Methodologies, Technology and Techniques
In this chapter we will introduce some methodologies, technology and techniques that can be used to analize customer data.
Customer Pipeline
How we want customers to behave:
Customer Journey
How customers behave:
Technologies
- Business Intelligence: includes strategies, technologies and information systems aiming to improve decision-making based on past performance using reporting, OLAP, Dashboards, Balanced Scorecard, Scoreboards, Data Visualization, Data Storytelling, and others.
- Data Analytics: includes strategies, technologies and information systems aiming to identify patterns and predict trends and behaviours using Data Mining, Text Mining, Machine Learning, Artificial Intelligence, Cognitive Systems and others.
- Big Data: includes strategies, technologies and information systems aiming to capture, process, store, analyse and visualize complex data sets using batch processing, streaming processing, NoSQL, HPC, MPP, In-Memory and others.
- Data Management: includes strategies, technologies and information systems aiming to provide information management capabilities using Data Governance, Data Quality, Master Data Management and others.
- Data Brokerage: includes strategies, technologies and information systems aiming to create data marketplaces for raw data or insights.
Types of analysis
Strategy | Type of analysis |
---|---|
Customer understanding | Homogeneous and heterogeneous clustering, Demographic (and others) profiling, trends and patterns,... |
Customer acquisition | Propensity analysis, factor analysis, affinity models,... |
Customer Loyalty and profitability | Propensity analysis, cross-selling and up-selling analysis, Affinity analysis, Social Analytics, Sentiment Analytics, RFM Modeling, Price elasticity, customer satisfaction analysis,... |
Customer retention | Churn Analysis, Response models, What-if Analysis,... |
Efficiency | Marketing Mix models, customer journey analysis, customer location & device usage analysis,.. |
Types of analysis - How they relate
According to Forrester:
Understanding your customer
What does it mean understanding your customer? There are different perspectives:
- Behavioral perspective. Punctuality (payment). Risk Index. Purchasing patterns. Affinity analysis. Propensity analysis. Punctuality profiling. Risk profiling. Event patterns.
- Profitability perspective. Current profitability. Future profitability. Wallet share. Profitability Profiling. Profitability Conversion.
- Lifecycle perspective. CLV. CLV profiling
- Loyalty perspective. Recency. Frequency. Monetary value. Churn. Acquisition. Retention. Increase. RFM profiles. Retention profiles. Growth profiles.
- Interest perspective. Response rate. Response modeling. Response analysis. Response profiles
- Campaign perspective. Response rate. ROI. Estimated value added. Lifting. Effectiveness of events. Profitability Cannibalization. Events Cannibalization. Event profitability. Cross-channel effectiveness.
Types of analysis and Techniques
Knowledge
Analysis | Method | Techniques | Capabilities |
---|---|---|---|
Punctuality | Querys/Reporting | Structured Procedures | Business Intelligence |
Risk index | Querys/Reporting | Structured Procedures | Business Intelligence |
Purchasing patterns | Querys/Reporting | OLAP | Business Intelligence |
Affinity Analysis | Descriptive Analysis | Basket Case Analysis | Business Analytics |
Propensivity Analysis | Descriptive Analysis | Affinity Analysis | Business Analytics |
Punctuality Profiling | Descriptive Analysis | Decision Trees, Induction Rules | Business Analytics |
Risk Profiling | Predictive Analysis | Multi-regression | Business Analytics |
Events patterns | Predictive Analysis | OLAP, Association Rules | Business Analytics |
Profitability
Analysis | Method | Techniques | Capabilities |
---|---|---|---|
Current Profitability | Querys/Reporting | Structured Procedures | Business Intelligence |
Potential Profitability | Predictive Analysis | Multi-regression | Business Analytics |
Future Profitability | Predictive Analysis | Neural Networks | Business Analytics |
Profitability Profile | Predictive Analysis | Decision Trees, Induction Rules | Business Analytics |
Profitability Conversion | Predictive Analysis | Lineal/Logistic regression | Business Analytics |
Wallet share | Predictive Analysis | Lineal/Logistic regression | Business Analytics |
Life-cycle
Analysis | Method | Techniques | Capabilities |
---|---|---|---|
CLV | Predictive Analysis | Statistics | Business Analytics |
Potential CLV | Predictive Analysis | Multi-regression | Business Analytics |
CLV Profiling | Predictive Analysis | Supervised Clustering | Business Analytics |
Loyalty
Analysis | Method | Techniques | Capabilities |
---|---|---|---|
RFM | Querys / Reporting | Structured Procedures | Business Intelligence |
Churn | Predictive Analysis | Decision Trees / Clasificación | Business Analytics |
Acquisition | Querys / Reporting | Structured Procedures | Business Intelligence |
Retention | Querys / Reporting | Structured Procedures | Business Intelligence |
Growth | Querys / Reporting | Structured Procedures | Business Intelligence |
RFM profiling | Predictive Analysis | Decision Trees, Induction Rules | Business Analytics |
Acquisition Modeling | Predictive Analysis | Neural Networks | Business Analytics |
Retention profiling | Predictive Analysis | Decision Trees, Induction Rules | Business Analytics |
Growth profiling | Predictive Analysis | Decision Trees, Induction Rules | Business Analytics |
Loyalty convertion | Predictive Analysis | Neural Networks | Business Analytics |
Interest
Analysis | Method | Techniques | Capabilities |
---|---|---|---|
Response | Predictive Analysis | Neural Networks | Business Analytics |
Response Modeling | Predictive Analysis | Neural Networks | Business Analytics |
Response Analysis | Predictive Analysis | Neural Networks | Business Analytics |
Response Profiling | Predictive Analysis | Decision Trees, Induction Rules | Business Analytics |
Campaigns
Analysis | Method | Techniques | Capabilities |
---|---|---|---|
Response Index | Predictive Analysis | Statistics | Business Analytics |
ROI | Querys / Reporting | Structured Procedures | Business Intelligence |
Expected Value-added | Predictive Analysis | Regression | Business Analytics |
Up-Selling | Querys / Reporting | Structured Procedures | Business Intelligence |
Profitability Cannibalization | Querys / Reporting | Structured Procedures | Business Intelligence |
Sales Canibalization | Querys / Reporting | Structured Procedures | Business Intelligence |
Event Profitability | Querys / Reporting | Structured Procedures | Business Intelligence |
Cross-Channel Effectivity | Querys / Reporting | Structured Procedures | Business Intelligence |
Channel Effectivity | Querys / Reporting | Structured Procedures | Business Intelligence |