Marketers increasingly must justify their
expenditures by showing a high return-on-investment (ROI).
A recent Demand Gen Report shows 42% of CEOs are now actively
tracking marketing’s impact on revenue.
To boost ROI, marketers are turning to analytics to
uncover areas for marketing ROI improvement.
An IBM survey shows 67% of Chief Marketing Officers (CMOs) are
planning to increase their use of customer analytics in the next 3-5
years. Large companies noted
for using customer analytics to boost ROI include Harrah’s, Procter &
Gamble, Progressive Insurance, Barclays, and Capital One.
The ROI payoff from analytics often comes in the
following ways, according to Harvard Professor Thomas Davenport:
Identify the most profitable or
potentially profitable customers.
These customers deserve special treatment in order to retain
them and improve marketing ROI.
Total Customer Analytics identifies your top customers and
what makes them that way through our decile analysis.
Customers are grouped into deciles based on their
profitability or revenue and you can see differences in total
orders, items per order, revenue per order, etc.
The decile analysis also feeds our customer potential
model that estimates customer potential based on their similarity to
your top customers. You can
then sell to those customers to get them into the top 50%.
We also use the decile analysis profile your top 20%
customers on externally available data.
You can then market to prospects who can boost your ROI as they
become customers.
Increase likelihood they will want the
product or service offering.
As you increase the likelihood a customer will accept your
offer, your marketing ROI increases.
Total Customer Analytics provides two types of market basket
analysis (MBA) to assist you.
One looks at products commonly ordered at the same time so
you can suggest the additional product as you receive the order.
The other type of MBA looks at products purchased by
customers over time. If
a customer has purchased one product, they are top prospects to
offer the additional product.
Both approaches increase your revenue for little additional
expense, thereby boosting your marketing ROI.
Retain their loyalty.
One of the keys to maximizing your market ROI is to retain
your existing customers.
It’s almost always cheaper to retain a customer than obtain a new
one. Total Customer
Analytics projects each customer’s revenue for the next few years.
You can see which customers are on a downward trend and may
stop using you.
Increasing communications and other retention techniques are known
to have high ROIs.
Highlighted above are just some of the ways Total
Customer Analytics grows your marketing ROI.
Tell A Friend!