Customer Data Analytics: Core Functionality, Integrations, and Required Tools

Customer Data Analytics - ScienceSoft

With 32-year experience in providing data analytics services, ScienceSoft advises on, implements and supports custom and platform-based customer analytics solutions.

Customer analytics: summary

Customer analytics is the process of collecting and analyzing customer data to understand customers’ needs, price sensitivity, doubts in choosing products/services, etc., and develop targeted marketing and sales activities. 

4 Types of customer data for analysis

Transactional data

Analysis of such data as product/service purchases, returns, reservations, etc. gives insights into customers’ spending habits, payment method preference, the share of wallet, etc.

Data about service/product use

Understanding product/service utilization patterns (by analyzing log data, IoT data, requests from customer support service, etc.) helps businesses create a better customer experience and enhance a product/service portfolio.

Web behavior data

Analysis of pages opened by customers, how they scroll down the page, places where they click on purchase/return, etc. It helps identify key points in a customer journey (where customers get stuck/leave/convert), assess the performance of specific pages, and tailor them accordingly.

Data from customer-created texts

Analysis of customers’ online reviews or social media posts about a product/service helps identify customer preferences, reveal customer complaints and problems to solve and recognize customer attitude to products/services in particular and company brand in general.

4 types of analytics for customer data

Descriptive customer analytics

Discovering what has happened or what is currently happening in business by analyzing historical and real-time customer-related data.

Example: Revealing a drop in sales last month, an increase in the customer attrition rate.

Diagnostic customer analytics

Finding roots of a business problem by analyzing internal and external customer-related data with such techniques as data discovery, data mining, etc.

Example: Drilling down on sales and gross profit to define the reason for missing the net profit target.

Predictive customer analytics

Making predictions and forecasts using data mining and machine learning techniques on historical and real-time customer data.

Example: Estimation of how much revenue can be gained if customers are offered a discount for their next purchase upon certain conditions.

Prescriptive customer analytics

Suggesting the best possible course of action based on the predictive analytics’ estimation of possible future events.

Example: An analytics system recommends offering a 5% coupon to a particular customer segment to get the maximum revenue increase from it.

Customer analytics solution: core functionality

Customer data collection and management

Customer data collection and management

  • Automatic collection of customer data across different customer touchpoints (sales channels, social media, customer surveys, customer service centers, etc.) and transaction channels (online and offline stores, marketplaces) for analysis and segmentation.
  • Consolidation of customer profiles across various data source systems to get a 360° view of each customer.

Customer segmentation

Customer segmentation

  • Segmenting customers based on geographic criteria (location, time zone, language, etc.).
  • Demographic customer segmentation (gender, age, income, marital status, etc.).
  • Behavior-based segmenting of customers (purchasing patterns, attributes sought, etc.)
  • Segmenting customers based on psychographic behavior (lifestyle habits, interests, personal opinions and beliefs, etc.).
  • Automated dynamic customer segmentation based on the pre-defined segmentation criteria.

Customer behavior analytics and prediction

Customer behavior analytics and prediction

  • Customer data mining and customer behavior modeling to predict customer response to marketing campaigns, brand and category adoption, customer movement across segments, etc.
  • Customer behavior analysis across a sales funnel to identify customer experience bottlenecks.
  • Customer satisfaction analysis to define key factors that influence customer satisfaction rates, customer service experiences, sales/marketing campaign success, etc.
  • Customer churn analysis.
  • Customer response analysis to assess customer acquisition/retention policies and strategies effectiveness.
  • Customer sentiment analysis to define factors critical for conversion (e.g., delivery and customer service terms).
  • Customer life span prediction with micro-segmentation and predictive modeling based on customer purchase history, demographics, etc.
  • Customizable reporting dashboards, e.g., for specific customer segments.

Advanced analytics for customer relationship management

Advanced analytics for customer relationship management

Pre-built and custom ML models for:

  • Recommending marketing/sales campaigns for specific customer segments, cross-sell and upsell campaigns, etc.
  • Identifying customers that are most likely to churn, key factors that influence customer decisions, key churn drivers, etc. for developing highly customized customer acquisition/retention strategies.
  • Identifying optimal (most attractive and profitable) store locations.
  • Identifying the most profitable customers and predicting customer lifetime value for designing new pricing strategies.

Need to Implement a Full-Scale Customer Analytics Solution?

ScienceSoft’s data analytics experts are ready to design and implement an effective customer analytics solution to help you increase sales efficiency, optimize your product/service portfolio and build customer loyalty.

Customer analytics solution: valuable integrations

Customer analytics solution: valuable integrations - ScienceSoft

CRM software

Core integration

Automated transfer of CRM data (online chat sessions, phone calls, purchase records, emails, surveys, etc.) to a customer analytics solution to build customer knowledge and discover new sales opportunities. Automated transfer of analytics insights to CRM to be used by marketing, sales, and other customer-facing teams. For example, email analytics results (analysis of what emails customers opened, what links were clicked on, etc.) help define the level of customer engagement and focus the sales efforts accordingly.

Ecommerce platform

Core integration

Automatic loading of ecommerce data (user behavior data, product data, etc.) to a customer analytics solution helps companies track metrics like ecommerce site traffic, conversion rate by devices (PC/tablet/mobile), average order value, revenue by customer group, advertising channel performance, return on ad spend, etc. This data helps determine issues breaking the conversion funnel, track the performance of marketing campaigns, and more.

Point of sale system

Core integration

Point of sale systems feed customer analytics software with transactional data. When analyzed, this data provides insights into customers’ preferences about products/services, payment methods, and purchase time and helps recognize popular product/service bundles.

Social media accounts

Social media accounts supply customer analytics software with customer sentiment on product/service/brand/etc. Analysis of such data allows companies to assess the success of marketing/sales campaigns, measure brand awareness, identify unmet customer needs ahead of competitors, spot emerging consumer trends, and much more.

Marketing software

With automated loading of insights from customer analytics software (data on the most profitable customer segments, the most/least popular products/services and product bundles, key churn drivers, etc.) to marketing software, marketing teams can create personalized marketing campaigns for attracting and converting profitable customers at scale.

Factors determining customer analytics solution success

Focus on data governance

To provide the safety of customer data under analysis and comply with relevant regulations (GDPR, HIPAA, etc.), make sure the solution offers comprehensive security features: data anonymization, end-to-end data encryption, fine-grained access control, data masking, etc. Additionally, to ensure the quality of analytics insights, implement the data quality management framework, which involves customer data profiling, cleansing and enrichment, master data management mapping and modeling, etc.

Powerful reporting and visualization capabilities

To easily track the most relevant KPIs (conversion rate, CLTV, CSAT, churn rate, loyalty rate, net promoter score, etc.), visualize customer interactions across various touchpoints, collaborate and share key analytics findings with colleagues.

Advanced analytics capabilities

Predictive and prescriptive analytics - to get more accurate insights into customer behavior, discover root causes of customer churn, design highly personalized customer retention campaigns, enable automatic generation of next best offers for customers and action points for sales and marketing specialists, etc.

Customer analytics benefits

Short-term:

  • Deliberate customer segmentation to better target customer needs and launch personalized promotional campaigns (personalized discounts, early access to new products).
  • Better understanding of customer journeys (what products and when customers buy, what channels they prefer, etc.)
  • Increased conversion rates.

Mid-term:

  • Increased order value (via upsells and cross-sells) due to targeted marketing campaigns and customer response prediction.
  • Reduced bounce rate due to fewer frictions during customer journeys.
  • Accurate sales forecasting.

Long-term:

  • Improved CSAT.
  • Increased customer retention and loyalty.
  • Optimized product portfolio to better satisfy consumer needs.

Customer data analytics solution: cost factors and ROI

Factors determining customer analytics solution implementation cost:

  • Number of customer data sources (CRM, social media, website, etc.) and customer data complexity (structured, semi-structured, unstructured, real-time, etc.).
  • Customer data volume.
  • Complexity of customer data cleaning.
  • Complexity of customer data analysis, ML and AI capabilities.
  • Data security requirements.
  • User training, if necessary.

Major financial outcomes of implementing customer analytics:

  • Increased sales to new and existing customers due to identifying factors that affect sales and by targeting the highest-value customers in terms of order size, retention rate and profitability.
  • Lowered customer acquisition costs due to targeted advertising strategies and marketing automation.
  • Reduced customer churn due to early identification of potential churners and applying retention tactics.
  • Marketing campaigns with higher ROI due to determining the most effective marketing channels and employing personalized marketing targeting.

Tools to build a customer analytics solution

Microsoft Power BI

Features

  • Integrating and analyzing customer data from 120+ pre-built data sources for a 360-degree customer view, customer segmentation and profiling.
  • Integrating with Azure Data Lake Storage Gen 2 to enable collaboration on customer data across Power BI and Azure data services.
  • AI-based customer data preparation and analytics with the Power BI data flows and Power BI Quick Insights features.
  • Machine learning modeling to anticipate customer demand, predict customer churn and customer response to marketing campaigns, identify next best product recommendation, etc.
  • Customer data discovery with pre-built and custom visuals.
  • Role-based collaborating on reports, dashboards and datasets with Power BI workspaces.
  • Securing customer data with data sensitivity labeling, end-to-end data encryption, and real-time data access monitoring.
  • Available as a SaaS option running in the Azure cloud or as an on-premises option in Power BI Report Server, mobile capabilities.

Watch our Power BI demo.

Best for

Flexible analytics of all customer interaction channels and customer lifecycle stages in B2C and B2B sales.

Pricing

  • Power BI Desktop – free,
  • Power BI Pro - $9.99/user/month,
  • Power BI Premium - $20/user/month, $4,995/dedicated storage and compute resources/month

Salesforce Interaction Studio

Features

  • Tracking visitors with unique tracking IDs at every touchpoint on the website/mobile app in real time.
  • Identifying individuals across digital channels, matching anonymous and known users to named profiles, tailoring customer identity-matching policies.
  • Storing customer data across various sources and consolidating customer profiles across various customer touchpoints (online and offline stores, interactions with call center agents, in-store/in-branch associates, at ATMs, etc.).
  • Automated cataloging of all products and content for ML-powered product recommendations for customers.
  • Real-time customer segmentation and AI-driven next best offer/action.
  • Monitoring of customer digital behavior under various marketing activities/offerings.
  • Triggering personalized messages and recommendations on the most relevant products, content, categories, etc. based on customer behavior.

Best for

Digital experience analysis and optimization.

Pricing

Prices are available by direct request to Salesforce.

Looker

Features

  • Unifying customer data from customer touchpoints and across various channels for analysis and segmentation.
  • Tracking customer KPIs (revenue, shopping cart abandonment, conversion rates, etc.).
  • Identifying consumer trends and updating prices based on predictive modeling of supply and demand.
  • Tracking the behavior of best customers vs. one-time buyers to design new promotions and marketing tactics.
  • Automatic identification of top performers in product categories.
  • Configurable alerting capabilities (e.g., setting up rules for receiving email alerts when product restocking is needed).

Best for

Ecommerce analytics

Pricing

Prices are available by direct request to Looker.

When custom customer analytics software is a viable option

ScienceSoft recommends custom customer analytics software development if your company:

  • Needs software fully adapted to your specific requirements (custom visualization, particular data refresh rate, etc.), which is not possible with the basic functionality scope of packaged customer analytics solutions.
  • Needs a customer analytics solution, which allows for quick system evolution (for example, adding new functional modules to address the newly arisen business problems).

Customer analytics software implementation

With 32-year expertise in data analytics, ScienceSoft helps companies implement cost-effective customer analytics solutions to consolidate customer data into centralized storage, segment and analyze customers to target them with relevant offers and maximize customer lifetime value.

Customer analytics software consulting

  • Customer analytics needs analysis.
  • Customer analytics solution conceptualization.
  • For platform-based solutions: choosing a fitting customer analytics platform and laying out the customization scope.
  • For custom solutions: outlining the optimal customer analytics solution architecture and tech stack.
  • Customer analytics solution implementation planning (milestones, risk management planning, defining KPIs for measuring customer analytics software quality, etc.).
  • Business case creation including cost estimation, time budget estimates.

Customer analytics software implementation

  • Customer analytics needs analysis and drawing up customer analytics software requirements.
  • Customer analytics solution conceptualization.
  • For custom solutions: customer analytics software architecture design.
  • Customer analytics software development/customization.
  • Customer analytics software quality assurance.
  • After-launch support and optimization.
About ScienceSoft

About ScienceSoft

ScienceSoft is an IT consulting and software development company headquartered in McKinney, TX. We provide business intelligence consulting services to help our clients turn customer data into insights beneficial for sales, marketing, product development, and customer service. Being ISO 9001 and ISO 27001 certified, we rely on a mature quality management system and guarantee cooperation with us does not pose any risks to our customers’ data security.