When Forrester asked 510 marketers on CRM projects, ‘what’s your biggest challenge is in improving customer experience,’ the top three answers involved data (see below).
This makes sense – there is a fundamental lack of experience in organizations on how to use data correctly. This lack of experience makes organizations over-reach, trying to solve their data-gap in a software-only approach. Most of the time, the software they purchase is a generation or two ahead of where their actual data, the oxygen that feeds their platform, is. Furthermore, there is a lack of experience in how to build the models that interprets the data. This results in a tangible lack of return on the capital invested.
After all, what is the purpose of data? I present these primary use cases:
DATA SHOULD BE USED BY RETAIL ORGANIZATIONS TO MAKE STRATEGIC DECISIONS AND BE THE FOUNDATION OF THE CAMPAIGNS THAT MAKE BUSINESS GOALS A REALITY.
This implies that there have to be processes within a retail organization that identify the ‘right’ data, collect / aggregate it, interpret it, then finally, apply it. Mapped to most organizations, it would look something like this:
When most companies say they want to be ‘data-driven,’ what they are really thinking about are metrics, but that won’t get them to where they want to be. When a Company bases strategies and campaigns on only metrics, they produce non-personal campaigns with various levels of success. To deliver campaigns that are contextual and relevant, one needs knowledge. A knowledge driven Company is one that has a fundamental understanding of how channels, products, and customers impact its top and bottom line revenue. Let’s take a look at how most companies should hope to mature on the metric to knowledge journey, and the results it can produce: