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In accounting, your Net Operating Profit number tells you nothing about causes. Siemens and Unilever, like all the companies I know, use several metrics, data analytics, and KPIs to drive conclusions. For instance, a company’s operating profit number is useless without additional metrics and other supporting information.
In June, I shared a definition of Customer Insight that I find useful: A non-obvious understanding about your customers, which if acted upon, has the potential to change their behaviour for mutual benefit. Paul Laughlin has over 20 years experience of leading teams to generate profit from analysing data. Any other tips you can share?
Predicting Trends and Driving Growth Once you’ve mastered the basics, advanced analytics can take your strategies to the next level. If tracking behavior is about understanding the present, predictiveanalytics is about planning for the future. If CAC is higher than LTV, it’s a red flag for your profitability.
However, this is only possible when such data is understandable for non-data-scientists. For example, showing the growth in sales each year requires a different visualization than showing the connection between discounted items and their profitability. How you want to present and communicate your insights to others.
In fact, according to research, companies that focus on customer expectations not only grow significantly faster but are 60% more profitable. This can destroy your financial budget and be heavy on your pockets, making compliance non-negotiable. And that’s why, precisely, Ive done the heavy lifting for you.
Performance Metrics and PredictiveAnalytics: Implement necessary key performance indicators (KPIs) like cost per customer, cost per call, and overall operational costs that can help in tracking expenses and reducing costs. Make use of predictiveanalytics to determine future costs based on historical data and trends.
Predictiveanalytics managers are collecting customer data and creating algorithms for real-time and what-if scenario right-sizing of information, offers, and solutions. Always reserve 50-70% of budget and bandwidth to address the non-technology aspects of CX excellence.
Increasing customer retention by a mere 5% can be increase profit by more than 25% , proving that it’s valuable to keep your current customers and also saves your sales team from burnout by continually increasing quotas. Customer acquisition costs more than customer retention.
That’s the behavioral aspect of analytics. The predictiveanalytics tell you “who” to target, but the behavioral data tells you “when” to target them. How many non-profits would like to do some kind of survey, but they don’t have a survey tool? This is really close to my heart.
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