What are the Benefits of Customer Analytics?
Martech Outlook | Tuesday, March 09, 2021
Performing customer analytics on customer data will help brands gain a 360-degree view of their customers.
FREMONT, CA: Customer analytics is the process of gathering and analyzing customer data to inform marketing campaigns, customer experience, and business decisions using market segmentation, predictive analytics, and other data analysis techniques. It allows firms to follow the entire cycle of the business’s relationship with the customer, to find out what works and what doesn’t, and make data-driven decisions. With advancements in technology, customer analytics tools enable the quantitative data of whole numbers, statistics, and percentages and the qualitative data of open-ended survey responses, social media monitoring, and opinion mining to get more insight into customer feedback.
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Customer analytics is increasingly essential to obtain insights about the customers. And new technologies enable firms to gather deeper understandings of the customers’ buying habits and lifestyle preferences. The more firms know about the customers, and the more accurate the predictions of future purchasing behavior will be. Companies use customer analytics to recommend shows and products based on their customer’s viewing and buying patterns, even to the point of generating new content and products based on their preferences.
Like brand monitoring and social listening, customer analytics methods leverage machine learning to follow the public’s reaction to marketing campaigns, product releases, and brand opinion in real-time. It’s no longer enough to merely focus on clicks, likes, and overall mentions. That doesn’t tell the complete story. Firms need to know exactly what the customers and the public at large are saying about the brand. Brands can use the insights they gain from customer analytics to target the customers most likely to respond, leading to mitigated campaign costs and increased ROI.
Customer analytics also assists in identifying unsatisfied customers and avoid brand detraction. With text analytics tools like sentiment analysis, firms can automatically analyze customer comments and support opinion polarity data. Techniques like intent identification can automatically read emails and other communication with the customers and categorize them for the level of interest or intent. It is essential for tagging marketing email responses with categories.
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