Analytics Magazine Analytics Magazine, July/August 2014 | Page 12

EXE CU TIVE E D G E Answering questions such as whom to target, what to offer and when to offer bring a paradigm shift in garnering customer interest and loyalty. customer targeting models. In most organizations, such initiatives if implemented have the potential to lay the foundation for similar opportunities with other business functions such as planning, store operations and category management. When an organization reaches such a stage of maturity, that’s when true “return on data” (ROD) is possible. 2. The three Ws …whom, what, when. Traditionally, marketers have used a uni-dimensional approach to target customers. However, results show that these can be sub-optimal and might have an adverse effect on customer loyalty and brand image. Answering questions such as whom to target, what to offer and when to offer bring a paradigm shift in garnering customer interest and loyalty. These help rank customers on their propensity to re-purchase, and lead to preferential treatment of the right customers with the right product portfolio or allow marketers to understand when to offer disco V