Analytics has become crucial for effective customer loyalty programs. Leading companies are using customer data analytics across all business decisions to develop an edge over their competitors. Affine’s analytical solution offerings in Customer Relationship Management are Customer Acquisition,Customer Engagement and Customer Retention
The challenge in effective customer acquisition is to identify the right prospect profile. This identification relies on estimating the right mix of customer lifetime value and its conversion probablility.
Customer acquisition analytics leads to customer base expansion, helps in optimal use of resources, results in higher purchase frequency, and improves the revenue.
Post customer acquisition, there comes the need to maximize customer engagement. Answers to the question below can help engaging with the customer better- What products to be sold to a customer? To whom should the product be sold? When should the product be sold? And How should the product be sold?
Effective customer engagement leads to higher customer retention with lower opt-outs and un-subscriptions. It helps in developing niche marketing capabilities and improved interaction with customer and higher brand awareness amongst them.
In order to retain the existing customer base, it becomes important to keep the track of the following -Who is likely to attrite? Which of the customers that are likely to attrite are valuable customers? What kind of promotions are needed to retain them?
Effective customer retention helps in improved profitability by identifying and targeting the highest value customers. It also helps to identify the profitability drivers and factors that change customer behaviour and help in higher retention.