Some good ways of analyzing customer database.

23Mar - by Tadayuki Emoto - 0 - In Visualize existing customers

You can analyze your customer database to better understand the situation of existing customers. When users buy the products online, their purchase data and personal information are stored in the databases automatically.

There are various ways of analyzing customer databases. So, in this content, I will show you different kinds of ways and which ways are useful tools to understand existing customers.

Introduce the ways of analyzing customer database.

The ways of analyzing customer database are the following:

CPM Analysis

Customer Portfolio Management is the way to classify existing customers into some groups based on customers’ purchase data. It aims to increase repeat customers by implementing individual marketing activities in each group to meet different needs. ( Cf. Yazuya way of CPM is visualizing existing customers grade. )

Decile Analysis

Decile analysis is like the RFM analysis but it’s based on only the purchase amount of the customers. It’s easy and simple way of understanding the customers’ situation. Decile analysis classifies customers into 10 categories by purchase amount.

Good points:

  • You can analyze customer database easily.
  • Visualizing each ranked customers will help you to better understand existing customers and avoid making wrong decision.

Note:

  • The purchase data showing customers who bought expensive products in a short period of time are reflected as high ranked customers.
  • Monitoring the progress that you analyze with decile analysis will help you to have refined data.

Elements:

  • The data defining individual customers, like customer ID or customer name.
  • The date when customers bought the products.
  • Purchase amount.

Outcome:

You can identify high ranked customers who contribute a lot to your sales, based on the sales distribution ratio of each group.

Example:

The data of 2,000 customers classified into 10 groups based on purchase amount.

Decile Analysis

– Top 3 ranked groups contributed 62% of sales.
– The average of purchase amount in Decile 1 is 19 times higher than Decile 10.

You can consider promoting high-quality products to high ranked customers.

CTB Analysis

CTB analysis aims to predict the products that the customers will buy next time by using 3 kinds of viewpoints, Category, Taste, and Brand.

Category – the category to which the product belongs.
Taste – the elements to represent its atmosphere like color, design, size, shapes etc.
Brand – the brand name, and character etc.