For this blog, I
will select a company and discuss how they can use behavioral targeting and
predictive analytics to improve customer experiences. The company I will use
for this exercise will be Schuler Books and their website www.schulerbooks.com. My analysis will
be provided as responses to the following questions:
How could your company use
behavioral targeting to improve their customer experience?
Behavioral targeting can provide Schuler Books with a lot of
information about their customers. Some of the information may include:
- Purchases made in the past
- How customers interact with the website
- Products customers may want to buy in the future
One metric Schuler Book could utilize is a RFM metric
(Recency, Frequency, Monetary value). Using a RFM metric provides a plethora of
information about customers. With it, Schuler Books can figure out how often a
particular visits their site, how much time there was between visits; and what
their purchasing history has been on the company’s website.
If Schuler Books wanted to implement this sort of metric,
the company could break each attribute down into categories using data mining
tools like JavaScript tags or CHAID (Chi-squared Automatic Interaction
Detection). For example, Schuler Books could use categorize client purchases
into:
- Purchases made in the last 30 days
- Purchases made in the last 31 to 60 days
- Purchases made in the last 61-90 days
After categories have been made for each attribute, the
company can then evaluate the data and create segments for each point the
values intersect. If each of the three attributes had three categories, this
would result in a matrix that provides 27 possible combinations. From there
Schuler Books can determine which segments are the most valuable and which ones
are the least. This type of metric requires no specialized software and
simplifies data acquisition while providing information that is ready to use
and easily understood.
How could your company use
predictive analytics to improve their customer experience?
If Schuler Books were to use predictive analytics, it would
first have tag all their pages. JavaScript tags would be a useful option for
this step. Using the data acquired, the next step would be to decide what data
is important to them. Purchases, more specifically, types of purchases could be
a possible point of focus. After
deciding on which information is most valuable, Schuler Books research various
analytic tools that would fit their needs. Two possible solutions would be:
- IBM’s Smarter Analytics
- S.A.S.’s Predictive Analytics and Data Mining
Depending on Schuler Books’ financial situation, the company
could opt for finding free analytical tools that are available. Tools like
Google Analytics may be sufficient in the amount of useful data it provides.
However, if someone is unfamiliar with collecting and analyzing website, it is
probably best enlist the services of someone like S.A.S. or IBM. These
companies have products in place that could be customized to the specific needs
of Schuler Books. The company would be able to get a more in depth customer
analysis, which would lead to an enhanced customer insight.
Very informative. I like how you categorize purchases in a specific amount of days. I think that is most effective way of keeping track of history. Good Job.
ReplyDeleteAwesome!! The company need to focus on what and when the consumer visits the site as you stated and calculations must be made and revisions to handle the traffic efficiently. Great Job!!!!!!!!!!!!!!
ReplyDeleteVery awesome measurement sitting. I think it should be able to help the company carry out a detailed analysis of their sales?
ReplyDeleteHi! Would you be interested to write an guest post for www.behavioraltargeting.biz?
ReplyDelete