Customer Analytics

Introduction

Modern visualization, statistics, and machine learning tools provide a wealth of methods for analyzing customer data. Connected Intelligence provides the ability to build out a wide variety of tools for analyzing customer behavior and acting on those insights. It is imperative that marketers are able to turn customer data into actionable insights. By building a customer analytics capability, you can make better decisions impacting all aspects of customer experience. We at Spotfire® have contributed some tools, and we invite you all to share what you have been doing. 

Use Cases

Affinity Modeling - Affinity modeling much increased in popularity since the introduction of Point of Sale data (POS). In retail, it is looking at the likelihood of a customer or group of customers buying two products together. For example Market basket analysis helps increase the efficiency of promotions by recommending what product to place next to another on a shelf product or co-promote in order to increase cross-selling.

Propensity Modeling What is the likelihood of customer A buying Product X? How does this compare with her propensity to buy Product Y? Answering these questions can provide good strategic and operational information for important business decisions. Using a model to predict these propensities allows us to make the right choices based on the most recent data available. The suite of Spotfire dxps with their associated data functions makes this a straightforward task. These decisions could then be automated for real-time use using Streambase, or they could be incorporated into a marketing plan that targets the right message to the right customer.

Watch this video to see how a marketing analyst may use Spotfire® analytics to generate propensity models to make product offers for a marketing campaign in real time.

Customer Segmentation Understanding who your customers are is a good starting point for strategic as well as tactical decision-making. What have they bought in the past? What else might we find out about their demographics or psychographics? Can we shape these data into meaningful groupings of customers that we can understand on a human level? Using k-means clustering as a starting point, we can start to understand subgroups of customers in a useful way.

A/B Testing Which of 2 presentations or stimuli works better at getting sales or other customer responses? Simply comparing the results leaves open the essential question: is this just a random fluctuation or can we expect the result to be repeatable? This very simple concept is incredibly powerful yet has some subtle points that we address in our suite of A/B test analysis functions.

Net Promotor Score (NPS) analysis  This is a measure of the overall loyalty of your customers to your company. The score can be calculated by taking the percentage of respondents who are promoters and subtracting the percentage of respondents that are detractors. This is an increasingly popular success measure across industries. Understanding NPS scores can help identify clusters of customers that are at risk of churning and will help identify customers to request feedback from and interact with. Accepting NPS score measurement as a public and transparent measure of customer satisfaction often is a big impulse for gathering further customer insights.

• Actionable Marketing Analytics - this links you to a datasheet with an overview of numerous examples of use cases for the savvy marketeer. 
• Machine learning - this links you to our starting page for Machine learning with Spotfire® and Spotfire® Streaming

Connected Intelligence

• Read and view a demo on how Customer Analytics can be applied in an insights-driven business.
• Review this Webinar with Forrester titled "Marketers: Move from a Data to Insight Driven Approach"
• Read about using Connected Intelligence for Customer Analytics on big data:
• Customer Analytics with big data
• Making real-time offers with big data insights

Presentations

Predicting Customer Churn and Lifetime Value with Spotfire - Youtube Video of presentation at Spotfire® Analytics Meetup 

How well do you know your customers?  TIBCO NOW presentation on how marketers are able to turn customer data into actionable insights and the impact customer analytics has on your business. Topics include segmentation, propensity, and affinity analysis in the context of intelligent, triggered engagement based on real-time data flows. 

Building targeted propensity models with Spotfire and leveraging your Big Data Architecture - this Youtube video explains the Analytics part of the Accelerator for Apache Spark available on the exchange:

• Analytics from Both Sides of the Brain by Michael O'Connell - Slideshare with specific Customer Analytics section slide 14 onwards
• Webinar "Understanding your Customer & Turning that Insight into Action", by Ana Costa e Silva published by Innovation Enterprise
• Read the whitepapers 
  • Turning Customer Insight into Action
  • Airports: How to Get Insights from Passengers - for more on Travel & Transportation

Pre-Built Customer Analytics Solutions

Get started immediately using Pre-built Customer Analytics Solution Templates. Or build your own custom solutions with the aid of these Data Functions, Themes, Accelerators & Extensions. All are available for you to download from the Community Exchange:

• A/B Testing - all relevant data functions for you to use in Spotfire with your own data so you can get started with A/B Testing today! Available to download from the Exchange.
• Visual Design Best Practices including custom themes and color schemes that can be downloaded and applied
• The Spotfire Extension for Alerting allows you to configure alerts directly from any Spotfire analysis file and can be used to alert when thresholds or rules on any chart are violated.  It is an extension for Spotfire® that integrates with Automation Services via an alerting task.  The task can generate e-mail, text or pop-up alerts. 

Tips & Tricks

Shortcuts to doing things with Spotfire you may not even have known were possible:

• Clustering made simple
• How to add a TMS layer in Spotfire map chart visualization
• Embed Spotfire Visualizations on a Webpages

For more, go to the Tips & Tricks homepage

wp-tibco-customer_insights_to_action_0517.pdf