Customer Analytics For Dummies

many business questions can be answered from sampling a subset of transactions or customers for a fraction of the cost and effort.

Whenever you can establish that data is ratio, you can make reasonable deductions, such as “customers are twice as satisfied

Customer Lifetime Revenue: The total top line revenue a customer generates over some “lifetime,” which can be days, months or years

An examination of revenue by customer segment usually reveals that a minority of customer segments is responsible for the majority of profits.

The basic framework is to define what you want to do, find the right ways to measure it, do something about the measures, and put processes in place to continue using customer analytics to make better business decisions.

Nominal means essentially “in name only”; if you have a name, it belongs in this category. Nominal data is qualitative data.

think of metrics as “informational,” while analytics are “strategic.”

Look to identify attitudes and psychographics

Using attitudinal variables like the Net Promoter Score (NPS) is useful to differentiate between “good” and “bad” profits.