Case Study C - Performing Market Analysis Organisation ABC sells products online to customers; they want to analyse their customer data to find out how well they are performing in terms of selling and building a customer base. They have the following data:
Customer names and contact details Customer sales records r Customer queries and complaints Marketing and advertising that the organisation has done, and the results of these Competitor and industry information.
They need to know: The conversion rate of leads to sales (to determine how many sales you get as a result of your activities; i.e., divide the number sales by the number of leads, and multiply this by 100 to get the percentage amount)
Speed of response curve (how activities, namely promotions, are determined to be effective (whether the Input o worth the output); i.e., customer sales/interest are tracked and recorded to determine the numbers/responses that a promotion receives. This can be used to determine if outgoings are being met and how much, if any, profit is being made)
Recency and frequency grid (this is used to determine customers buying patterns and to determine who your most byal customers are; i.e., the following components are given a rating, 'customers who have recently purchased fin days)', 'customer frequency of purchase in a year', and 'the average or total order value of the customer'. Each category is ranked 1-5 according to the statistics you have (5 being the highest value); customers with a 555 rating are your most valuable).
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