Customer Analytics is what delivers that complete understanding of a retailer’s customers.
Customer Analytics, essentially, is the combining of all the immense demographic, psychographic, lifestyle characteristic and consumer spending habit information that is available - on over 120 million households in the United States - with the data a retailer collects on their own customers. (By the way, if you’re not collecting customer data in some way you’re doomed to be a retailer of the past).
Customer Analytics allows retailers to understand exactly who their best customers are, how they live their lives and what they spend their money on. It also allows the retailer to know where everyone else that looks just like these best customers live – down to the household level, as well as what dollar value these prospective households would have to an existing or potential retail location.
These Retailers of Tomorrow are also implementing CRM/Data Warehousing Solutions. A CRM/Data Warehouse Solution gives these retailers a comprehensive, on-going picture of their customer bases, tracking their activity over time. Having access to this information allows these retailers to develop effective strategies to retain customers and increase their value, analyze churn, successfully reactivate old customers, create cross selling opportunities, and analyze the effectiveness of their marketing campaigns.