Business decisions, rocket science, and understanding the difference.
Part 2. | Are you collecting the “right” data?
Data doesn’t need to be a dirty word. In fact, stop thinking of it as useless numbers, and spreadsheets, and reams of paper to be shredded and discarded (by the way, if you’re shredding paper, we hope it’s recycled paper), and instead as your balance sheet’s new best friend. You no doubt have data on hand that, if set up, collected, and analyzed properly, can illuminate efficient strategies and dollars that will make a SIGNIFICANT positive impact on your bottom line – with little to no added expense.
A recent article in Forbes noted just one such example where a data strategy took an organization’s customer service levels, customer loyalty, revenues, and profits to dramatic new heights: The supermarket group Tesco uses a data ecosystem/CRM to monetize data from its loyalty program, the Tesco ClubCard, through its customer science subsidiary, Dunnhumby. In return for opting in to ClubCard, customers receive personalized offers. Then, for a subscription fee, Dunnhumby provides consumer-packaged goods (CPG) suppliers with an analytics platform that they can use to query anonymous retail transaction data, understand category dynamics and develop targeting strategies. The analytics platform also controls suppliers’ access to the data (preventing direct customer contact, for instance). This model has helped Dunnhumby generate annual aggregate gross billings of $500 million globally.
The big picture? Looking at the right data, not just endless mountains of it, can give you actionable insights into what your customers want. Part 3: Good Customer Service Costs Less →