Customer-Centric Marketing — Chapter 7

Know: Understand Your Customers

In a customer-centric marketing organization, every marketing action or program should be informed by deep knowledge of the customer. The Know stage creates this understanding by aggregating customer data from available data sources (e.g., purchase data, demographic data, marketing behavior data), and analyzing it using a variety of tools and techniques.

The result is a “single view of the customer,” and a variety of customer insights into how preferences and interests vary across behavioral and demographic customer segments.

Here are some tools and metrics that are used in the Know stage:

  • Customer cohort analysis
  • Historical trend reporting (looking at metrics such as new customers acquired, revenue, profit, AOV [Average Order Value], order frequency)
  • Predictive Customer Lifetime Value (CLV)
  • Product and Brand Affinity analysis
  • High-value customer drill down: Who are our best customers, and what makes them different
  • Micro customer segmentation

The Know stage is all about using data analysis to gain deep, meaningful insights about your customers. The following three components - Find, Grow, and Retain - are about turning these insights into actions: Using the insights to drive strategy and decision making, as well as improve acquisition and retention marketing programs.