Understanding Customer Behaviors with Information Technologies

Understanding Customer Behaviors Steve Jobs Demo on IPOd http://news.com.com/1606-2-6148642.html

Understanding The Customer One of the key aspects to learning all about customers is collecting as much information about a customer as possible. Things such as names, addresses, contact numbers, age, sex, number of children etc all help a business to ‘classify’ and come to know their customers better.

Benefits of Understanding Customer Behaviors One major benefit of a Understanding Customer Behaviors is to produce analysis about the types of customers best suited to their business.  Armed with this information, businesses can then market to them in a more personal way, utilizing the information previously gained.

Understanding The Customers' Wants And Needs In addition to the information collected about the customers’ contact details, family and personal details, a good ‘Understanding Customer Behaviors’ system also collects information about their customers' buying habits. 

Analysis of Customer Information The invaluable information about customers' buying habits can then be analyzed and used to help the business identify what their customers really want or would be most likely to buy.

Customer Touch Points Customer Touch Points are vital since your business has a marketing orientation and focuses upon the customer and his or her current and future needs. This is the interface between your organisation and its customers. For example you buy a new car from a dealership, and you enter a showroom. The dealership is a contact point..

You meet with a salesperson whom demonstrates the car You meet with a salesperson whom demonstrates the car. The salesperson is a contact point. You go home and look at the car manufacturer's website, and then send the company an e-mail. Both are contact points. Other contact points include 3G telephone, video conferencing, Interactive TV, telephone, and letters

Data Mining Data Mining is where an organisation evaluates large Data Stores for patterns, or relationships between groups or individuals (or segments). Applications present 'patterns' in a format that can be used for marketing decision-making.

Data Mining and It’s Potential Applications Database analysis and decision support Market analysis and management target marketing, customer relation management, market basket analysis, cross selling, market segmentation Risk analysis and management Forecasting, customer retention, improved underwriting, quality control, competitive analysis Fraud detection and management

Other Applications Text mining (news group, email, documents) and Web analysis. Intelligent query answering

Areas in Data Mining KDD (Knowledge Discovery in Database) The processes of producing knowledge Data mining is a processes in KDDMachine Learning Pattern Recognition Finding patterns from large data Has a great relationship with image classification Statistics

Collecting Customer Data & Analysis of IT

Data collection: Contact Points Touch Points Physical stores Telephone Mail E-mail Internet

Points of Sale Data POS (Point of Sale) data - bar codes of products - customers information from their credit cards, identification cards or discount cards EDI (Electronic Data Interchange) - mostly B2B - orders and delivery of orders

Transaction Data

Use of transaction data

On-line interaction data

Architecture for Analysis of Customer Data

Technologies for Analytical CRM

Data mining

Customer Analytics