Written by Fernando Maciá
Rocío González, partner at Analyticae Data Mining talks to us about how to design strategies that focus on the customer, retention and RFM model.
We start with business knowledge, technology and advanced analytics. Models and the application of machine learning is also done with smaller amounts of data. We don’t need a lot of data, but enough to execute quickly and be in time to make business decisions.
It is the business that dictates what the technology has to do. Not all artificial intelligence needs big data.
We start from Business Intelligence and move into predictive models to predict the future.
Data Mining
Capture information, explore, model and predict.
Focus on your customer. Find products for your customers, not customers for your products.
Start thinking about who you are going to sell your products to. The customer experience is omnichannel, on and offline. It is all information that we have to collect and analyze wherever it is produced. Everything must be connected and must be able to be analyzed.
The customer lifecycle is the person from the beginning to the end of their relationship with the company. Capture, activate customers, develop them, retain and recover customers, or, if I can’t recover them, clean them from the database.
Sometimes we go into consumption without a specific need. We create it ourselves.
Phases of a loyalty project
- Situation analysis.
- Definition of objectives.
- Formulation of the initial program concept.
- Final development, training and internal communication.
- Launching of the program.
Model RFM
It is a customer classification model that is easier to implement and provides better results. It is based on purchase recency, frequency of purchase and total value of the customer’s total purchases.
This model applies the Pareto rule (80% of the value is generated by 20% of the customers). We cannot lose the customers at the top of the pyramid because they are the ones who sustain the company.
