Customer Modeling - Meaning and its Different Aspects
Customer modeling is the process of predicting and forecasting behavioral aspects of customers future perspectives. The process includes identification of marketing and campaigning targets and optimizing predictive analysis. Following are the broadly discussed aspects of customer modeling:
Modeling and profiling are mostly same but the basic difference between them is the factor of time involved in modeling processes; as the modeling is not a static process. Modeling is quite more sophisticatedly implemented and thus making it powerful technique to predict customer behavior. Modeling process is action oriented and is not at all static throughout the customer life cycle. Profiling on the other hand is static and no action is taken apart from just recording the actual information and doing analysis on that information. Modeling on other hand involves action to be taken over times. Modeling also increases the return on investment and enhances business perspectives by fetching out good profit. Being more powerful and effective technique, marketing professionals prefer customer modeling in place of customer profiling because they have to deal with actual customer data.
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