Posted by David Haertzen
Your organization is likely to benefit from improved customer insight. A greater understanding of customers can help to improve the bottom line by boosting revenues, controlling costs and addressing risks. Organizations are using customer modeling and analytics in profitable ways, for example:
| CapitalOne | CapitalOne rose from being a local bank to being a top 5 national bank by using analytics to understand its customers and to make better decisions. |
| Obama 2012 Campaign | President Obama’s analytics team produced voter “persuadability” scores that show the probability that a voter can be persuaded to change their vote based on campaign messages. |
| Royal Shakespeare Company | The Royal Shakespeare used analytics to increase the number of frequently attendees by 70%. |
Who are Customers?
Customers are parties that may consume products and services. By party I mean people whether individuals, households organizations. Parties play roles such as: consumer, influencer, employee, partner, taxpayer, prisoner and voter. Using this larger perspective on customers will give your organization the flexibility to extend the benefits of analytics.
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Data and Analytical Models
To better understand customers we build models – both data models and analytical models.
- Data Models are representations, usually through graphical means, of facts, statistics, or items of information. Data models may be used to: understand data, communicate the structure of data and design data structures.
- Analytical Models are representations of reality coupled with algorithms that produce results such as: classifications, predictions, optimizations or recommendations. This conceptual data model identifies data subjects that describe customers and enables analysis.
The complete article can be found at Infogoal.com.