By Jeff Sauro

Customer analytics are used across industries in both small and large organizations. Examples of customer analytics at work include several industries: retail, finance, online, and software.

  • Retail: Targeted promotions based on past purchase for individual customers mean retailers anticipate needs and send coupons for things like home improvement or diapers.

  • Finance: Credit card companies can understand when customers are more likely to cancel their account based on non-usage, as well as detect fraud based on unusual purchases.

  • Online: An understanding of which designs, layouts, navigation structures, and even how the color of buttons affect customer purchases (called conversion rates) is used extensively across most Internet retailers.

  • Software: Customers who need sales force automation software often also need accounting software and human resources software.

Professionals who specialize in customer analytics typically have a background that includes a mix of mathematical and software skills. These individuals typically go by titles such as:

  • Data scientist

  • Statistician

  • Database analyst

Just as most organizations are already measuring customer analytics, most businesspersons also can use customer analytics. You don’t need a PhD in statistics or even a specialization in math. All you need is some desire to better understand a customer and a willingness to answer business questions with data. Customer analytics is therefore also done by

  • Business analysts

  • Project managers

  • Product developers

  • Designers