Customer Analytics For Dummies

The following equation can be used to calculate the revenues expected from a specific segment: # of customers in the segment x % of customers who will purchase your product x revenue per sale of your product (in $) = potential revenues (in $) from this segment

The appropriate time frame, called the purchase cycle, depends on the industry.

Always take the time to sort and count customer comments. Just because customer information is qualitative doesn’t mean you can’t use quantitative methods to interpret

By far the most common and fundamental measure of customer attitudes is customer satisfaction. Customer satisfaction is a measure of how well a product or service experience meets customer expectations. It’s considered a staple of customer analytics scorecards as a barometer of how well a product or company is performing.

Predict future purchase patterns. Knowing that certain customers are more likely to purchase other products based on past purchases helps with planning and marketing.

Look for metrics that are meaningful to customers. Think on-time arrivals instead of on-time departures.

Avoid asking for opinions and concentrate on motivators. Many times, users do not know exactly what they need, but they do think about what they want.

Customer analytics involves gathering data about your customers at various stages of the buying experience, detecting patterns from that data, predicting actions your customers will take, and then making decisions about how to improve your business to attract more customers and keep the customers you already have.

book about using data to make better decisions about — and for — your customers.