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  • Applied Analytics
    • Analytics for Decision Making >
      • What is Cluster Analysis
      • Data Reduction and Unsupervised Learning
      • Preparing Data and Measuring Dissimilarities
      • Hierarchical and k-Means Clustering
      • Defining Output Variables and Analyzing the Results
      • Using Historical Data to Model Uncertainty
      • Models with Correlated Uncertain Variables
      • Creating and Interpreting Charts
      • Using Average Values versus Simulation
      • Optimization and Decision Making
      • Formulating an Optimization Problem
      • Developing a Spreadsheet Model
      • Adding Optimization to a Spreadsheet Model
      • What-if Analysis and the Sensitivity Report
      • Evaluating Scenarios and Visualizing Results to Gain Practical Insights
      • Digital Marketing Application of Optimization
      • Advanced Models for Better Decisions
      • Business Problems with Yes/No Decisions
      • Formulation and Solution of Binary Optimization Problems
      • Metaheuristic Optimization
      • Chance Constraints and Value At Risk
      • Simulation Optimization
    • Analytics for Marketing >
      • Marketing Analytics and Customer Satisfaction
      • Customer Satisfaction
      • Measurements and Scaling Techniques – Introduction
      • Primary Scales of Measurement
      • Comparative Scaling
      • Non-Comparative Scaling
      • Experiment Design: Controlling for Experimental Errors
      • A/B Testing: Introduction
      • A/B Testing: Types of Tests
      • ANOVA – Introduction
      • Example -Inspect Spray and Tooth Growth
      • Logit Model - Binary Outome and Forecastign linear regression
      • Text Summarization
      • Social media Microscope
      • N-Gram - Frequcy Count and phase mining
      • LDA Topic Modeling
      • Machine-Learned Classification and Semantic Topic Tagging
    • Data Engine >
      • Understanding The Growth Of Data
      • Evaluating Methods Of Data Access
      • Communication journey
      • Data Journey
      • Planning for data visualisation
      • Visualisation Component
      • Content Connection and Chart Legitibility
    • Customer Insights >
      • Introduction
      • What is Descriptive Analytics?
      • Survey Overview
      • Net Promoter Score and Self-Reports
      • Survey Design
      • Passive Data Collection
      • Media Planning
      • Data Visualization
      • Causal Data Collection and Summary
      • Asking Predictive Questions
      • Regression Analysis
      • Data Set Predictions
      • Probability Models
      • Results and Predictions
      • Perspective Analytics (Maximize Revenue and Market Structure Competitions)
    • Analytics for Advance Marketing >
      • Visualisation and statistics (Political Advertising,Movie Theater and Data Assembly)
      • Excel Analysis of Motion Picture Industry Data
      • Displaying Conditional Distributions
      • Analyzing Qualitative Variables
      • Steps in Constructing Histograms
      • Common Descriptive Statistics for Quantitative Data
      • Regression-Based Modeling
      • Customer Analytics
      • Illustrating Customer Analytics in Excel
      • Customer Valuation Excel Demonstration
  • Soft Skills
    • Adaptability
    • Confidence
    • Change Management
    • Unlearning and Learning
    • Collaboration and Teamwork
    • Cultural Sensitivity
  • Marketing
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  • Economics
    • Introduction to Managerial Economics >
      • Basic Techniques
      • The firm: Stakeholders, Objectives and Decision Issues
      • Demand and Revenue Analysis >
        • Demand Estimation and Forecasting
        • Demand Elasticity
        • Demand Concepts and Analysis >
          • Formulation and Solution of Binary Optimization Problems
      • Scope of Managerial Economics
    • Prodution and Cost Analysis >
      • Production Function
      • Estimation of Production and Cost Functions
      • Cost Concepts and Analysis I
      • Cost Concepts and Analysis II
    • Pricing Decisions >
      • Pricing strategies >
        • Adding Optimization to a Spreadsheet Model
      • Market structure and microbes barriers to entry
      • Pricing under pure competition and pure monopoly
      • Pricing under monopolistic and oligopolistic competition
    • Narendra Modi Development Model of Gujarat
  • JBDON Golf
    • Digital Marketing Application of Optimization
  • Let's Talk
  • MBA Project Sharing
  • About Us
    • Good Read >
      • IIMC says PepsiCo CEO Indra Nooyi was an average student
      • India’s middle class figures in Fortune’s Top Ten list of those who matter
      • The Start-Up of you.
      • BUYING AND MERCHANDISING
      • HUMAN RESOURCE MANAGEMENT
      • Do You Suffer From Decision Fatigue?
      • New Page
      • About social media and web 2.0
      • Building Your Own Start-up Technology Company, Part 1
      • Building Your Own Start-up Technology Company, Part 2
      • Building Your Own Start-up Technology Company, Part 3
      • Building Your Own Start-up Technology Company, Part 4
      • Renewable energy is no longer alternative energy
      • What Makes an Exceptional Social Media Manager?
      • The Forgotten Book that Helped Shape the Modern Economy
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      • How to Think Creatively
      • A Lighthearted Looks at Project Management and Sports Analogies
      • Why Trust Matters More Than Ever for Brands
  • CET Knowledge Zone
    • Tips From JBIMS Students >
      • Prasad Sawant
      • Chandan Roy
      • Ram
      • Ashmant Tiwari
      • Rajesh Rikame
      • Ami Kothari
      • Ankeet Adani
      • Sonam Jain
      • Marketing Analytics and Customer Satisfaction
      • Mitesh Thakker
      • Tresa Sankoorikal
    • Speed Techniques
    • CET Workshops
  • Untitled
  • New Page
    • Cluster analysis using excel and excel miner
    • Chance Constraints and Value At Risk
    • Adding Uncertainty to a Spreadsheet Model
  • Adidas

​Customer Analytics

​Customer analytics is all about predicting behaviour of individual customers. The right marketing ensures that the businesses are able to deliver the right message to the right customer. With marketing, we also want to be able to influence the behaviour of individual customers. Thus, it is more important to focus on the “individual behaviour of customers” rather than the “average behaviour of customers.”
 
How can we use customer centric analytics?
Businesses need to:
  • Understand buying behaviour of existing customers
  • Understand why prospects are not yet customers
  • Decide which products they should launch
  • Forecast performance and understand drivers
  • Allocate resources across products and customers
 
The right model will depend on the type of data that we’re looking at. So we need to inspect what kind of customer level data might we have.
  • Choice data (choosing between Coca-Cola and Pepsi, AT&T and Verizon)
  • Count (how much is being purchased, how much quantity on a particular shopping occasion)
  • Timing (when do I become a customer, how long do I stay as a customer, how long between visits to a website, how long is it between purchases)
  • Multivariate (combining, say, choice and count data – choose a brand and how much is purchased)
 
Applications in Marketing:
  • Measuring marketing effectiveness (ROI)
  • Clickstream data and online advertising
  • Loyalty programs and CRM
  • Social Media
 
Linear regression is essentially maximum likelihood estimation.
 
Types of Univariate data
  • Continuous (linear regression)
  • Count
  • Choice
    • Between two options (binary choice)
    • Between n options (multinomial choice)
  • Timing
 
Binary Choice Data
  • Did you buy the product on this shopping trip?
  • Did you acquire service (are you a customer)?
  • Did you retain service?
  • Did you file a complaint?
All these questions have a yes/no answer.
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  • Home
  • Applied Analytics
    • Analytics for Decision Making >
      • What is Cluster Analysis
      • Data Reduction and Unsupervised Learning
      • Preparing Data and Measuring Dissimilarities
      • Hierarchical and k-Means Clustering
      • Defining Output Variables and Analyzing the Results
      • Using Historical Data to Model Uncertainty
      • Models with Correlated Uncertain Variables
      • Creating and Interpreting Charts
      • Using Average Values versus Simulation
      • Optimization and Decision Making
      • Formulating an Optimization Problem
      • Developing a Spreadsheet Model
      • Adding Optimization to a Spreadsheet Model
      • What-if Analysis and the Sensitivity Report
      • Evaluating Scenarios and Visualizing Results to Gain Practical Insights
      • Digital Marketing Application of Optimization
      • Advanced Models for Better Decisions
      • Business Problems with Yes/No Decisions
      • Formulation and Solution of Binary Optimization Problems
      • Metaheuristic Optimization
      • Chance Constraints and Value At Risk
      • Simulation Optimization
    • Analytics for Marketing >
      • Marketing Analytics and Customer Satisfaction
      • Customer Satisfaction
      • Measurements and Scaling Techniques – Introduction
      • Primary Scales of Measurement
      • Comparative Scaling
      • Non-Comparative Scaling
      • Experiment Design: Controlling for Experimental Errors
      • A/B Testing: Introduction
      • A/B Testing: Types of Tests
      • ANOVA – Introduction
      • Example -Inspect Spray and Tooth Growth
      • Logit Model - Binary Outome and Forecastign linear regression
      • Text Summarization
      • Social media Microscope
      • N-Gram - Frequcy Count and phase mining
      • LDA Topic Modeling
      • Machine-Learned Classification and Semantic Topic Tagging
    • Data Engine >
      • Understanding The Growth Of Data
      • Evaluating Methods Of Data Access
      • Communication journey
      • Data Journey
      • Planning for data visualisation
      • Visualisation Component
      • Content Connection and Chart Legitibility
    • Customer Insights >
      • Introduction
      • What is Descriptive Analytics?
      • Survey Overview
      • Net Promoter Score and Self-Reports
      • Survey Design
      • Passive Data Collection
      • Media Planning
      • Data Visualization
      • Causal Data Collection and Summary
      • Asking Predictive Questions
      • Regression Analysis
      • Data Set Predictions
      • Probability Models
      • Results and Predictions
      • Perspective Analytics (Maximize Revenue and Market Structure Competitions)
    • Analytics for Advance Marketing >
      • Visualisation and statistics (Political Advertising,Movie Theater and Data Assembly)
      • Excel Analysis of Motion Picture Industry Data
      • Displaying Conditional Distributions
      • Analyzing Qualitative Variables
      • Steps in Constructing Histograms
      • Common Descriptive Statistics for Quantitative Data
      • Regression-Based Modeling
      • Customer Analytics
      • Illustrating Customer Analytics in Excel
      • Customer Valuation Excel Demonstration
  • Soft Skills
    • Adaptability
    • Confidence
    • Change Management
    • Unlearning and Learning
    • Collaboration and Teamwork
    • Cultural Sensitivity
  • Marketing
  • Finance
  • Economics
    • Introduction to Managerial Economics >
      • Basic Techniques
      • The firm: Stakeholders, Objectives and Decision Issues
      • Demand and Revenue Analysis >
        • Demand Estimation and Forecasting
        • Demand Elasticity
        • Demand Concepts and Analysis >
          • Formulation and Solution of Binary Optimization Problems
      • Scope of Managerial Economics
    • Prodution and Cost Analysis >
      • Production Function
      • Estimation of Production and Cost Functions
      • Cost Concepts and Analysis I
      • Cost Concepts and Analysis II
    • Pricing Decisions >
      • Pricing strategies >
        • Adding Optimization to a Spreadsheet Model
      • Market structure and microbes barriers to entry
      • Pricing under pure competition and pure monopoly
      • Pricing under monopolistic and oligopolistic competition
    • Narendra Modi Development Model of Gujarat
  • JBDON Golf
    • Digital Marketing Application of Optimization
  • Let's Talk
  • MBA Project Sharing
  • About Us
    • Good Read >
      • IIMC says PepsiCo CEO Indra Nooyi was an average student
      • India’s middle class figures in Fortune’s Top Ten list of those who matter
      • The Start-Up of you.
      • BUYING AND MERCHANDISING
      • HUMAN RESOURCE MANAGEMENT
      • Do You Suffer From Decision Fatigue?
      • New Page
      • About social media and web 2.0
      • Building Your Own Start-up Technology Company, Part 1
      • Building Your Own Start-up Technology Company, Part 2
      • Building Your Own Start-up Technology Company, Part 3
      • Building Your Own Start-up Technology Company, Part 4
      • Renewable energy is no longer alternative energy
      • What Makes an Exceptional Social Media Manager?
      • The Forgotten Book that Helped Shape the Modern Economy
      • Home
      • How to Think Creatively
      • A Lighthearted Looks at Project Management and Sports Analogies
      • Why Trust Matters More Than Ever for Brands
  • CET Knowledge Zone
    • Tips From JBIMS Students >
      • Prasad Sawant
      • Chandan Roy
      • Ram
      • Ashmant Tiwari
      • Rajesh Rikame
      • Ami Kothari
      • Ankeet Adani
      • Sonam Jain
      • Marketing Analytics and Customer Satisfaction
      • Mitesh Thakker
      • Tresa Sankoorikal
    • Speed Techniques
    • CET Workshops
  • Untitled
  • New Page
    • Cluster analysis using excel and excel miner
    • Chance Constraints and Value At Risk
    • Adding Uncertainty to a Spreadsheet Model
  • Adidas