Boston matrix

1. Overview

1.1 Concept

Boston Matrix (BCG Matrix), also known as market growth rate-relative market share matrix, Boston Consulting Group method, four-quadrant analysis method, product series structure management method, etc.

The Boston Matrix divides the product types into four types, as shown in the figure below:

1.2 Problems solved

Boston matrix analyzes and determines the product structure of an enterprise through sales growth rate (an indicator reflecting market gravity) and market share (an indicator reflecting enterprise strength).

1.3 Expected effect

1.4 Implementation ideas

By setting the cordon, the area is divided into four quadrants, and then the data can be observed.

At the same time, create a drill directory to mine more fine-grained data.

2. Operation steps

2.1 Create a dashboard

1) This article is based on "Style data > RMF detailed data". For example, enter "Data Preparation", choose "Style data > RMF detailed data". Click "Create component" and modify the name of the dashboard, as shown in the following figure:

2.2 Add calculation indicator

1) Using finebi's calculation indicator function, click "+" under the indicator field to be analyzed to add and calculate the customer unit price. The customer unit price means the average consumption amount of each customer, and the Customer unit price = sum_ AGG (MONEY) / count_ AGG (CUSTOMERNAME), as shown in the figure below:

2.3 Use scatter plot to make Boston matrix chart

1) Observe the given data. There are customer names and corresponding customer categories in the system. This structure is called tree structure, which often appears in the company's organizational structure. You can set common data drilling to view detailed data. In this example, the tree structure is relatively simple, with only two levels: customer classification and customer name.

To reflect this hierarchical relationship in the Boston matrix, you need to create a drill directory and drag "CUSTOMERNAME" into "CUSTOMERTYPE" field, as shown in the following figure:

2) The chart type is now grayed out and the scatter chart is not selectable. It prompts that you need to drag in a dimension and an indicator to make a point chart, as shown in the following figure:

3) Drag "Counter" to the horizontal axis, drag "Customer unit price" to the vertical axis and drag the drill directory to the fine-grained column under the graphic properties, as shown in the following figure:

4) Add two warning lines, click the drop-down box of "Customer unit price", and select "Set the analysis line > cordon(Landscape)", as shown in the following figure:

5) Click to add the cordon, name it as "Average consumption amount", set the formula: "AVERAGE(Customer unit price(Aggregation)), and click "OK" to set the color of the analysis line, as shown in the following figure:

In the same way, add the cordon of average times of consumption, as shown in the following figure:

2.4 Effect view

See section 1.3 of this article for details.

3. Conclusion analysis

According to the scatter chart, the customer portrait of this company can be roughly analyzed:

• Customers who spend more than the average number of times and spend more than average each time: judged as star customers, such customers need to focus on, and give the highest courtesy;

• Customers who spend more than the average number of times but whose consumption intensity does not reach the average level each time: They are judged as cash cow customers. Such customers usually consume more frequently and can bring more stable cash flow to the company. This type of customer is The cornerstone of corporate profits;

• Customers whose consumption has not reached the average level, but the consumption intensity exceeds the average level each time: they are problematic customers. This type of customer is most likely to be transformed into a star customer, but because the customer has certain potential problems, the consumption frequency is not high. Customers need to use customer service for key follow-up and long-term tracking;

• Customers whose consumption has not reached the average level, and the consumption intensity has not reached the average level: They are thin dog customers. This type of customer usually accounts for the majority of corporate customers. They only need general maintenance and do not need to invest in key maintenance.