Customer Analytics

Descriptive Analytics
What is Descriptive Analytics?
- It’s a way of linking the market to the firm through information
- Information needed for actionable decisions
- Principles for systematically collecting and interpreting data that can aid
decision makers.
Common thread: getting good data, and the synergy between data and
decisions that managers have to make that makes for good analytics
Types of Descriptive Analytics:
Exploratory Research: (Ambiguous Problem)
“ our sales are declining………………why?”
We are trying to understand why things are not working out the way we
expect them to.
- It typically done to develop initial hunches or insights. Commented [MOU1]: Ideas

- Usually a first (and an important step) in understanding a broader

managerial problems
- Provides broad guidelines of what to test more rigorously

What technique that comes to mind? FOCUS GROUP

- Rationale: in-depth probing, unstructured discussion, ability to observe Commented [MOU2]: Full
Commented [MOU3]: Exploration
dynamics
- Format: 8-10 individuals, 1 moderator, about 1 hr. long, incentives for
participants.
- Common Uses: product concept, ad copy, survey design.
*what do you want to get as a brand manager? Get insights into what
might be some pinpoints for consumers. Commented [MOU4]: Finds, puntos
 Focus have morphed in sense, to many different ways. Commented [MOU5]: changed

Market Research Online Communities (MROC), are basically focus

group on steroids. For instance, Focal Point (is basically rather than
looking at 10 to 20 people, you start thinking about 100, 200 or 500
people in a group; you are monitoring them over a period of six months
to a year) What is the idea here? Is to start building relationship with
each other, they become more and more comfortable talking about
their real feeling and real insights. And C Space.
Advantages of Internet Communities:
- Enhances engagement with customers
- Shorter deadlines are possible (don’t have logistical issues)
- “aha” moments come out, like Kraft 100 calories snack pack
Caveats of Internet Communities
- ROI can be very hard to determine. Why? Because as you start engaging
with an internet community , early on it might be quite difficult to
forecast, what kind of insights will come out?
Think carefully about when you might want to internet communities, is it
worth the investment of six months to a year?
Descriptive Research: (Aware of Problem)
“what kinds of people are buying our products?, who buys our competitors’
products?”
We require hard data in terms of understanding how much customers are
Casual Research: (Problem clearly defined)
“will buyers purchase more of our product with a change of our website?”
We require systematic data collection and careful thought in terms of how to
collect data.

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Descriptive Data Collection: Survey Overview
Basically the descriptive collections focus on, who are our customers? Where
you have to have hard numbers. So how can you do this? This can possible be
done in two ways:
- Active data collection: you can start thinking broadly of two ways:
surveys (the mainstay of market research for many companies) and self- Commented [MOU6]: core

reports of several types of consumer behavior.

Surveys
Used by every Fortune 500 company
Gather information customer attitudes (sentiments)
Purchase habits
*All this data can be helped to segment customers (to set your marketing
strategy)
Companies: Qualtrics, Survey Monkey
Help you to do free surveys sometimes and they can also be full service
companies (find your customer, setup your survey, analyze the data and
give you that data)
Self-reports
There are basically companies that are giving these surveys on mobile
devices. Mobile Surveys: Qualtrics (it does surveys on mobiles and
desktop.) Mixpanel.
The idea is to send surveys to customer in the moment of purchase
sometimes rather than one month later.
Advantages Mobile Surveys:
- Allow you to capture customers’ reactions in situ- rather than being
retrospective. So clearly the kind of sentiment, the feelings that
customer might have at the time of purchase, would be better captures,
rather than making them thing about the purchase one month later.

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 - The questionnaire can be tailored based on location and context
Caveat: Marketers should be careful not to hasten customer fatigue. You Commented [MOU7]: accelerate

don’t want to overdo it. Using this leverage of making a tailored survey. Commented [MOU8]: influence, hacer uso, ventaja

Use this power of mobile surveys but up to a limit.

Outline: before implementing the survey, there are two big issues that
come forth.
- Issue 1: Types of questions. What are the different kinds of questions?
1. Itemized-category

2. Comparative
3. Ranks
4. Paired Comparison
5. Likert
6. Continous
- Issue 2: is what you are collecting going to be worth anything?: Validity
and reability