Dynamic Customer Attribution
In today's fast-paced, data-driven world, understanding customers has never been more critical for retailers.
Traditional customer segmentation methods typically create segments like young families, healthy individuals, or pet lovers based on tendencies and clustering. But what if you’re ageing, healthy and a pet lover? Or a fashionista that loves gourmet food? Or a large family comprising babies through to teenagers? Or any classification with a range of income and price sensitivity? This list is endless.
It may therefore be argued that this type of rule-based segmentation no longer provides the insights needed to drive success. Instead, retailers could benefit from a more dynamic, granular approach and instead attribute customers individually.
It should be recognized that each customer is unique and that the nature of their attitudes, interests and behaviours are ever-changing.
In this blog post, we'll explore why dynamic customer attribution is essential for retailers and how it can lead to more effective marketing strategies and improved business performance.
Customers Are Unique
Traditionally, retailers rely on segmenting customers based on demographic or behavioural similarities. However, the nature of customer behaviour is constantly changing and it's crucial for retailers to recognize that every customer is unique. Each has distinct attitudes, interests, and behaviours.
These characteristics can change over time due to various factors. They may include personal circumstances, external influences, or evolving preferences. If retailers acknowledge this individuality, they can better understand each customer's value and potential, thereby delivering more personalized and relevant experiences.
The datasapiens Advanced Insights Platform introduces the concept of dynamic customer attribution. The chart below is an example of traditional segments and product-based customer attribution, that users can combine on-the-fly. However, we go further, calculating traditional segmentations at various levels of product and store hierarchy, for example by category, store, cluster or format, taking our understanding to the next level.
Benefits Of Dynamic Attribution
The scope of attribution is endless. With unlimited attribution scope, and the ability to create user-defined segments on-the-fly, opportunities for application are also unlimited. The datasapiens Advanced Insights Platform enables users to instantly apply newly created segments to analyses, assortment refinement, pricing and marketing activities. With dynamic behaviour comes dynamic action, in-store and online.
Deliver personalized experiences
By understanding each customer's unique attributes and preferences, retailers can tailor their marketing messages and offers to resonate with individual buyers. This level of personalization can lead to higher engagement, increased customer satisfaction, and more excellent lifetime value.
Adapt to changing customer behaviour
Dynamic attribution enables retailers to adjust their marketing strategies as customers' attitudes evolve. This ensures their marketing efforts remain relevant and impactful, despite the inevitable changes in customer preferences and habits.
Optimize marketing spend
By identifying high-value customers and understanding their attributes, retailers can allocate their marketing budget more effectively. This allows for greater efficiency in marketing spend and a higher return on investment.
We’ve moved beyond segmentations.
Dynamic customer attribution delivers ultimate granularity; enabling the creation of user-defined segments on-the-fly
Attribution is continuously updated based on behaviour, and evolving attitudes and interests.
The datasapiens Advanced Insights Platform, leveraging dynamic customer attribution, takes analysis, insights, and application to the next level, by enabling more relevant, personalized customer experiences, in-store and online.