Customer analytics is all about collecting and analyzing customer data to glean insights about their satisfaction level, demands, and requirements.
The push for providing a sophisticated level of experience to customers across their buying journey has never been so hard as it is today. Customers today, have become more demanding and more impatient. Millennials and centennials easily get attracted to companies that meet their ever-increasing requirement for comfort and convenience. Above all, today’s customers easily tune in to other’s opinions. Providing enhanced customer experience has, therefore, become an essential to-do for companies if they wish to stay ahead of their rivals. Hence today, we witness a majority of businesses across the world going digital, empowering their customers with incredible services and products that leave them satisfied and happy. But developing customer-centric products is just not enough. There is a need for regular analysis and assessment of customer satisfaction level to make relevant changes required. While the marketing team is responsible for gathering customer-related metrics, the IT team has to analyze the collected metrics, understand the market trends, and glean actionable insights for product changes. And doing all of these manually in today’s Information Age is nearly impossible. Here’s where the term ‘customer analytics’ come into the picture.
Let’s now understand what customer analytics exactly is. For companies to satisfy, retain, attract their customer base, it is necessary that they have an intimate understanding of them. That means, organizations should collect more and more relevant customer data and analyze it. So, the probable data is social media sentiments, demographics, product feedback, preferences, interests, browsing details, buying patterns and behavior, and so much more. All this data is readily available in large quantities, but how will companies unlock the real potential of the data? Customer analytics tool plays a significant role here. Customer analytics helps businesses to gain actionable and valuable insights required to anticipate, understand, and fulfill customer needs and demands. Gaining insights enable enterprises to make informed and strategic decisions and also reach out to their customers with relevant offers at the right time.
The Types of Customer Analytics
It is impressive how customer analytics tools help businesses gauge customer journey across their buying journey, understand their sentiments and lifestyle preferences, and tailor services according to each customer persona. Customer analytics support authorities to make prompt and informed business decisions, allowing them to understand who their customers are as individuals. Such knowledge will lead to accurate anticipation of public demands, which will help organizations to strategize an actionable path to achieve high profits. Not only the prediction, but customer analytics can give full visibility on ‘what happened’ and give insights on ‘what should be done.’ In simple words, customer analytics can be broken down into three main categories - descriptive analytics, predictive analytics, and prescriptive analytics.