• Sign up
  • Log in
ABM – Machine Learning Platform for everyoneABM – Machine Learning Platform for everyoneABM – Machine Learning Platform for everyoneABM – Machine Learning Platform for everyone
  • How it works
  • Pricing
  • Developers
  • Blog

Customer data analysis – part 2

    Home Sales & Marketing Customer data analysis – part 2
    NextPrevious

    Customer data analysis – part 2

    By Algolytics | Sales & Marketing | Comments are Closed | 18 August, 2016 | 1

    In the previous post we presented a few methods of data analysis, which are used to identify customer needs and preferences and allow us to predict their behavior. Such knowledge results in building better marketing and sales offers which meet specific customer expectations.

    In today’s article we present further examples of Data Mining methods that can be applied in daily business operations.

    Challenge Solution – analysis type Benefits
    The Marketing Department has to determine which marketing strategy to apply to selected customers depending on their potential value. Lifetime Value Analysis
    Lifetime Value (LTV) analysis is used for assessing the current value of future customer profits – it estimates the expected profit a customer will generate during the whole period of using the company’s services.
    • Estimating the potential value of a customer for the company
    • Determining the factors affecting customer value
    • Segmenting the customer population with respect to the magnitude of future profits
    • Choosing target groups for marketing campaigns
    The Sales Department has to determine the volume of sales in the next quarter. Sales forecasting
    This solution applies methods of stochastic processes analysis to predict profit or sales volumes on the basis of data like profit and sales volume in the previous periods, changes in macroeconomic conditions, the results of competitors’ promotional campaigns or other random factors.
    • Forecasting revenue from sales of products and services
    • Estimating the budget for subsequent periods taking into account the actual market trends
    • Optimal production management or submission of delivery orders
    The CRM Department has to determine when to intensify efforts in order to maintain the selected clients. Survival Analysis
    The main purposes of Survival analysis are to estimate the time a customer will subscribe to a service or estimate the probability of customer’s defection in subsequent life cycles.
    This information allows the company to determine the predicted period of retaining the customer and introduce an appropriate loyalty policy.
    • Estimating the survival time distribution for particular customers or whole customer groups
    • The ability to monitor the changes in survival time distribution as they are affected by various factors (such as marketing campaigns)
    • Better understanding of customer behaviour by analyzing the factors which determine customer lifetime value
    The Marketing Department aims to determine which set of features of a given product is preferred by customers and how this product shows out against the competition. Conjoint Analysis
    Conjoint analysis allows to compare different variants of a given offer on the basis of their usability to customers.
    The result of Conjoint analysis is the selection of the best combination of features for the analysed offer.
    • Obtaining information about the combination of product features that is most desired by the customer
    • Better matching product features to customers’ expectations
    • Forecasting the market share of products

     


    Want to read more news like this? Sign up for our Newsletter!

    NAME

    EMAIL

    I agree to the processing of my personal data for the purpose of sending marketing information.

    The administrator of the data given in the above form is Algolytics Technologies Sp. z o. o., ul. Przeskok 2, 00-032 Warszawa, NIP: 701-080-13-66, Regon: 369456263, District Court for the Capital City of Warsaw in Warsaw, XII Commercial Division of the National registered under KRS number 0000074723, Amount of the share capital: 321 300,00 PLN. Data is provided voluntarily and processed in order to respond to enquiries made using the form and to send marketing information. We would like to inform you about your right to be forgetten, your right to access the data and your right to correct it. Please note that your consent may be revoked at any time by sending an e-mail to gdpr@algolytics.pl from the address to which consent relates.

    I accept Terms of service and Privacy policy

    Read Terms of service

    Read Privacy Policy

    Share
    Share
    Tweet
    0 Shares
    Sales&Marketing

    Algolytics

    More posts by Algolytics

    Related Post

    • How to run a successful sales campaign to existing customers

      By Algolytics | Comments are Closed

      According to Forrester, it costs 5x more to acquire new customers than it does to keep current ones. Other study shows that returning customers spend 30% more than new customers and are more willing toRead more

    • Customer data analysis – part 1

      By Algolytics | Comments are Closed

      The key asset of any company is its customers. It is therefore very important to identify their needs and preferences as well as to know the factors affecting their behavior. The collected customer data allowsRead more

    NextPrevious

    100px white

    Created with love by Algolytics

    +48 691 303 305
    abm_support (at) algolytics.com

    Company

    • About us
    • Blog
    • Contact Us

    Product

    • Documentation
    • Pricing
    • Terms of service
    • Privacy policy
    • API
    Copyright © 2020 Algolytics Technologies | All Rights Reserved
    • How it works
    • Pricing
    • Developers
    • Blog
    ABM – Machine Learning Platform for everyone
    This site uses cookies: Find out more.