Customer Scoring
Every customer is different, though some make larger purchases, and some are more frequent to your marketing efforts and purchase frequently. Each of the customers is given a score based on the criteria that are quite specific to your business.
Customer scoring also helps you to improve your marketing performance by keeping you focused on the customers with the highest conversion potential. There are various methods that use data to analyze the behaviour of customers, and this way, we are able to determine the efficiency of marketing campaigns and decide whether the customer is important enough to maintain advertisement spending.
What is customer scoring?
In customer scoring, you categorize the prospects or the existing customers on the basis of different criteria. Your aim is to get a clear insight into the potential of the business contact. It is quite a positive exercise that stresses opportunities rather than taking risks. In order to make customer scoring a success, advanced use of data and clever automation are the key elements.
Benefits of customer scoring
· More effective and efficient credit management
With the help of customer scoring, you can sharply focus on the customer. Therefore, each customer gets a bespoke approach. By implementing customer categorization, you gain more time and can work much more efficiently as you have full visibility, and you get an understanding of what to do for a different type of customer.
· More satisfied customers mean more profit
Usually, the most profitable customers are not necessarily the biggest ones. It rather depends on their payment behaviour and the efforts that you make to get the money. With the help of customer scoring, you can get a clear picture of the profitability of all the customers. You can use segmentation as a basis for realistic agreements. The customers who happen to pay on time can be offered the best conditions, though you have to be clear and transparent, and your customers will be grateful to you.
· More efficient sales
Customer scoring also helps to categorize your prospects. By collecting information about payment records, creditworthiness, growth potential, and market where the prospect operates, you can alleviate the sales department in order to spend time on customers who cause problems afterwards.
How do customer surveys help to enrich customer strategies?
The customer behavioural data is typically sourced from your customer relationship management (CRM). The customer provides you with basic sociodemographic information when they make an online purchase or register for your loyalty program.
However, collecting more detailed sociodemographic and behavioural data can be a challenging task. Many successful organizations use customer surveys to do this. You will be quite surprised to know how many of your current or prospective customers are actually interested in sharing their opinions.
Customer scoring is only successful if you have sufficient customer data. That is why it is very important to increase your customer knowledge before the implementation of your customer scoring strategies for your customer database. Customer scoring also enables you to make the most out of your customer database.
Setting up your customer scoring
As customer scoring is based on the segmentation of your customer database; therefore, the score assigned to each of the customers is calculated from the data that you have. The scoring system can be built by using all types of data:
· Sociodemographic data like age, sex, marital status, profession, etc.
· Customer’s psychological data, like interests and opinions.
· Behavioral data of the customer that includes the purchase history, last purchase date, purchase frequency, website behaviour, customer complaints, email response rate, etc.
Customer scoring and segmentation
Customer scoring and segmentation use the most valuable data i.e., CRM, billing data, usage data, site data, spending data, demographic data, etc. The idea is to discover actionable insights that are related to three broad areas of strategic marketing planning:
· Analysis of market and sight
By customer scoring and planning, you can drive site and market analysis with updated and accurate data that enables you to analyze the market share data.
· Analysis of customer and prospect
With the help of customer scoring and segmentation, you are able to plan your business strategically. This way, you can understand the best customers, compare the customers against the competition, and analyze the campaigns to see who responded.
· Media and channel planning
Customer scoring and segmentation can also inform your media and channel planning by giving you help to figure out the high performing audiences and how to build lookalike audiences. In the end, you can select the media that can provide maximum ROI to the audiences.
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