Business intelligence for marketing management
Using business intelligence to analyse your customer data can provide invaluable insights into customer behaviour. The key learnings from business intelligence when typically applied to marketing are:
- Understanding customer buying behaviour and patterns
- Knowing what motivates customers to purchase your products
- Measuring marketing campaign return on investment (ROI)
- Segmentation of your customer base
- Calculating customer lifetime value
- Identification of your most valuable customers
- Measuring cost per lead / customer acquisition costs
Customer segmentation
Customer segmentation involves identification of groups of customers with similar characteristics. Segmenting customers into groups with similar characteristics facilitates detailed analysis of each segment. Customer segmentation can be done using clustering or CHAID analysis. Both techniques have specific applications. We can work with your data to determine what customer segmentation method would provide the best answers for your business. Customer segmentation provides intelligence regarding customer demographics, customer spending and value by segment, and buying or attrition characteristics per segment.
Customer data analysis
A detailed analysis of customer data is needed to understand their buying behaviour, motivators and patterns. Business intelligence can be gained by analysing the relationships between various data sets and by performing a regression analysis on certain data sets to view changes over time. Our customer data analysis services usually reveal inter-dependancies between certain factors or characteristics, e.g. relationship between customer age and type of music purchased, allowing you to understand factors influencing their decision to purchase your products and to develop more accurately targeted marketing messages.
Measuring marketing efficiency
An important, but often overlooked application of business intelligence with marketing is the measurement of marketing efficiency. Broadly speaking, this is a method to evaluate the success of a marketing campaign. It is extremely useful for planning future marketing spend, and allocating budgets. Business intelligence techniques used to measure marketing program effectiveness include calculations of the cost per lead, cost per sale, cost per online customer acquisition, lead conversion percentage and time, lead value, customer value and site visitor retention. We can help you gauge these measurements, provide comparisons with industry averages and we can help you improve your overall marketing efficiency and ROI.
