R Studio 101

You may be wondering, what is R Studio? Is it easy to learn? R Studio is a programming language for statistical computing and graphics. The overall goal of R Studio is to help you summarize and analyze data that will provide insights for making data-driven marketing decisions. While it is not initially easy, like most things, through practice and many trials you can hone your skills just as I have.

This past semester, at Baylor University, I had the pleasure of doing in-depth customer analysis through R Studio and learned how to create data visualizations and perform different statistical analyses using R codes.

Data Science

Data science is the future of business analytics, yet it is often difficult to figure out where to start. The last thing you want to do is waste time and money with the wrong tool or program. Making effective use of your time involves two pieces: 

(1) selecting the right tool for the job at hand

(2) efficiently learning how to use the tool to increase value for your business.

This blog focuses on the first part, explaining why R is the right choice in three points.

Reason One: High Return on Value

The first reason for why R may be the right tool for the job is if you are looking to use a statistical programing language that lends itself well to an extensive infrastructure of big data. R covers a wide range of topics such as econometrics, finance, and time series. R has the best-in-class tools for visualization, reporting, and interactivity, which are just as important to business as they are to science. Because of this, R is well-suited for scientists, engineers, and business professionals.

With the analysis of customer analytics through R, business professionals can:

1. Increase sales to new and existing customers.
2. Increase response rates and customer loyalty.
3. Reduce campaign costs by targeting customers most likely to respond.
4. Increase sales force effectiveness by targeting qualified prospects.
5. Reduce customer churn by accurately predicting customers most likely to leave and developing the right proactive campaigns to retain them.
6. Deliver the right message by segmenting customers more effectively and better understanding target populations.
7. Deliver higher returns on marketing and promotions investments by contacting the right customers with highly relevant offers/messages.

These all important marks for a company and can be drastically improved through R.

Reason Two: Free Open-Source Tool

When downloading R for business use, one of the greatest pros is that it is an open-source program. Therefore, it can be modified and redistributed as per the user’s need. It is great for visualization and has far more capabilities, compared to other tools like Python.

Companies, such as Facebook, Microsoft, and Google, are using R programming as their core platform to make online advertising more effective. They also use R for economic forecasting and Big-Data statistical modeling. Due to the results that the ‘console’ and ‘plots’ provide in R, these big-name brands are able to make dutifully noted decisions.

Reason Three: Easy to Use

What is great about using R Studio is that once you understand the basics, you will be able to transcribe codes to more advanced stages since they have similar frameworks. Although it takes a couple tries to understand the statistical language, through failure comes success. To help create successful codes and interpretations, the RStudio Cheatsheets are a great reference guide for R syntax as well as YouTube videos.

Conclusion

Whether you use R or Python or another program, find out what your customer data strategy is and what your marketing strategy is to find that perfect balance between the two.

Are you meeting customer expectations? We all know the importance of customer service when it comes to running a successful business. In this social media obsessed world we live in today and the age of instant feedback, excellent customer service can go a long way, but an excellent customer experience can go even further!

Until recently, the quality of product and service provided were the keys to winning customers and earning their business. But today, a new factor has come into play and that is providing the best customer experience.

A recent Walker study found that by the end of 2020, customer experience will overtake price and product as the key brand differentiator. Customers will stay loyal based upon the experience and if you can’t keep up, they will move on (bye, bye).

Happy customers remain loyal customers.

Consider these statistics:

• 1 in 3 customers will leave a brand they love after just one bad experience.
• Research by American Express found that 86% of customers are willing to pay more for a better experience.
• 49% of buyers have made impulse purchases after receiving a more personalized customer experience.
• Customers that rate companies with a high customer experience score spend 140% more and remain loyal for up to 6 years.

Customer experience (aka CX) is the biggest opportunity businesses have to reduce customer churn and increase revenues. The problem is, most businesses think of customer experience and customer service as one in the same when in reality, customer service is only part of the many pieces of customer experience.

Simply put, customer service is a single touch point with a brand, while customer experience includes every touchpoint a customer has with a brand from the first time they hear about you until after completing a purchase – basically the perception the customer has of a brand. While you may think your customer experience is one thing, the customer may see it as something completely different and that is what the actual customer experience is.

Managing customer perception should be the top priority for every business and having a strategy for customer experience is the best way to make that happen.

Customer expectations are rising.

The expectation is that every single interaction with a brand be the best that it can be.

Below are several strategies for creating a great customer experience:

1. Create a clear customer experience vision that is customer focused and can be communicated within your organization. This statement will act as the guiding principles and drives the behavior of your organization.
2. Understand who your customers are and you can get to know their needs and wants.
3. Connect emotionally with your customers.
4. Collect customer feedback. It’s the only way to know if you are delivering on your promise. Try using live chat tools, conduct a focus group or send an email with a follow-up survey. Hey, even pick up the phone, for instance. In other words, get feedback, share it with the team and fix what is broken.
5. Develop your team to the standards of your vision. Using the feedback collected from customers, identify the training needs for each member of your support team.
6. Use employee feedback to improve the customer experience. Because, it’s your team who are interacting the most with your customers so give them an opportunity to share their ideas.
7. Measure the results of your customer experience investment. There are several metrics available for tracking customer experience over time which include Customer Effort Score, Net Promoter Score, Customer Satisfaction Score and Time to Resolution. These tools allow you to track the success or failure of changes you implement that might affect your customers.

Customer expectations are at an all-time high and word spreads fast! The importance of the customer experience increases because the customer becomes even more empowered. Customer experience is an area that needs constant attention.

Because, a greater focus on customer experience strategy, businesses will see a reduction in customer churn and an increase in revenue growth.

Need help developing your customer experience strategy?

“Play the long game” and “It’s a marathon, not a sprint” are common phrases we have all heard. In the marketing world, traditional marketing focuses on acquiring new clients and sales. But the “long game” is relationship marketing, which cultivates existing customer relationships to create a loyal, long-term base. The focus is on building repeat business through brand loyalty. Think retention vs. acquisition.

Why is relationship marketing critical to your brand?

Here are three reasons:

1. Marketing costs may be decreased as much as 10% by focusing on retaining customers rather than trying to acquire new ones.
2. Research has shown that revenue may be increased by as much as 25-95% with as little as a five percent increase in customer retention,
3. When you cultivate your existing relationships and develop a loyal following, those customers will refer their friends and family. This saves you time and money. Word-of-mouth is free marketing, making your loyal customers great brand ambassadors.

While the focus of relationship marketing is retaining customers, “Good relationship marketing should appeal to the random viewer as powerfully as it appeals to your long-term customers.” writes Caroline Forsey in this Hubspot blog.  Ensure your customers can grow with you over time.

Here are five tips she offers for a successful relationship marketing strategy:

• Focus on personalized customer-service.
• Meet your customers where they are.
• Offer incentive and rewards for customer loyalty.
• Create valuable content that tells a compelling story.
• Collect feedback regularly.

The brand-customer relationship takes time to build and work to maintain. Market to your customer by getting to know your customer. Keep things fresh. Offer new content and diversify both your content and your platforms.

Customer loyalty is hard-earned. Play the long game to score the most points.