Could someone please assist me with a reply to my classmate response Here is the
ID: 369850 • Letter: C
Question
Could someone please assist me with a reply to my classmate response
Here is the question:
Customer analytics is a process by which data from customer behavior is used to help make key business decisions via market segmentation and predictive analytics. This information is used by businesses for direct marketing, site selection, and customer relationship management. Essentially, customer analytics is used to optimize each interaction with each customer. Based on the information you have read thus far and your own understanding of CRM discuss the following:
How has technology changed this process?
What do you see in the future for customer analytics?
This online article might help in developing your responses.
Remember to use a minimum of one article as a reference and interact with at least one classmate.
This is my classmate response:
How has technology changed this process?
Technology can immediately take all activity from a single person and analyze it in a way to easily customize a marketing strategy for the individual consumer. With the popularity in technology usage on the rise, people are providing more information than ever for organizations to use for their benefit. Organizations who utilize customer analytics show to outperform their competitors who do not (Fiedler et al., 2016).
Hitachi Data Systems has launched a new software called Hitachi Vantara to help unify similar companies to better understand the market and use customer analytics to go further in depth with understanding operations needs for their customers (Dignan, 2017). This is just one way a company uses customer analytics to understand the wants and needs for future endeavors. With technology, Hitachi is able to not only receive feedback instantaneously, but globally. Hitachi is a far-reaching company that hopes to maintain strong relationships with all customers both distant and stateside.
Were it not for customer analytics, Hitachi may have struggled to make a comeback when their business started failing, unaware of the necessity of merging with other companies to better meet the needs of their customers. With the help of customer analytics, the company leaders were able to make the difficult decision to redesign the structure in a way that better suited their customers.
What do you see in the future for customer analytics?
Customer analytics is become a way for customers to speak directly to an organization. Just the data collected from their business--from search to end of sale--is a wealth of information that can help tailor an organization's methods to better fit their customers' needs. With the use of customer analytics, organizations are able to hone in on focus groups in real time to tailor their services to create a special experience instantly (Elliot, 2014). Customer analytics might actually be the comeback for retail stores, which have steadily been on the decline in the past few years, with over 26% of sales in 2016 being done online (Loeb, 2016).
In the past, it was up to the sales representatives to watch customers and try to analyze them at face-value to try to appeal to their tastes specifically. With technology taking over, an able to use specific algorithms to analyze customers in an instant, it is much more successful at reaching out to focus groups and meeting the needs of the customers (Elliot, 2014).
While many believe the rise of technology will move consumers to a virtual-only method of shopping, the use of technology can actually encourage Millennials to go out more and engage in actual shopping. With the use of customer analytics, a lot of the confusing and discomfort is taken out of the social interaction and makes for a fast, easy, painless experience.
Dignan, L. (2017, September 19). Hitachi Launches Vantara, aims to Target loT, Data Center, Cloud, Analytics. Retrieved from http://www.zdnet.com/article/hitachi-launches-newco-aims-to-target-iot-data-center-cloud-analytics/
Elliot, T. (2014, February 11). The Future of Customer Analytics. Retrieved from http://www.digitalistmag.com/industries/retail/2014/02/11/the-future-of-customer-analytics-01243881
Lars Fiedler, Till Großmaß, Marcus Roth, and Ole Jørgen Vetvik. (2016). Why customer analytics matter. Retrieved from https://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/why-customer-analytics-matter
Market Strategies. (2006, July 31). Retrieved November 21, 2017, from https://www.entrepreneur.com/article/25754
Loeb, W. (2016, January 4). Why Retailers Must Restructure in 2016. Retrieved from https://www.forbes.com/sites/walterloeb/2016/01/04/every-sign-is-saying-retailers-must-restructure-in-2016/#12710e0e1316
I need an response to her answer. Thanks in advance!
Explanation / Answer
I agree with you.
But with the customer analytics come at a huge data and need of the systems that prove to be costly to run and maintain. Companies that are large enough may be able to absorb the shock but lower strata organizations still face difficulty to do a tradeoff between the benefits and the costs of implementing such systems.