Friday, October 15, 2010

God used to measure BI



"Customer is God" This is a company famous. Carefully consider, in the circulation of commodities in such a developed society, the role of customers not just buyers, made of products and services to business leaders. In the era of commodity shortages, customers to buy food, daily necessities only value of its functionality, now, customers have a wide range of products selection criteria. Like a computer's case study in color and hue to match; buy mobile phones, the more attention to whether the mobile phone shape the individual taste; even the most common shampoos, hair was divided into two types, the raising of hair, and dry-cleaning type. This change is continuously enriched with the goods arising from the inevitable result. Some companies differentiate through product design to find the product selling point, but smart companies are differentiated according to the customer to find a way to survive.

Accumulation in the enterprise before God Profile

So how to measure business customers? Placed in a beverage company Sam's Office on the desktop is the mountain of reporting: a regional daily sales report, a store sales reports, a market cost reports, margin reports ... ... except for all the missing reports of the customers. "Who can tell me that customers psychological thinking?" This is a lot like Sam from the same management concerns. Indeed, the "customer" is an abstract definition. It has a simple and unified interpretation: Those who purchase business products and end-use manufacturing personnel are called customers. It also has the distinction between complex: a large number of corporate buyers often purchase, but the frequency is very low, the customer is buying a small amount occurs almost every day; some customers are consumers and customers is the product metastasis (such as purchase is not their own use, but send others to use); some customers who are brand loyal, and some customers are free to buyers ... ... Customers have so many distinguished itself, no wonder the manager no start.

In order to properly assess the business of God, we first analyze how to obtain customer data. "Make bricks without straw" no real data as a basis for analysis, any conclusions are subjective and unreliable. Manufacturing customers is an order of the customer, therefore, through the enterprise's ERP can be collected customer information. Time as the customer orders, average order amount, payment methods. Retail business customers may not be easy data collection, the first customer is a relatively dynamic, and can not be identified. For example, we went to the same place to buy clothing, clothing shop Purchasing Guide may know who we are, and the data input to a computer can not distinguish the identity of the purchaser. But some corporate managers are smart, so we can see in the major supermarket called "membership card" thing. Handled in the supermarket "loyalty card" does not require additional spending, as long as you can fill in personal information. With a membership card, consumers can get a little discount on the amount, and this may be your PC to identify the identity of customers for future analysis. Even if there is no way to do "membership card" business, you can also market research to analyze your target customers. Certainly, the method is relatively passive.

Measurement of three customers

With the customer's data, let's look at how to analyze the data.

1, the customer conventional division.
Characteristics of the customer into their own different properties, such as gender, age, economic base, employment, family, marriage, nationality, education, geographic and other dimensions to distinguish. Then counted the proportion of their sales to find the product target audience. We will be sales by customer's "sex," "marital status", "education" on them together, will find the characteristics of customers. First of all, through the lower left corner of the pie, you can see the purchase ratio of men and women are about 50%, this means that the product to the customer's gender is not sensitive. Similarly, in the lower right corner of the pie, we can see that married and unmarried, the ratio of 1:1 customers. If the business under the above conclusions and give up looking for different customers, then ignores a critical factor in academic analysis (top right icon). As can be seen in the academic, "high school diploma," the purchase rate is the biggest, so businesses target customers will be high school education customers.



Second, customer frequency analysis.
Customers buy only one product is not the focus of enterprises, enterprises are looking to buy a high frequency of target customers, because they are the ones to provide enterprises with continuous economic source of God. The higher frequency of customer purchases, that company's product more popular; the contrary, said the market this product in the cold, and even lead to serious unsalable product. Customer purchase frequency formula: customer purchase frequency = (a period of time the number of customers to buy) / time units. As the existence of the life cycle of the product itself, so customers who bought this product over time is not going to buy the same product. Shampoo, cosmetics, fall into such products. In contrast, food and drink very short life cycle, the day after the day of purchase will be consumed. The figure is a daily customer frequency analysis, we can see that the frequency of clients reached a peak in July. In other words, in July a large number of customers to buy the company's products more than once. This is the true meaning of enterprise sales season, attention should be managers.



Third, the rate of retention.
Any enterprise looking for new customers to patronize the same time, ensure the old customers will not decrease. This business will grow, and the advantage of the market. But the customer retention rate in the calculation? Retention rate = (number of times over a period of time to purchase a number of customers) / number of all customers for some time. So how companies view this indicator? If the retention rate to maintain a stable state, said the company's business is healthy and continuing to add new customers into the loss of old customers purchases. If a sudden drop in retention rates, said that as companies make a lot of promotion and lead to increase in the number of new customers, so the proportion of old customers will drop. The figure below shows a monthly comparison chart of new and old customers. The lower column is the number of old customers, while the upper part of the number of new customers.



The above mentioned three kinds of customers is the most practical measure of the most convenient way, whether manufacturing or retail distribution business class enterprise customers can try to analyze the data. Chu Ci analysis also includes analysis of consumer behavior, product mix analysis, customer analysis and other price-sensitive analysis. Due to limited space, this is not elaborated.

God as a business customer, not the vague and abstract, as long as the right tools and methods, you can do better to make enterprises more efficient. There is no measure of your business "God" mean?







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