Combining big data, analytics, and artificial intelligence to provide more value to customers
This blog will look at the power of data analytics and artificial intelligence, to help businesses make sense of their high volumes of customer data and help answer one question – Who are your most valuable customers?
Big data—the term for data sets so complex that traditional data-processing applications struggle to deal with them—has seen massive growth in recent years.
A key component of this data explosion is the smartphone. Almost every action we take—whether posting to social media sites, taking photos, checking bank account balances, exercising, or buying food and drink—is capable of generating data in some form.
The latest “Data Never Sleeps” infographic includes some telling statistics. Every minute of the day in 2017:
- 120 professionals joined LinkedIn
- 45,700 Uber rides were taken
- 46,740 posts were uploaded to Instagram
- 69,444 hours of video were streamed on Netflix
- 154,200 Skype calls were made
- 3,600,000 searches were conducted on Google
Thankfully, businesses have means to gather, track and glean insight from the ever-increasing amount of data available to us. Technology now enables businesses to understand who their most frequent buyers are, their customers’ buying habits, and who is spending the most per transaction. Businesses are now able to pinpoint who their most loyal customers are. But not every company is taking advantage of this and most are spending more time and money than they need trying to answer these important questions.
Sophisticated data analytics software can parse through huge data sets, make sense of it, and provide actionable insights. Whilst the latest in artificial intelligence initiatives can remove much of the manual work of gathering such insights, giving businesses a huge advantage in finding, contacting, and retaining their most valuable customers.
What does a valuable customer look like?
Logic might suggest that your most valuable customers are the ones who spend the most money. But the concept of value is nuanced, and includes how much customers spend per purchase, how much they spend across their lifetime, how loyal they are, their levels of satisfaction, how likely they are to refer you to others, and much more.
Analysing your data sets may uncover that the customers who spend the most, are also the most expensive to retain, despite being the least loyal over the long term. It’s only by taking a deeper look into your audience that you can find who your most valuable customers are. The next step is making decisions to adapt your services to them.
The loyalty industry is a prime example. The first loyalty schemes, like O2 Priority, were viewed as innovative practices focused on improving the experience for O2 customers. Now, however, the array of companies offering loyalty programmes—the most common being simple point systems and ‘punch cards’—has diluted the practice to a point where they can seem less sincere.
Data analytics can change that. Businesses that are able to analyse their most valuable customers can personalise their loyalty schemes to them to give something back. For example:
- Customers who are married with children may find better value around rewards for events family days out.
- Customers who are sports enthusiasts may find better value in a discount on a gym membership.
Ultimately, this makes the loyalty program more valuable to the customer and makes them more likely to engage with the business now and in the future.
Finding your most valuable customer
Any business can identify their ‘most-common’ customer: the type of individual or organisation that they have done the most business with. What’s harder to identify is the most valuable or ‘ideal’ customer: the type of individual or organisation that is the most likely to do business with you, the type that will spend the most money with you, the type that will remain a customer for the longest. This is what data analytics can help you find.
Of course, the problem is that this takes time and money to uncover. Usually, you would have to employ data analysts to browse through your data sets to gather insights. However, thanks to advancements in artificial intelligence, technology is now able to reduce the legwork—providing you with instant insight into who your customers are.
That’s where Pixoneye comes in. Pixoneye helps you create a unique profile of your customers, so you can identify who they are and how valuable they are to your business.
The Pixoneye Software Development Kit (SDK) uses cutting-edge machine learning and computer vision algorithms to give a user’s phone the ability to condense its photo gallery into a detailed profile of relevant insights. Analysing past real-world behaviour, recorded in the richest data trail imaginable, the phone can understand its owner’s demographics, life stage, interests, and habits.
The phone, without needing to upload any personal data to the cloud, then passes this profile directly to the brand, where it can be used to personalise every interaction with that user.
Pixoneye also provides big data analytics for advanced insights into a business’ audience. This information is accessed on a dashboard, on mobile or desktop, displayed in a highly visual, easily-digestible format, so it’s easy to spot trends and start taking action.
For more information on how Pixoneye combines big data with analytics and the latest artificial intelligence to provide better insights to businesses, get in touch with us today.
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