Turning data into effective customer segmentation analysis
2010-02-19
Organizations often collect data on customers, but too often do not subject it to rigorous analysis that can subsequently drive marketing strategies. An article at MarketingProfs.com recently offered some guidance on how companies can "leverage data to maximize their efforts and optimize their marketing investments."

The article points out that data-driven marketing organizations can "act and react in a more agile manner," with the advantage of customer segmentation analysis. Using data carefully, they can identify which customer segments will deliver the most profit and which have the most potential for the future.

Among the analytics that companies may need to perform, MarketingProfs lists customer profitability, customer behavior, customer lifetime value, customer retention, customer attrition, customer touch point, marketing mix modeling and marketing performance.

Organizations should decide which are important in their field, for their customers, and collect data regularly, comparing it with current strategies. As this can require analytical and technical skills, as well as proper tools, some institutions may want to turn to specialists in establishing a data infrastructure.

An earlier MarketingProfs article pointed out that these analyses can be the first step in determining customer loyalty solutions, by finding out not only whether customers are satisfied, but why or why not.

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