Marketing Analytics and Business

Intelligence
Sushant Vishnoi
Lecture Agenda
• Consumer Analytics
• Impact of digital on consumer behaviour
• Consumer behaviour and decision making

• Competitive Intelligence Analytics

• Drivers and utilities of analytics for consumer
segmentation, targeting and positioning;

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Disposition of Modern Business Organizations
• Acquisition
Which channels drive the most new customers?
What is the most common customer journey from awareness to advocacy?

• Retention
Where do we lose customers and why?
What behaviors are correlated with high retention rates?

• Engagement
What features resonate with which customers?
What is the optimal experience for users?

• Revenue
What are our most profitable revenue channels?
Which users are the most profitable?
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Food for thought?
• “Good customer management comes from good
customer measurement”.

• Consumers and marketing have changed radically

in the last decade or so. Consumer marketing is
increasingly analytics-driven and data-driven.

• A lot of analytics is about finding patterns,

identifying causes, ascertaining variable
relationships or making
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predictions.
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Customer Analytics
• Customer analytics is the process of
studying customer data accumulated across
departments in a company, for assessing,
understanding and interpreting customer behavior
across the various stages in their buying journey.

• The basic concept is simple enough. You have data –>

you use technology to run some analytics on it –> you
get some actionable insight from it which will help
you make better decisions –> that can drive
better marketing results
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Customer Analytics: Goals
• To create a single, accurate view of a customer
to make decisions about
– how best to acquire and retain customers,
– identify high-value customers and proactively
interact with them. (Pareto)

• The better the understanding of a

– customer's buying habits and lifestyle preferences,
– more accurate predictive behaviors become and
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the better the customer journey becomes.
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Customer Analytics Framework:

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Know your Customers
• Who are our customers – their age, demographic,
general location, purchasing capability etc. ?

• What is their preferred mode of purchase?

• What is their preferred mode of communication?

• What are their preferred touch points at different

stages of the buyers’ journey?
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Capture, organize, then analyze data
• Once you have identified the data you want to
- Collect and the sources from where to collect them,
- Collate as much data as is relevant to your goals.
- Analyze the data
- Generate Insights
- Decision Making

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Define Outcomes:
• What has happened (descriptive),

• Why it happened (diagnostic),

• What may happen in the future (predictive)

• Answers to specific questions and possible

responses (prescriptive), or recommendations
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How Netflix uses analytics for customer retention?
• With over 130 million subscribers across the
globe, Netflix gathers data from people of all
walks of life.

• Through offering data backed comparison's,

personalized choices of content, Netflix keeps
its customers or subscribers glued to its
platform.

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How Amazon uses data for enhancing customer experience

• Through a strong recommendation engine, that

feeds on browsing data from users, Amazon helps
its users make convenient buying decisions
instead of getting lost in the huge variety it offers.

• It gathers data about what you explore on the

site, time spent browsing each page and much
more, to build a 360-degree view of the customer
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How Citibank uses customer data for retention and
new user acquisition
• They do it is by processing and analyzing customer
data combined with machine learning algorithms to
pitch promotional spending.

• Additionally, they keep track of all transactional

records to identify anomalies such as incorrect or
fraudulent charges, if any.

• Spotting such glitches early on or even before it

occurs, using predictiveIMS modelling.
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Customer Analytics: Enablers
• Increase response rates, customer loyalty and, ultimately, ROI by
contacting the right customers with highly relevant offers and
messages.

• Reduce campaign costs by targeting those customers most likely

to respond.

• Decrease churn by accurately predicting customers most likely to

leave and developing the right proactive campaigns to retain
them.

• Deliver the right message by segmenting customers more

effectively and better understanding
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CHURN & RETENTION RATES

Churn Rate:
How many customers are lost in a given period?
Ex. If a bank loses 3% of its accounts in a year
then the rate is 3% churn per annum.

Retention Rate:
100 minus the churn rate, e.g. 100% –
3% = 97%.

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Consumer Analytics: Actions and Activities
Gathering data: Pull together customer purchase records,
transactional data, surveys, and observational data at all
phases of a customer’s journey.

Using mathematical models to detect patterns: There are

many number crunching, statistical analysis, and
advanced modeling techniques that help turn raw data
into more meaningful chunks.

Finding the insight: From the patterns of the data come

insights
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into causes of customer
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Consumer Analytics: Actions and Activities
Supporting decisions: Understanding past behavior
helps predict future customer behavior from data
instead of relying on intuition.

- Optimizing the customer experience: Detect problems with

features, purchases, and the product or service experience.

- Mapping the customer journey: From considering,

purchasing, and engaging with products and services,
mapping the touchpoints and pain points helps identify
opportunities for improvement.
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CA and Firm Performance
• Customer analytics use creates a unique source
of knowledge firms can use to increase
the effectiveness of their decisions.
• Ex. 1 A large number of Big Bazaar shoppers
purchase products through shopper cards, which
provides the firm with information about
customers’ shopping baskets.
Ex. Butter : Loyal and Profitable
• Ex. 3: Mylan Consumer Health: Tracks cold and
flu outbreaks
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CA & Perception Gap

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Consumer Behaviour & Decision Making: Zomato (Food Aggre.)

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Impact of Digital on Consumer Behaviour:
Content grazing
- Content grazing occurs when we’re maybe doing two
different things at once. The classic example is watching a
television show whilst checking your email on the phone.

Social spiderwebbing
- This is where we might share our purchase decisions
with our friends.
- So, for example, you've bought the shoes and you now
decide to share your experience on Facebook or Twitter.
Other people read about your experience, and this in
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Investigative spiderwebbing
This is a multichannel approach.

Ex. Suppose you are watching a movie. You're

watching Batman and then you want to know what else
has Christian Bale been in. So, whilst the movie is playing,
you're searching for that on your tablet or mobile device.

Or maybe you've seen a pair of shoes that you really like

during a television advert and you go on your device to
search. And you find more details about that on your
device
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while you're still consuming
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Quantum journey

• Technology allows us to jump around.

Ex. Consider investigative spiderwebbing again.

• Seeing advertisement, searching for shoes on mobile,

comparisons on office desktop, and purchase on your tab or PC.

• So the customer journey is not linear. We jump around all the

time because technology allows us to do so. And this is what
Apple and Google, in their operating systems, are really trying to
encourage.

• Technology like Handoff makes it easier for us to switch from one

device to another.
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User Generated Content:

- Another way technology has influenced

consumer behavior is allowing consumers to
generate their own content.

- Ex. YouTube don't really produce anything

themselves. It’s a platform. And now 80% of all
online content is user-generated.

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User Generated Content : UVP
• Influential
- Recent research indicates that among Millennials, user-generated
content is 20% more influential when it comes to purchasing.

• Memorable
- User-generated content is seen as being 35% more memorable. So, as
marketers, one of our jobs is to produce memorable content but also to
give customers the ability to also produce content.

• Trusted
- User-generated content is 50% more trusted than other types of media
and information. We may have brand spokespeople promoting our
brand.
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Competitive Intelligence
• Competitive Intelligence is the process of
generating information about a firm's
environment, competitor dynamics, and non-
market factors for developing actionable
insights and competitive advantage.

– Firms Environment
– Competitive Dynamics
– Non-Market Factors
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Competitive Intelligence
• Competitive Dynamics includes the evolution of a firm
or industry and strategic moves of customers,
competitors, partners, suppliers.

• Non-market factors include factors like country

culture, government-industry regulations (tariffs and
taxes).

• Firm environments include political-economic, social,

technological, economic, ecological, and competitive
environments.
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Competitive Intelligence Sources
Sources Formal Informal Published Unpublished

Internal - Salesforce - Cross - Sales Quotas - New Hires

- Market Research Department. - Marketing & Sales
Interactions Reports
- CRM, MkIS, MDSS

External - Competitors - Customers - Govt. Publications - Private

- Suppliers - Client Meetings - Periodicals and Agencies
- Business Associates - Competitors Newspapers
- Secret Agents - Social Media - Trade Associations
- Dummy Employees - Physical - Market Research
Evidence Projects

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 Thank you !

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