2. Brandon Purcell, Senior Analyst
WEBINAR Benchmark Your Customer Insights Success With Forrester’s State Of Customer Analytics 2016 Survey Data
Brandon Purcell, Senior Analyst
January 11, Call in at 10:55 a.m. Eastern time

4. In the age of the customer, we gather massive amounts of data
Financial data
Sales data
Product data
Transaction data
Customer data
Third-party data
Behavioral data
Social data
Mobile data
Environmental data
Sensor data

5. “We are drowning in data and starving for insight.” — Global Bank

6. Customer insights are the gold buried within your data.

7. Customer analytics unlocks the potential value in your data
P = potential value of data
E = value extracted from data

8. What is customer analytics?
Customer analytics uses customer data and analytic insight to design customer-focused programs that win, serve, and retain customers.

9. The potential value for analytics is real across the customer life cycle.
Source: How Analytics Drives Customer Life-Cycle Management Forrester report

10. Customer analytics is different. Really.
Methods
Data
Technology
Data science and
customer analytics
Prescriptive
Multisourced, in-motion, multistructured
Optimization
Decision arbitration
Sensor, open data, IoT data, device data
Non-relational
Hadoop, noSQL
Predictive
Externally-sourced, unstructured
Predictive modeling
Forecasting
Simulation
Social, location, VoC
Traditional
analytics
Descriptive
Internally-sourced, at-rest, structured
Relational
Reporting and measurement
Business intelligence
CRM, EDW, POS, web
Traditional EDWs

11. However, customer analytics can be as confusing as it is exciting
Machine learning
Predictive analytics
Data visualization
Artificial intelligence
Data mining
Text mining
Statistical analysis
Forecasting
Simulation
Discovery/
exploratory analytics
Optimization
NLP

12. Deciding where to begin may be the hardest part.
Source: TechRadar™: Customer Analytics Methods, Q Forrester report

13. The analytical process begins and ends with business requirements.
Source: Close The Insights-To-Action Gap With A Clear Implementation Plan Forrester report

14. Key business questions before beginning analysis
What is the key business objective of the project?
Who is the project owner? Who are the relevant stakeholders?
What will the cost and benefits of the project be?
Are there risks/constraints we need to take into account?
What would an ideal solution look like in action?
How will we measure the success of this project?
What is my project plan?

15. Now, let’s turn to the data.

16. Customer data ain’t what it used to be
Image source: Wikipedia (

17. Actually . . . in analytical terms, there are only a few types of data
Data type
Definition
Examples
Numerical
Continuous
All numerical values, including fractions
Purchase amount
Discrete
Only integer values
Website visits
Categorical
Nominal
Qualitative data without order
Region
Ordinal
Ordered qualitative data
Level of education
Binary
Qualitative data with two values
Offer click
Time and date
Time and data
Timestamp
String
Text data
content

18. Choosing the right analytical method depends on your business objectives and your data
Customer analytics

19. Chez Customer Analytiques
Now, let’s explore the menu.
Chez Customer Analytiques

20. CI pros have a wide range of options to choose from
Source: TechRadar™: Customer Analytics Methods, Q Forrester report

21. Methods that improve the customer experience
Customer experience analytics methods:
Customer satisfaction analysis
Customer engagement analysis
Customer journey analysis
Source: TechRadar™: Customer Analytics Methods, Q Forrester report

22. Methods that drive personalization
Personalization analytics methods:
Next best action
Recommendation analysis
Cross-sell and upsell analysis
Source: TechRadar™: Customer Analytics Methods, Q Forrester report

23. Methods that increase retention and loyalty . . .
Retention and loyalty analytics methods:
Customer propensity analysis
Churn and attrition analysis
Social network analysis
Source: TechRadar™: Customer Analytics Methods, Q Forrester report

24. Methods that drive acquisition . . .
Acquisition analytics methods:
Behavioral customer segmentation
Customer lifetime value analysis
Customer lookalike targeting
Source: TechRadar™: Customer Analytics Methods, Q Forrester report

25. Methods that inform contextual marketing
Contextual marketing analytics methods:
Sentiment analysis
Customer location analysis
Customer device usage analysis
Source: TechRadar™: Customer Analytics Methods, Q Forrester report

26. Identify dependencies between methods
Source: TechRadar™: Customer Analytics Methods, Q Forrester report

27. Aren’t we forgetting something?
Business objective
Data
Customer analytics

28. Aren’t we forgetting something?
Business objective
Data
Customer analytics
Action

29. New methods deliver new output and require new operational processes

30. The current state of affairs

31. The state of customer analytics survey
Fielded by Forrester and Burtch Works to senior-level analytics professionals in March 2016
142 respondents answered the survey in its entirety.
Half of respondents have more than 13 years of measurement and analytics experience.
More than three-fourths of respondents are influencers or decision-makers in their organizations.
Broad industry representation:
25% retail, wholesale, and CPG

32. Customer analytics — key drivers and challenges
Source: The State Of Customer Analytics 2016 Forrester report

33. Key phases of the insights life cycle
Action
Data
© 2014 Teradata

34. Top data sources
Source: The State Of Customer Analytics 2016 Forrester report

35. Top analytics techniques
Source: The State Of Customer Analytics 2016 Forrester report

36. Planned analyses focus on customer relationship management.
Source: The State Of Customer Analytics 2016 Forrester report

37. Top applications of insights
Source: The State Of Customer Analytics 2016 Forrester report

38. Forrester’s analytics sophistication model exposed three distinct groups:

39. What sets leaders apart?

40. Analytics sophistication grows as leaders . . .
Source: The State Of Customer Analytics 2016 Forrester report

41. . . . use more data sources . . .
Source: The State Of Customer Analytics 2016 Forrester report

42. . . . combine multiple analytics techniques
Source: The State Of Customer Analytics 2016 Forrester report

43. . . . and apply marketing insights broadly across channels
Source: The State Of Customer Analytics 2016 Forrester report

44. Recommendations

45. Take Forrester’s assessment for customer analytics — measure your capabilities across six dimensions
Commitment
Adoption
Applications
Skills
Structure
Partnerships
Sources
Management
Preparation
Methodology
Metrics
Business KPIs
ROI
Workflow
Prioritization
Execution
Sharing
Production
Consumption
Activation
Strategy
Organization
Data
Analytics
Process
Technology

46. Results reveal four analytics personas
Strategy
Organization
Data
Analytics
Process
Technology
Rookies
Dabblers
Pros
Gurus

47. Start by defining your customer analytics strategy
Organization/
process
Technology
Data
Analytics and measurement

48. Organize for analytics

49. Develop ROI calculations to prioritize projects and measure impact
Just 26% report that
measurement and analytics
projects are prioritized
based on a methodical
ROI/business justification
process.

50. Invest in scalable customer data architecture.

51. Jumpstart your capabilities with an analytics service provider
38%
report partnering
with analytics consultants or offshore analytics specialists.

52. Apply analytics across the customer life cycle

53. Don’t be afraid to get your hands dirty.

54. It will be worth the effort.

55. Brandon Purcell