Business Intelligence Has Transformed the Essence of Business
Posted by marwickbravo on July 21st, 2014
During you sales and marketing research, you will come across concepts such as customer profiling, customer demographics, customer segmentation, etc. These concepts carry no meaning if there is insufficient data, inaccurate reports, erroneous analysis, etc. Thus, to get better insights into customer buying behavior, a company has to delve into business intelligence. This is a vast field in data management and reporting that has gained momentum in the recent years. Companies that are doing good business want to do better numbers than before.
Data business intelligence solutions bridges this gap and provides tools that can give better insights into company data. Before you plan for marketing or sales strategies, you will have to understand what your customers are actually doing and what they prefer. During this analysis phase, you will have to identify key areas such as interaction with the company, transaction history, business relationship, and so on. When customer data is collected and saved, data mining seeks to identify patterns of behavior. In addition to behavior, data mining also seeks indicators of such patterns. Such analysis can be used to formulate sales and marketing programs that are aimed at maximizing revenue per customer. For some large organizations, data mining can help reduce the marketing spend on probable low value customers.
Business intelligence has various branches or types. For marketing improvements, marketing business intelligence is the most recommended branch of business intelligence. Marketing business intelligence provides inputs on known customer profiles or patterns. Such reporting is done on an ongoing basis or as a one-of or ad-hoc query.
If there are any latest developments in customer behavior and marketing effectiveness, business intelligence will inform you. There are several ways in which business intelligence can communicate the results with you. One of the most common methods for communicating trends of key performance indicators is by the used of dashboards. These are delivered directly to the desktop of the decision maker so that he or she gets a better idea of the current processes. Since the data verification is dynamic, the dashboards are continuously updated.
Business intelligence can provide analytical data intelligence by making an analysis of customer behavior. This is generally done by the slicing and dicing method. According to this method, aggregated customer data is compared with various dimensions such as product, time, channel, demographics and geography. There is very little human intervention in the business intelligence software applications. If there are some patterns in the data, then the software will automatically detect those patterns. In addition to detection, the software will also recommend opportunities for special action. If there is any need for summary reports, the Business Intelligence software will also be able to generate them.
Customer segmentation is the process of clustering or grouping customers that have common characteristics. When these customers are segregated or grouped, differentiated treatment can be applied on different groups of customers. The departments that would enable differentiated treatment are sales, customer service and marketing. There are some traditional customer segmentation metrics that are being developed by conventional methods. Business intelligence tools have novel methods to generate these customer segmentation metrics, which can give accurate results.