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Turning Customer Behavior into Business Behaviors that Drive ROI

Turning Customer Behavior into Business Behaviors that Drive ROI. Agenda. Four Business Models + One Four Stages of Customer Life Cycle Predictive Analytics Summary. Four Business Models Online Commerce Advertising Lead generation Customer Support. The Four Stages of the

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Turning Customer Behavior into Business Behaviors that Drive ROI

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  1. Turning Customer Behavior into Business Behaviors that Drive ROI

  2. Agenda Four Business Models + One Four Stages of Customer Life Cycle Predictive Analytics Summary

  3. Four Business Models • Online Commerce • Advertising • Lead generation • Customer Support

  4. The Four Stages of the • Customer Life Cycle • Reach

  5. Reach “Although you might have developed the best communications material on the market, if your Web site does not deliver on the promise made in this material you will experience large dropout volumes. Reach techniques must reflect the purpose and capability of Web sites -- because anything else misleads people as to the content of the site.” Hurol Inan in Measuring the Success of your Web site

  6. KPI’s Recommended for Measuring Reach • Overall traffic Volume • Ratio of new to Returning Visitors • Percentage of New Visitors • Campaign Metrics • Interested Visitor Share

  7. The Four Stages of the • Customer Life Cycle • Reach • Acquisition

  8. KPI’s Recommended for Measuring Acquisition • Average number of page views • Page "stickiness" • Response rates for all active campaigns • The top three to five referring domains • Average time spent on site

  9. The Four Stages of the • Customer Life Cycle • Reach • Acquisition • Conversion

  10. KPI’s Recommended for Measuring Conversion • Conversion rates for any processes • Campaign conversion rate for any active campaigns • Cost-per-conversion for the campaigns • Segment conversion rates

  11. KPI’s Recommended for Measuring Conversion (Additional when selling on-line) • Your site-wide conversion rate • New and repeat site-wide customer conversion rates • Percent of orders from new and returning customers • Site-wide average order value • Sales per visitor

  12. The Four Stages of the • Customer Life Cycle • Reach • Acquisition • Conversion • Retention

  13. KPI’s Recommended for Measuring Retention • The ratio of daily to monthly returning visitors • Percent returning visitors • Loyalty measurements for groups of returning • visitors • Activities of "retained" visitors

  14. TURNING CUSTOMER INTERACTIONS INTO MONEY • PREDICITVE ANALYTICS • Using existing web analytics data and applying it toward anticipated future behaviors

  15. Using Predictive Analytics to Achieve Greater ROI • Smart Companies: • Measure performance improvement • Conduct business case models for IT • investments, such as analytics

  16. Defining Predictive Analytics And its Affect on ROI • Aggregate knowledge is good, but individual • knowledge is better. • Predictive analytics help manage risk and • identity fraud • Building deeper engagement

  17. The ROI Cycle leverages leanings‘ across the entire customer lifecycle providing a more complete picture of the ROI. The Continuous ROI Cycle

  18. CASE STUDY T. ROWE PRICE • Started analytics to keep up with • competitors using online trading • Analytics could not provide a complete • picture of what the customer was • worth to the Company, or what they • would be worth in the future

  19. IMPLEMENTATION • Took existing data and parsed it into more • actionable segments • Combined this data with qualitative • techniques that defined primary, secondary • and tertiary personas • Company now had enough data to accurately • predict the value of newly defined segments

  20. OUTCOME • By understanding their current and future • needs , we could predict what would be • in both the customers’ and company's best • Interest • Predictive analytics has led to new • approaches for a variety of customer • segments

  21. Competing on Predictive Analytics • Establish Well-Defined • Business Goals • Define, Monitor and • Continually Measure ROI

  22. Getting Started with Your Predictive Analytics Program Three Questions To Ask Today... 1. What is my number one customer-based business goal? 2. What does my most valuable customer look like today and what will they look like tomorrow? 3. Who has the potential to be my most valuable customer?

  23. Getting Started with Your Predictive Analytics Program Five Things To Do Tomorrow... • Create a customer persona. • Craft marketing campaigns that will grow the value of that persona. • Identify your analytics champion. • Rank five customer-based business goals. • Fine tune the definition of the numbers that will prove that • they’ve been achieved.

  24. The Business Imperative for Predictive Analytics Competing on predictive analytics has never been more urgent. Wide-ranging changes in nearly every aspect of business Makes customer behavior a critical “ need-to-know” application.

  25. Four Business Models + 1 Intranet Analytics: Promoting Best Practices to Business Stakeholders  • An analytical understanding of how people use their intranet is the most important way business leaders can learn how to improve its return on this investment

  26. Thank You

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