tag:blogger.com,1999:blog-39428617393744358762024-03-13T05:09:19.686-07:00KnowlversAnonymoushttp://www.blogger.com/profile/00997388522066404109noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-3942861739374435876.post-47816400755426944762012-09-09T08:09:00.000-07:002012-09-09T08:09:26.585-07:00E-commerce: Analytics' delight<div dir="ltr" style="text-align: left;" trbidi="on">
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<span style="font-size: 10.0pt; line-height: 115%; mso-bidi-font-weight: bold;">Electronic
commerce or e-commerce is an evolved-through-technology</span><span style="font-size: 10.0pt; line-height: 115%;"> specimen of commerce, and is a widely welcomed and embraced way of doing
commerce. And as competition is growing, a need to differentiate from
competitors is growing too. In e-commerce data is a key strategic business
asset. E-commerce website owners cannot see the buyers or visitors, so, their
best actions (best CRM moves) have to be driven by the visitors’ <s>foot-prints</s>
click-prints. Each click on website gives birth to data. Ability to manage this
data as a strategic asset, and use it as a strategic differentiator is a key
contributor to the success of an e-commerce operation. At the cost of stating
the obvious, let’s compare a customer’s e-commerce shopping with commerce
shopping. <o:p></o:p></span></div>
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<span style="color: #0070c0; font-size: 10.0pt; line-height: 115%;">E-commerce: </span><span style="font-size: 10.0pt; line-height: 115%;">Website visitor logs in to the
e-commerce website<span style="color: #0070c0;"><o:p></o:p></span></span></div>
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<span style="color: red; font-size: 10.0pt; line-height: 115%;">Commerce: </span><span style="font-size: 10.0pt; line-height: 115%;">Potential customer walks in to the
retail store (representative commerce platform)<span style="color: red;"><o:p></o:p></span></span></div>
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<span style="color: #0070c0; font-size: 10.0pt; line-height: 115%;">E-commerce: </span><span style="font-size: 10.0pt; line-height: 115%;">Or, Website visitor visits the site,
but logs out within seconds, maybe just after seeing the home page<span style="color: #0070c0;"><o:p></o:p></span></span></div>
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<span style="color: red; font-size: 10.0pt; line-height: 115%;">Commerce: </span><span style="font-size: 10.0pt; line-height: 115%;">Potential customer enters the retail
store but comes out within minutes<span style="color: red;"><o:p></o:p></span></span></div>
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<span style="color: #0070c0; font-size: 10.0pt; line-height: 115%;">E-commerce: </span><span style="font-size: 10.0pt; line-height: 115%;">Within the e-commerce website, he/she
visits one of its page (or browse from one page to another)<span style="color: #0070c0;"><o:p></o:p></span></span></div>
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<span style="color: red; font-size: 10.0pt; line-height: 115%;">Commerce: </span><span style="font-size: 10.0pt; line-height: 115%;">Potential customer visits section(s)
of the retail store<span style="color: red;"><o:p></o:p></span></span></div>
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<span style="color: #0070c0; font-size: 10.0pt; line-height: 115%;">E-commerce:</span><span style="font-size: 10.0pt; line-height: 115%;"> Within a page, Website visitor
moving to another page as a result of clicking on to the product-icon <span style="color: #0070c0;"><o:p></o:p></span></span></div>
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<span style="color: red; font-size: 10.0pt; line-height: 115%;">Commerce: </span><span style="font-size: 10.0pt; line-height: 115%;">Potential customer seeing or checking
some product(s) in the retail store<span style="color: red;"><o:p></o:p></span></span></div>
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<span style="color: #0070c0; font-size: 10.0pt; line-height: 115%;">E-commerce: </span><span style="font-size: 10.0pt; line-height: 115%;">Website visitor, after spending some
time on web-page explaining the product, doesn’t select it for e-cart<span style="color: #0070c0;"><o:p></o:p></span></span></div>
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<span style="color: red; font-size: 10.0pt; line-height: 115%;">Commerce: </span><span style="font-size: 10.0pt; line-height: 115%;">Potential customer checks some
product, say XYZ, but does not put it in the cart/basket<span style="color: #0070c0;"><o:p></o:p></span></span></div>
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<span style="color: #0070c0; font-size: 10.0pt; line-height: 115%;">E-commerce: </span><span style="font-size: 10.0pt; line-height: 115%;">Website visitor selects the product
and adds it into the e-cart <span style="color: #0070c0;"><o:p></o:p></span></span></div>
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<span style="color: red; font-size: 10.0pt; line-height: 115%;">Commerce: </span><span style="font-size: 10.0pt; line-height: 115%;">Potential customer selects the
product and put it into the cart/basket<span style="color: red;"><o:p></o:p></span></span></div>
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<span style="color: #0070c0; font-size: 10.0pt; line-height: 115%;">E-commerce: </span><span style="font-size: 10.0pt; line-height: 115%;">Website visitor checks out of the
e-cart, and continue for making the payment <span style="color: #0070c0;"><o:p></o:p></span></span></div>
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<span style="color: red; font-size: 10.0pt; line-height: 115%;">Commerce: </span><span style="font-size: 10.0pt; line-height: 115%;">Potential customer selects his bundle
of product(s) and move towards the payment counter<span style="color: red;"><o:p></o:p></span></span></div>
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<span style="color: #0070c0; font-size: 10.0pt; line-height: 115%;">E-commerce: </span><span style="font-size: 10.0pt; line-height: 115%;">Website visitor selecting the payment
option and begin filling his/her details for making the payment<o:p></o:p></span></div>
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<span style="color: red; font-size: 10.0pt; line-height: 115%;">Commerce: </span><span style="font-size: 10.0pt; line-height: 115%;">Potential customer communicates
his/her mode of payment at the payment counter, and…..<span style="color: red;"><o:p></o:p></span></span></div>
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<span style="color: #0070c0; font-size: 10.0pt; line-height: 115%;">E-commerce: </span><span style="font-size: 10.0pt; line-height: 115%;">Website visitor finally completes the
details and makes the payment - converts into buyer.<span style="color: #0070c0;"><o:p></o:p></span></span></div>
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<span style="color: red; font-size: 10.0pt; line-height: 115%;">Commerce: </span><span style="font-size: 10.0pt; line-height: 115%;">Potential customer makes payment –
converts into buyer or customer<span style="color: red;"><o:p></o:p></span></span></div>
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<span style="color: #0070c0; font-size: 10.0pt; line-height: 115%;">E-commerce: </span><span style="font-size: 10.0pt; line-height: 115%;">Or, Website visitor begin filling
payment related details, but logs out without finishing the payment<span style="color: #0070c0;"><o:p></o:p></span></span></div>
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<span style="color: red; font-size: 10.0pt; line-height: 115%;">Commerce: </span><span style="font-size: 10.0pt; line-height: 115%;">Potential customer finally, at the
nth minute decide not to buy anything, leaving back the selected cart<o:p></o:p></span></div>
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<span style="font-size: 10.0pt; line-height: 115%;">In e-commerce, scope of conversion of
action/behavior of a customer (Website visitor) into data is a lot more than in
commerce. E-commerce’s edge lies in capturing <b><span style="color: #0070c0;">“what happened in between?”</span></b> and <b><span style="color: #0070c0;">“what happened
even when customer did not finally buy anything?”</span></b> Or, to put it in
some detail - in e-commerce, entire journey of a Website visitor from logging
in to the website to his/her final purchase gets recorded in form of data –
Yes, this aspect of covering the web pages customer visited, the products
he/she checked before finalizing his/her cart covers “what happened in
between?” part which is not usually captured when a customer is doing similar
things physically inside the retail store (example of commerce). Similarly, in
e-commerce, entire journey of a Website visitor from opening the website to
his/her final decision of not to buy anything gets recorded. Or, we get data on
a customer’s doing <s>window-shopping</s> e-window-shopping.<o:p></o:p></span></div>
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<span style="font-size: 10.0pt; line-height: 115%;">“With great power comes great
responsibility” – a famous dialogue from a famous movie Spiderman</span><span style="font-size: 10.0pt; line-height: 115%; mso-ascii-font-family: Calibri; mso-bidi-font-family: Calibri; mso-hansi-font-family: Calibri;">. A lot of
information getting captured in data</span><span style="font-size: 10.0pt; line-height: 115%;"> puts high responsibility on analytics. In e-commerce
analytics sits in the heart of decision-making.<o:p></o:p></span></div>
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Anonymoushttp://www.blogger.com/profile/00997388522066404109noreply@blogger.com0tag:blogger.com,1999:blog-3942861739374435876.post-18880102641858925842012-08-25T11:01:00.000-07:002012-08-25T11:01:09.178-07:00Churn management<div dir="ltr" style="text-align: left;" trbidi="on">
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<span style="font-family: inherit;">Cell/Mobile
number becomes a part of a person’s identity. When concept of number
portability was not there, it caused some degree of loyalty to the telecom
operator even if customer was not fully happy with the services or pricing as
changing telephone operator meant changing the number which can be a strenuous task,
as it comes with an additional responsibility of informing the acquaintances
about the new number. After number portability, this element of ‘forced loyalty’
got diluted significantly. If unhappy with the telecom operator, the user can
change the telephone operator without changing the number.<o:p></o:p></span></div>
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As per
telecom literature, cost of acquiring a new customer is at least 5 times of
cost of retaining an existing customer. With penetration reaching
saturation in many markets, telecom operators are eyeing the same pie, making acquisition all the more difficult, thereby increasing the focus on retention programs. Retention programs are the actions to retain
the existing customers. However, retention/CRM managers find that they get less
than acceptable returns on their retention programs. This is mostly because
retention programs are not targeted sharply enough. A large proportion of
customers targeted with retention programs are often customers that would not
have churned in the first place.<o:p></o:p></div>
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To bring
sharpness in targeting of customers, for optimal utilization of
marketing budget, predictive analytics is deployed. Analytics at work for churn
management, in form of Regression models/Decision trees are build with an aim
of knowing in advance “Who will churn?”, for optimal targeting, i.e. allocating
resources on the basis of probability of attrition (maybe along with
profitability of the customer or other factors). Basic data requirements of
churn analysis are: </div>
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<ul>
<li style="text-align: justify;"><b style="text-indent: -0.25in;">Demographic</b><span style="text-indent: -0.25in;"> data from customer
information file like age, sex, zip code etc</span></li>
<li><span style="text-indent: -0.25in;"><b>Contractual</b></span><span style="text-indent: -0.25in;"> data from service account
file such as pricing plan, activation data, contract identification etc.</span></li>
<li><span style="text-indent: -0.25in;"><b>Usage & Payment</b></span><span style="text-indent: -0.25in;"> data from billing
system such as number of calls, airtime, fixed line time, total amount spent,
no. of times calls made to customer care center, change in price plan etc</span></li>
</ul>
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However, in
the process of building single customer view, handling many variables sometimes
causes dilution in focus on price elasticity aspect of telecom services. Looking at different price-quantity coordinates and drawing
insights from the change in trends/patterns is an important exercise which often
gets overlooked. Also, time to
expiry of contract is an important variable diligently tracked by the telecom
operators. Out of leaving customers, majority leave after their contract
expires. Quite a few times because of this reasoning Survival analysis, an analysis which tries
to answer both questions “Who will churn?” and “When will he/she churn?”, gets ignored.</div>
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<o:p></o:p></div>
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Importantly, none of these methods answer the question "Why does a customer leave?". Answer (to a limited extent) to this question calls for a serious inclusion of telecom CRM analytics into telecom CRM strategies, rather than seeing it like any other number crunching exercise.</div>
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Anonymoushttp://www.blogger.com/profile/00997388522066404109noreply@blogger.com2