions, and listing days to suggest optimal listing prices for sellers.

    This helps sell properties faster and at a fair market value.

    Top 3 Customer Analytics Tools

    Choosing the right customer analytics tools is crucial for effective analysis of target audience behavior. Here are some of the best tools in the field: Let’s have an overview:-

    1. Google Analytics

    A versatile and widely-used tool, Google Analytics offers insights into website and app performance. It provides data on user behavior, traffic sources, and conversion rates.

    2. Tableau

    Tableau is a robust data visualization tool that allows you to create interactive and shareable dashboards. It helps in presenting complex data in a comprehensible manner.

    4. Mixpanel

    Mixpanel specializes in event-based analytics, helping businesses understand user interactions with their digital products. It’s commonly used for mobile app analytics.

    Wrapping Up!

    In an era where data control supreme, customer analytics emerges as the secret weapon that can propel your business forward. By understanding your customers on a profound level, you can make informed decisions, personalize customer experiences, and gain a competitive edge in the market.

    Remember, successful customer behavior analysis involves a combination of the right tools, quality data, and a commitment to best practices. With these elements in place, your business can thrive, ensuring long-lasting customer satisfaction and sustained growth.

    So, empower your online retail store by fixing an appointment with a trusted expert, and enjoy the data-driven success!

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    Why Diwali is the Ultimate Festival for Boosting Customer Retention?

    Why Diwali is the Ultimate Festival for Boosting Customer Retention?

    by | Nov 11, 2023 | Customer Experience, Marketing

    Hey there! Diwali, the festival of lights, isn’t just about vibrant fireworks, delicious sweets, and family get-togethers. It’s also a hidden gem for businesses – a golden opportunity to win hearts and foster stronger connections with customers i.e, customer retention. Think of it as the ultimate festival for boosting customer loyalty.

    Let’s dive into why Diwali is that magic ingredient.

    What Businesses Experience says?

    According to Criteo’s Holiday Preview 2023, it often seen festival season carries more chances to grow your customer & transform them into repeated shoppers. In addition, In 2022, it was also witnessed that on Black Friday, D2C businesses saw 79% of boost in their fresh new customers and during Diwali season, 5% of boom in sales.

    However, when your business customer retention increases up to 5%, it’s likely to gain profit of 25-95%. Isn’t it jaw-dropping? It’s an incredibly successful ROI-boosting tactic.

    As per the survey, establishing a personal connection with clients, providing outstanding assistance, and utilizing digital channels for engagement are essential elements in building a strong foundation of brand loyalty.

    customer retention

    Here’s what you can do to boost your business customer loyalty and profit…

    1. It’s All about Culture and Community

    You know, Diwali isn’t just big in India; it’s celebrated with zest in various parts of the world. It’s not just about lighting up homes; it’s about celebrating the victory of light over darkness and good over evil. Families come together, exchange gifts, and spread happiness. Businesses can tap into this cultural significance to connect emotionally with their customers, creating a sense of togetherness and goodwill.

    2. Who Doesn’t Love Gifts?

    Now, think about the joy of receiving and giving gifts during Diwali – it’s an age-old tradition! As a business, this tradition is your golden ticket to show gratitude to your customers. You can offer personalized gifts, exclusive discounts, or special offers. These gestures not only make your customers’ day but also leave a lasting positive impression, nurturing loyalty and customer retention.

    3. Building Meaningful Relationships

    Diwali is the perfect time to connect with your customers beyond transactions. It’s a moment to reach out and show genuine interest by sending warm wishes or personalized messages. By embracing the festive spirit, businesses can build deeper, more meaningful relationships with their customers.

    4. Lights, Camera, Action: Marketing Opportunities!

    Did you know that during the festive season, consumer spending goes through the roof? People are on the lookout for the best deals and offers. It’s the perfect time for businesses to launch marketing campaigns, Diwali sales, and events to attract and retain customers. Offering competitive deals not only grabs new customers’ attention but also retains the existing ones.

    5. Lasting Impressions Matter

    The efforts and gestures you make during Diwali linger on in your customers’ minds. They remember the discounts, personalized greetings, and the special treatment they received. This translates to positive word-of-mouth, better brand recall, and a higher chance of customer retention in the long run.

    6. More Purchases, More Love

    Offering tempting deals and rewards during Diwali can lure customers into making repeat purchases. Loyalty programs, discounts, or redeemable points encourage them to keep coming back. It’s a cycle that nurtures a feeling of belonging and rewards for their continuous support.

    7. Gratitude, the Game-Changer

    Taking the chance to express gratitude to customers during Diwali can profoundly impact their loyalty. Whether through heartfelt notes, thank-you emails, or exclusive gifts, it’s a way for businesses to show their appreciation for customer support, strengthening the bond between company and customer.

    A Festive Recipe for Success

    Diwali isn’t just about celebrations; it’s a golden opportunity for businesses to deepen connections with customers and bolster customer retention. By embracing the festival’s cultural significance and traditions, businesses can leave a lasting impression. These efforts not only foster loyalty but also contribute to long-term business growth and success.

    Customer Experience(CX): New Masterplan To Reignite Growth

    Customer Experience(CX): New Masterplan To Reignite Growth

    by | Jul 26, 2021 | Customer Experience

    In today’s fast-paced, omnichannel world, customer experience is equally as important as a brand’s promise. Having a digital front office improves clients’ understanding of the changing digital needs of customers. Consequently, companies can now meet and exceed shifting customer expectations and simplify complex interactions to deliver early and intuitively on brand promise consistently across all customer touchpoints. This allows for a pivot in growth strategies to profitable areas beyond the core and funds new growth by optimizing costs in other parts of the organization.  

    Breakthrough marketing and sales-led growth especially in 2021 require a new model for marketers that are seamlessly integrated, data-driven and technology-enabled. Companies must bring together their marketing and sales function, strategies and capabilities to drive results across the entire customer lifecycle through hyper-relevant, best-in-class experiences. This is why we suggest our Digital Front Office to enhance CX—JivoChat Operations and TEC’s Intelligent Sales and Services Operations—to help our clients achieve new levels of collaboration across the marketing, sales and service organizations by unleashing the power of robust data, advanced analytics and enabling technology for sustainable growth.

    Our Approach To Tailor Fit Digital Customer Experience

    We believe that delighting your future customers lies in being client-centric. This has become only more important in today’s digital world. It means creating a culture that seeks to continuously improve customer experience. We will help you drive experience transformation and rigorously design and prioritize the customer experience.

    • Design and ideation lab — builds and manages the pipeline of new ideas that deliver your vision
    • Engine room — defines the operating model and is responsible for delivering working prototypes from the user journeys developed by the ideation lab
    • Deployment hub — drives the delivery initiatives at scale, e.g., people, process, policy, adoption of technology through the engine room
    • Transformation office — sets the program strategy, drives delivery execution, and engages executives and stakeholders throughout the process

    When it comes to serving the customer of the future, the answers lie in being client-centric, especially in today’s world. It’s not about implementing technology to improve customer experience — it’s about running a business like a digital leader.

    customer experience

    The structure of almost everything we do like how and what people buy, how and where they work, how they interact with others has been drastically changed by world events in 2020. The consumer behavior shifts we’re seeing today are not a blip. They are likely to stay with us for a long time, some likely forever. Some have been in motion for years, and many have been accelerated by the COVID-19 pandemic.

    4 Ways To Uptrend Your CX 

    We leverage TEC’s deep expertise in innovation, analytics, risk and cybersecurity to help you build necessary capabilities rather than simply technology. Omnichannel is the new channel when it comes to managing customer journeys. 

    The digital consumer expects speed, agility and self-service, virtually. The interactions on digital mediums are serving more than just a bridge to traditional call centers. Per the survey, nearly 50% of the service requests raised were through chatbots, self-care applications and social media platforms. The change is here to stay. Four pillars by TEC CX experts will guide you to address common mistakes and promote a seamless omnichannel and multichannel customer experience.

    1. Advanced Analytics to comprehend Customer Behavior

    Contact centers produce a huge quantity of valuable information. Call recordings alone can amount to as much as 1 terabyte of data every day. However, much of this data is unstructured. As a result, companies have historically struggled to tap into its value. TEC can apply advanced analytics to this trove of data, enabling them to gain a better understanding of the reasons for customer contacts.

    1. Co-Opt the Contact Center to Support Digital Services

    Rather than forcing customers into digital channels, we assist companies to create the conditions that will encourage them to change their habits over time by themselves. To get customers into the habit of using digital self-serve, TEC believes that there are five criteria that are very important. So we help the company to develop action plans to deliver so that the customer must:

    1. Know that the channel exists.
    2. Be confident that they will get the outcome they want.
    3. Have a good enough reason to try the channel.
    4. Have a seamless entry process that involves less effort than doing things the old-fashioned way.
    5. Be satisfied that their needs were met with minimal effort.
    1. Fusion of Digital Self-Serve and Human Support

    We determine how the digital and human channels of your firm can best support each other in helping customers resolve issues or complete transactions faster. Human-assisted channels, such as chat, social media, and community forums, can add more value if their purpose is to help a customer remain with digital self-serve.

    1. Reduction Of Failure Points by Analyzing Human and Digital Contacts

    TEC combines digital and contact center analytics to identify and eliminate the digital failures that lead to new contacts with human agents. The most valuable insights come from linking together the footprints customers leave when they interact with each channel. This allows us to identify the points where customers are abandoning self-serve and calling the contact center.

    Let us guide you to a better future with the best CX   — one where every customer interaction is smart and seamless, every process is fully automated and paperless, and everyone is ready for whatever the future holds. Get your quote now.