Monday, 20 December 2010

How Customer Insight Can Improve Customer Relationships

It has been established in previous blogs just how instrumental customer insight is to today’s marketers in the creation of marketing campaigns. However, it should be noted that it is only through effective and thorough database management that it is possible to take advantage of the greater customer insight and make this knowledge work for greater profits.

Customer insight is only one side of the coin, after all having and using the knowledge of customer behaviour are entirely different processes. Essentially it is the ability to make sense of the data that results from customer insight projects that leads to more effective business relationships.

One way in which this is possible is by compiling data that around customers’ order lag. The frequency of orders is a vital piece of information in understanding the patterns in which customers place orders. By studying these patterns it is possible to identify which customers are lagging in their orders and which are simply maintaining their regular ordering behaviour, subsequently indentifying the customers that could need contacting to encourage future purchasing.

It is through developing a Critical Lag formula, based upon customer ordering behaviour that it is possible to interact and communicate with customers at the right time. When this is combined with effective customer segmentation prospects can be readily identified and targeted to make the most of existing business relationships. The results of effective communication based upon a solid understanding of a customer base are less customer churn, and greater revenue generated from each customer.

Fundamentally customer insight is a highly valuable business tool. It is however only through efficient and effective database management that it is possible to make sense of the data extrapolated through customer insight activities and use this information to formulate customer relationship and retention strategies.

Wednesday, 8 December 2010

The Value of Customer Insight to Marketers

Customer insight is rapidly becoming a vital component in any business strategy; after all, who can afford not to know who their customers are, how they behave and how their loyalty can be assured? Put simply customer insight employs the collection, analysis and use of data, allowing businesses to create customer acquisition, development and retention strategies.
Customer insight can play a massively important role in planning and implementing marketing campaigns, helping marketers to extract the greatest revenue from limited marketing budgets. It does this by creating best match profiles for potential, loyal and the most profitable customers.
Fundamentally greater customer insights allows for more effective targeting. It has been a long known fact within marketing that a campaign can stand or fall on its ability to target the right type of people. A misguided campaign can be a costly mistake; conversely a well targeted campaign can court potential customers, produce profitable relationships and develop future prospects.
Understanding where targets should be focussed is only possible through in-depth analysis of data. Data is one of the most powerful tools at the marketer’s disposal and an integral element within modern customer insight services. In most cases, this data is easily accessible and gives the opportunity to identify profitable prospects, rather than pursuing customers that will provide little if any return on investment.
Existing customer data creates massive up and cross-selling opportunities. The profiles created using segmentation and modelling help to identify precisely which customers should be targeted through a greater understanding of their purchasing behaviour, the types of products they are likely to buy and an idea of their likely spend.
Understanding the behaviour of customers means marketers have the knowledge to implement campaigns that target these profiles in a very specific way, taking into account when and how they spend their money in order to extract the greatest revenue. It is this potential that attracts so many marketers to customer insight services; understandably, having the knowledge of how your customers spend their money is an extremely valuable asset in business.