Article Analytics For Retail

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Creating Customer Growth Strategies through Data Insights using Analytics for Retail Solution Overview One of the biggest problems many Retail Stores providing credit through their proprietary cards face is around what needs to be done post customer acquisition
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  • Thanks , Good Help for us
    can you please send me a copy at ch.naveenreddy@in.com thanks and regards
    Naveen
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  • Thanks for sharing.
    can you please send me a copy at cengizsoydan@gmail.com.
    thanks and regards
    soydan
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Article Analytics For Retail

  1. 1. Creating Customer Growth Strategies through Data Insights using Analytics for Retail Solution Overview One of the biggest problems many Retail Stores providing credit through their proprietary cards face is around what needs to be done post customer acquisition. Once the customer has been acquired and has been transacting, the behavior of the customer needs to be monitored and on the basis of this behavior differential strategies for customer growth need to be executed. Each customer cannot be treated similarly since customer behavior varies among individuals and hence they need to be treated differentially. The same can be achieved by utilizing analytics which provides insights in customer behavior to help distinguish amongst customers.
  2. 2. Business Problem- How to leverage Customer Growth through Data Insights You need to differentiate customers and treat them differently. For which you need to answer the following questions: Do we understand the drivers of Profit? How different Marketing Drivers (Response Rate/Sale/Geography) are related to Profit? Are we maximizing for Marketing Drivers and Profit? Do we know the Future Demand for our Products? Do we know how customers behave at various stages of their account lifecycle? Do we know the Life Time Value of Customers? L L Create Customer Lifetime Value if and Utilize in Credit Line Increase Strategies & Offer Timing resulting in Incremental Sales Peak Purchasing Increasing Decreasing Purchases Purchases Account Lifecycle:- Long Term, typically over the lifetime of a customers association Purchase Lifecycle:- Short Term, typically over 1-2 yrs Acquisition Attrite How do we stock the right amount for effective customer service? How do we produce the right quantity to minimize the inventory? Are we testing the impact of all factors in a marketing program? Are we doing continuous experiment to understand the customer purchase behavior? Are we tracking the impact of marketing Programs? Are we offering the right products to the right segments? Who should we give a Credit Line Increase? Design a Test & Learn Offer Type Framework and streamline the Impact Tracking & rollout of Marketing Programs Channel Type Customer Segments Seasonality Geography
  3. 3. Utilizing Customer Insight to drive Strategies for the Right Customer at the Right Time Identifying Profitable Segments Offer/ Product Design specific to segments Build Predictive Models for Each Driver Optimize Across Drivers Use Secondary data to increase the Prediction Power Incorporate Market Research Data for fine tuning Develop robust Experimental Design framework using Fractional Factorial Build Models to predict customer behavior like sales likelihood, time of buy, life of customer, offer response, offer incremental sale, revolve behavior, expected sale, attrition probability, etc Creation of Customer Lifetime Value from these predicted values Develop Customer Segmentation using external data for prospecting in the absence of Internal Performance Data Overlay Business Strategy Robust Program Impact Tracking Mechanism Feedback Loop for full scale rollout Create Relationship of Different Business Drivers to Profit Measurement of Profit Across Marketing & Risk Drivers High Create a Framework for Profit and other Customer Drivers and increase Profit with no compromise on Marketing Objectives Low Risk High Low Profit High Profit Medium Profit www.cequitysolutions.com

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