- Cognitive Solutions
- 5 min read
Customer Intelligence Benefits and Its Use Cases
- Jagreet Kaur Gill
- - posted on Jan 5, 2022 7:20:07 AM
Introduction to Customer Intelligence
Businesses can not exist without their customers. The customers are essential for every business as they bring revenues. Every business is in the race to attract more customers than other businesses either by lowering the prices of their products or services, providing offers, advertising, or developing unique and loved products.
Every person is a customer of one business or another. If anybody has a bad experience with a company, they may lose trust in the company and lose its customer.
Businesses need to understand their customers and engage them. It helps the businesses to acquire new customers and keep the old ones. Happy customers are more likely to repeat business with the companies that fulfill their needs and expectations and provide good services.
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What are the challenges of Customer Intelligence?
Market changes very rapidly, and it is the need of the hour for companies to convert and retain loyal customers. A company needs to understand its customer’s interests and preferences. The main challenges that a company faces while understanding their customers are:
- How does a company know what its customers want?
- How does a company provide the best services and products to its customers?
It explores how the customers interact with the company and its website. The company must track its customer’s purchase history, behavior, time spent on particular pages to get an idea of improving their products and services.
Customer Intelligence in Business and Marketing
Customer intelligence is the analysis and collection of customer data to understand the customer needs and interests, provide the best services and make informed decisions.
In every sector, businesses can benefit from customer intelligence. The more a company knows its customers, the better it can interact with them. It allows the companies better to understand their customers’ preferences, motivations, patterns, wants, needs by combining demographic data, transactions, second-and third-party data, channel activity, and sales and marketing history. It also enables the companies to build more profound and more effective customer relationships. It is becoming a critical ingredient in making effective strategic decisions, and it’s the foundation of building future business intelligence capabilities.
Customer intelligence collects data from multiple sources and uses artificial intelligence, machine learning, business intelligence, data visualization, and predictive analytics. It helps the business develop insights around hyper-segmentation, personalization, next best action, and forecasting. These insights lead to reduced customer churn and improved customer experiences.
What is the use of Customer Intelligence?
Fig 2: Uses of Customer Intelligence
Behavioral segmentation divides the whole population into segments based on the same pattern followed by customers. Customers may have the same previously purchased products, similar reactions to messages, and similar feedback.
Apps like online food delivery use customers' locations to offer the closest restaurant to the customer. It is the easiest and effective way to customize messaging and offers.
The company will do personalized messaging and provide offers accordingly based on the customers' behavioral segments, known preferences, or buying patterns.
Modeling User Flows
User Flow is a path the user takes on a website or an app while completing the task. Businesses can monitor users’ movements through their journey with the help of customer intelligence and enable businesses to model user flows on-site and identify improvements to optimize the user flows. For example, when a person arrives at an online store, the products he searches, products added to the cart, and finally, the purchase is a user flow.
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What are the benefits of Customer Intelligence?
Using customer intelligence will benefit the company from any sector. Some of the advantages of customer intelligence are:
- Data-driven decisions: Collecting and analyzing customer data in detail will help the companies make data-informed decisions. These decisions will lead the company to take steps that will benefit its customers the most.
- Personalized Marketing: A customer intelligence system enables highly personalized customer interactions.
- Customer Satisfaction: The personalized interaction achieved from customer intelligence will help in better customer satisfaction, which helps to increase the Net Promoter Score and other attributes.
- Customer Retention: Customer intelligence will help reduce the organization's customer retention challenges.
- Keeping up with Market Changes: E-commerce and retail industries are changing very fast. It is not affordable for any company to be behind the market. Customer intelligence will make a company aware of the latest trends and people's interests.
A good customer intelligence approach will give an organization a clear view of its marketing efforts. It focuses on the customer journey, which can help the company keep track of marketing activities bringing in better communication.
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What is the intelligent approach for Customer Intelligence?
An intelligent approach is needed to achieve customer intelligence.
The first step in the customer intelligence process is to collect data. Various types of data are collected for customer intelligence.
- Demographic: The company can collect demographic data from surveys, statistics, records, and accounts, which will give information about who the customer is.
- Psychographic: The psychographic data is needed to know the customer’s personality and attitude. This data type can be collected from customer interviews, reviews, questionnaires, and surveys.
- Behavioral: This data will give customers how they behave when they interact with its products and services. This data can be collected from the company’s website by monitoring the customer’s activity, comments, and mobile browsing.
- Transactional: The data describes how the customer spends on the company’s products and services. It can be collected from payment methods, transactions data, order information, etc.
Evaluate the data / Analyze the data
The next step in the customer intelligence process is to analyze the collected customer data. Businesses can use various analytics tools to analyze the data and segment their customers based on their behavior and feedback. The companies can also pick up metrics that matter to their business and give a 360-degree view of their customers.
After analyzing the data, the next step is to share the insights obtained with the organization. It can be achieved using dashboards, reports, and customer journey maps.
Customer Intelligence By Customer Journey Mapping
This will help the companies to understand how, where, and when the customers have experienced the brand, creating a proper channel for customer intelligence through data collection and communication.
To achieve a successful customer experience, the company needs to measure the customer’s perception of the company from time to time. Businesses use some platforms to gather insights from customer journey mapping.
- Physical Location: When a customer comes to the store, restaurant or hotel, etc., the company can collect feedback from customers at the location itself.
- Emails: It is the easiest way to collect feedback from customers. Whenever a customer completes a purchase, the system automatically sends a message to give feedback.
- Website: If the company has an online retail store and customers visit the website more often, they can communicate with their customers and gather feedback from the website.
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Use Cases of Customer Intelligence
The below highlighted are the Use Cases of Customer Intelligence
Customer Intelligence helps a bank to:
- Identify patterns
- Identify any unusual suspicious activity
- Determine the risks such as bad debt or fraud depending on the information about the customer.
- Predict Churning.
- It helps banks limit their offers to only those likely to leave and make cost-effective decisions.
Retailers can reward customers for their loyalty using customer intelligence. They install sensors all around the store, and these sensors will send messages via email or app notification on their smartphones when the customer is near a particular product. One condition for the reward is that the customer must opt for themselves in the loyalty program.
Also, retailers can make online driven offlines sales from websites. Retailers can track what customers are looking for from their website and when the next time a customer enters the store, the retailer will send a personalized discount for the product.
Adopting technologies for providing improved customer experiences is a key to making more profits and customer retention in an organization. If the company wants to stand out from the competition, it should start using customer intelligence seriously to make informed data-driven decisions.
The insights organization will get from customer intelligence will increase brand loyalty and make the business ready to face any change in the industry.