Did the title about data make you curious? Great!
Of course, in today’s data-rich environment I’m not really suggesting that you actually ignore it! However, in working with clients around the world and in numerous industries, I have found that many are lost by the wealth of information that is available to them. In fact it seems to drown out their reasoning of what to do and they remain frozen in indecision. Is this your case? If so, then just follow the steps I detail below and you will soon be doubling, quadrupling, if not 10x the ROI of your data.
The Current Situation with Data
Data is everywhere and most organisations are drowning in it! Technology is being blamed for disrupting businesses, but most have simply not adapted to this new data-rich world.
I admit, a lot has changed. Consumers are adapting their behaviours to the trading of their personal information. Companies are changing business models as their value shifts from products to services, or even to the sale of the information they gather.
Some organisations are reinventing themselves to take advantage of these changes. Others are ignoring them – at their peril, since they are risking to become the next Kodak, Borders or Blockbusters. If you’re interested in reading more about the US Retail Apocalypse and the 23 big retailers closing stores then I highly recommend this post on Fox Business.
So what should you do, whether you are in manufacturing or retail? Well, I believe that you should start by renovating your business model to take advantage of the countless new opportunities open to you. And in my opinion, you had better do it sooner rather than later, because your competition almost certainly will!
The Opportunity
Yes you have data and information, but if you’re a regular reader of my blog, you will know that you have to turn these into knowledge and understanding, and then into actionable insights. And this can only be done by asking the right questions of your data and information.
If you are struggling to take needed action despite a wealth of information, then this is certainly where you should start making changes – fast!
A 2015 Capgemini and EMC study called “Big & Fast Data: The rise of Insight-Driven Business” showed that:
- 56% of the 1,000 senior decision makers surveyed claim that their investment in big data over the next three years will exceed past investment in information management.
- 65% admit they risk becoming irrelevant and uncompetitive if they do not leverage data. This is especially true given that non-traditional providers, like startups thriving on big data processing, are moving into their industries.
- Although companies realize they desperately need to dig into data analytics to maintain their business position, 45% surveyed think their current internal IT development cycles are not sufficient for new analytics and don’t fulfill their business requirements.
- Making matters worse, over half (52%) of those surveyed see the speed of their organization’s insight generation from data analytics as constrained by its existing IT infrastructure.
So what has happened in the past couple of years? Not a lot in terms of usage, but a lot in terms of data gathering; just check out the graph below from Kleiner Perkins for current and estimated growth of data volume.
Of course big data has been big news for years, thanks to its 5Vs (volume, velocity, variety, variability, value). These were the driving forces behind the need and finally the computing upgrades which made it possible to adopt a new way of analysing it all.
This article by Olivia Ryan sums up the “6 ways big data expansion can significantly damage our privacy.” These are the major points which the GDPR is hoping to address, and about time too in my opinion.
Today it’s the EU’s GDPR or General Data Protection Regulation, with its stricter rules coming into play later this year, which has everyone concerned. It is definitely worth checking out the details here if you are not sure what you need to change by when.
Interestingly, there is no equivalent federal law in the US (for now), but that doesn’t mean you can ignore it if your business is based there. Find out more in this excellent article on Forbes.
It’s true that companies do recognise all the threats detailed in the earlier mentioned study, and while startups flourish in every industry, the mastodons of commerce are slow to change, hence the need for GDPR. (see below for an alternative approach to individualised data utilisation)
An Alternative Approach
Data comes into its own when used for personalised engagements. However, there is an alternative or complementary approach that some organisations are now using. This is to address global issues such as resource management, water usage or pollution, which certain customers feel passionately about.
One example is Nestle whose relatively new CEO Mark Schneider is finally bringing some fresh air to the dark and dusty halls of their Vevey offices. However, cutting costs, selling less attractive business units (such as US candy to Ferrero) to upgrade their image will not bring sufficient change that consumers demand of large corporations today.
Compare this to the efforts Unilever’s CEO Paul Polman, who has made his organisation one to be admired by consumers and shareholders alike. As they say in their website
“We aim to use our scale and influence to help bring about transformational change in four key areas where we believe we can make the biggest difference:
- Taking action on climate change and halting deforestation
- Improving livelihoods and creating more opportunities for women
- Improving health and well-being
- Championing sustainable agriculture and food security.”
- Information-Savvy Customers Now Control the Marketplace. 70% of consumers agree technology has made it easier than ever to take their business elsewhere.
- The Culture of Immediacy Drives Mobile-First Expectations. 64% of consumers expect companies to respond and interact with them in real time.
- Customers Still Value Human Connections in a Tech-Driven World. Two-thirds of consumers say they’re likely to switch brands if they’re treated like a number instead of an individual.
- New Data-Sharing Attitudes Spark Next Era of Marketing Personalization. 63% of millennial consumers agree they’re
willing to share data with companies that send personalized offers and discounts. - Smarter Use of Customer Information Expands Opportunities for Sales.More than three-quarters of consumers say it’s absolutely critical or very important to work with a salesperson who is focused on achieving customer needs instead of making a quick sale.
- Fast, Personal Service Is Directly Linked to Customer Loyalty. 71% of consumers say that customer service provided on any day at any time has an influence on loyalty, and almost as many (69%) say the same about personalized customer care.
Looking at these findings, it gives me hope for a more human approach to customer connections by manufacturers and retailers alike. I believe that those which fail to take this informed customer into account is unlikely to survive the next decade.
Making Data Analysis the Beginning and Not the End
I mentioned above and also dedicated a whole post to the topic of technology being an enabler not a disruptor of businesses. (Check out “Technology is the Enabler not the Disruptor (So Stop Using it as an Excuse)” for more on this) Many organisations think that their problems with data will end when they get the latest technology platform installed or start using the newest system for analysing it. Nothing could be further from the truth. Technology enables improved analysis perhaps, but as previously mentioned, data is only as good as the questions you ask of it. That’s why data is the beginning of your business solution, not the end.
Data is only as good as the questions you ask of it. #BigData #Analysis #Information #CEX Click To Tweet
In addition, in “The Impact Of Changing Consumer Expectations On Manufacturers” Steve Smith spells out the situation very clearly for manufacturers:
“With new consumer expectations being set by companies that disrupted their respective markets — Uber, Amazon, Netflix — the previously accepted levels of customer service are no longer good enough.”
What these three companies demonstrate perfectly is that technology has merely enabled the consumer to get more of what they want, whether that is travel, retail or entertainment. Although these are three very different industries, they have attracted a growing number of customers because what they offer is a trustworthy service. No, rather they offer few surprises, and when there is disillusion, they sort it out quickly, and usually far above and beyond the customers’ expectations. Surprise and delight are the table stakes of today’s world of customer service.
Surprise and delight are the table stakes of today’s world of customer service. #CEX #CRM #CustomerSatisfaction Click To Tweet
In Conclusion
Coming back to the title of this post, as you can see there is a lot to do before analysing all the data you have. And probably it’s a lot more than you even know about at present, at least from my experience!
You can’t go wrong if you start with the customer and identify what you need to know and understand in order to go beyond their expectations.
You can’t go wrong if you start with the customer & identify what you need to know & understand. #CEX #CRM #Customer Click To Tweet
Make a list of all the things you want to know and then see if you have the information to answer them. In many cases you do, it just hasn’t been analysed in a way that makes the solution obvious. That’s when you should review and eventually update your platform and systems.
Doing this any earlier will be like buying a fancy new hammer to crack a nut! What you need to understand is the best way to crack the nut; often times the hammer is fine for cracking if you use it correctly.
If you’re drowning in data and thirsting for insights then we should talk. Book a free advisory session and I’ll give you some ideas on how to crack your own nut!
Sure, businesses have an excess of data – but this could actually be a good thing. However, to prevent feeling overwhelmed when confronted with all this information, it is a good idea to carefully consider what insights you want to gain from it. That way, when you do sit down to analyze it, you know which data to look at first.
You are right Pat, that knowing what you are looking for is a good place to start.
Having an excess of anything suggests that we have more than we need. Most organisation in which I have worked didn’t even know what information they actually had because it was silo’d away in different departments. Have you experienced the same thing?
Thanks for commenting Pat.