Know Your Customers
Some of your customers are loyal. Many are not. They have varying preferences when it comes to your products and services. They react differently to prices and promotions. They live in different neighborhoods. Why is it important to analyze their different needs and experiences?
First, customer behavior is feedback. Through their visits and transactions, your customers are implicitly telling you what you’re doing well and what you need to improve or stop doing. Maybe you’re in the wrong location, or you’re running a sale at the wrong time, or you’re giving away margin on popular products. Without considering customer behavior, marketing is just a bunch of maybes.
Second, some customers are better than others — some prefer stable, long-term relationships; some are more profitable; some are more responsive to your particular business strengths. By identifying and focusing on the needs and behavior of your best customers, you can tailor your products and services to appeal to more people (or businesses) like them. You can reduce efforts that attract poor-fit customers and ramp up efforts that acquire, develop, and retain best-fit customers.
The Role of Customer Analytics
Reports and dashboards help you monitor financial performance. Customer analytics shows you what’s driving that performance. How? Customer analytics mines your databases and identifies distinct customer segments and their associated purchasing patterns. It makes the seemingly random behavior of your customers more coherent and more predictable, allowing you to make key business decisions based on evidence and knowledge rather than intuition or convention.
Why Eight Leaves?
We work closely with a few clients in long-term relationships. Because analytics work is so demanding and, when done right, game-changing, we’re careful about taking on new clients. Each client expects us to move the needle. Each client gets our best.