SWOT analysis is a major component of marketing plans. SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. Effective SWOT marries primarily internal data regarding company strengths and weaknesses with external opportunities and threats data. The company then develops strategies and tactics to build upon its strengths and opportunities and mitigate any weaknesses and threats.
The first step in a SWOT Analysis is thoroughly examining internal data to reveal the company’s strengths and weaknesses. While not addressing all factors, Total Customer Analytics crystallizes the company’s customer strengths and weaknesses. In many instances, you can derive strategies and tactics just from this internal microscope.
You can use Total Customer Analytics in SWOT Analysis in at least the following ways:
Market Penetration: Total Customer Analytics provides two separate views and a combined view of market penetration: industry, geography, and a combination. These views enable you to see your strengths and weaknesses market-by-market. You can decide which markets to emphasize based on this market penetration.
Customer Loyalty/Retention/Churn: Total Customer Analytics’ decile analysis shows you customer loyalty and staying power. This helps you decide if you need to focus your efforts on building loyalty and retention. One customer’s analysis showed that they had a very dramatic churn problem and pointed to tactics needed to keep customers buying.
Segmentation: Segmentation provides insights into what types of customers are using you and who are the best customers. Total Customer Analytics graphically displays your customer and contact characteristics. While you may have a gut-feeling about who is buying your products and services, this analysis often helps by giving you the actual percentages. You have valuable information about what segments are your strengths and what segments are your weaknesses.
Customer Ordering: If you provide invoice data, Total Customer Analytics shows you how your top customers differ from the others in their ordering detail. For instance, do they order more items per order, or do they simply order more times per year? One company found that hardly anyone was ordering more than one item from them, which was clearly a weakness. They tactically implemented a program to inform customers of their entire product line and get them to order additional products.
Cross-Selling/Upselling: An offshoot of customer ordering analysis is looking at cross-sell and upsell potential through market basket analysis. Market basket analysis reveals strengths and weaknesses in joint selling of specific products.
“We use database marketing and decision-science-based analytical tools to widen the gap between us and casino operators who base their customer incentives more on intuition than evidence.”
Harrah's CEO Gary Loveman
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