What is Customer Analytics?
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Harnessing the power of raw data

Today, virtually every person in America leaves a “data trail” wherever they go. Whenever someone uses a credit card, subscribes to a magazine, writes a check, fills out a survey, registers to vote, or changes the channel on cable TV, the information is collected, stored, and sold. By analyzing the data, it’s possible to know an individual’s specific buying habits and lifestyle preferences – and with enough data, it’s possible to develop detailed customer profiles on virtually everyone in the United States.

To perform data analysis at this level, millions of transactions and pieces of information must be cataloged, cross-referenced, analyzed, and continually updated. For this reason, the databases at Buxton house more consumer information than practically any other place on Earth. The Buxton information technology center manages approximately 250 separate databases – purchased from a wide variety of high-quality sources – totaling nearly 30 terabytes of data. To put that number in perspective, the U.S. Library of Congress contains around 20 terabytes of information.

The power of psychographic analysis

Although the terms “demographics” and “psychographics” are commonly used interchangeably, they are actually very different. Demographic data identifies people by broad categories such as gender, race, age, income, and educational level. This information tells us very little about who the customer actually is and what sets him or her apart. Two people can have the exact same demographic profile but be totally different people.

Buxton is leading the way in the use of psychographics, which delves far deeper than mere demographics. Rather than viewing the customer as a small part of a larger group, psychographic analysis views each customer as a unique individual. Which magazines does this person read? To what brands is he or she most loyal? What distance will the person drive to make a purchase? To perform psychographic analysis, Buxton breaks the information down into more than 4,500 categories, including lifestyle choices, hobbies, purchasing behavior, and media preferences.

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