Article

Ronald van Loon
Ronald van Loon 27 May 2015

How To Discover The Hidden Value In Your Customer Data

How can you derive patterns from countless data sources to optimize customer experience and create a competitive advantage?

As the field of analytics turns more and more predictive, emphasis on using data moves to discovering unknown landscapes. But moving beyond the obvious to completely understand your customers’ journey is a very complex step. How can you derive patterns from countless data sources to optimise customer experience and create a competitive advantage?

 

Creating A 360-Degree Customer View

 

Companies today are focusing on creating a 360-degree customer view. To do so, the first step is to have your data collection up and running, making sure that you can deliver data to a centralised environment, from which it can be used for further processing. In many cases, this environment is a data warehouse. In an ideal situation, all data from online channels, CRM technology, campaigns, call centers and order management is structured an gathered there to draw the best possible conclusions for optimisation. However, this comes with many challenges to collect “good data” related to the volume, velocity, variety and veracity of data. We previously highlighted the struggle to stream web data to a data warehouse, but in the entire ETL process, there are many more. Luckily, one factor that has disappeared from the list of challenges is costs of data storage. That has become very affordable.

 

Discovering Hidden Value

 

Nevertheless, if you manage to deliver all your data to a centralised environment, where do you start if you want to find patterns and insights to outperform the competition? In other words: how can you discover the hidden value in your customer data? The traditional approach is to put analysts and data scientists to work. They define a hypothesis based on the events they think are important. For instance: which events lead to churn or conversion. And then they start collecting data to see if factors like income and the event are correlated. To really validate their hypotheses, often an iterative process, may last long time. In practice analysts and data scientists spend up to 70 or 80% of their time on data preparation.

 

Dimensions Of Data

 

With the internet of things and web data, vast amounts of data are being added to those of traditional sources, making data processing even more complex and running the risk of not seeing the wood for the trees. Especially when this data is poorly structured or customers are high up in the conversion funnel and many variables have to be taken into account. The more dimensions the data has, the more complex it gets to obtain insights, making it very hard to create substantial business value.

 

Fundamental For Data Analytics And Data Discovery

 

As in practically every data challenge before, smart technology can make your life easier. There are discovery platforms available to recognise patterns in vast amounts of data. These can identify the most important variables that need further research to determine their business relevance. Analysts and data scientists can use this information to perform business analysis and determine the actual value of these variables in the customer journey as a whole. However, for these platforms to reach their maximum potential, you need to have the right infrastructure in place. This has to cope with the volume and velocity of the data you are collecting. Also, you have to be able to connect all relevant databases to create your 360-degree customer view.

 

Approach

 

So to discover the hidden value of your customer data, here’s the way to go:

  1. Make sure you can collect data from all relevant sources
  2. Store this data in an environment powerful enough to process it and with no limitation when it comes to storage capacity
  3. Run a discovery platform that can determine which variables have most effect on the important events of your customer journey.
  4. Make a predictive model to foresee which visitors will match this variables

Take actions to optimise this customer journey and reduce churn or improve conversion.

 

Original Article

 

More from Ronald van Loon

 

Come along and network with other digital marketers at our Summer BBQ!

 

 

 

Please login or register to add a comment.

Contribute Now!

Loving our articles? Do you have an insightful post that you want to shout about? Well, you've come to the right place! We are always looking for fresh Doughnuts to be a part of our community.

Popular Articles

See all
How to Review a Website — A Guide for Beginners

How to Review a Website — A Guide for Beginners

A company website is crucial for any business's digital marketing strategy. To keep up with the changing trends and customer buying behaviors, it's important to review and make necessary changes regularly...

Digital Doughnut Contributor
Digital Doughnut Contributor 25 March 2024
Read more
The Impact of New Technology on Marketing

The Impact of New Technology on Marketing

Technology has impacted every part of our lives. From household chores to business disciplines and etiquette, there's a gadget or app for it. Marketing has changed dramatically over the years, but what is the...

Alex Lysak
Alex Lysak 3 April 2024
Read more
10 Factors that Influence Customer Buying Behaviour Online

10 Factors that Influence Customer Buying Behaviour Online

Now is an era where customers take the center stags influencing business strategies across industries. No business can afford to overlook factors that could either break the customer experience or even pose a risk of...

Edward Roesch
Edward Roesch 4 June 2018
Read more
7 Reasons Why Social Media Marketing is Important For Your Business

7 Reasons Why Social Media Marketing is Important For Your Business

In the past two decades social media has become a crucial tool for marketers, enabling businesses to connect with potential customers. If your business has yet to embrace social media and you want to know why it is...

Sharron Nelson
Sharron Nelson 29 February 2024
Read more
How can marketers use AI in a responsible and human-centric manner?

How can marketers use AI in a responsible and human-centric manner?

Learn to balance technology with human creativity for ethical and effective marketing campaigns.

Chris Price
Chris Price 1 May 2024
Read more