Understanding customers beyond purchases: clicks, keywords and browsing behavior

Mar, 25 2010

Traditional CRM efforts used to focus on customer's purchasing behavior. In the last decade, customers shifted their behavior online. The amount of data captured by online systems are quite large, and often left in separate systems or tools (Coremetrics, Webtrends, Email service providers).

This data has tremendous value.

1) It allows marketers to better predict customer's future purchasing probability. We've recently built a model using traditional purchasing related variables and were able to have a gain curve where top 40% of people ranked generated 87% of revenue. When we incorporated email open, click and email status variables into the mix, our predictive power increased from 87% to 94% for the same top four deciles.

2) It allows marketers to find the next best offer or next best product to offer.

Integrating email related data and web-browsing data is crucial in improving targeting. This will not only improve the top line, but also reduce the unnecessary spend due to reduction in offline spending.