What Is The Super-Food For Customer-Driven Business Growth In 2020?
According to a recent study from FocusVision and HBR (Harvard Business Review), leading global organizations view customer insight as key to business success in 2020, while many other smaller organizations are nevertheless missing out on this opportunity to turn widely available Big-Data into insights, which can easily be utilized across businesses to attain better decisions that drive business growth.
In the said study it showed that:
More than even 98 percent of the participants who were surveyed believe that knowing the customers is extremely important and crucial to building relevant customer experiences.
However, less than even 23 percent of businesses believe that their organization realizes why their customers act the way they do.
Hence, as we can see there is a gap between accrediting the relevance of customer understanding and effectively gaining and applying insights to it.
Moreover, in a study done recently by MCorpCX, it has been revealed that only 11 percent of all customer-related decisions made by marketers in Fortune 1000 American companies are made based on data.
Nevertheless, in spite of all these stats according to Forrester Research,insights-driven business organizations are on the rise at an average of more than 30 percent annually, and so by 2020 these businesses that understand the importance of data and its insights are predicted to take $ 1.8 trillion annually from less-informed organizations all across the globe.
In fact, data analytics and insights have been a popular and common success factor for several modern digital start-up businesses, which includes companies like Etsy founded in 2005.
Etsy for its business growth set up a dedicated research department, where they blended qualitative and quantitative insights and thereafter implemented customer insights into all its departments and also arguably into its culture, which made the company experienced a 400 percent growth since 2012.
Tesla is another example of an insight-driven business, whereby all Tesla vehicles have the capability to improve its performance over time via “over-the-air” updates as each Tesla car’s performance data is streamed in real-time to the data scientists working in the company, who build models to help in diagnosing driving-related issues and thereafter provide firmware or software updates over the air, which Tesla refers to as “Easter Eggs”.
Hence, here is a ready reckoned of insights that have created an impact in businesses as found in a study done by MicroStrategy, which is indeed an eye-opener illustrating the benefits of integrating insights into everyday business decisions and actions which were seen as:
- 63 percent improvement in efficiency and production
- 57 percent efficiency in faster decision making
- 51 percent boost in financial performance
- 48 percent rise in competitive advantage
- 48 percent growth in improved customer experience
- 46 percent improvement in customer acquisition and retention rates
- 43 percent growth in opportunities for identifying and creating new revenue streams
The Requirement To Connect Big And Small Data
As referred in the HBR and FocusVision study, mentioned at the very beginning of this article, highlights the fact that in order to completely understand your customers, businesses need to connect both big and small data, hence companies need to integrate both types of data into one insight source in order to mine most insight value for their businesses.
Now while the sources of big data are CRM solutions like Salesforce or any other Salesforce Alternative CRM tools, Web interactions, and Point of Sales in businesses, small data sources include insights that are more traditionally known as market research which comprises surveys, information received from focus groups and online communities.
Does your company have a company-wide insight framework in place?
As Forrester Research argues that most businesses have developed areas that use analytics-driven capabilities in insight-driven companies, whereby data-driven insights have been embedded into their day-to-day workflows and processes, here are six vital question areas that you must ask yourself at the very outset if you also wish and want to become an insight-driven business organization in 2020:
- How integrated is your insight? Does it includes all the big and small, all external and internal sources, and does it cut across silos?
- Is your company’s business strategy insight-driven?
- Does your business insight inform the key decisions like proposition development, organizational structure, innovations and investments in your business?
- Does your brand has a customer-centric business plan?
- Do you have appropriate insight enabling tools like easy to use CRM , research and, data and analytical skills that can provide insight capabilities within your business?
- Are your insights accessible by all?
- Do you empower your employees with insight or raw data so that they can turn data into insight?
- Do your business use a centralized knowledge base, that can enable your whole organization to access and make use of key information and insights like best practices, benchmarking, consumer trends, customers' needs across the journey, market, competitors, and more?
- Does your organization make use of insights to anticipate its present and future needs?
- Does your brand rely on feedback from your customers in finding and solving problems, and to guide innovations or use customer feedbacks as a lens for your every day business-related activities?
- Does your organization readily share insights and thereby help in providing the right information to the right people at the right time and is it automatically connected to all the operations in business?
Now answering these above-stated simple but far-reaching questions will indeed help you to understand how mature your company is in uncovering customer insights to usher in business growth.
As warned by Forrester Research back in 2017:
“It really matters to be insights-driven: since it’s a competitive differentiator that will help in making or breaking your long-term success.”
Hence in work with our customers as a vendor of the best CRM software for SMB, we have observed that several organizations are beginning to realize this, but few small businesses and startups are really set up to leverage insights as competitive differentiators in their companies.
However, this must also be understood that if your business cannot take advantage of customer insight which is the super-food for customer-driven business growth to drive large and small decisions, your competitors or any other new entrant in the market, if they do, will surely grow at your expense in 2020 and all the near times to come.
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