Grow Your Customer Relationships With Analytics
MIT SMR’s 2018 Data & Analytics Report finds a link between customer engagement and data analytics.
Competing With Data & Analytics
Mobile devices. Wearables. Sensors. Internet of things. It is no longer hyperbole to say that organizations can collect data from everywhere.
Despite that, collecting data just to have more data isn’t the point. Are the increasingly vast haystacks of data just adding more hay? If you are looking for needles in a haystack, adding more hay doesn’t help. But are some organizations able to use analytics to find more needles too? Are their investments in data collection leading to positive outcomes in, for example, customer engagement?
Released this week, our 2018 report on data and analytics, “Using Analytics to Improve Customer Engagement,” examines exactly this question. Building on a survey of more than 1,800 managers as well as over a dozen interviews with executives at global companies, our research examines how some, but not all, companies are able to use data from a variety of sources to yield superior customer engagement.
Across industries, our research illustrates that better customer engagement is linked to superior use of data and analytics. Overall, we find a significant rise in the number of organizations that gain competitive advantage using analytics; this year, 59% of our respondents believe that analytics creates competitive advantage for their organization.
A key component of this rise to 59% is more effective use of analytics to improve customer engagement. How? With analytics, organizations can develop detailed intelligence about their customer needs. With analytics, organizations can process feedback from multiple sources at scale. With analytics, organizations can tailor offerings specific to customer needs. With analytics, organizations can improve customer satisfaction.
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Not every organization is successful at these activities. Many organizations already use data from customers, vendors, and competitors. However, in our research, the most analytically mature organizations are four times more likely to glean data from all three sources compared to less analytically mature organizations. These mature organizations are also much more likely to use a variety of data types — such as mobile, social, and public data — to engage customers. As a result, these analytically mature organizations are twice as likely to report strong customer engagement as the least analytically mature organizations.
We find that achieving this level of customer engagement requires well-developed core analytics capabilities to ingest data, to analyze using sophisticated techniques, and to apply the resulting insights into routine processes. Many organizations have made
Dr Rabindranath Bhattacharya