A Pragmatic Approach to Analyzing Customer Behavior

September 22nd, 2015

Prerequisite: None

Mark Madsen

President

Third Nature, Inc.

The business market is different today than it was 20 years ago, when BI got started. We’re just beginning to grasp how to work within the new economic and communication models. Companies can’t rely solely on financial and operational metrics anymore. They need to analyze customer behavior in more detail.

The big change in this analysis is the move from mass-market metrics to individualized data—we can no longer analyze or manage customers by averages. The stream of events and observations available from applications today combined with new platforms for collecting and processing data enables (relatively) easy analysis.

Despite this, many companies struggle to analyze customer data. This talk will describe individual customer metrics and models that are (relatively) easy to do, yet often are not done. It’s sometimes easier to succeed by stringing together a handful of simple metrics rather than applying advanced techniques.

Expect to come away from this session with:

  • A little history of customer data use by marketing and how that has changed in the last 10 years
  • The most common behavioral data sources you have available
  • Ways to address basic questions that often go unanswered—including why data is not assessed in the proper context
  • Specific metrics you can build and analyses you can perform
  • An overview of the technical challenges within the BI environment, and new technology or design solutions to resolve them