Many companies today looking to improve revenue and profits will study their relationship with consumers. Who buys from us? What do they buy? What marketing efforts trigger greater spending? Who are our most profitable customers?
Companies are use customer relationship management (CRM) and similar solutions to answer those questions; they are also trying to enhance revenue through programs like revenue optimization and yield management. CRM focuses on the trees. Revenue optimization and yield management focus on the forest. All require sound data.
Understanding the customer is critical to driving sales today. You cannot just know what the customer buys—or likes to buy. You need to know how valuable a customer is. A customer who buys all her sporting goods at your store, regardless of whether the item is on sale, is more valuable than the one who only purchases when there is a sale or coupon.