It would be simple - and tempting! - to look at data issues as technological challenges. Yet the reality is much more complex. Let’s see how you can transform your organisation into one that is insight-driven.
Being data-driven isn’t a technological challenge. It’s a business dynamic to support changing times. We’re aware that the game has changed, especially after the Covid-19 hit last year. Customers now have the power of choice. Brand loyalty is dispensed through discounts and recommendations are made by influencers across the social divides. So how do you treat every customer uniquely? How do you segment, target and position at scale and support ‘‘get to know me, recommend to me, deliver to me’’?
Unfortunately, the days of assumptions are no longer. The arrival of data-based decision making will drive changes to all aspects of your operating model. You want your company to be insight-driven, but what are the first questions to ask and address?
Knowing a customer isn’t just about recording a name and an email address. When talking about data, there are three major categories: demographic, behavioural and interactive. It’s about developing a holistic view of your customers. What is their emotional motivation for buying from you? What is their interest in being loyal to your brand? What experience do they have, and what do they want when they visit one of your channels?
The relationship you build with them throughout their customer journey is driven by your added value. What do they find in your organisation that they don’t get anywhere else? What emotion of wellbeing are you triggering? or pain points do you help them solve: reducing anxiety? giving them control? making things simpler?
This is the next challenge. Get to know each customer (almost) individually. Digital transformation is about building one-to-one relationships with each of your customers. Regardless of whether you have hundreds or millions of contacts in your database.
The more relevant data you collect, the more insightful knowledge you will obtain about who you are selling and talking to. In doing so, little by little you will replace assumptions with facts. Your understanding of your customers will rely on true and verified information. That’s information coming from the clients themselves, rather than hypotheses and guesses made by the marketing department.
This doesn’t mean those lines of business should stop listening to the customer’s voice. On the contrary. But it should be complementary, to deepen the knowledge already gathered in the database.
Only from this deep understanding of your customer can you start building targets and segments. This is the fundamental basis on which you will then develop relevant and personalised communications.
This can take many forms, such as providing data in real time or developing dataviz tools that make data easily understandable and usable with just a few clicks.
It’s only when data is available to all, and used by all, that it takes on its full power.
Sometimes you might be tempted to adopt the latest technology, but it’s not always the best move. The best option is the one that will suit your business needs and be achievable. There’s no need to create too many technological barriers by using sophisticated tools. That would simply prevent you from progressing at all.
It’s up to you to define which next stepping-stone is right for you. Go at your own pace and remember, there’s no magic bullet!
McKinsey has proven that insight-driven organisations are 23 times more likely to acquire customers and 6 times as likely to retain them. So, when do you plan to start backing your business growth with data?