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That's Business Today

How do Customer Analytics affect performance?

Customer analytics can provide valuable knowledge and insights to aid in fact-based decision making for management and marketing.

Establishing a culture that values fact-based decision making, along with the ability to quickly translate this into action, is more likely to lead to success and outperforming competitors.

There are many tools and sources of data, however a balance between investing in IT and analytics and the ROI is needed to justify implementation of a system of excellence in order to reap the rewards. 

In a study compiled by McKinsey & Company, Exhibit 2 illustrated extensive use of customer analytics drives corporate performance heavily. Companies out performed competitors in profit, sales, sales growth and ROI for companies that used customer analytics extensively.

Of interest were the top 7 cultural capabilities for value creation:

  1. Fact-based decisions
  2. Management expectations
  3. Analytics valued by front line
  4. Broad usage
  5. Management attitude
  6. Actionable insights
  7. Fast translation into action

Analytics Tools

A plethora of analytics tools are now available and new tools launching constantly create a myriad of problems. You need to start by looking internally and deciding what goals and objectives your business has and then deciphering what tools will suit you best. Combining this with your vision for the medium-long term will assist to ensure these tools can grow with your business.

How well are customer analytics being utilised in your business? Do you currently see positive performance from the use of analytics or just a cost?

Technology

Thanks to the improvements in technology, customer analytics is available for use no matter the size of your organisation. Gone are the days that your marketing budget or size of your business determined how effective your marketing activities and customer experience would be. These days you are limited by your ability to learn and adapt and incorporate available data into your business decision-making.

Open Data

Governments around the world are supplying open data for the use of all to develop new products and services that are personalised and can guarantee a better customer experience. Your own business data combined with other sources can provide customer insights and opportunities like never before.