How Do You Know What Your Customer Wants?
This is an important question that applies to industries, and the answer that many companies are ultimately coming up with is analytics. As more and more data is being collected every day, and more and more consumers are demanding increased convenience, it is becoming clear that there is a huge opportunity in analytics for all businesses.
According to recent studies, companies using data analytics are already witnessing big success from the insights they’ve obtained. There is a 92 percent satisfaction rate among executives, and 75 percent of companies cite growth as the key value of analytics. This also makes measuring marketing success as easy as possible.
Let’s take a look at how some real companies are using data and analytics to their advantage.
General Electric (GE) places sensors in many of its machinery products such as gas turbines and jet engines, to collect performance data. The resulting information helps the company identify opportunities to improve working processes, and reliability and also point out marketing measurement strategies required. These insights are expected to boost productivity in GE’s U.S. operations by 1.5 percent and save enough money to raise average national income by as much as 30 percent over a 20-year period.
American Express takes historical transactions, measures them against hundreds of variables, and filters the results through predictive analytics models to understand and forecast consumer behavior. This process gives them a proactive advantage over traditional hindsight reporting and provides them with measurable results. In their Australian market, they are now able to predict 24 percent of the accounts that will close within four months, allowing them to target at-risk account holders with retention efforts.
Twiddy and Company is a family-owned business that manages vacation rentals on the Outer Banks of North Carolina. It took years of customer data that was buried in spreadsheets to launch a data analytics project to better understand their challenges and make better decisions. The resulting insights helped them to adjust their pricing structure, target better consumers, and identify vendor efficiencies. With an initial investment of just $40,000, the company has increased its inventory by more than 10 percent in three years, and cut costs by 15 percent.
As you can see, you don’t have to be the size of GE or American Express to take advantage of data analytics. It has the power to help you gain insights into challenges and opportunities you might not have realized existed.
While the idea of data analytics can seem intimidating or daunting, don’t let it discourage you from investigating the possibilities. Look at it as an important tool to help you address your bigger concerns – understanding what your members want.
Contact SPIN to see how you can start using data and analytics to improve your business!
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