In our modern, competitive environment, companies need to make data-driven decisions based on their consumer data through customer analytics. However, sifting through massive customer data sets is daunting, especially for enterprise-level organizations with immense caches of customer data. This is where Customer Analytics Service Providers (CASPs) come in.
CASPs are professional services organizations that help clients transform customer data into actionable insights. Companies use these analytics to optimize customer-focused initiatives that drive growth like, retention-marketing, cross-sell/upsell, and overall improved customer experience (UX).
By waiting to implement retention strategies early on, a company could negatively impact its customers and pose risks to the marketing RROI (return on investment) Consider that 80% of a company’s future revenue will be driven by 20% of its existing customers.
“Partnering with CASPs helps businesses overcome the challenges associated with managing and analyzing large customer data sets,” said Swapnil Srivastava: Evalueserve’s, executive vice president of Data Analytics. It allows companies to solidify their customer data foundation, build and deploy analytical models, and embed those insights into customer experiences. Today, we’ll explore how Customer Analytics Service Providers are driving business success by helping companies make data-driven decisions and act on those insights.”
Solidifying the Customer Analytics Foundation
Data is the lifeblood of customer analytics, and without proper data management, the insights drawn from analytics are unreliable. This is why it’s crucial for businesses to establish a solid foundation for their customer data. Customer Analytics Service Providers (CASPs) play a vital role in transforming and unifying disparate customer data into a useful data source for analysis.
CASPs have the expertise and tools necessary to help businesses solidify their customer data foundation. They can assist in implementing data governance policies and procedures, ensuring data accuracy and completeness, and cleaning and transforming data into a usable format. This process ensures businesses have access to high-quality data – necessary for driving accurate and actionable insights.
Additionally, CASPs offer bespoke data dashboards and specialized solutions that cater to the specific needs of businesses. These solutions help businesses manage their customer data effectively and derive meaningful insights to inform their decision-making processes. By working with CASPs, businesses can build a solid foundation for their customer data, which will drive success in their analytics initiatives.
Building and Deploying Analytical Models
To drive accurate and actionable insights from customer data, businesses must have access to high-quality data and employ advanced analytics methods.
The following steps are typically involved in this process with a CASP:
- Defining the business problem and objectives
- Selecting the appropriate analytical methods and techniques
- Preparing the data for analysis
- Developing and validating the analytical models
- Deploying the models and integrating them into the business processes
CASPs provide access to seasoned data scientists who can help businesses with the expertise necessary for each step. Examples of analytical models that CASPs can assist with include segmentation, propensity analysis, and customer lifetime value analysis.
Personalizing Customer Experiences
Personalization is critical in today’s digital age. Customers expect tailored experiences, and businesses that fail to meet these expectations risk losing customers to their competitors. CASPs can help businesses leverage customer data to create personalized experiences that drive engagement, loyalty, and revenue.
“The success of any business heavily relies on its customers,” said Swapnil Srivastava: Evalueserve’s, executive vice president of Data Analytics. “Understanding your customer personas, their journeys, and product preferences should be the first step companies take toward accelerating their business through online channels. It is critical to personalize the customer experience by integrating e-commerce platforms with other internal enterprise resource planning (ERP) and customer relationship management (CRM) systems that help in making real-time decisions.”
For example, businesses can use customer data to create targeted email campaigns that promote products or services that align with the customer’s interests and past purchases. They can use customer data to provide personalized recommendations on their website or mobile app, increasing the chances of a purchase.
The benefits of personalization are clear. A study by Epsilon found that about 80% of customers are more likely to make a purchase after receiving a personalized offer. Furthermore, 90% of survey participants find personalization appealing. By leveraging customer data to create personalized experiences, businesses can increase customer loyalty, drive revenue, and stay ahead of their competitors.
Customer Analytics Service Providers: Driving Impacts for Scale
CASPs provide businesses with access to the expertise and resources necessary to transform customer data into actionable insights.
Forrester’s recent report, The Customer Analytics Service Providers Landscape, Q1 2023 stated, “… customer analytics service providers… solidify your customer data foundation, build and deploy analytical models, and embed insights into customer experiences. But to realize these benefits, you’ll first have to select from a diverse set of providers that vary by size, type of offering, geography, and business scenario differentiation.”
Every enterprise business leader should explore the potential of CASPs offer their organization. By leveraging customer data to create personalized experiences, businesses can drive engagement, loyalty, and revenue, ultimately scaling for continued long-term success.
Evalueserve was included in Forrester’s Customer Analytics Service Providers Landscape, Q1 2023. You can read the full report here for purchase, or at no charge if you have a subscription.
*Originally published on Evalueserve’s LinkedIn Newsletter, “The AI and Analytics Report.”
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