This week’s guest post comes from Ray Eitel-Porter, Executive Director and Leader – Europe, of Opera Solutions, C³Centricity’s Big Data Analytics partner.
Analytics can help marketers know their customers’ preferences, anticipate their behavior – and take the right steps to influence both.
Today’s advanced analytics allow marketers to detect the signals that indicate how customers will behave – whether positively or negatively – and identify the steps they should take to reinforce the former and head off the latter. It’s a truly customer-centric approach that works across various industries.
Opera Solutions, a leading Big Data analytics company with more than 220 data scientists – one of the largest such groups in private industry – is in the forefront of helping companies use the latest predictive analytics to better underst and their customers. Here are some of the successes we have seen when marketers use advanced analytics to connect with their customers:
A company in the hospitality industry achieved far greater customer centricity by creating a customer record with behavioral tags that explain each individual customer’s reaction to a particular offer and help tailor future ones. By scraping information about specific aspects of the offer – a hotel’s amenities, the reputation of its restaurant, types of nearby attractions – a picture of this customer’s likes and dislikes comes into focus over time. Taking this one step further, by comparing a customer’s behavioral signals to other in-market consumers with similar activity – a “twin” – the company can infer that the customer’s “twin” will respond in the same way. The result: it lets the company serve up timely, relevant offers to a broader, more receptive audience.
An analytics-based approach to customer centricity can also detect the faint signals of a customer that’s about to stop using a business or service – sometimes, even before the customer knows it. Marketers can take early action to reverse this fading, through more individualized interventions. For example, a weight-loss company now gathers as many behavioral indicators as possible on each of their customers – focusing heavily on their website behavior. Then they use them for “survivor analysis” – scoring activity on a daily basis to determine if a customer is at risk of attriting. All this allows them to rapidly identify those individuals in danger of leaving in time for the company to take action.
A food retailer has taken customer centricity to the household level. It looks at the purchasing history of customers on a home-by-home basis, compares what one household buys to what similar ones buy, tracks spending in specific categories over time, and pushes recommendations right to the point of sale. The result: an increase in incremental revenue on the order of $100MM, versus a 16 percent reduction in sales in the control group.
These are just a few examples of the new ways that advanced analytics can drive real results for marketers – and it’s just the tip of the iceberg. Big Data is an incipient gold mine for marketers, containing information, patterns, indicators, and signals that can refine target markets, serve up better recommendations, help optimize prices and offers, and much more. Advanced analytics are the means to extract the gold from the dross – and they are only going to become more powerful at doing so.
For more on C3Centricity’s partner Opera Solutions, check out our website: https://www.c3centricity.com/about/