Alejandro Martinez is CEO U.S. & Canada of SDG Group. Sharing insights on How Data & Analytics Generate Business Impact and Value.
Inflation—now in its third consecutive month of moderation, somewhat more than forecasted—food and fuel prices, supply chain issues and rising interest rates concern us as citizens and occupy us as entrepreneurs.
To protect a business in a time of great instability like the one we’re living through, we must draw on what we’ve learned during the pandemic: a focus on resiliency and nurturing our relationships with our customers. Meeting the high expectations of consumers is the dream of any company, but it is an achievable goal only for those organizations who are committed to managing data for its application in intelligent decision making.
To offer different customer experiences, we need to know and understand the consumer and their habits so that we can foster a range of personalized interactions, regardless of whether they choose a physical shop, a digital channel or BOPIS (buy online and pick up in-store). This experience must be designed holistically, taking into account not only the message that we as an organization want to convey but also the customer’s expectations. Data is our best ally to help us attack the consumer’s pain points and thus generate conversions.
What’s more—it’s a strategy that not only benefits customers but also allows companies to develop smarter data governance practices. In my experience of turning data into powerful insights capable of generating positive and measurable changes in ROI, I can say that it’s necessary to:
• Define and understand the organization’s sales and communication channels—monitor their performance and extract relevant analytical indicators and attributes.
• Explore the impact of all commercial actions per channel on sales.
• Identify the inflection point by channel.
• Unify in the same funnel the relevant events of all channels to find the common elements that generated the conversion.
• Generate impact and engagement from the information.
• Based on the data, build a model capable of simulating and predicting sales results.
Wherever you are, the consumer is top of mind.
Extrapolating from what Microsoft CEO Satya Nadella recently said, the only way to eliminate paranoia (in this case, keep business competitive despite uncertainty) and make intelligent decisions is, without a doubt, to take advantage of data.
The concept of Customer Experience helps us to encompass all the perceptions that a customer has when interacting with a company, brand or product. These perceptions can be rational, physical or emotional. In other words, in an omnichannel environment, every interaction becomes data that, thanks to technology, supports our decision making. This customer data facilitates the calculation of the “customer lifetime value.” In this way, it is possible to know the non-financial profit margin that a customer brings to a company over the course of their lifetime.
If we focus intelligent decision making on an integral customer-strategy-channels model, we can directly influence the performance of our commercial strategy. We can implement Advanced Analytics models that are trained using the history of sales and commercial actions. These models will allow us to obtain valuable insights capable of identifying which actions have a positive impact on our target (for example, the degree of influence of advertising campaigns, the communication channels with the best conversion rates or which actions make sense to maintain or discard).
In short, basing your business model on the combination of a solid data strategy and a scalable structure will facilitate a thorough and dynamic mapping and monitoring of the customer journey to reduce unnecessary risk.