To establish the foundation of customer knowledge
Figuring out how customers think starts with knowing - with great confidence and accuracy - what they've done, and that's the typical starting point for behavioral analytics. Clarity in customer profiling is a requirement for the basic transactional insight about who bought what, when and through which channels. It's also essential to gaining an accurate understanding of which products and customer types are most profitable. And knowing why customers act as they do, which requires the correlating of multiple factors, and is of course the next step along the value curve.
Better understand customer interactions and dynamics
But behavioral analytics can be more than just tracking people. It’s also about understanding the interactions and dynamics between processes, machines and equipment, even macroeconomic trends, which may yield new learning into operational risks and opportunities. When combined with rich insights about consumer behavior, companies gain a more nuanced, detailed and accurate picture of where markets are headed. And that gives them a huge advantage in directing to proactive investments to seize the best opportunities.
The largest of those opportunities maybe market-facing or customer-centric, but supply chain improvements or other operational enhancements first discovered by behavioral analytics may also lead to worthwhile performance gains.
Behavioral Analytics in Action
- Financial services organizations leverage behavioral analytics to identify suspicious and anomalous behavioral patterns as a means to strengthen anti-fraud capabilities; they also link demographic data and traffic patterns to customer profiles to figure out where to locate branches and ATMs
- Retailers closely track customer pathing across channels – when, where, how frequently and for which transaction types do customers use various channels (including bricks-and-mortars stores); how they respond to email campaigns, mobile couponing or even television ads
- Communications providers enrich customer information with external sources and network usage patterns to gain better views of subscriber behavior.
- eCommerce players specifically test scenarios and track every click to understand why customers abandon shopping carts or otherwise leave “the funnel” before completing check out.