The importance of big data analysis cannot over-emphasize nowadays.  “Customer Relationship Management (CRM)” is the most well-known and introductory application of big data analysis in the business. CRM system is actually an old vocabulary, which highlighted on increasing customer loyalty. Today CRM means something more.


Why is the Incentive Program ineffective?


The incentive program was the mainstream in the marketing industry. Marketers spent most of their time working on the program. They used different discounts to recruit members and increase the revisit rate. However, the effect was unsatisfied. The initial revisit rate increased for a while but not long lasting.

Why is it ineffective? This is because human estimation is unreliable. The marketing staffs designed the program schemes according to their own experience and assumptions. It is more like guessing. Sure they can rely on marketing research, but the marketing change can be rapid. The results can only reflect the preference of the majority. What we need is something more accurate and efficient, a tool that can achieve precision marketing while catching the speed of the changes.


Data analysis is the booster to CRM System


Big data analysis understands the preferences and interests of each member. It can dig in and find out what incentives can motivate customers the most. The focus should now shift from “member incentive plan” to “big data analysis.”  Know your  each customer. A customized, unique promotion and discount to each customer was once impossible but now become doable with the help of big data analysis.


Collect Data and Draw Customer Portrait

CRM System

What is customer portrait? It is to draw a portrait for each of your clients. The more detailed the lines, the better the data will be used to shape the customer’s tastes. What data should we collect?

First, we need to focus on customers’ attributes, their lifestyles and consumption behaviors.

  • Fixed features: gender, age, region, education level, birthday, occupation, constellation
  • Interest: hobbies, APP, website, browsing/collection/comment content, brand preferences, product preferences
  • Social characteristics: living habits, marriage, social/message channel preferences, religious beliefs, family composition
  • Consumption characteristics: income status, purchasing power, product type, purchase channel preference, purchase frequency
  • Dynamic characteristics: current activities, demand, location, surrounding businesses, surrounding people


How to collect the above data to build a CRM system? Some are already in your CRM database (customer database), and some can be collected through their “footprint.” Every their activities on the internet such as clicking and browsing can be monitored. For example, visitors’ browsing cookies remain in the browser. The server can identify and record their browsing behavior from various actions, clicks, paths and etc. We can further analyze their long-term and short-term needs and interests.


You can create tailor-made incentive plans for each customer. Not just different, but also dynamically adjusted according to the customer’s consumption behavior and feedback on the incentive plan. What you need is to find a company to build and design a “CRM System” for you, so the above program can function automatically.


Other articles:


Big Data Analysis-CRM Big Data

Big Data Analysis- Collection


Extended reading:


Understand your customers better with big data

Will Big Data Finally Turn CRM Into Something Truly Valuable?

What Is Social Marketing? And How Does It Work?