Being smart: how are you using new sources of data to steer customer interaction?

Interconnected technologies provide organisations with more data but the availability of that data does not in itself drive business improvement or increase market share. Organisations need to think very carefully about how they use new sources of data and maximise the opportunities they bring. One of the essential elements in driving value from data is to use it to increase customer interaction.

In the UK, the recent data.gov.uk open data initiative has provided open access to government data for use by individuals and organisations in conducting analysis and building new applications. This can give real insights into social and economic factors affecting customers. The organisations that use this data intelligently will be better placed to engage in fruitful two-way conversations with increasingly informed customers.

Organisations also need to explore how best to capture valuable data directly from products and customers. At its most simple this means recording the type of products a customer buys. This is much easier for online retailers like Amazon who capture records of buying habits and then use that to inform marketing and  make recommendations.

When this is done effectively it can make customers feel they are getting a much more personalised service, even though they may be dealing with a mass market operation. More traditional retailers have some way to go to catch up with these developments but if they are to maintain their positions in a smart world, they will need to develop these kinds of interactions with their customers.

Companies then need to examine how they can successfully integrate this data into their planning. This may mean creating the capacity in the business to respond faster to changes in customer behaviour or wider social trends. It might also lie in establishing ways for customers to have a much more direct link with the service provider. This could range from online forums to letting customers design their own products, such as Nike’s 'design your own shoes' site where users customise their shoes, and pay a premium for it. Equally, it could be interactions based round the kind of beta testing of products that some software and mobile phone companies now undertake. This allows companies to harness the power of their customers in ironing out any technical issues but also draws those customers into the process and gives them a real interest and stake in its future.

Customer relationships have always been important and good local providers have been able to compete with larger organisations because of their personal knowledge and relationships. Interconnected technologies helps much larger organisations gain more of that knowledge and build up those more personal relationships.

The benefits are clear but will only be realised if organisations ensure they really understand the data and how they fit into their overall business strategy, and then use that knowledge to create genuine interactions with their customers.

To understand how you can use data to steer customer interaction or to speak to a smart expert, please contact us now.