Today’s new age millennial customers have started to influence in a big way retailers carry out their business. The biggest challenge that every retailer is facing today is managing connected customer’s interactions with the brand and the store. The best approach to tackle this challenge is to adopt customer centricity to move closer to understanding and responding to customer expectations and the onus now lies on the marketing team within the retail organization to deliver these expectations. According to a recent study, majority of best in class companies have their Chief Marketing Officer or the CMO owning the customer data and responsible for creating a new customer experience.
A Data Driven customer centric approach to Marketing can help CMOs measure their promotion effectiveness, campaign efficiency, understand the most profitable customer segments and target those customer segments with bundled promotion offers.
Achieving Customer centricity requires visibility to the marketing performance across every touch point in the customer lifecycle. This visibility can be provided using the concept of a Control tower for marketing which serves as a central hub for the marketing team to capture and process customer data and use them for strategic and tactical decision making. Putting the right analytics in place will help the CMO’s drive a data driven approach to marketing. The key components of these Marketing Control towers are mentioned below –
Promotion Analysis helps correlate Sales Data of an item with respect to Regular Selling Price and Promotion Prices and determine the Lift created on Sales and Transactions due to a Promotional Event
Campaign analytics works two fold – one developing a system for campaign data management and reporting and second will be to measure the success of campaign by metrics such as Response Rates, New customer acquisitions and analysis of Pre and Post Campaign Analysis
Basket analysis helps understand customers by Basket size, Identify volume of transactions on Weekdays and Weekend and Recognize unique items bought in high volume by analyzing invoice penetration rate
Segmentation allows retailers to Classifying major customer segments for targeted promotions and understand Who are my customers, Where are my customers coming from and What are they buying?
Market Basket Analysis understands the relation between a customer ID and the Transaction ID i.e, data involved in the transaction at point-of-sale, Key benefits are product bundling, cross sell/upsell opportunities and understand space adjacencies
RFM Analysis is primarily used to measure customer behaviour by measuring recency and frequency of visits and total monetary value of transactions and the best benefit would be reduce to achieve target ROI by contacting only a fraction of your customer base
Analytical insights from these Marketing Control Towers can provide a meaningful relationship between the marketers and their data in uncovering customer spending patterns and quantifying the marketing efforts to the right customer segments
To know more about Zensar’s Marketing Control Towers. Attend the webinar on 27 August, 2013. Click Here