The concept of Model Building and Analysis in CRM

This article talks about the concept of model building and analysis in CRM….

Modelling and Analysis is used to measure individual customer values for the features and pricing of the offer, captures the richness, dependencies and diversity of individuals. It is one tool that you can use to understand the variables that makes one customer to be different from the other in a customer centric enterprise.
 
 

model building

There are Ten things that Model can help you to understand in a customer centric enterprise. Let us look at this together.

Customer loyalty
Modeling of your customers can help you to understand the loyalty level of your customers. It will also help you to have an insight into the reasons why some customers are not yielding to your strategies. This will help you to come up with corrective measures in order to bring them to your life cycle.


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Untapped market segment
At one time or the other, I have discussed the concept of customer segmentation and profiling. This allows you to divide your customers based on characteristics that you have in common. Customer modeling will help you to segment appropriately. It will also help you to continue with further subdivision of your customer base as new markets are identified.


Distribution channels
One other thing that Model building and analysis will do for you is that it will help you to understand your distribution channels. As a customer centric enterprise, you will be able to analyse the different channels that you have opened for your customers as well knows how those channels are performing. This will help you to reinvigorate those that are working as well as closing down channels that are not performing.
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Cstomer awareness
I have said it in some of my articles that there are many organizations that could not tell you the precise number of customers that they have. Model building and analysis will help you to identify your profitable and unprofitable customer segments as well as coming up with strategies for doing business from customers’ perspective.


Image result for image of customer awareness

Advertising impacts
Just like Analytics, Model building and Analysis will allow you to know the impact of Advertisement on customers. You will be able to know which of your advertisement campaigns are yielding the desired result and which one are not.

This can help you to invest more on those adverts that are yielding the desired result and close that unfruitful adverts.

Your turn….
Its now your turn to contribute to this article. What are the other means of building model and analysis ? Feel free to make use of the comment box for your views.

 Action Point
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