Every organization is relying on collected data for getting insights through customer data analytics and alter the product strategy accordingly. But to really know your customers the first question organizations should ask is what are they doing wrong while analyzing data.
Are organizations using big data effectively?
Customers are connecting with companies digitally in all manner of ways these days, both personally via the Internet and with the devices and products they use—their phones, cars, even household products like refrigerators—via the Internet of Things. Both types of connections generate data that can both help companies improve customers’ experience and cross-sell or up-sell products and services that meet customers’ needs.
The typical problem is that the numerous connections a company has with its customers aren’t integrated. They are enabled by disconnected systems that don’t speak to each other. The data generated is isolated in silos and does not follow an approach to achieve customer data integration.
For example, a company may use advanced “voice of the customer” software to gather what customers are saying about a product on social media, but the data will be analyzed without taking account of what customers are saying in, say, company emails and surveys. Or customers will receive unrelated campaign communications from different lines of business – say, life insurance, property & casualty, and wealth management – written as if to three different people by three different companies.
What are the consequences?
First, the company misses tremendous opportunities to up-sell and cross-sell across service lines. And when a customer uses multiple products offered by a company, not only does the revenue increase but the retention rate goes way up. Also, communicating with a customer across service lines allows you to bundle products and optimize pricing.
Second, customers don’t get the kind of consistent experience that creates an emotional connection. You want a customer to be recognized across service lines and reach a point where they’re thinking, “Now you know me” – who I am, what my needs are. Can customer data analytics have an answer to this?
What does this have to do with data and analytics?
For a long time, the “now you know me” sense came from personal interactions. But now, by integrating customer interactions across lines of business and achieving customer data integration, you can use data and analytics to better know a customer and automate interactions in ways that are meaningful to him. For example, a customer claim may signal a new stage of life – say, the birth of a child – that allows you not only to cross-sell a product like life insurance but also to offer information and resources useful to first-time parents – conceivably even something like a support group with other new parents . “Now,” the customer is likely to say, “you know me.”
We at HCLTech are centering our approach around your customer to enable organizations to optimize existing EDW/BI services; monetize new secure, digital driven services; and migrate from legacy systems and solutions to Unified Big Data & Analytics solutions to enable the journey of knowing your customer.
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