Businesses Must Use Big Data to Optimize Client Experience
The digital era has enabled companies of all sizes to capture more information than ever before, allowing decision-makers to take action in an effort to optimize the customer experience. At the same time, however, consumers today are tech-savvy and impatient enough to know when another option is better, which means they are more likely to change service providers if they receive lackluster support, introducing the new concept of the "switching economy."
The idea that individuals are swapping between companies was highlighted in an Accenture study of more than nearly 13,000 customers around the world, which found that 51 percent of U.S. consumers have switched service providers within the past year due to poor experiences, up 5 percent from 2012. This finding suggests that businesses are simply not using Big Data to its full potential and, as a result, are missing out on crucial opportunities to keep clients happy.
"Changing customer behaviors in the digital marketplace and low levels of customer satisfaction are fueling a switching economy that presents opportunities as well as threats. But too many companies are playing not to lose instead of playing to win in this switching economy," said Robert Wollan, global managing director of sales and customer services at Accenture.
In other words, organizations are surviving by the skin of their teeth, implying that something must change.
Accenture highlighted the idea that organizations should become hyper-relevant, which means that executives learn from every interaction a specific person has with their organization so employees can continue to tailor the experience to what that particular customer wants. Properly executed Big Data projects can be a major boon here because leveraging predictive analytics will give companies insight into prospective needs of various clients.
An AgilOne-commissioned Forrester Research study echoed the importance of implementing predictive analytics strategies to improve end-user experiences, noting more than a third of businesses are currently drowning in the data they maintain on their customers. Still, 75 percent of firms believe that maximizing the company-client relationship can be achieved through properly launched analytics initiatives, which provide in-depth insight into what individuals want and how organizations can be of service.
Rather than struggling with conventional Big Data issues relating to storage and warehousing, organizations need to embrace the next age of the phenomenon: converting information into actionable insight that can augment the customer experience. By taking this approach, businesses of all sizes can gain competitive advantages and maximize the life cycle of clients.
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