Data Talks Blog Post #4
How Useful is Your Customer Base?
The efficacy of a customer base can make or break a business, much like the crucial strategies in a high-stakes cricket match or an intense football game. At the heart of our data analytics approach with clients lies a meticulous examination of their customer data's accuracy, validity, usability, and richness. Think of it as the detailed scouting of a sports team, where every player's skill is scrutinized. In our domain, the most valuable player is the customer's mobile number.
A recent exploration into a fashion retail client's data – a trove of about a million customers accumulated over 7-8 years – unveiled some eye-opening insights. This client, who places significant emphasis on engaging customers via WhatsApp & SMS campaigns and has an effective loyalty points program, clearly operates in a thriving business environment. Yet, the astute CRM and Marketing team was simultaneously cautious and concerned, as their dedicated efforts don't seem to reflect proportionately in business outcomes.
Our analytics delved deep and identified approximately 3 lakh core customers – the real champions who either shop frequently, spend more, or both, contributing a whopping 75% to the company's revenue. But here's the twist in the tale: a staggering 45% of these top-tier customers were missing out on WhatsApp & SMS campaigns. It's like, unknowingly, in a cricket team, the star batsmen being sidelined or a football team not passing the ball to their best strikers.
Recognizing this gap is like catching a crucial missing piece in a game plan. The company had worked hard on building a customer database, yet unknowingly, the messaging wasn't effectively reaching those who mattered the most. Now, with this newfound awareness, the client’s focus shifts to understanding the why and how of this communication breakdown and strategizing a more targeted approach.
This revelation is not just about correcting a course; it's about optimizing resources and ensuring that every rupee spent on campaigns translates into a higher conversion rate. The less engaged customers will no longer overshadow the significant contributors, ensuring a more balanced and effective marketing strategy.
Our commitment to incorporating the globally latest in analytics & machine learning is about more than just numbers; it's about driving tangible profit and success for our clients. This is the essence of 'Profit with Phinomial' – turning data insights into business victories.