What is customer analysis?
Customer analytics is an activity within e-commerce in which online shopping and Internet search behavior of customers is examined using software. The results are used by teams of marketers looking to increase sales for online retailers.
Customer Analytics leverages the data collection and subsequent software analysis to slice customers' online order transactions to identify specific demographics, shopping patterns, internet usage and predictive analytics so marketers can take steps to increase profit margins in online business.
Other terms commonly used for customer analytics include Customer Relationship Management analytics or CRM analytics.
The process of customer analysis examines and collects consumer behavior data and controls the segment markets. In this way, this process can even suggest future product and service offerings for specific companies. Software tools provide the online functions for analyzing specific data in databases. This element is known as online analytics processing and is critical to the customer analytics process. Data mining techniques are common in customer analysis.
A customer database can provide rich results for companies looking for ways to increase their sales. But when customers find out that online marketers have shared or exchanged their information with other marketers, customers can stop their online purchases. especially if the online store they visited has promised not to share customers' personal information and shopping habits with other companies.
In addition to increasing profit margins, one of the main benefits of customer analytics is that companies can capture accurate customer profiles without incurring the cost of direct customer contact.