Business Intelligence means customer-centric approach when customer needs/propensity to buy a product is derived from the trend/pattern based on past transactions. The objective is to make right offer by a right official through appropriate channel at right time for building a long term mutually beneficial relationship with customer. Business Intelligence ensures that customer preferences/demands are matched through right resource. A regular monitoring of the process, and consultation with the business unit creates a seamless flow. The use of data analytics could be extended to align investment and resources to market opportunities and requirements.
Based on Recency, Frequency and Monetary (RFM) model, customer value scores or any other measure, endeavor is to on-board customers, moving them up the value ladder and retaining them. By combining models of acquisition, cross-selling, retention and value score a holistic view about overall relationship of the customer is arrived at. Understanding the customer is not enough, as there exists an Execution Gap between Execution Capability and Analytical Capability followed by Knowledge Gap between Analytical Capability and available customer data in terabytes.
Business Intelligence provides analysis, business trends, projections and modeling of customer behavior. Based on the empirical data of transactions, it predicts propensity of customer buying another product from the marketer. The right official assigned to the customer for cross-selling attempts to convert the lead into business sale. Another analysis of the transactions provide insight of the customers who have visited just once, twice or regular visitors but of late reduced the transaction level. Such information is also passed on to the customer interfacing official for retaining/regaining customers. The objective of business intelligence is to deep dive into loads of data to come up with strategies to retain customers.
Business Intelligence is applied not only to retain the customers but also to profile customers to understand behavioral pattern, maintain & improve profit margins, reduce customer acquisition costs and target profitable customers with right kind of offer.
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