Customer Analytics - From measurement to advanced customer analytics
Marketing Analytics spans the spectrum – from simple measurement to sophisticated insights. There was a time not long ago, when marketers used to get limited data and even that, at the aggregate level. Today, data is available not just at the customer level, but at the level of every click and move of the mouse, and every card swipe, and every Facebook status update, for each customer. This humongous increase in data is obviously of no value if the analytical capability to derive insights from these mountains of data is not in place for marketers.
There are different sources of data that can be used for analytics in marketing – web, mobile, email, social media, sales data, media spends and coverage, competitive spends, customer profile, product usage, market research, voice of customer / customer satisfaction, etc. The good news is that every single source of data can be identified, organized, measured and reported. The bad news is that there is no one tool or service or platform that does it all for marketers. Each of these sources of data has some technology or service that is able to analyze that particular data source well and provide insights – Web Analytics, Social Media Analytics, Mobile Analytics, Data Warehouses, Big Data platforms, Statistical Modeling Tools, Business Intelligence tools, market research, etc. So, how do marketers get value from this mass of digital fingerprints that customers leave behind all over the place?
Usually, most marketers even in large organizations are happy to outsource the responsibility for analytics to someone in the analytics team. In smaller organizations, the struggles are greater. Sourcing the data is a challenge in many cases. In some cases where data is available, the reports do not make sense. In cases where reports are routinely generated, they do not offer any marketing insights.
Planning what data needs to be captured
There are a variety of sources of data for marketers to leverage. Broadly, these can be classified as consumer spend and economic data sources, marketing programs that let consumers leave digital footprints, consumer response and feedback data, and business outcomes.
When appropriately leveraged, individually and together, these sources of data disclose compelling insights for marketers.
Implementing the tools required to capture the diverse pieces of data
Identifying the data sources is only part of the problem. Another challenge is to acquire the data from these sources. While some of the data is available at some level of detail, when marketers need to start evaluating causality and taking an integrated view, tools are required. Some of the data is available in tools used for managing the channel or activity. Such as Email management tools that also capture open and response rates. For others, there are dedicated tools just to capture and report. Such as Web Analytics tools. Some of these are…
- Web Analytics
- Social Media Analytics
- Mobile Analytics
- Email Management Tools
- Campaign Management Contact and Response History
- CRM systems
- Lead Management Systems
- Media Attribution Systems
- Inbound Marketing platforms
- Ad Servers and DSPs – Advertising response tracking
- Marketing Data Marts and Customer OneView –
- Aggregated sources of data from across channels, media, sources, and systems
Most of these tools give access to some standard reports, but unless you really plan the data to capture to address your specific needs, the standard instance may not deliver what you want from it. Hence, we help you plan and implement the right tools for your analytical needs. And if you already have some investments in place, Xerago will also help to optimize your existing implementations to fix gaps and to get hold of the data that your marketing function really needs.
Some of the Analytics based services that Xerago can do for you
- Advertising & Brand Analytics
- Channel Analytics
- Customer Metrics
- Statistical Modeling & Machine Learning
- Advanced Analytics
- Analytical Data Services
One of the most important responsibilities of any product manager is to track competition and the industry, to understand competitive trends, industry changes, evolving consumer interests and feature and benefit pitches. Xerago can help you track competition and industry and deliver relevant market intelligence for effective marketing and product decisions. Xerago can deliver industry snapshots, competitive environment analysis, product introduction strategies, etc.
We can track your brand presence online across not just your properties, but also across blogs, partner websites, micro-sites, social media, and every other place, to evaluate how your brands are being represented all over the Internet. We track not just the functional aspects of logos being placed correctly and brand guidelines being adhered, but also the relevance and consistency of messaging and brand promise. We submit routine reports on the brand compliance status and also potential issues that may warrant attention.
Advertising ROI Effectiveness Analysis
Whether your challenge is to analyze, measure and report on the effectiveness of your online (search, display, video, social, affiliate) advertising, or to help you optimize your media spends and make recommendations on improving effectiveness, Xerago can do it all. Think of this service almost as an add-on service of your online advertising programs. Xerago can standardize media reports, measure to common standard, align to business goals, integrate media and internal data sources, and report and recommend digital advertising effectiveness strategies for you. We can also help you correlate your traditional advertising spends with your digital advertising spends to help you track effectiveness across media and to help you gain insights to harmonize your digital and traditional media spends.
Xerago can work with marketing teams to do different kinds of advertising testing. We can do both qualitative and quantitative research to identify consumer insights and help marketers to make their advertising more effective. Whether you need pre-testing of advertising concepts or post-testing of advertising effectiveness, Xerago can do it for you. We can help you measure brand recall, awareness, salience, attitudes and purchase intention. We can also correlate purchase intention with sales offtake to estimate variance and to plan media spends.
Digital, Mobile and Social Media Analytics
Any marketer serious about their digital strategy likely already has some Google Analytics implementation from which they can derive some reports. But the problem with most out-of-the-box reports is that they add very little business value. They usually report what happened and have very little contribution to make to what is likely to happen, or on what the marketer should be focusing. Xerago’s Digital, Mobile and Social Media Analytics team can work in conjunction with your business goals to identify gaps, provide insights, track usage, message effectiveness, correlate actions to outcomes, and even predict campaign response. We can help marketers understand their customers’ attitudes and desires by tracking their behavior across digital and social channels.
Conversion Rate Optimization
Currently, for most categories, Click-Through-Rates of 0.5% would be considered good. Impression-to-Customer ratios of 0.1% would be considered excellent in some categories. While the media payout is based on clicks, CTR rates may not be a concern, but overall conversion rates might still be a problem. Xerago can help digital marketers to optimize their conversion rates by identifying drop-offs and areas for improvement – creative, media placement, communication alignment to brand, etc. Engaging Xerago typically results in an increase in conversion effectiveness of not less than 15% in many cases.
Paid Search Analysis
One of the biggest challenges for most digital advertisers is tracking their paid search campaigns. When keywords exceed tens of thousands, and there are hundreds of ad groups, it becomes a challenge to monitor all creatives and to make sure that the advertising is effective, not to drive click-throughs, but to drive brand compliance and conversion. Xerago can help you monitor and supervise your paid search campaigns to ensure that you are regularly optimized and ad text is in line with brand communication.
Social Media Reporting and Analytics
Implementing a Social Media Analytics tool addresses only one part of the problem. Xerago works with you to understand your business goals. Based on that, we put together a social media reporting solution if you do not have one, or tweak your existing tool if you have one, that best provides you visibility into how your social media goals are being met. We provide you insights into brand affinity based on social media conversations, to allow you to fine-tune your social and brand conversations.
Customer Lifetime Value Measurement
For marketers that have a strong loyalty / customer relationship management strategy potential, such as those in financial services, insurance, travel and hospitality, retail, entertainment and high-tech, one of the most critical metrics to implement is the CLTV metric. Using the CLTV metric, customer segmentation, treatment, service levels, offer design, and a variety of other marketing communication can be planned appropriately. Since it is driven, not just by the current value of the relationship which may not be accurate in case of low share-of-wallet customer profiles, but by the potential value, it tends to be a more accurate measure for segmentation and differential treatment. Xerago can help you implement a Customer Lifetime Value score for your customers.
Customer Advocacy Measurement
Most leading brands have recognized the value of the Net Promoter Score and how it serves as a powerful indicator of loyalty. Xerago can implement the Net Promoter Score for your brand and also provide the analytics required to understand the impact of the NPS and how to move the detractors to passives, and passives to advocates.
Customer Satisfaction Scores
Marketers that wish to implement and measure customer satisfaction levels can engage with Xerago. We identify the dimensions of customer satisfaction and the drivers for each dimension. Consumer research is then done to identify their satisfaction level for each driver of satisfaction. The results are then evaluated and we identify the customer satisfaction score for each dimension as well for the brand overall. We do this through structured equation modeling statistical techniques. As part of the Customer Satisfaction measurement exercise, we also identify and recommend areas for improvement. As marketers implement the recommendations, repeated measurement of Customer Satisfaction will confirm that the brand is moving north.
Voice of Customer
The single most important constituent for a marketer is the customer. Whether marketers want to evaluate feedback for a new product feature, or customer satisfaction levels, evaluation of wants and needs, customer expectations or experiences, the Voice of the Customer is the most commonly used tool used in the marketers arsenal. Xerago can implement and run Voice of Customer surveys online and through voice calls, for both focus groups and quantitative approaches, to capture customer response. Then, we also analyze the response and provide recommendations and insights for the marketer to take decisions.
Clustering / Segmentation
Every smart marketer already uses segmentation at some level to treat customers differently. Xerago can work with you to plan your strategic segmentation strategy, where we use your current sales data, market research (if required), customer profiling information (if any), to help you understand how best to segment your customers for relevant treatment. Marketers can use our Customer Analytics and Segmentation service to clearly discriminate between their profiles, and plan strategies for communicating, pricing, product features and benefits prioritization, service levels, churn likelihood, and rewards management.
Xerago’s analysts can help marketers address all their predictive modeling needs. We can help you predict:
- Likelihood of conversion (response rate prediction, for up-sell or cross-sell)
- Likelihood of attrition (churn modeling)
- Lifetime Value
- Share of Wallet
- Propensity to engage and stay loyal to your brand
- Frequency of purchase
- Categorization (market basket analysis)
When you want to identify any kind of likely customer behavior and take marketing actions based on those insights, you need to work with Xerago so that our experts can help you predict customer behavior.
Given the volume of data available in unstructured format – customer research, feedback, product descriptions, blog posts, customer service comments, etc. – it is no wonder that text analytics is proving to be such a powerful tool for the marketer, giving insights from data sources that were difficult to analyze in the past. Xerago can do sophisticated text categorization, entity extraction, text clustering, and sentiment analysis. We can provide marketers insights from textual sources that are otherwise impossible to acquire, even from market research due to sampling / confirmation bias.
Customer Experience Analytics
At a time when every digital footprint of the customer can be tracked on the brand portal, and elsewhere on the Internet, it is no wonder that mature digital brands want to track customer experience at a click level. Xerago can put together detailed customer journeys on digital channels, or across media, to give marketers a detailed picture of the nature of the customer engagement with the brand and the areas of potential issues. Using a combination of data tracking and capture tools, data standardization functions to build detailed customer profiles, and analytical techniques, Xerago can deliver rich customer journey maps to marketers who wish to improve customer experience.
Customer Relationship Management Analytics / Customer Scorecard
Most brands that are used to dealing with ongoing customer relationships understand the value of doing so. Most marketers have at some time or the other, implemented some kind of cross-sell or retention program. However, to be able to set up an organization wide Customer Relationship Management Program, one of the essential components is an analytical framework that encompasses all dimensions of customer relationship. This can include everything from on-boarding, frequency of transaction and usage, propensity for product adoption, channel bias, x-sell and upsell potential, service overhead, revenue growth potential, etc. For organizations that are serious about implementing a full-fledged customer relationship management framework, Xerago can create models to score customers on all possible hypotheses and put together an enterprise wide customer analytical scorecard. This scorecard then gets used for every single campaign executed through your campaign management platform. Xerago cannot just implement the Customer analytical scorecard, but also manage it for you.
Addresses the classical problem that advertisers are familiar with: Half my advertising spend is wasted; the problem is identifying which half. Xerago can help marketers to maximize value from their marketing spends by analyzing spends and returns across offline, digital, social and mobile. We can help CMOs to identify how best to optimize their marketing spends across media and channels, and give CMOs the capability to make relevant investment decisions.
If we increase price, what will be the consequent impact on demand? If we run promotions to move inventory, what is the consequent brand dilution impact? These are examples of questions that we can answer based on causal analysis, using sophisticated statistical skills. We can help CMOs to forecast impact of marketing decisions and plan strategy appropriately. Communications InsightSocial Media Analysis
Product Portfolio Optimization
While designing products, product managers focus their thinking to align to the market situation. However, this view sets up the potential for market cannibalization with other brands in the portfolio. Similarly, in the urge to address different segments of the market, products get created that seem like winners. However, organically, the overall portfolio starts losing value, though individual brands seem alright. Xerago can work with product marketers to evaluate statistically the right portfolio that positions each product with clarity and also ensures that all the market segments are covered. We do this through application of portfolio theory. We use market research, consumer insights and statistical techniques to arrive at the appropriate portfolio. FMCG, Telco, High Tech and other similar industries can derive significant value by engaging with us.
Product Managers looking to uncover new niches, either within existing target segments, or in new segments can get tremendous value from engaging with Xerago to do Opportunity Assessment. We can marry your existing product purchase data and customer profiling information, with population data sources to merge and uncover untapped opportunities, new segments, profitable niches, product flanking strategies and revenue growth opportunities.
One of the biggest challenges that most analytically savvy marketers face is the problem of data organization. Data is available in so many different formats and sources, each with its own structure and dictionary, that it becomes difficult for analysts to get a homogeneous view of the data. Xerago has extensive experience on ETL tools, data standardization and normalization, and different algorithms available to organize your data and make it analytically ready.
We can work with your existing data sources and data marts to enrich your data using our data append services. Xerago works with reputed data enrichment providers to clean up and enrich your customer profiles. In markets where ready-made data enrichment is not possible, Xerago will work with you to identify potential sources and partner with them to ensure that your customer profile is enriched and ready for analytics.
Marketers who have used a marketing data mart for any period of time will recognize the challenges involved in querying the data mart and summarizing the same for analytics purposes. Xerago can implement a Customer OneView / Customer Activity Record to aggregate the transaction view of a marketing data mart / data warehouse, to further enrich customer profiles to go beyond what a traditional customer master would contain, extending to behavioral parameters that further make it possible for marketers to segment and analyze customers and derive insights.
When it comes to the cusp of marketing, analytics and technology, there are probably few organizations in the world that have the depth and width of experience that Xerago brings to the table to solve complex challenges. If you do not find us discussing a specific challenge here, please feel free to contact us and discuss how we can be of help and you will be pleasantly surprised.