The customer is the be-all and end-all of any business. That’s why companies in the digital age invest a lot of money in market research and customer behavior. After all, meeting the customer’s wants and needs should be a business’s primary concern. And it’s this concern about understanding the customers that make customer analytics crucial for any company.
Guessing and assuming people’s behavior is just plain bad marketing. Guesswork won’t cut it when it comes to customer behavior. You’d need actual data, information you can hang your hat on. And you can gather all the data about your customers by using customer analytics.
Importance of Customer Analytics
Customers can leave a lot of information trail on your website, search engines, and social media. In the right hands, these data are a treasure trove. It’s this ‘treasure trove’ that lets businesses understand their customers. Through this information, your company can adjust its marketing strategy for best results. Woopra.com discusses customer analytics and how it works.
Basically, customer analytics are methods of gathering information about the customers and their behavior. By studying customer analytics, the company can pinpoint potential clients and plan strategies to attract new clients and retain old ones. Customer analytics is the foundation of a company’s marketing strategies.
The Top Customer Analytics
A well-managed company should have no difficulty getting new customers and retaining old ones. They should also be able to satisfy and communicate with their clients effectively. Customer analytics is the tool you need to evaluate how your business does this.
Below are the top customer analytics every company should know.
1. Customer Lifetime Value (CLV)
This metric lets you know how well you connect with your client; that is, if they like your products or enjoy your services. It could also inform you if you’re doing something right or whether there are areas you can improve on. Calculating this metric is fairly easy. There are tools you can use for this purpose.
The CLV metric also lets you know the approximate profit you can expect from one client throughout the whole business relationship. And if your customers’ CLV is increasing, it means you’re doing something right, and you’re making your customers happy.
2. Customer Journey Analytics
Journey analytics concentrates on understanding the clients’ dealings with your brand. This metric’s scope begins from their research on your service or product to clicking the buy button and beyond. Mapping journey analytics is a crucial step in gathering the right information.
3. Customer Satisfaction Analysis
This metric evaluates your customers’ reaction to your product or service, whether they’re satisfied or not. A happy customer is more likely to patronize your brand again. The usual method of evaluating client satisfaction is a mix of qualitative and quantitative surveys. Keep in mind, though, that you can always encourage your clients to interact with your company through your Twitter or Facebook page. That way, you’d save a pretty penny on surveys.
4. Customer Segmentation Analytics
The ‘shotgun’ approach to selling is not only messy, but it’s also ineffective. This metric divides a business’s clients into groups, with the objective of finding out how to relate to clients in each group to make the most of each customer’s value to the company. By finding which group appeals to which product, you can tailor your marketing strategies for each group and maximize your efforts.
You can split your client base into smaller and smaller segments, but that wouldn’t be advisable. Keep to core groups instead, whose behavior and purchasing patterns appear similar.
5. Web Analytics
This metric is the method of collecting, evaluating, and reporting data on your website to recognize user behavior and improve performance. What does your website contribute to your business? How and where can you optimize your website to have a more significant role in your company’s growth? Web analytics will help you answer these questions. Web analytics tools are readily available, including Google analytics. Fintech SEO strategy can help, too.
Online sales are increasing in almost every industry, so metrics like this are becoming essential. Continue collecting data on web analytics, and after a time, you’d see a pattern of how your performance online is shifting over time. With this information, you’d get to appreciate this metric’s real worth.
6. Social Media Analytics
You can address any issues that people raise about your products or your company if you’re aware of them. Social media analytics, the process of collecting and evaluating data from social media, will inform you of what people say about your company, services, or products. Text data from blogs and social media posts are collected and mined for any insights that may concern your business, utilizing sentiment analysis as well as text analytics.
Social media analytics is particularly valuable if you could immediately spot unsatisfied customers. You’d then have a chance to change the customers’ minds and convert them from unhappy to loyal customers.
Any business in the digital age will not be able to stay in the game for long without using customer analytics. Customers who possess what is basically a computer in their pockets have all kinds of information literally at their fingertips.
All their activities online on their search on where to buy that perfect product at the right price will leave all sorts of data that are virtual gold mines for businesses. Knowing how customers behave towards your company will let you respond accordingly. Customer analytics will allow you to have a deeper understanding of people’s purchasing habits and lifestyle choices.
Armed with all this data, your chances of giving your customers what they want will be greater, and you’ll attract more clients. In business, as in almost everything else in life, knowledge is power.
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