Datawave – Identify Your Best and (Worst) Customers
When the DotCom bubble burst, it did so in an eye-popping fashion. In the late 90’s, Yahoo’s stock price was $200; two years later, 95% of the value was erased.
There were multiple causes for the bubble, but one stand-out factor was the way in which metrics led investors astray. Intuitively knowing the value and potential of the internet, investors used “traffic volume” as a metric to value startups.
“Show me the incentive, I’ll show you the outcome.” – Charlie Munger
The focus of marketing leaders was reduced to acquiring traffic, and, consequently, they ignored everything after the click.
In today’s digital environment, anyone growing a website understands why using “traffic volume” as a singular metric for success is shortsited.
“History Doesn’t Repeat Itself, but It Often Rhymes” – Mark Twain.
Although, even with the abundance of metrics brands monitor today (CPM, CTR, CPC, CVR, CTOR, ROAS… to name a few), one can argue leaders face a similar risk of stopping short.
In placing the majority of focus on metrics associated with orders, they fail to describe the customers behind the transactions:
- How many customers are loyal to your brand?
- What products do your best (and worst) customers purchase?
- What is the average time between orders for your best customers?
- What products are associated with one another in the average customer journey?
- How do customers differ when acquired during Black Friday versus non-sale periods?
These questions are answered by taking a step back and analyzing a different level of granularity, the most important element in a business, the customer.
85SIXTY has developed a tool to do just that: DataWave
Integrating transactional data, DataWave segments customers into cohorts identifying the best and worst customers (and those with potential) so that you can more meaningfully address their needs.
“The only real mistake is the one from which we learn nothing.” – Henry Ford
This year, stocks are sliding in a similar trajectory to those in the DotCom era. During challenging economic times, successful brands depend on loyal customers.
Do you know who yours are?