What is Customer Analytics?
Customer analytics is consumer behavioral data that is examined by a company in order to identify, attract, and retain the most profitable customers. Collecting this data involves an activity whereby a customer’s buying behavior is analyzed by a software, with the results being used by marketing professionals looking to increase revenues.
Why is Customer Analytics important?
Customer analytics, sometimes referred to as customer data analytics, is important because through better understanding of the customer’s buying habits and lifestyle preferences, business can predict and respond accordingly to future buying behaviors. As a result, having such valuable consumer insight enables business to be better equipped at delivering relevant offers that will attract rather than alienate customers.
Customer Analytics in retail
In today’s market, what drives retail business is in-store conversion. This refers to the number of store visitors vs. number of people who left with a purchase. With this in mind, the goal of customer analytics is to create a single, accurate view of the customer for better decision-making on how to acquire and retain customers.
Accurate targeting of a customer is very important for a retail business. By optimizing the path to purchase through personalized advertising content, retailers can make sure that the offers and messages for key customer segments are aligned with their most important purchase decision drivers. This can help in increasing conversions at key interaction points across the path to purchase: Deliver targeted advertising, promotions and product offers to customers that meet their individual needs and motivate them to buy.
How to collect Customer Analytics data?
One of the most effective methods used by retailers to collect customer analytics data include video-tracking of customer movements, using real-time Face Analysis Technology, to determine the age, gender and identifying unique visitors across multiple store visits.
Face Analysis Technology in conjunction with digital signage at point-of-sale. The technology captures human faces and recognize demographic information of the audiences in front of the digital screen. Other contextual information captured as insight through face analysis include people counting, time, location, weather etc. Retailers use this information to tailor ads to specific customers. Because ads are tailored, this technology helps retailers create smarter in-store experiences that customers enjoy, as their shopping experience is not interrupted.
What are the benefits of Customer Analytics
Customer behavior is influenced by many different factors; however, customers with similar characteristics (e.g. demographics and geography) tend to be more likely to have similar preferences compared to customers with different characteristics.
- With customer analytics, retailers can achieve the following:
Increase response rates, customer loyalty and, ultimately, ROI by making sure that highly relevant offers and messages reach the right customer.
- Minimize campaign costs by targeting those customers most likely to respond.
- Deliver the right message by segmenting customers more effectively and better understanding target populations.
Customer Analytics software
Customer analytics software is a computer program that has the ability to process customer data. It therefore provides marketing professionals with an excellent platform for defining the target group, and deciding on how to reach it. Crowdsight Toolkit is our customer analytics software, a simple to use, plug and play solution that enables businesses, in retail and digital signage industries, to detect and analyze multiple faces, providing insights into the demographic profile of customers, as well as their reactions. The software is designed to work with digital signage (or point-of-sale digital displays) and can be easily installed within minutes. For more information on Crowdsight Toolkit and our other audience measurement solutions click on the button below.