What is the aim of each business? Definitely to generate revenue, the main channel of which is the new and returning customers.
Nowadays marketers focus on research and data analysis to be fundamental for tracking consumer behavior. The digital platform has opened a great source to understand what are the consumers need in the future. Do you remember the Target case, when it made a cold call to one of its customers to offer women hygiene, and newborn items? The father of the high school girl who answered the call was surprised by the offer since he knew that his daughter could not be pregnant, meanwhile, after two weeks it appeared that his daughter was pregnant. How did Target know about this? Of course through data mining, since according to the consumer behavior it understood that the girl is pregnant. As told by Target statistician, the company has a customer Guest number ID, according to which they track what customers tend to buy frequently and some combinations show the probability of their state and behavior, in that case, pregnancy. This is what the giant companies are doing to predict future demands and how the customer will behave.
Your CRM should be based on the functions to gather the data and analyze it, understand your customer interests, their future wants, and make appropriate offers. Let’s look at Amazon, this huge e-commerce has a logic to understand what the customer is purchasing and makes additional offers and suggestions based on their behavior. According to the statistics 35% of Amazon’s sales are generated through the recommendation engine, which is based on the customer’s previous behavior and interests.
If the company had a data-driven marketing approach, which tracks its customer’s tastes, preferences, habits on a daily basis, it is more likely that the business generates more revenue. According to some sources, marketers who are focused on data generated 5 times more ROI.
Data mining can be one of the best sources to improve the conversion rate of the customers, as did Walmart. The company has leveraged big data analysis to develop a mobile application with predictive capabilities. The app generates the information what the customer has bought previously and wants to buy, makes a list of it by telling the position of their wants, and provides appropriate discounts. Another leveraging point is while entering the Walmart store, the app asks to pass to “Store Mode” and offers special discounts by scanning QE code by tracking the location and at the same tracking purchased items.
Consumer-centric companies are mostly data-driven since they take into consideration their wishes, tastes, and future needs.
Check Target’s full case : https://www.forbes.com/sites/kashmirhill/2012/02/16/how-target-figured-out-a-teen-girl-was-pregnant-before-her-father-did/?sh=7309bedc6668
