Big Data: Personalisation for Profit
McKinsey estimates that a retailer using big data to the full has the potential to increase its operating margin by more than 60%.
In previous blog posts and articles, we have discussed the three steps involved in maximising the advantage created by big data analytics in customer experience management. The first two – capturing customer data and predicting customer behaviour have already been highlighted. The next, and very important, step is to act upon customer data at every touch point, across all contact channels.
- Work out, for example, the best upsell offer to present to a client. This can be done with some basic maths. The simple way is to multiply potential revenue by propensity to buy, again explained in this white paper.
- Real time decision making. The ability to change course during the interaction based on new information from the customer. With the advantage of a decision making engine helping tailor offers to customers both online and off, the resulting customer experience is more personal and profitable.
- Closing the loop – monitoring performance. Even the smartest decision making engines can predict behaviour based on behaviour patterns. Be aware of circumstances, any changes that may affect your customers’ behaviour. These changes could be internal – unhelpful information on your website, or external – a new compelling offer from a competitor.
- Closing the loop – voice of the customer. The use of analytics allows us to hear the voice of the customer and respond to it. From sentiment to satisfaction, we have the information that helps us understand the nature of every interaction and whether or not they meet business as well as customer standards. The important aspect is to remember to act upon the information, improving every customer interaction that occurs.
Big data has the power to transform businesses, to bring together technology, customer management and marketing departments in creating personal, relevant and real-time customer relationships. To deliver on this promise, there also needs to be a company-wide commitment to use the intelligence big data analytics delivers to drive customer-focused change.