Disadvantages of Customer Profile Reports
We are here to advise you, so we will tell you about both pros and cons of each solution we offer. Here are some points to be aware of:
- A Customer Profile Report may not include all of the key data elements you care about.
- The “index-based” analysis is performed on a single dimension at a time.
- These are “descriptive”, not “predictive” reports. This means that the key metrics are based on simple math, not advanced statistical analysis or machine learning.
Despite these points, Customer Profile Reports provide a great starting point for profiling customers and prioritizing both targeting and data selection for analytic models and we highly recommend performing this foundational analysis of your customers.
How to Get the Most Out of Your Report
We recommend analyzing customers overall, as well as by key customer segments. For example, you may wish to understand how customers segments differ by:
- Product line – how do key demographics differ by Product A vs. B vs. C?
- Region – how do customer demographics differ by key region within the U.S.?
To maintain a high level of statistical validity (the “z-score”) you should submit at least 5,000 name and address records. Also be sure to specify the geographical area to use as the reference (e.g., total U.S., certain states, specific counties or ZIP Codes) area and only include records in your file that are within that geography.