CUSTOMER ANALYTICS

ST. IGNATIUS INSTITUTE OF BUSINESS AND ARTS

ST. IGNATIUS TECHNICAL INSTITUTE OF BUSINESS &

ARTS
Santa Rosa Campus

TRENDS, NETWORKS, AND

CUSTOMER ANALYTICS
(Second Semester Module)
ABM | GAS | HUMSS | HE | ICT

Subject Teacher: Ms. Abigail C. Tamayo

“Reproduction of any part of the learning module in any form such as photographing and
photocopying among others is strictly prohibited without the permission or consent of the
St. Ignatius Faculty and Administration. You are also advised to refrain from posting any
photographed part of this module on social media. Any corrections, concerns and clarifications
should be addressed directly to your adviser and/or subject teacher.”

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CHAPTER 1: INTRODUCTION TO CUSTOMER ANALYTICS

LESSON 1: Customer Analytics (What it is and why it matters?)

Definition of Terms

Customer
 a person or organization that buys goods or services from a store or busines
 a person or thing of a specified kind that one has to deal with

Four types of customers

The toughest challenge that companies face today is dealing with the margin-draining games
played by some customers to gain additional discounts. Each customer type requires a
different selling approach.

The four primary customer types are:

1. Price buyers. These customers want to buy products and services only at the lowest
possible price. They are less concerned about value, differentiation or relationships.
2. Relationship buyers. These customers want to trust and have dependable relationships
with their suppliers, and they expect suppliers to take good care of them.

3. Value buyers. These customers understand value and want suppliers to be able to
provide the most value in their relations.
4. Poker player buyers. These are relationship or value buyers who have learned that if
they act like a price buyer, they can get high value for low prices.

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Analytics
 the systematic computational analysis of data or statistics
 information resulting from the systematic analysis of data or statistics

Customer Service Analytics

- is the process of collecting and analyzing customer feedback to discover valuable
insights. It can help you better understand your customers’ needs and expectations, lead
to improved customer experience strategies and increase customer loyalty and retention.

With more options than ever to interact with companies, customers crave fast, efficient, and
personalized experiences. However, customers say that most companies fall short when it comes
to meeting their expectations. Even more alarming is that 32% would stop doing business with a
brand after one bad experience.

We all know that customer satisfaction is key to improve brand loyalty and create a positive
reputation that will ultimately lead to more sales opportunities. But how can you close the gap
between what customers expect from customer service and the quality of support they are
actually getting? This is where customer service analytics comes into play.

Building a solid strategy, supported by data and analytics, is essential to understand your clients,
identify recurring issues (and fix them), and get actionable insights to improve customer
retention.

Customer Analytics
- refers to the processes and technologies that give organizations the customer insight
necessary to deliver offers that are anticipated, relevant and timely.
- As the backbone of all marketing activities, customer analytics comprises techniques
such as predictive modeling, data visualization, information management and
segmentation.
- it is also called customer data analytics, is the systematic examination of a company's
customer information and customer behavior to identify, attract and retain the most
profitable customers.

Customer-centric
- is an approach to doing business that focuses on providing a positive customer experience
both at the point of sale and after the sale in order to drive profit and gain competitive
advantage.

Statistical Analysis Solution

SAS (previously "Statistical Analysis System") is a statistical software suite developed by SAS
Institute for data management, advanced analytics, multivariate analysis, business intelligence,
criminal investigation, and predictive analytics.

LESSON ASSESSMENT

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Complete the graphic organizer below.

Ex.
How satisfied are you
with our products/services?

QUESTIONS YOU SHOULD

CONSIDER WITH REGARDS
TO YOUR CUSTOMERS

Lesson 2: Why Customer Analytics Matters?

Customers have access to information anywhere, anytime including where to shop, what to buy,
how much to pay and so on. This makes it increasingly important to utilize predictive analytics
and data to forecast how customers will behave when interacting with brands.

The goal of customer analytics is to create a single, accurate view of a customer to make
decisions about how best to acquire and retain customers, identify high-value customers and

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proactively interact with them. The better the understanding of a customer's buying habits and
lifestyle preferences, the more accurate predictive behaviors become and the better the customer
journey becomes. Without large amounts of accurate data, any insight derived from analysis
could be wildly inaccurate.

The Importance of Customer Analytics

Customer analytics is becoming critical. To understand why, consider this: Customers are more
empowered and connected than ever. And becoming more so. Customers have access to
information anywhere, any time – where to shop, what to buy, how much to pay, etc. That makes
it increasingly important to obtain customer insight to understand how they will behave when
interacting with your organization, so you can respond accordingly. The deeper your
understanding of customers' buying habits and lifestyle preferences, the more accurate your
predictions of future buying behaviors will be – and the more successful you will be at delivering
relevant offers that attract rather than alienate customers.

With Customer Analytics, You Can:

 Increase response rates, customer loyalty and, ultimately, ROI by contacting the
right customers with highly relevant offers and messages.

 Reduce campaign costs by targeting those customers most likely to respond.

 Decrease attrition by accurately predicting customers most likely to leave and

developing the right proactive campaigns to retain them.

 Deliver the right message by segmenting customers more effectively and better
understanding target populations.

How to Use Customer Analytics?

Customer analytics is often managed by an interdisciplinary group made up of business owners
from different departments within the company, including marketing, sales, customer service, IT
and business analysts.

To be effective and obtain the most meaningful insights, the group must first agree upon which
business metrics they need to achieve a single view of the customer experience. Multiple
instances of customer relationship management (CRM) applications, disparate enterprise
resource planning (ERP) systems and poor customer data integration (CDI) can leave group
members with a fragmented view of the customer.

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Customer Analytics Best Practices

By measuring and analyzing data using specific metrics, organizations can create successful
customer interactions. Some customer analytics best practices and common metrics that can help
drive better business decisions include:

 Targeting customers across all channels and analyzing the various ways a product or
service can be distributed.

 Assessing and understanding customers in relation to the brand and whether a customer is
satisfied. This can be achieved through a combination of quantitative and qualitative
surveys.

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 Engaging with customers at the right moment through the right channel.

 Predicting churn rate and taking actions to extend a customer's lifetime value.

 Spotting trends in big data and analyzing online behavior to increase sales.

 Maximizing the customer journey through personalized selling and market segmentation
by assessing which customers might buy one type of product versus another.

Customer Analytics Tools

Customer analytics tools are specialized apps used to gain insight into the customer experience,
understand customer behavior and to help tailor marketing campaigns to specific customer
segments.

These customer data analysis tools can be part of a CRM (Customer Relationship Management)
suite or sold as stand-alone platforms which do everything from collect customer data from
different systems in different locations (data integration) to data analysis and visualization. These
tools also connect to popular sales and marketing applications along with web content
management systems, email, social platforms and customer loyalty programs.

There are a number of customer analytics tools to choose from, provided by major CRM vendors
and niche software providers. Tools from major vendors in this space include:

 Adobe Analytics
 Google Analytics 360

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 IBM Watson Customer Experience Analytics

 SAP Hybris Marketing Cloud
 SAS Customer Intelligence 360

Some of the tools integrate features such as user segmentation with systems which personalize
websites and that build niche marketing campaigns. As more customer analytics tools emerge,
major software providers will likely improve usability further so their tools appeal to a wide
range of users, and they'll add integration and new services. In addition, advanced features will
be built into connected systems, including omnichannel content management platforms.

Customer Analytics Tools for Every Business Size

The more you know about your customers, the likelier you are to be able to make them happy.
This is the idea behind customer analytics, which according to Gartner, means using data in
order to gauge customer sentiment and satisfy their needs. The idea of using data might be a
scary one for small businesses, but customer analytics tools can be found in surprising places that
you might not even realize. From CRM to social media listening, you may already be using
customer analytics tools that can give you insight into your customers.

Speaking with customer service expert Shep Hyken, he says that no matter the size of your
company, there are tools out there that make collecting and using data easy.

The right analytics will allow you to see a trend, and in today's world where artificial intelligence
is starting to analyze data for us, it will not only spot trends, but will make predictions with
uncanny accuracy. If all you do is put in the big numbers, it will be able to predict the big trends.
But if you start putting in analytics and data from individual customers, it will start to predict
individual customer behaviour with uncanny accuracy."

Being able to collect this data on both an individual level and on a larger scale gives businesses
the opportunity to create tailor-made campaigns and direct them at specific customers, as well as
strategize their marketing and sales tactics to the business at large.

Customer Analytics Tools for Beginners

Beginner tools fall on the more affordable end of the price scale, and while they may have fewer
features dedicated solely to customer analytics, they're a good way to whet your appetite.

1. CRM: ZohoCRM

Zoho uses data from its own Zoho CRM, as well as pulling in data from other Zoho
products and third-party apps for its customer analytics. Its reporting features will give
you an overview of your most successful marketing campaigns, your most valuable
customers, and which leads need nurturing. You can also create your own formulae to get
reports tailor-made to your specific needs, as well as dashboards that will give you a
high-level overview of your data.

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Pricing: Starting at $12 per user per month.

2. Customer Service: Intercom

Intercom is a customer service and messaging platform to keep track of and stay in touch
with customers. It lets you start the communication process with live chat, and then
progress customers through to conversion with lead tracking and marketing automation.
Because it keeps track of all of this data within the system, it lets you drill down at the
customer-level to send targeted messages to customers at varying stages of the customer
journey. It also provides an overview of customer segments and Intercom activity for
bigger-picture data.

Pricing: Starting at $53/month for 250 users.

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3. Social media: Hootsuite

The social media marketing software Hootsuite is a good place to start if you're looking
to get a bit of visibility into how people are interacting with your brand. While its main
function is for content scheduling and sharing, it's more advanced solution, Hootsuite
Insights, can drill down even further to gauge customer sentiment and real-time social
media listening on a more granular scale. While you can see who is mentioning or
retweeting your brand and how your campaigns are performing via Hootsuite, Insights
will give you more data about who's saying what about your brand online.

Pricing: Hootsuite starts at $9.99 per month

4. Analytics: Kissmetrics
As a web and analytics platform, Kissmetrics provides valuable insights into web visitors
and how they're interacting with your site, including where they're clicking, and at what
stage they decide to leave. Giving you data about customer behaviour, you can create

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behavioural marketing campaigns targeted at distinct user groups. Putting unique user
data together, you'll be able to create segments of users to target based on their profiles
and which stage they're at in the customer experience journey for a higher conversion
rate.

Pricing: Starts at $220 per month.

Customer Analytics Tools for Intermediate Users

ntermediate options are a bit pricier but have more robust features that can be used for deeper
customer analysis.

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1. CRM: AgileCRM
Agile CRM is a CRM for sales and marketing that gives insights into contact-level
customer behavior. Its analytics track things like which pages users have visited, how
much time they've spent on the website, and engagement patterns, all on a per-user basis.
Using this data makes it easier to pinpoint users and engage contacts by phone or email
via the CRM.

Pricing: Free for up to 10 users, then starting at $14.99 a month

2. Customer Service: CloudCherry

CloudCherry is a customer experience and analytics tool that'll give you deep insights
into your customers. A platform for collecting customer insights via email, web, and
smartphone surveys, CloudCherry collects and collates data from every channel and
interaction that customers have with your company. The results that it delivers will give

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you actionable ways to help improve the customer experience journey and retain more
customers.

Pricing: Starting from $100 a month

3. Social media: Brand24

Brand24 is a social listening tool that gives data about conversation volume, influence
score, and sentiment analysis. Using this data makes it easier to pinpoint trends, spot
recurring customer issues, or locate the right influencers to help in your marketing or
outreach campaigns, while also targeting the right customers.

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Pricing: Starting at $49 a month.

4. Analytics: BIMEbyZendesk

The popular customer service solution Zendesk offers an analytics tool in the form of
BIME. BIME pulls in customer experience data from a variety of different sources
including Google Analytics, Adwords, Salesforce, and Zendesk, presenting it in
dashboard form to give a high-level overview of performance and customer segments.
From there, you can drill down to get useful information about the success of campaigns,
how customers interact, and when they're more likely to convert. Its forecasting and

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reporting features also help predict future sales figures to help you make the right
business decisions.

Pricing: Starting at $490 per month for 2 editors and 10 viewers.

LESSON ASSESSMENT

1.In your own words, why do you think Costumer Analytics matters? (5pts)

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2. What are the importance of Customer Analytics? (5pts)

3. What do you think is the role/function of these Costumer Analytics Tools? (3pts)

CHAPTER 2: CUSTOMER CENTRICITY

LESSON 1: What is Customer Centricity?

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“A company's primary responsibility is to serve its customers . . . Profit is not the primary goal,
but rather an essential condition for the company's continued existence.” - Peter Drucker

Types of Customer
1. Internal Customers - Individual or a group of people you may interact/service within
the organization.

Examples: IT , Cafeteria ,HR ,Training, etc.

2. External Customers - Someone who comes to your organization for product or

service – the end customer. These customer depends on the time , quality and
accuracy of your organization work.

Examples : Client, Vendors, Visitors , etc.

Customer Centricity
- involves aligning organizational resources for effectively responding to the ever-
changing nee ds of customers, while building mutually profitable relationships.” - Craig
Bailey & Kurt Jensen
- Most of us use it in the sense of putting the customer at the center. Realizing that,
regardless of time, creating customer value and really putting customers first, beyond a
simple customer focus, it generates most and longest lasting business value.
- means attending to the customer's needs.

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Customer Centricity is the only key differentiator in the current competitive market - all
competitors can obtain the technology and can make or buy the content. Customer
expectation of service is growing and growing - led by sectors beyond the Telecom and
media sectors.

Developing Customer-Centric Culture

 Put employees in the customers’ shoes
 Put employees in the shoes of a particular colleague
 Review your habits and attitude
 Be evaluated in a 360-degree approach by colleagues you frequently deal with
(through a random selection.

Customer Centric
Customer Centric Customer Centric
Service:
Product: Meet Attitude: I Care
Meet customer
customer needs Attitude
requirement

Customer Service
 is an organization's ability to supply their customers' wants and needs.

 It is about treating customers with respect, individuality and personal attention.

 It is the ability to provide a service or product in the way it has been promised.

Customer Service Elements

 Friendly Behavior
 Accuracy when providing information
 Confident
 Respectful
 Welcoming
 Honest
 Professional
 I Care attitude

Attitude Checklist
What attitudes assist in providing good service?
 Enjoy helping people
 Handle people well
 Care for your customers
 Give fair and equal treatment to all
 Be understanding of people with special needs

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Displaying Customer Service Attitude

1. Using Positive Language - Our beliefs fuel our actions. Positive beliefs lead to positive
actions and negative beliefs lead to negative actions.

2. Being Enthusiastic - Enthusiasm spells the difference between mediocrity and

accomplishment.

3. Conveying Speed or Urgency - Your problem is important.

4. Taking Ownership or Accountability - To the customer you are the company.

5. Being Courteous/Polite

Example:
• “ May I please suggest something at this point…”

• “ It was my pleasure serving you”

• “ Thank you for your patience…”

6. Voice Control
 Customers should hear warmth, enthusiasm, care and commitment in our voices.

 Don’t sound as if you know it all.

 Speak softly, clearly and courteously at all times.

 Speak with a moderate pace and with appropriate volume.

 Sentences should be short and simple

7. Problem Solving
 Know your product/work well.
 Accept responsibility to take care of the problem.
 Tell the customer what you are going to do and when you are going to do it.
 Take immediate action to solve problem.
 Follow up to ensure that problem is solved.
 Make amends if something goes wrong.
 Give options.
 Be pro-active/anticipate customers’ need.
 Create a win-win situation.

8. Rapport Building
 Respect the other person and do not take him/her for granted.
 Say please and thank you when asking Customers for information.

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 Make it easy for the other person to accept you.

 Use the Customer’s name.
 Show you are human too.
 Show your interest in the Customer’s needs.
 Let the customer know what the options are.

9. Listening
Active listening = Attending skills (being ready)
 Attend to immediate needs (if you need to finish something before giving your
full attention)
 Being available
 Eye contact
 Attentive posture
 Concentration

LESSON ASSESSMENT
1. Differentiate Internal Customer from External Customer. (5pts)

2. In your own words, how will you define Customer Centricity? (5pts)

____________________________________________________________________

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3. We can never avoid some customers that are hard to speak with. How will you handle it
in a win-win situation? (5pts)

LESSON 2: CUSTOMER CENTRIC CHARACTERISTICS

Sympathy & Empathy

Sympathy - (Capacity for) being simultaneously affected with the same feeling as another.
E.g., “I’m really angry about this too. ”

Empathy - Power of projecting one’s personality into (and so fully comprehending) the object of
contemplation.
E.g., “I can understand how upsetting this can be.”

Empathy “I understand” statement holds no meaning for the listener if it is not combined with
the emotion of the customer that you relate to!

What you may say:

“I understand how frustrating that can be/how you feel.”
“I can understand how this must have thrown your schedule off balance”

Customers don’t care about WHAT you know, until they KNOW that you care.

How can you take Ownership?

 Take Full Responsibility

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 Do what is required
 Think about solutions
 Do not be fearful of new situations

Mistakes We Make
 Trying to Justify
 Passive Listening
 Being Rigid
 Giving Excuses
 Long holds
 Contradictory statement
 Not giving alternatives
 Avoidance
 Telling them its their fault

Do’s of Customer Centricity Don’ts of Customer Centricity

Adjust your mission and vision statement Expect a brand-new mission statement to
make you a customer-centric company
Segment your customer base Overcomplicate the segmentation
Align your organization structure with the Reorganize too often and for the sake of it
segmented customer view
Make good use of technology Expect technology to build customer
relationships for you
Create new performance measures Throw out the old performance measures
Study the behaviors, attitudes and Confuse behaviors and attitudes with
demographics of your customers needs
Empower employees, particularly Allow anyone in the company to say (or
customer- facing staff for proactive think) “this is not my job/responsibility”
relationship-building
Set clear goals for achieving a defined Assume that your project/ program was
state of customer centricity by a certain completed, you ‘got there’
point in time
Encourage and seek to create customer Think of loyalty as the tenure of a
loyalty customer (duration of the relationship)
Communicate and engage all stakeholders Limit your change management efforts to
in the process the marketing, sales and customer service
functions
Try to understand the true value of your Rely on the customers past buying
customers patterns

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The Seven Characteristics of Customer-Centric Companies

1. They conceive of themselves not as a group of products, services, territories, or functions,

but as a portfolio of customers.

2. They know how much money they make or lose with each of their customers or customer
segments, and they understand why.

3. They understand the different needs of different customers and group them into
operational customer segments and sub-segments based on common needs. They thrill
their customers by delivering knockout value propositions that competitors cannot match.

4. They continually innovate by evolving their customer segments and sub- segments, and
improve their value propositions as customer needs change.

5. They organize their businesses into customer segment business units to establish clear
ownership of the customer experience and accountability for the financial performance of
each customer business unit.

6. They create a competitively unassailable customer innovation advantage based on a

customer R&D model grounded in continual experimentation at key customer touch
points.

7. They understand in precise analytic terms exactly how their different customer
relationships contribute to or subtract from the total value of the firm; because they
manage their customer portfolio on this basis, they know what to manage and where to
invest in order to create sustainable, profitable growth and drive outstanding share price
performance over time.

From Product-Focused to Customer Centric Firm

Features Product-Focused Customer Centric

Customer  Discrete transaction at  Customer life-cycle
Orientation a point in time orientation
 Event-oriented  Work with customer to
marketing solve both immediate
 Narrow Focus and long-term issues
 Build customer
understanding at each
interaction

Solution Mindset  Narrow distribution of  Broad definition of

customer value customer value
proposition proposition
 Off-the-shelf products  Bundles that combines

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 Top-down design products, services and

knowledge
 Bottom-up, designed
on the front lines

Advice  Perceived as outsider  Working as an insider

Orientation selling in  Solutions focus
 Push product  Advisory relationship
 Transactional  Team-based selling
relationship
 Individual to individual

Customer  Centrally driven  Innovation and

Interface Limited decision- authority at the front
making power in field line with customer
 Incentives based on  Incentives based on
product economics and customer economics
individual performance and team performance

Business Processes  “One size fits all”  Tailored business

processes streams
 Customization adds  Balance between
complexity customization and
complexity
 Complexity isolated
within the system

Organizational  Rigid organizational  Cross-organizational

Linkages & boundaries teaming
Metrics  Organizational silos  Joint credit
control resources  High degree of
 Limited trust across organizational trust
organizational
boundaries

LESSON ASSESSMENT

1. Differentiate Sympathy form Empathy. (5pts)

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2. Why is it important that we should aware of the Do’s and Don’ts of

Customer Centricity? (5pts)

CHAPTER 3: CUSTOMER VALUE

LESSON 1: CUSTOMER VALUE AND SATISFACTION

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Company’s first task is to – Create customers and not to create products. --- Peter F Drucker.

Customer satisfaction is worthless.

Customer loyalty is priceless. – Jeffrey Gitomer

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Customer Value
- is the level of satisfaction of your customer towards your business. The word
“Value” can have a number of definitions or meanings. It’s often related to price
for those in business, as well as for many consumers – like if I were to ask you the
value of your home when you purchased it. It could also be interpreted as the
worth of something, not necessarily tangible products either. Both products and
services have value.

- measures a product or service's worth and compares it to its possible alternatives. This
determines whether the customer feels like they received enough value for the price they
paid for the product/service. We can look at customer value as insight into buyer's
remorse.

- We can look at customer value as insight into buyer's remorse. If customers feel like the
total cost of an item outweighs its benefits, they're going to regret their purchase.
Especially if there's a competitor who's making a better offer than yours for a similar
product or service.

Some examples of customer value are:

 New functionality that customers can use to earn money

 Updates to the user interface of a product that make it easier to use it

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 Improved quality of the product, for instance faster response time, higher
availability, or increased stability
 Product services that customers enjoy using

How to Measure Customer Value

For some businesses, customer value boils down to dollars and cents. However, it's important to
remember that customers give more to your company than just what's listed on the price tag.
There are also time costs, energy costs, and emotional costs that customers weigh when making a
buying decision.

Similarly, there are different types of benefits that influence customer decisions. Some examples
include tangible benefits — like how the product will help them achieve goals — as well as
image benefits — like how owning this product or service will change one's social status in the
eyes of their peers and colleagues.

To measure customer value, we first need to recognize these different types of costs and benefits.
The graphic below can help by summarizing the factors you should be addressing when
calculating customer value.

1. Identify customer benefits.

While the graphic above highlights some general benefits, here are some specific one you can
consider:

 The quality of your product or service

 The ability to provide a better solution
 Your brand's reputation
 Your unique customer experiences
 The quality of your customer service team
 The social advantages of partnering with your business

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2. Total customer costs.

When measuring customer costs, it helps to differentiate between tangible and intangible. That
way you can calculate the total of your monetary costs and compare it to your other costs.

Tangible Costs:
 The price of your product or service
 Installation or onboarding costs
 The cost of accessing your product or service
 Maintenance costs
 Renewal costs

Intangible Costs:
 Time invested in buying your product or service
 A poor customer experiences
 Physical or emotional stress induced from buying or installing your product
 A poor brand reputation
 Time spent understanding how your product or service works

3. Find the difference between customer benefits and customer costs.

To calculate customer value, we can use the equation below.

Customer Value Formula

The formula for customer value can be written as:

(Total Customer Benefits - Total Customer Costs) = Customer Value, or (B - C = CV).

However, it's important to note that since you're working with tangible and intangible elements,
this formula won't look like your typical math equation. You'll need to determine how much
benefits like brand reputation, social status, and service convenience are worth compared to costs
like time investment, emotional stress, and physical commitment.

Additionally, customer value is going to vary depending on the segment of customers you're
analyzing. Since each person is different and has specific needs, goals, and expectations, you
might find the definition of "good value" is inconsistent. If you do, try segmenting your customer
base into different buyer personas, then calculate customer value for each group.

Now that we're familiar with customer value and how to calculate, let's look at some ways you
can generate it through customer service.

Tips for Increasing Customer Value

1. Evaluate your customer experience.

When increasing customer value, the best place to start is by analyzing your customer
experience. Create a customer journey map that outlines each step your customers take when
buying something from your business and look for interactions that might cause friction within

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the experience. Once you can visualize every action your customers are taking, it's easier to
identify opportunities to add value.

2. Focus on more than price.

For some businesses, it's tough to compete through price alone. Sometimes the cost to make a
product is static, and there's not much room for a business to lower their price tag.

But, that doesn't mean you can't create a competitive offer in your industry.

This is where you should look for alternative ways to add value to your customer experience.
Keep in mind that customer needs range from convenience to performance and there are plenty
of non-monetary benefits that can convince people to buy your product.

3. Collect customer data.

It's hard to make effective changes if you're only looking at customer value from the business
perspective. Instead, you should be centering your focus on the customer's perceived value of
your product or service.

To do that, you'll need access to quantitative and qualitative customer data. With it, management
teams will have facts and statistics that justify their proposed changes. Leadership can make
decisions confidently knowing their perception of customer value aligns with your customer
base.

Additionally, it's important to collect both quantitative and qualitative data as this will give you a
diverse data set that includes insightful statistics and captures the voice of the customer.

4. Target your most loyal customers.

You might think that because a customer is loyal, they're already receiving value from your
business. And, you'd be right.

However, just because someone is loyal to your business, that doesn't mean you can't — or
shouldn't — outsize their customer value. Encompassing additional benefits through customer
loyalty programs can generate even more value for these customers.

While this approach not only retains your most valuable audience, it acquires new customers as
well. For example, you can leverage benefits in exchange for customer advocacy. Have
customers submit feedback or write a testimonial that shares their positive experience with
potential leads. Since 93% of consumers use reviews when making buying decisions, this will
add another benefit to your customer value equation.

5. Segment your customer base.

As we mentioned earlier, customer value can vary depending on who you're surveying, and a
customer's needs and goals influences their definition of "value." Since not all customers are
alike, this creates discrepancies when measuring value at your business.

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That's why it's important to segment your customer base into specific target audiences. Start with
your buyer personas and use customer data to identify specific purchasing behaviors. Once your
groups are established, you can measure customer value for each.

LESSON ASSESSMENT

1. Read the quotation below and explain it in your own opinion. (5pts)

Company’s first task is to – Create customers and not to create products. --- Peter F
Drucker.

2. Read the quotation below and explain it in your own opinion. (5pts)

Customer satisfaction is worthless.

Customer loyalty is priceless. – Jeffrey Gitomer

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3. Why is it important to target your most loyal customers? (5pts)

CHAPTER 4: THE PHASE PROCESS

LESSON 1: PHASE 1: VISIONING

A. Who's going to lead the initiative?

It’s critical to identify a “customer insights champion” to drive the process of
generating insights from analytics. This person acts as your team lead and
manages the process.

THE TEAM LEAD/CUSTOMER INSIGHTS CHAMPION

• Champions the process internally, ensuring that the right resources are allocated to the
project and that outputs and deliverables are used across the organization.

• Ideally is curious about customers, able to identify interesting questions and creatively
identify the best available data to answer them, and can manage various teams in
different areas of the organization.

MAJOR RESPONSIBILITIES
With the support of business leadership, responsibilities include:
• Identifying key questions related to customers and use cases for insights

• Identifying potential project resources, including people who work with data and necessary
analytical resources (may be internal or external analytics people)

• Ensuring that data and analytical resources effectively communicate and the project is a priority
for all involved

• Consistently providing leadership with feedback on progress and outcomes

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• Ensuring that insights generated are shared with relevant people across the organization and
actioned to improve how customers are served

• Monitoring initiatives and making adjustments as required

B. What do we want to know about our customers?

It’s useful to think about what you actually want to know about your customers up front,
how this fit with your business strategy, and how data can drive the process.
It’s likely that conversations about customer centricity and how data can support it have
happened throughout your organization. However, it’s beneficial to set up an initial
workshop with key stakeholders and resources to discuss business challenges2 and which
questions about customers you’d like to answer.

BESIDE THE TEAM LEAD, WHO SHOULD BE INVOLVED?

During the visioning phase, it’s beneficial to involve people from different areas of your
organization. They may or may not be a part of the process, however, it’s useful to involve at
least one person from the following areas:

BUSINESS LEADERSHIP
• Drives the process and ensures that generating customer insights from data is seen as an
organizational priority

• Ensures that insights are shared with relevant people across the organization and actioned to
improve how customers are served.

DATA TEAM
• Has the technical knowledge and skills required to manage multiple data sources and
extract the necessary data for analysis. Has the best understanding of which data is available,
its quality, and how easy it is to access.

• May consist of one or more of the following: IT people, database administrators, data
analysts, developers.

ANALYTICS TEAM
• Helps shape which customer insights are generated.

• While business leadership has a vision of what they want to know about customers, the
analytics team assesses what’s possible given available data, runs the actual analysis,
interprets results, and communicates them back to the organization.

Key Considerations for Your Visioning Workshop

A clear vision of the desired business impact will help shape the process going forward in
terms sourcing data, running the actual analysis, and framing how insights are communicated
back to your organization.

CONSIDER INSIGHTS AND METRICS – AS WELL AS POTENTIAL OUTPUTS

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• Having an idea of what you want to know about your customers and what potential outputs
may look like helps shape your analysis and ensures its usefulness

• The possibilities are endless. Analytics aid operational interventions, such as simple
customer reporting that empowers front-line staff and managers to better serve customers.
More strategic interventions identify potentially profitable customers and how to better serve
them,
i.e., finding emerging trends within your customer base.

REMAIN OPEN TO NEW AVENUES OF EXPLORATION

• While a clear objective is important, engagement with data almost certainly leads to new
questions, unexpected insights, and new avenues of exploration

• Analytics is an iterative process and you may need to adjust the vision over time

INITIATE A DISCUSSION ABOUT DATA

• Start by reviewing which data is currently available and where gaps exist

• Include internal data as well as qualitative data (i.e., discussions with customers) that you
may have access to. If qualitative data is available, review it first since it may highlight key
focus areas for customer analytics

START SMALL
• Simple customer metrics and analytics, such as aggregating and summarizing customer
data, can have a strong business impact and spark new, more complex questions. There’s a
much higher chance of success if you start with manageable tasks

• Basic analysis also helps you explore existing data. In some cases, management may
believe that data is better, or more accessible, than it actually is

STAY FOCUSED ON CUSTOMERS

• It’s easy to get sidetracked and shift your focus from customer-centric to product-centric
analytics.

• Be sure to stay focused on customers

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LESSON ASSESSMENT

1. Differentiate vison from goals. (5pts)

2. Cite some characteristics of a responsible leader or team member. (5pts)

3. How important team work in a company with regards to its mission and vision? Explain
your answer. (5pts)

4. In your own opinion, what is a Leader? (5pts)

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LESSON 2: PHASE 2: ASSESS POSSIBILITIES

Do we have a single customer view?

Having a single customer view (SCV) is imperative in helping you fully

understand your customers.

WHAT'S A SINGLE CUSTOMER VIEW?

Organizations often only have a fragmented view of their customers. For example, customer
application data and transactional behavioral data may be looked at independently, but the
same customer may not be identifiable in both data sets. Likewise, an organization may not
be able to identify customers who use
multiple products or several versions of the same product.

• A single customer view links various data sources via a unique identifier that matches and
brings together all data on an individual customer. This single view creates a holistic picture
of every interaction with that customer and the services they use.

WHY IS A SINGLE CUSTOMER VIEW IMPORTANT?

• It allows your organization to understand how customers behave across multiple
touchpoints and understand their cross-product holdings.

• It allows you to understand a customer’s history, lifetime value, risk, potential exposure to
debt, propensity to buy new goods and services, and the number of products they hold.

How to Achieve a Single Customer View?

CREATING A SINGLE CUSTOMER VIEW

• Requires a customer’s product relationships to be brought together

• Can be done by matching unique identifiers, which may be a national ID number (where
available)

• If a national ID is not available, other identifiers need to be used such as matching name,
address, and date of birth

• Once individual customers have been identified, a unique customer identifier (often
described as a customer PIN) should be applied

• The identifier is then appended to every item of data relating to that customer, allowing all
data on an individual customer to be matched and brought together to create a single view or
record of that customer

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• All future data linked to that customer must include their unique identifier (i.e., when the
customer purchases a new product or service)

POTENTIAL BARRIERS TO CREATING A SINGLE CUSTOMER VIEW

• The major obstacle is customer data that’s stored on different systems in inconsistent
formats

• This is a greater problem for large, more complex organizations such as banks with various
product streams, or organizations that have undergone mergers and acquisitions which may
have multiple brands under a group umbrella

• Product-centric organizations will also find this more challenging, as adopting a single
customer view requires a customer-centric approach to customer management.
For example, banks where home loans are kept separate from retail banking, etc.

• Smaller or newer organizations with newer technology and fewer product relationships find
it easier to implement a single customer view.

Benefits of a Single Customer View

CUSTOMER BENEFITS
• Enhanced customer service levels: customers expect providers to have a complete view of
their relationships and a single customer view makes it a reality

• Reduction in duplicate communications

• Competitively priced products based on the overall customer relationship, e.g., customers
with significant savings may be offered discounted personal loan rates

• Data changes are simplified, for example, a change of address notification only requires a
single phone call

• Cross-sell and up-sell marketing offers are based on the whole customer relationship and
are more relevant

BUSINESS BENEFITS
• Customer service agents see a customer’s complete product holdings and history at a
glance, which enables them to quickly assess the relationship and take appropriate action

• Operational cost savings as a result of reductions in customer call times and cost per serve

• More accurately targeted marketing offers and incentives

• Better customer understanding drives more effective product development and ensures that
the right product propositions are delivered to the right customers at the right time

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• Valuable customer insights allow more effective customer-level marketing and improve
relationships,
cross-sell activities, product penetration, and retention

LESSON ASSESSMENT

1. Why is it important to know your customers? (5pts)

2. What challenges are you expected to face in creating single customer view? (5pts)

3. How important having Organizational Skills in an employee/employer? (5pts)

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