BI profit boosters for Q4

Using Business Intelligence tools to improve revenue generation processes is key as retailers and ecommerce stores approach Q4. By using detailed and specific information about customers, their purchasing behavior and better predicting their future needs, one can provide a good case for adopting the latest in BI tools to help generate revenue beyond Q4. BI enables retailers to better understand the value of each customer, their segmentation and marketing channel effectiveness. Business Intelligence helps to connect information witha revenue-generating process. Therefore, it is easy to have a clearer picture ofthe ROI your BI efforts will generate.

BI is commonly used to improve revenue-generating processes such as market analysis, customer segmentation, marketing and channel management, CRM, and category management.

1. Market Analysis:

Understanding the customer is critical for revenue generation. BI analytic tools engages companies better with their customers by mining deep within the data for a better understanding about when customers are most likely to make purchases, the frequency of purchases by a customer, which products or services bring in the highest revenue and which products are often bought together with another product for cross-selling opportunities in future. Using a sophisticated BI environment, these real-time analytics can quickly help build long-term revenue.

2. Customer Segmentation:

Data mining methods can uncover specific characteristics about your current and even potential customers. BI tools go beyond traditional geographic and demographic information, by making more in-depth connections of purchasing behavior. Used in combination with existing tools that you are probably already using, say Google Analytics, BI tools help you to analyze your customer segmentation even further resulting in a more informed product selection and production process as well as a more defined and targeted campaign to better reach your individual segments.

3. Direct marketing and Advertising:

Having BI tools in place provides an effective means of understanding the intended recipients of a given message. Whether email marketing, direct mail of traditional PR campaigns, BI tools assist the marketing department to effectively create a richer and more customer-focused campaign. These BI tools can also measure the effectiveness of your advertising efforts and see how it directly affects revenue. For example, an online retail store emails a time-limited promotion to the email segment that is most likely to purchase during this type of offer.

4. Channel Management:

There are a variety of methods for customers to make their purchases including catalogues, ecommerce stores, point-of-sale and third party vendors. Today, retailers face strategic decisions about which channels are the most effective and which partner relationships are the most successful. Retailers also are evaluating the effectiveness of each channel and partner over any given time. With the adoption of BI, these tasks can be simplified and made more effective. By properly understanding each channel, one can determine the overall cost-effectiveness of each channel to better optimize margins.

5. CRM

Most retailers are using CRM software to store customer information. However, using BI tools with CRM provides a deeper analytic overview allowing for a more precise and effective customer analysis and segmentation. When used properly it can lead to more effective revenue growth and future revenue generation.