March 5, 2015
Stop Drowning in Big Data; Use It Right
Many companies focus on the wrong thing. More data isn't better. The right data is better -- and can greatly improve the customer experience.
What’s the big deal about big data?
Big data is an enormously appealing subject these days. However, many companies miss the big picture when collecting it — or drowning in it. There is an idea that the more data, the better. In fact, the focus should be on determining the right data to help improve the overall customer experience.
Raining Big Data
Big data is like the weather — we’re talking about it, but we haven’t quite figured out how to do anything about it. Even fewer know how to leverage it. There are lots of questions but few answers. For example, who’s familiar with the 3Vs?
But don’t be afraid to get wet. Data can be used to improve many things for many people – including your employees and customers. I say “can” because, before you do anything, you need to make sure you are using the right data — and not just the random troves collected throughout the years. Mining the right data can lead you to the right customer problems, which can then be solved, creating a better customer experience.
Always define before measuring. What does great customer experience look like in your industry? Figure out what you need to do to wow customers and then compare that with the reality of your business as it stands now.
I’ve utilized customer journey mapping, net promoter scores and voice of the customer metrics with great results. You can even provide customers incentives to help you out with input.
Here’s a smart way to do that. Start by checking the leading survey on customer experience, the Forrester Customer Experience Index, to see where your organization lands. It might surprise you.
Reliable Friends Are Powerful Friends
Right data helps organizations do many things, including:
• Anticipate what customers want before they ask for it
• Identify customer pain points and resolve them
• Create new business value
• Improve customer service interactions
• Develop more effective marketing and better products
• Improve operational efficiencies
Take Southwest Airlines. It’s using speech analytics to extract data-rich info from live-recorded interactions between customers and personnel to get a better understanding of customers.
Or read about Avis Budget’s data-driven growth model. It uses big data to identify the most valuable customers today and tomorrow.
How, you ask?
By examining a broad range of data sources, including structured information like purchase histories, CRM data and intelligence from industry partners, as well as unstructured information like social media, blogs and videos. Sorting through the data has helped all customers be treated like VIPs.
These are only two examples of forward-thinking leaders using the right data to create actionable insights that monetize their data. There are many more. What about your competitors? How far along are they down the big data road? And are they using the right data?