The modern consumer expects companies to provide personalized content that is relevant both contextually and emotionally. To meet this demand, your company must be customer-centric and act on data-driven insights in a scalable manner. This requires development in advanced analytics, both for strategic direction, decision making and targeting at scale. To give an easy-to-digest overview of analytical capabilities, models and approaches, Avaus has compiled the Avaus Tactics Gallery: The Analytics Edition.
The gallery is a set of tactical and strategic approaches for the challenges of modern marketing. One example of such a challenge, is that of the “omnichannel customer experience” – meeting the consumer expectation of a tailored experience in every point of contact with your business. Another typical challenge is tracking the health of your business and customer base through a unified and strategically correct set of KPIs – ultimately enabling you to automate decisioning (e.g. offers, pricing or marketing spend) for your business. What are then some of these tactics?
Customer Lifetime Value (CLV) is a great example of an analytical model that can provide strategic direction by calculating your customers expected lifetime value. With a CLV model, one can identify and target high-value users earlier in the onboarding process in order to more effectively help them on their journey towards becoming satisfied, profitable and long-term customers. CLV can also be used to proficiently estimate or evaluate the long-term net effect of different initiatives and strategies, such as an investment in an upgraded loyalty programme. It can also be used to make intelligent decisions on how much resources you should spend on different customers before their lifetime value becomes negative and beyond recoverable.
Another example of where a tactical advantage can be gained is through a Next Best Action (NBA) model. The NBA model can automatically identify what the next best action is for all customers individually; to Sell, Serve or Retain. Namely, should you:
- Try to up-sell products to this customer, making him or her more invested in your business and increasing their value? If so, what product should be offered?
- Serve an already high-value customer in the best possible way which will build a better relationship and thus increase their loyalty? If so, which service should be provided?
- Focus on retaining the customer since the customer shows an increased risk of churn? If so, what precautionary action should be taken?
NBA is one of the key models in achieving scalable one-to-one communication. The model can provide decision making in real-time and enables you to optimize and target customers, taking into account both your business objectives and the customer experience.
In order to drive business results through relevant one-to-one communication, you will need assistance from scalable analytical models. If you want a competitive advantage and future-proof your capabilities, result-driven customer analytics, enabled by Machine Learning and AI, should be your next step. The Analytics Tactics Gallery is a first step to familiarize with the key concepts and tactics.
Download the gallery by filling in the form, and follow us in the upcoming series of blog posts where we dig deeper into different tactics.
If you want to know more, don’t hesitate to contact us!
Fredrik Kihlberg | Head of Strategy (Sweden)
Henrik Nordström | Head of Analytics (Sweden)