Chapter 1

Introducing Customer Analytics

In This Chapter

arrow Discovering the benefits of customer analytics

arrow Combining methods and metrics for customer insights

arrow Sorting through big and small data

The purpose of business is to create and keep a customer. This statement was made by Peter Drucker, the acclaimed 20th-century management consultant. A simple statement that reveals in just a few words that the long-term viability of a company is not just about maximizing revenue and minimizing costs. Long-term viability is about understanding what it takes to attract customers by continuing to meet and exceed their physical and psychological needs.

Good customer management comes from good customer measurement. Metrics are numbers assigned to everything from website visitors, same-store sales, and profit margin to call-center wait times. Analytics are metrics plus the methods that drive meaningful decisions. You can think of metrics as “informational,” while analytics are “strategic.” So while not all metrics are analytics, all analytics come from metrics. You need metrics to get analytics.

Increasingly, decisions are made on numbers. If you know the numbers better, and can articulate what ...

Get Customer Analytics For Dummies now with the O’Reilly learning platform.

O’Reilly members experience live online training, plus books, videos, and digital content from nearly 200 publishers.