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Trends and Outliers

TIBCO Spotfire's Business Intelligence Blog

11/28
2012

Data Discovery Boosts Customer Experience, Drives Sales

Which retailer won the battle for Black Friday sales this year?

Walmart came out on top, according to Citigroup retail analyst Deborah Weinsberg, who rates multiple large retailers on their Black Friday performances.

customer experience Data Discovery Boosts Customer Experience, Drives SalesIn addition to opening earlier this year, Weinsberg lauds Walmart for its one-hour guarantee on popular items, as well as providing online-only access for customers who sign up for email advertising, “like” Walmart’s Facebook page or download its mobile app.

In determining this year’s Black Friday victor, Weinsberg focuses on myriad factors, including customer service, customer experience and online and omnichannel integration – all factors that impact customer experience.

Why such a heavy emphasis on measuring customer experience?

Because customer experience can affect revenue. Customers who have poor experiences, which Forrester Research estimates to be about 30%, are at risk to abandon the companies that fail to meet their needs. In addition, when online customer service fails, 75% of customers will move to other channels, which boosts the costs to companies.

With the rise of social media, dissatisfied customers can make their complaints known quickly to a wide audience, adds Forrester. Forrester’s research shows that 68% of business-to-consumer customers and 80% of business-to-business customers read negative comments posted on social media sites.

David Aponovich, a Forrester analyst, says that technologies that focus on providing information about the customer experience – which could include data analysisdata discovery and predictive analytics – can give companies a significant advantage.

“Companies can obtain detailed reports and massive amounts of data about their customers – such as what products they buy and whether they interact online or by mobile or tablet applications,” Aponovich tells SearchCRM. “Those reports were not available to traditional marketers, and the rise of technology presents huge opportunities for companies to use data to their advantage. The issue is really being able to harness that data and transform it into action so it improves the outcome next time.”

But while data analysis, data discovery and predictive analytics can provide a wide range of information to companies – such as how customers will respond to promotions and what they think about new products – many organizations have mistakenly entered into a “data arms race” to gather more data about past, present and future customers than their competitors without tying the data back to business objectives, according to a Financial Times article.

The authors suggest that executives:

  • Identify the objectives that mean the most to the organization
  • Identify which data-driven processes are core to the operation of the business, and focus on that data
  • Recognize the importance of data management and governance in gathering valuable data and converting it into actionable insight
  • Define key performance indicators
  • Allocate the appropriate investment for analytic capabilities to support the above suggestions

Next Steps:

  • Subscribe to our blog to stay up to date on the latest insights and trends in data analysis, data discovery and predictive analytics.
  • Please join us on Tuesday, December 18th at 1 p.m. EST for our complimentary webcast, “TIBCO Spotfire Delivers Game-Changer – Brings The Power Of Discovery To Big Data,” presented by Lou Jordano, Director of Product Marketing, TIBCO Spotfire. In this webcast we will demonstrate the generally available version of Spotfire 5, the next generation of data discovery and business analytics, offering breakthrough capabilities to speed analysis of big data.

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