DATA ANALYTICS Cross Sell
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Product Combination Analysis
A Product Combination Analysis will improve targeting of new prospects for acquisition, based on the likelihood of creating multiple product/service relationships, as well as supporting retention efforts and “win-back” strategies. This is accomplished by:
- Linking customer segments to product behavior.
- Supporting tactical implementation of cross-selling by matching appropriate “next products” to targeted segments/groups.
- Avoidance of cross-selling to low-profit, single-product customers.
Product Combination Analysis can be performed as a stand-alone analysis or as a value-added component of either Customer Contribution Analysis or Retention Modeling.
Customer Cluster Analysis
This analysis segments your customer base and reveals the clusters to target and which services to offer each customer. The cross-sell, go-forward strategy will be to offer services to customers in a manner fitting their profile, products/services combination, and similarities with other customers. Marketing strategies, promotional efforts, and service offerings can then be tailored to maximize sales and minimize promotional dollars. Measurements such as response rates, total services sales, and products/services revenue can then be evaluated to measure success.
Segmentation eNtellicts
Market segmentation is a term that is used to describe the division of a broad market into homogeneous groups that respond differently to various promotions, communications, advertising and other marketing mix variables. By tailoring an offer to the interests of a segment of the population, segmentation enables marketers to reach potential buyers with the most customized offering possible.
eNtellicts, a proprietary retail market segmentation tool developed by eNtelligy, enables marketers to more clearly understand the makeup of their customer base and to use this information to more accurately target prospective customers using methodologies described above. Employing a series of clustering schemes, eNtelligy’s eNtellicts segmentation system provides critical information necessary to identify the best customers and prospects, while improving marketing efficiencies.
Designed as a generic segmentation tool, eNtellicts can be customized to reflect product purchase propensities within the client’s customer base. By appending eNtellicts segment codes to current customer files, the client can identify which products are mostly likely to be purchased by each segment to more intelligently and efficiently target new prospects for similar products.
eNtellicts is differentiated from other financial segmentation systems in that clustering methodology was performed using demographics at the individual/household level, making it much a more accurate and robust segmentation methodology.
Customer Contribution Analysis
A customer contribution approach involves analysis of the following data variables:
- Revenues from the time an individual first became a customer identified at the individual customer or specific customer segment level.
- Expenses from the time an individual first became a customer at the individual customer or specific customer segment level.
The resulting contribution calculation will be the identifiable revenues minus the identifiable expenses.
The challenge in most Contribution Analyses is in the compilation and documentation of data from your company’s historical accounting records of the relevant revenue and expense items. The period during which the analysis takes place is restricted to your customer’s revenues to date, expenses to date, and profitability (loss) to date.
Based on current knowledge of customer activities, a Customer Contribution Analysis can be used to assist you in your prospecting and cross-selling efforts.
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