New Study Shows You Could Be Missing Out on Revenue & Market Share
Big data, big data, big data. We’ve all heard the term hundreds, if not thousands, of times in recent years, and we’ve seen brands collecting more and more information about their customers. Yet brands are too often just sitting on these treasure chests, vaults, volcanoes of data.
To make this increased data collection worthwhile, providing value to the company and its customers, brands must analyze and use their data. Ideally, brands should understand each individual customer’s entire journey, have a holistic view of his or her preferences, deliver relevant and integrated communications and, most importantly, continually use new data to optimize and refine the customer experience.
Take, for example, Amazon. Using their nearly unrivaled quantity of clickstream and historical purchase data from over 150 million customers, they have scaled and optimized a nearly perfect personalized recommendation system. Recently, they have also ensured that customer service representatives have all customer data on hand to deliver a hassle-free experience. And, not surprisingly, Amazon’s revenue hit $19.74 billion in the first quarter of 2014, up 23% from the same period last year.
Rosetta Consulting recently fielded a survey and found similar results, demonstrating that a brand’s investment in leveraging data was linked to increased revenue. The 2014 Rosetta Consulting Brand Marketing Survey was fielded to 87 marketers and senior executives across industries and assessed a brand’s ability to deliver customer engagement across a range of best practices. Companies scoring in the top third of the sample were designated “Strong Performers.”
Rosetta Consulting found that Strong Performers were almost 2 times more likely than others to have experienced an increase in brand revenue last year. They were also 5 times more likely than others to have their data automatically analyzed and made available to inform business decisions, and 4 times more likely to prioritize marketing channels based on historical customer preference. When it came to creating personal experiences, they were 6 times more likely to leverage real-time data to customize marketing efforts (e.g., channel, message, offer, etc.).
According to this research, however, too many brands are failing to invest in developing a deep, systematic and methodical understanding of their customers—and it comes at the expense of the company, as well as the customer. As the Global Head of Market Research at a top-10 pharmaceutical company told us, “We know that the path to purchase needs to be well mapped out, but we sometimes rely just on gut feel. We need to be more disciplined about how we derive our insights.”
To learn more about how successful business leaders are approaching Customer Engagement today, including best practices for gathering data, mining for insights and using it to inform business decisions, please see the complete white paper summarizing Rosetta Consulting’s 2014 Brand Marketing Survey.