How Big Data transforms customer experience
June 13th, 2019 Big Data
"You can't manage what you don't measure", one of the most important quotes in modern business attributed by Peter Drucker a widely regarded management thinker, author, and philosopher of this subject and one of the greatest management consultants of our time.
It’s apparent that if you can’t measure business performance and know the results then you can't manage or grow the business any further. Specifically, businesses need to understand how “big data” will influence customer experience and so first we need to explain exactly what we mean by “big data”.
What is Big Data?
Big data is the collection and analysis of data in its rawest form but specifically, how data is processed and used as marketing leverage is also part of the practice of big data. For our purpose of doing business the New York Times describes big data as "shorthand for advancing trends in technology that open the door to a new approach to understanding the world and making decisions."
Big data can include external information such as behavior on other websites, social media posts, and the behavior of others.
How does big data impact customer experience?
The information companies can cull from the massive amount of information big data collects can be used to offer your clients a better customer experience.
To uncover patterns, market trends, and customer preferences big data helps businesses to make informed predictions faster.
Each time a company receives a recommendation from a customer, they are experiencing big data in practice. Many organizations let shoppers know that they collect information about them as they shop, and companies use this data to offer a better shopping experience by presenting more relevant items to the customer. By consistently driving the right products and services to your customer, the more your customer loyalty increases.
Whilst big data is is the subject of some debate in regards to the boundaries of privacy and the collection of personal information, many consumers have adapted and understood why businesses need to anticipate their needs.
What is a Customer experience strategy?
Customer surveys and feedback tools are prerequisites in any modern business strategy. Specifically, a customer experience strategy provides vital insight into how to improve the level of support and experience that you provide to your customers.
To assist businesses with the adaptive method to interpret data, big data technology provides a unified feedback mechanism that helps you to accurately process results and from there make better-informed predictions.
7 Best Practices for Companies to translate Data into actionable strategies
1.What is your business goal?
Identify the single problem that you want to solve by ensuring that each initiative commences by clarifying the company’s specific goal for a particular effort.
2. Assemble a team that understands your subject matter
Evolve a team that can assist in selecting the correct components to measure and analyze data forecasts.
3. Implement machine learning and AI strategies
As your business begins to accrue more data sets so will the time it takes to analyze and report back on them. Machine learning and artificial intelligence can lead to deeper data intelligence that is humanly possible to interpret.
4. Improve Data governance controls
To gain value from data, data governance practices will ensure that the data used by your business is of the highest quality throughout its entire lifecycle. Centering on the availability of data, usability, integration, and security, data governance is an evolutionary process for new businesses that incorporate data management practices, as it allows for the entire industry to use the data.
5. Data Security
Whether you’re an SME, a large business, or a Fortune 500 company, it’s crucial to store your data securely and ensure that the data is used in good time to avoid it be ineffective.
6. Data back-up & recovery
In any event, where you suspect a data breach, having a contingency plan with clear decision points will quickly direct you to any actions that are required by law, regulation, or good faith to disclose a potential or realized breach.
7. Data Classification
Many organizations tend to overlook the process regarding the introduction of data classification and ownership, however, this should be an important and straightforward concept to launch into any business environment.
Whilst we can’t predict everything, we know that big data will continue making a huge impact on improving the customer experience in 2019 and beyond. With the capabilities to deduce data-driven insights, companies can keep up with evolving customer demands and behaviors.