Customer Retention Using Data Analytics|
The logic behind using data analytics to retain customers is embedded in the
assumption that future customer actions can be predicted based on previous
behavior. But the challenge is a bit more complicated.
We've all heard about the importance of 'delighting the customer,' but this
objective can be elusive since it varies - not just from
industry-to-industry, or from product line to product line, or even from
customer to customer - all of which are true. The true magnitude of this
challenge to delight the customer comes with the understanding that it will
vary for any given time and/or situation with the same customer.
For this reason, as competition increases it becomes no longer enough to
manage relationships. Companies aspiring to lead their respective
industries must aspire to continuously improve them. This requires a
comprehensive and ongoing commitment to knowledge of the customer's evolving
business needs and objectives, a level of knowledge and customer coherence
that tabular data and reports cannot easily provide. By utilizing data
analytics and visualization tools, managers intent on retaining customers will be better
positioned to achieve their targets.