In this highly competitive era, you can have your online shop by just owning a smartphone. Both big corporations and small businesses are continually striving to be super creative with their marketing strategy, as we have seen a lot of mind-blowing and unexpected marketing campaigns lately.
No matter how fascinating your marketing campaigns are, one of the indispensable strategies is trying to truly know and understand their customers. Having customer knowledge is the heart of all successful marketing strategies.
Acquiring customer knowledge with traditional surveys and observation is already quite effective, but with the power of technology, you can get even more accurate knowledge by applying our present advanced data analytics and machine learning solutions with customer knowledge acquisition. It would significantly improve accuracy and productivity and also reduce cost.
Sertis would like to introduce you to our customer knowledge solutions for retail to equip your business with efficient data analytics and machine learning tools to maximize business profits. The examples of solutions we would like to address today are customer segmentation, customer lifetime value, and churn prediction.
Customer knowledge solutions
Customer knowledge is the science of knowing and understanding your customers. It is to know who they are, what they need, what is their motivation, as well as predict what makes them make a decision and when it happens. We can leverage this knowledge and use it as a resource for your product design, strategy building, store decorating, and website mapping to provide customers with the best experience and increase customer retention.
Before the internet era and the invention of high-tech tools, acquiring customer knowledge was done with individual surveys and observation. Since online stores have come to play, collecting online data is even more essential for customer knowledge.
For instance, Applying data analytics and machine learning tools to customer knowledge acquisition is a well-performing choice and helps increase the accuracy of the insight we get.
Customer Segmentation
One marketing strategy won’t resonate with different customers. Marketers need to be selective and creative with personalized marketing campaigns for each target group. But before that, we need the most effective customer segmentation. Typically, we segment customers by behaviors or characteristics to design compelling marketing campaigns to drive more sales.
Typical types of segmentations are categorized by demographics, locations, psychology, and behaviors. Member registration is also another channel where we can get this information as well.
The foundation of customer segmentation is the analysis of collected data. Utilizing machine learning algorithms to process customer analytics will significantly accelerate the process and increase accuracy.
Sertis’ solutions are to process customer data with a clustering algorithm, an unsupervised machine learning model that can effectively and automatically cluster data with high accuracy.
We also provide a solution to analyze non-member behaviors. Businesses also have customers that aren’t in the database, or in other words non-member customers. We will focus on analyzing their shopping missions in both basket level and store level, in order to group them into each behavioral segment precisely.
Benefits businesses will get from our customer segmentation solutions are that they can customize promotions or other marketing strategies tailored to each segment and machine learning algorithms will optimize segment similarity and eliminate inaccurate, too-broad, or too narrow segments. A/B testing for whether strategies, web pages, or new systems will be more convenient. These benefits will bring about a true understanding of your customers and their reactions toward each product and promotion. No matter how much time passes by and how the world changes, “Knowing the enemy is half the battle won” is still true. It just changes from enemy to customers.
Customer Lifetime Value
We might be familiar with the term ‘Loyal customer’, describing an ongoing relationship between customers and business that drives repeat purchases. Businesses should try their best to invest in attractive promotion campaigns or provide them with the irresistible privilege to retain their loyalty.
One metric that is related to loyal customers and indicates their importance is the customer lifetime value (CLV), the total amount of money customers have spent and are expected to spend with your business throughout the relationship. CLV partially depends on how smooth the relationship is, and how good the experience they have had.
To build a strategy to increase CLV, we can utilize data analytics. Sertis CLV solutions focus on creating the daily prediction of Customer Lifetime Value based on historical data to discover current trends and prediction of CLV with more flexible tracking.
We also analyze and quantify key factors that drive individual CLV, for example, promotion efficiency or product types. This insight will be useful when businesses need to identify actionable plans to improve CLV. Businesses will be able to optimize costs with the right strategy for the right target group and balance the budget between retaining old customers and acquiring new ones.
Customer Churn Prediction
Apart from building strategies to acquire new customers and retain the old ones, another metric that businesses should be attentive to is the customer churn rate, the rate at which customers stop purchasing from your store. No matter how long and solid your relationship has been, there might be a new factor that influences customers who are once loyal to stop spending their money. Data analytics solutions can help businesses prevent this situation in advance.
Customer churn rate solutions from Sertis can quantify the probability rate of customer or member churn and identify key factors that can prevent customer churn using a regression analysis technique to sort out the factors that impact the situation.
The results from the analytics can be combined with CLV to monitor customer situation, design strategies, manage cost between investing in increasing CLV or reducing churn, and create actionable plans to improve customer retention in the long term.
These 3 solutions are just an example of our customer knowledge solutions. We have plenty of other solutions that tackle business pain points. If you are interested in joining forces with us to customize solutions tailored to your business needs, learn more about Sertis: https://www.sertiscorp.com/services
Written by: Sertis
Originally published at https://www.sertiscorp.com/
