Customer

Analytics
LESSON 5
Customer Analytics
WHAT IT IS AND WHY IT MATTERS
 Customer
• A person or organization that buys goods or services from a store or business
• A person or thing of a specified kind that one has to deal with
Four primary Customer Types
1. Price Buyers

2. Relationship buyers

3. Value buyers

4. Poker Player Buyers

 1. Price Buyer
• These customers want to buy products and services only at the lowest possible
price.
• They are less concerned about value, differentiation or relationships
 2. Relationship Buyers
• These customers want to rust and have dependable relationships with their
suppliers, and they expect suppliers to take good care of them
 3. Value Buyers
• These customers understand value and want suppliers to be able to provide the
most value in their relations
 4. Poker Player Buyers
• These are relationship or value buyers who have learned that if they act like a
price buyer, they can get a high value for low prices
 Analytics
• The systematic computational analysis of data or statistics
• Information resulting from the systematic analysis of data or statistics
 Customer Service Analytics
• It is the process collecting and analyzing customer feedback to discover valuable insights.
• It can help you better understand your customer’s needs and expectations, lead to
improved customer experience strategies and increase customer loyalty and retention.
• With more options than ever to interact with companies, customers crave fast, efficient,
and personalized experiences. However, customers say that most companies fall short
when it comes to meeting their expectations. Even more alarming is that 32% would stop
doing business with a brand after one bad experience
• We all know that customer satisfaction is key to improve brand loyalty and create a
positive reputation that will ultimately lead to more sales opportunities. But how can you
close the gap between what customers expect from customer service and the quality of
support they are actually getting? This is where customer service analytics comes into play
 Customer Service Analytics
• Building a solid strategy. supported by data and analytics, is essential to
understand your clients, identify recurring issues (and fix them), and get
actionable insights to improve customer retention.
•
 Customer Analytics
• Customer Analytics ⁃ refers to the processes and technologies that give
organizations the customer insight necessary to deliver offers that are
anticipated, relevant and timely. As the backbone of all marketing activities,
customer analytics comprises techniques such as predictive modeling, data
visualization, information management and segmentation. ⁃ it is also called
customer data analytics is the systematic examination of a company's
customer information and customer behavior to identify, attract and retain the
most profitable customers
 Customer Centric
• It is an approach to doing business that focuses on providing a positive
customer experience both at the point of sale and after the sale in order to
drive profit and gain competitive advantage
Statistical Analysis Solution
• Statistical Analysis Solution SAS (previously "Statistical Analysis System") is
a statistical software suite developed by SAS Institute for data
management, advanced analytics, multivariate analysis, business
intelligence criminal investigation, and predictive analytics
 Why Customer Analytics Matters
• Customers have access to information anywhere, anytime including where to
shop, what to buy, how much to pay and so on. This makes it increasingly
important to utilize predictive analytics and data to forecast how customers will
behave when interacting with brands
• The goal of customer analytics is to create a single accurate view of a customer
to make decisions about how best to acquire and retain customers identify high-
value customers and proactively interact with them. The better the
understanding of a customer's buying habits and lifestyle preferences, the more
accurate predictive behaviors become and the better the customer journey
becomes. Without large amounts of accurate data, any insight derived from
analysis could be wildly inaccurate
 The Importance of Customer
Analytics
• Customer analytics is becoming critical. To understand why, consider this:
Customers are more empowered and connected than ever. And becoming more
so. Customers have access to information anywhere, any time - where to shop,
what to buy, how much to pay, etc. That makes it increasingly important to
obtain customer insight to understand how they will behave when interacting
with your organization, so you can respond accordingly. The deeper your
understanding of customers' buying habits and lifestyle preferences, the more
accurate your predictions of future buying behaviors will be --and the more
successful you will be at delivering relevant offers that attract rather than
alienate customers
 With Customer Analytics, You
Can:
• Increase response rates. customer loyalty and. ultimately, ROI by contacting
the right customers with highly relevant offers and messages
• Reduce campaign costs by targeting those customers most likely to respond
• Decrease attrition by accurately predicting customers most likely to leave and
developing the right proactive campaigns to retain them.
• Deliver the right message by segmenting customers more effectively and
better understanding target populations
 How to Use Customer Analytics?
• Customer analytics is often managed by on interdisciplinary group made up of
business owners from different departments within the company, including
marketing, sales, customer service, IT and business analysts
• To be effective and obtain the most meaningful insights, the group must first
agree upon which business metrics they need to achieve a single view of the
customer experience. Multiple instances of customer relationship management
(CRM) applications, disparate enterprise resource planning (ERP) systems and
poor customer data integration (CDI) can leave group members with a
fragmented view of the customer.
Five Leading Customer Analytics
ToolsPlatform
Adobe Analytics
Features
• Platform standardized video and ad engagement
• Predictive workbench through machine learning
• Live stream with real-time-events
• Data workbench
• Mobile app campaign tool
Google Analytics • Data studio
360 • Surveys
• Value of marketing channels through attribution
• Audience center to match customers with the right
message
• Analytics
• Tag Manager allowing tag updates without editing
code
IBM Watson • Role-based dashboards
Customer • Journey analytics
Experience • Mindset analytics
Analytics • Event alerts
• Site optimization
Five Leading Customer Analytics
Tools
Platform Features
SAP Hybrids • Gains customer insights
Marketing Cloud • Categorizes customers based on score
values
• Builds customer target groups
• Triggers successful campaigns
SAS Customer • Utilizes customer-centric data model
intelligence 360 • Records-activities of all visitors
• Contextualizes captured data
• Better business goal creation
• Digital asset management
 Customer Analytics Best
Practices
By measuring and analyzing data using specific metrics, organizations can create successful customer
interactions. Some customer analytics best practices and common metrics that can help drive better
business decisions include:
• Targeting customers across all channels and analyzing the various ways a product or service can be
distributed.
• Assessing and understanding customers in relation to the brand and-whether a customer is satisfied.
This can be achieved through a combination of quantitative and qualitative surveys.
• Engaging with customers at the right moment through the right channel.
• Predicting churn rate and taking actions to extend a customer's lifetime value
• Spotting trends in big data and analyzing online behavior to increase sales.
• Maximizing the customer journey through personalized selling and market Segmentation by assessing
which customers might buy one type of product versus another.
Customer Analytics Tools
Customer Analytics Tools
Customer analytics tools are specialized apps used to gain insight into the
customer experience, understand customer behavior and to help tailor marketing
campaigns to specific customer segments.

These customer data analysis tools can be part of a CRM (Customer Relationship
Management) suite or sold as stand-alone platforms which do everything from
collect customer data from different systems in different locations (data
integration) to data analysis and visualization. These tools also connect to popular
sales and marketing applications along with web content management systems,
email, social platforms and customer loyalty programs.
Customer Analytics Tools
There are a number of customer analytics tools to choose from, provided by major
CRM vendors and niche software providers. Tools from major vendors in this space
include:
• Adobe Analytics

• Google Analytics 360

• IBM Watson Customer Experience Analytics

• SAP Hybris Marketing Cloud

• SAS Customer Intelligence 360

 Customer Analytics Tools
• Some of the tools integrate features such as user segmentation with systems
which personalize websites and that build niche marketing campaigns. As more
customer analytics tools emerge, major software providers will likely improve
usability further so their tools appeal to a wide range of users, and they'1l add
integration and new services. In addition, advanced features will be built into
connected systems, including omnichannel content management platforms.
 Customer Analytics Tools for
Every Business Size
• The more you know about your customers, he likelier you are to be able to
make them happy. This is the idea behind customer analytics, which according
to Gartner, means using data in order to gauge customer sentiment and satisfy
their needs. The idea of using data might be a scary one for small businesses.
but customer analytics tools can be found in surprising places that you might
not even realize. From CRM to social media listening. you may already be using
customer analytics tools that can give you insight into your customers.
• Speaking with customer service expert Shep Hyken, he says that no matter the
size of your company- there are tools out there that make collecting and using
data easy.
 Customer Analytics Tools for
Every Business Size
• The right analytics will allow you to see a trend, and in today's world where
artificial intelligence is starting to analyze data for us, it will not only spot
trends, but will make predictions with uncanny accuracy. If all you do is put in
the big numbers, it will be able to predict the big trends., But if you start putting
in analytics and data from individual customers, it will start to predict individual
customer behavior with uncanny accuracy.
• Being able to collect this data on both an individua I level and on a larger scale
gives businesses the opportunity to create tailor-made campaigns and direct
them at specific customers, as well as strategize their marketing and sales
tactics to the business at large.
Customer Analytics
Tools for Beginners
B E G I N N E R T O O L S FA L L O N T H E M O R E A F F O R D A B L E E N D O F T H E P R I C E
S C A L E , A N D W H I L E T H E Y M AY H AY E F E W E R F E AT U R E S D E D I C AT E D S O L E LY T O
C U S T O M E R A N A LY T I C S , T H E Y ' R E A G O O D WAY T O W H E T YO U R A P P E T I T E .
 1. CRM: ZohoCRM
• Zoho uses data from its own Zoho CRM, as well as pulling in data from other
Zoho products and third-party apps for its customer analytics Its reporting
features will give you an overview of your most successful marketing
campaigns, your most valuable customers, and which leads need nurturing. You
can also create your own formulae to get reports tailor-made to your specific
needs , as well as dashboards that will give you a high-level overview of your
data

• Pricing: Starting at $12 per user/month

1. CRM: ZohoCRM
 2. Customer Service: Intercom
• Intercom is a customer service and messaging platform to keep track of and
stay in touch with customers It lets vou start the communication process with
live chat, and then progress customers through to conversion with lead tracking
and marketing automation Because it keeps track of all ol this data w ithin the
system, it lets you drill down at the customer-levet to send targeted messages
to customers at varying stages of the customer journey. It also provides an
overview of customer segments and Intercom activity for bigger-picture data
• Pricing: Starting at $53/month for 250 users
2. Customer
Service:
Intercom
 3. Social media: Hootsuite
• The social media marketing software Hootsuite is good place to start if you're
looking to get a bit of visibility into how people are interacting with your brand.
While its main function is for content scheduling and sharing, it's more
advanced solution, Hootsuite Insights, can drill down even further to gauge
customer sentiment and real-time social media listening on a more granular
scale. While you can see who is mentioning or retweeting your brand and how
your campaigns are performing via Hootsuite, Insights will give you more data
about who's saying what about your brand online.
• Pricing: Hootsuite starts at $9.99 per month
3. Social media: Hootsuite
 4. Analytics: Kissmetrics
• As a web and analytics platform, Kissmetrics provides valuable insights into
web visitors and how they're interacting with your site, including where they’re
clicking. and at what stage they decide to leave. Giving you data about
customer behavior, you can create behavioral marketing campaigns targeted at
distinct user groups. Putting unique user data together. you'll be able to create
segments of users to target based on their profiles and which stage they're at in
the customer experience journey for a higher conversion rate.
• Pricing: Starts at $220 per month.
4. Analytics:
Kissmetrics
• .
Customer Analytics
Tools for
Intermediate Users
INTERMEDIATE OPTIONS ARE A BIT PRICIER BUT HAVE MORE
ROBUST FEATURES THAT CAN BE USED FOR DEEPER
CUSTOMER ANALYSIS
 1. CRM: AgileCRM
• Agile CM is a CRM for sales and marketing
that gives insights into contact-level
customer behavior. Its analytics track
things like which pages users have visited,
how much time they"ve spent on the
website , and engagement patterns . all
on a per-user basis Using this data makes
it easier to pinpoint users and engage
contacts by phone or email via the CRM
• Pricing: Free for up to 10 users, then
starting at $14,99 a month
 2. Customer Service:
CloudCherry
• CloudCherry is a customer experience and
analytics tool that'll give you deep insights
into your customers. A platform for collecting
customer insights via email, web, and
smartphone surveys. CloudCherry collects
and collates data from every channel and
interaction that customers have with your
company The results that it delivers will give
you actionable ways to help improve the
customer experience journey and retain
more customers,

• Pricing: Starting from $100 a month

 3. Social media: Brand24
• Brand24 is a social listening tool that
gives data about conversation volume,
influence score, and sentiment analysis.
Using this data makes it easier to
pinpoint trends, spot recurring customer
issues, or locate the right influencers to
help in your marketing or outreach
campaigns while also targeting the right
customers.
• Pricing: Starting at $49 a month.
 4. Analytics: BIMEby Zendesk
• The popular customer service solution Zendesk offers
an analytics tool in the form of BIME. BIME pulls in
customer experience data from a variety of different
sources including Google Analytics, Adwords,
Salesforce, and Zendesk, presenting it in dashboard
form to give a high-level overview of performance
and customer segments From there, you can drill
down to get useful information about the success of
campaigns how customers interact and when they're
more likely to convert. Its forecasting and reporting
features also help predict future sales figures to help
you make the right business decisions
• Pricing: Starting at 5490 per month for 2 editors and
10 viewers.
Customer
Centricity
 What is Customer Centricity
• "A company's primary responsibility is to serve its customers . Profit is not the
primary goal, but rather an essential condition for the company's continued
existence. "- Peter Drucker
Types of Customer
1. Internal Customers ⁃ Individual or a group of people you may interact/service
within the organization. Examples: IT, Cafeteria ,HR ,Training, etc.

2. External Customers ⁃ Someone who comes to your organization for product or

service – the end customer. These customer depends on the time , quality and
accuracy of your organization work. Examples : Client. Vendors, Visitors
 Customer Centricity
• involves aligning organizational resources for effectively responding to the ever-
changing needs of customers, while building mutually profitable relationships.” -Craig
Bailey & Kurt Jensen
• Most of us use it in the sense of putting the customer at the center, Realizing that
regardless of time, creating customer value and really putting customers first, beyond
a simple customer focus, at generates most and longest lasting business value.
• means attending to the customer's needs
• Customer Centricity is the only key differentiator in the current competitive market - all
competitors can obtain the technology and can make or buy the content. Customer
expectation of service is growing and growing - led by sectors beyond the Telecom and
media sectors
 Developing Customer-Centric
Culture
• Put employees in the customers’ shoes
• Put employees in the shoes of a particular colleague
• Review your habits and attitude
• Be evaluated in a 360-degree approach by colleagues you frequently deal with
(through a random selection.

Customer Centric Customer Centric

Customer Centric
Product: Meet Service: Meet
Attitude: I care
customer needs customer
attitude
requirement
 Customer Service
• It is an organization's ability to supply their customers ' wants and needs
• It is about treating customers with respect, individuality and personal attention
• It is the ability to provide a service or product in the way it has been promised.
 Customer Service Elements
• Friendly Behavior
• Accuracy when providing information
• Confident
• Respectful
• Welcoming
• Honest
• Professional
• I Care attitude
 Attitude Checklist
• What attitudes assist in providing good service?
 Enjoy helping people
 Handle people well
 Care for your customer
 Give fair and equal treatment to all
 Be understanding of people with special needs
Displaying
Customer Service Attitude
1. Using Positive Language - Our beliefs fuel our actions. Positive beliefs lead to
positive actions and negative beliefs lead to negative actions.

2. Being Enthusiastic - Enthusiasm spells the difference between mediocrity and

accomplishment.

3. Conveying Speed or Urgency - Y our problem is important.

4. Taking Ownership or Accountability - To the customer you are the company.

Displaying
Customer Service Attitude
6. Voice Control Customers should hear warmth, enthusiasm, care and
commitment in our voices

Don’t sound as if you know it all,

Speak softly. clearly and courteously at all times,

Speak with a moderate pace and with appropriate volume

Sentences should be short and simple

 Displaying
Customer Service Attitude
7. Problem Solving
 Know your product/work well

 Accept responsibility to take care of the problem

 Tell the customer what you are going to do and when you are going to do it

 Take immediate action to solve problem

 Follow up to ensure that problem is solved

 Make amends if something goes wrong

 Give options

 Be pro-active/anticipate customers’ need

 Create a win-win situation.

Displaying
Customer Service Attitude
8. Rapport Building
 Respect the other person and do not take him her for granted.

 Say please and thank you when asking Customers for information.

 Make it easy for the other person to accept you.

 Use the Customer's name.

 Show you are human too.

 Show your interest in the Customer's needs

 Let the customer know what the options are

Displaying
Customer Service Attitude
9. Listening Active listening Attending skills (being ready)
• Attend to immediate needs (if you need to finish something before giving
your full attention)
• Being available

• Eye contact

• Attentive posture

• Concentration
Customer Centric
Characteristics
 Sympathy and Empathy
• Sympathy - (Capacity for) being simultaneously affected with the same feeling
as another.

E.g. “I'm really angry about this too. “

• Empathy -Power of projecting one's personality into (and so fully
comprehending) the object of contemplation.

E.g., "T can understand how upsetting this can be."

• Empathy "I understand" statement holds no meaning for the listener if it is not
combined with the emotion of the customer that you relate to!
 Sympathy and Empathy
• What you may say:

"I understand how frustrating that can be/how you feel. “

“I can understand how this must have thrown your schedule off balance"
• Customers don’t care about WHAT you know, until they KNOW that you care.
 How can you take Ownership?
• Take Full Responsibility
• Do what is required
• Think about solution
• Do not be fearful of new situations
 Mistakes We Make
• Trying to Justify

• Passive Listening

• Being Rigid

• Giving Excuses

• Long holds

• Contradictory statement

• Not giving alternatives

• Avoidance

• Telling them its their fault

Do’s of Customer Centricity Don’ts of Customer Centricity
Adjust your mission and vision statement Expect a brand-new mission statement to make
you a customer-centric company
Segment your customer base Overcomplicate the segmentation
Align your organization structure with the Reorganize too often and for the sake of it
segmented customer view
Make good use of technology Expect technology to build customer relationship
Create new performance measures Throw out the old performance measures
Study the behaviors, attitudes and demographics Confuse behaviors and attitudes with needs
of your customers
Empower employees, particularly customer-facing Allow anyone in the company to say (or think)
staff for proactive relationship-building “this is not my job/responsibility
Set clear goals for achieving a defined state of Assume that your project/program was
customer centricity by a certain point in time completed, you ‘got there’
Encourage and seek to create customer loyalty Think of loyalty as the tenure of customer
(duration of the relationship)
Communicate and engage all stakeholders in the Limit your change management efforts to the
process marketing, sales, and customer service functions
Try to understand the true value of your Rely on the customers past buying patterns
customers
The Seven Characteristics of
Customer-Centric Companies
1. They conceive of themselves not as a group of products, services, territories,
or functions, but as portfolio of customers P

2. They know how much money they make or lose with each of their customers
or customer segments, and they understand why

3. They understand the different needs of different customers and group them
into operational customer segments and sub-segments based on common
needs. They thrill their customers by delivering knockout value propositions
that competitors cannot match

4. They continually innovate by evolving their customer segments and sub-

segments and improve their value propositions as customer needs change,
The Seven Characteristics of
Customer-Centric Companies
5. They organize their businesses into customer |segment business units to
establish clear ownership of the customer experience and accountability for the
financial performance of each customer business unit.

6. They create a competitively unassailable customer innovation advantage based

on a customer R&D model grounded in continua I experimentation at key
customer touch points,

7. They understand in precise analytic terms exactly how their different customer
relationships contribute to or subtract from the total value of the firm; because
they manage their customer portfolio on this basis, they know what to manage
and where to invest in order to create sustainable. profitable growth and drive
outstanding share price performance over time
From Product-Focused to
Customer-Centric Firm
Features Product-Focused Customer-Centric
Customer • Discrete transaction at a point • Customer life-cycle orientation
Orientation in time • Work with customer to solve
• Event-oriented marketing both immediate and long-term
• Narrow Focus issues
• Build customer understanding
at each interaction
Solution • Narrow distribution of customer • Broad definition of customer
Mindset value proposition value proposition
• Off-the-shelf products • Bundles that combines
• Top-down design products, services and
knowledge
• Bottom-up, designed on the
front lines
From Product-Focused to
Customer-Centric Firm
Features Product-Focused Customer-Centric

Advice • Perceived as outsider selling in • Working as an insider

Orientation • Push product • Solutions focus
• Transactional relationship • Advisory relationship
• Individual to individual • Team-based selling
Customer • Centrally driven limited • Innovation and authority at the
Interface decision-making power in field front line with customer
• Incentives based on product • Incentives based on customer
economics and individual economics and team
performance performance
From Product-Focused to
Customer-Centric Firm
Features Product-Focused Customer-Centric

Business • “One size fits all” • Tailored business streams

Processes • Customization adds complexity • Balance between
customization and complexity
• Complexity isolated within the
system
Organizational • Rigid organizational boundaries • Cross-organizational teaming
Linkage and • Organizational silos control • Joint credit
Metrics resources • High degree of organizational
• Limited trust across trust
organizational boundaries