Customer analytics

A customer profile is the data image of the buying behavior of individual consumers. The activities carried out with the customer transactions are continuously stored in a data processing system and used for the purpose of Customer Relationship Management.

Use

The customer profile allows providers, for example, individually targeted to address advertising to consumers that the. Based on its stored in the customer profile with higher purchasing behavior, aloof from the average probability comes as a buyer for the goods in question So other goods of their own power spectrum can cross-selling are offered to the customers due to the stored purchase transactions; other, higher quality goods and accessories by the so-called up selling the other hand, it offered to the products purchased.

Data recovery

Data collection for a customer profile is realized in practice often loyalty cards ( for example Payback card, HappyDigits ).

Advantages for the customer

The profile offers to the customer the advantage that it receives " personalized " advertising, which refers to products and services that we consider his previous purchasing behavior, according to most closely match their needs and taste.

Criticism

However, a customer profile is under data protection law is not harmless. An example: a customer cardholder bought so far family and baby products, replace them suddenly by alcohol and ready meals. An analysis of their purchasing behavior suggests now that he eventually had to go through a separation.

Customer profiles can be used to price discriminate to the detriment of consumers.

Therefore, subject to the preparation and work with customer profiles in Germany in comparison to, for example, the United States, more stringent legal restrictions.