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 |