Big data or big hype? How big data is transforming customer experience

This presentation will examine the growing prevalence of Big Data across Australian organisations. It explains why being good at using and understanding Big Data is critical for driving better Customer Experience design; and details how leading Big Data organisations manage, use and operationalise insights gained through Big Data.

From Chris Kirby - Fifth Quadrant

Transcript

1. #ConsumerPower
   294 billion emails sent everyday
   4.8 trillion online ad impressions each year
   100 terabytes of data uploaded onto Facebook daily
   US$2.1 billion spent on mobile ads a year
   230 million tweets a day
   2.7 zettabytes of data exist in the digital universe
   Source IBM
   

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2. #ConsumerPower
   Big Data or Big Hype?
   How to Leverage Big Data
   Analytics to Transform Customer
   Experience
   

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3. #ConsumerPower
   

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4. #ConsumerPower
   Will buy more from
   companies that make
   doing business easier
   Will spend more with
   companies providing
   good service
   42%
   83%
   The Customer Experience opportunity
   The role of the ‘Customer Experience’ in driving business performance is becoming widely
   recognised
   

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5. #ConsumerPower
   Different
   Demographic
   Demands
   Interactions
   are Changing
   Customer
   Satisfaction Risks
   are Increasing
   Service was
   terrible, I’m
   never going
   back
   The changing ways in which customers and
   organisations interact is creating significant CX
   management challenges
   Consumer demands and expectations and technology are driving significant change in the way
   organisations and consumers interact
   

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6. Use of multiple channels is prevalent across most types of
   interaction – especially complaints and product research
   53%
   49%
   40%
   39%
   39%
   48%
   51%
   60%
   61%
   61%
   Making a complaint
   Researching a
   product/service
   Making a booking
   Had a technical issue to
   resolve
   Purchasing a product or
   service
   Used more
   than one
   channel
   Used the one
   channel
   Channel type usage per query
   Source: Fifth Quadrant n=450 US Consumers
   

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7. #ConsumerPower
   87%
   83%
   80%
   The company being able to combine
   information collected from different
   interactions into one system
   The company knowing your history across
   different channels
   Not having to repeat your account and
   identification information each time
   Important (5-7/7)
   When you have to contact a company more than once for the same query how important are each of the
   following to you…
   Seamless integration across channels is a key
   consumer expectation and desire
   Source: Fifth Quadrant n=450 US Consumers
   

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8. #ConsumerPower
   Customers Organisations Customer Experience
   • Simplicity
   • Transparency
   • Consistency
   • Collaborative
   • Traditional, product-
   oriented business
   models no longer work
   • Responsive, customer-
   driven cultures
   • Single, personalised
   relationship with ALL
   customers
   • Anticipate customer
   needs
   • Identify and solve issues
   before they affect
   customer satisfaction
   Customer experience management is now
   more complex
   

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9. #ConsumerPower
   “Big data analytics is the process of examining large
   amounts of data of a variety of types (structured and
   unstructured) to uncover hidden patterns, unknown
   correlations and other useful information.
   Used in real-time, such information can provide
   competitive advantages over rival organisations and
   result in business benefits, such as improved
   customer experience leading to increased revenue”
   What is big data analytic?
   

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10. #ConsumerPower
    Intrinsic to
    the customer
    experience
    Input into the
    customer
    experience
    design process
    Value =
    Improved customer experience
    Harnessing big data analytics to drive
    greater value
    

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11. #ConsumerPower
    Omnichannel customer service:
    Brands need to develop a seamless, omnichannel experience to ensure that the customer is
    taken through the same simple steps regardless of whether they’re engaging online, speaking
    to a representative on the telephone, using smart phone functionality or a combination of
    these.
    Delivering a predictive experience:
    Big data can help companies anticipate what consumers want, simplify customer service
    interactions, and learn from those interactions so that future experiences are constantly
    improving.
    Reduce cost to serve:
    To avoid rapidly rising costs due to increased personal interaction with the customer, a lot of
    experiences and processes can be handled via self-service channels.
    Improve user experience through personalisation:
    e.g. Amazon relies on wish lists, browsing histories, and purchasing history to create
    individualized product suggestions.
    How big data analytics can improve
    customer experience
    

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12. #ConsumerPower
    Most organisations recognise the positive impact big
    data analytics can have on performance…..
    Source: Fifth Quadrant n=63 Australian Organisations
    

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13. #ConsumerPower
    Most organisations are using big data analytics
    to some extent…..
    75%
    8%
    9%
    8%
    Does your organisation use any form of big data analytics?
    Currently using
    Used in the past 12
    months (or more)
    Will use in the next 12
    months
    No plans to use in the
    next 12 months
    Source: Fifth Quadrant n=63 Australian Organisations
    

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14. #ConsumerPower
    30%
    31%
    34%
    36%
    53%
    39%
    39%
    38%
    39%
    27%
    31%
    30%
    28%
    25%
    20%
    Business utilises data analytics in
    strategic decisions
    Data and analytics is supported
    across a wide range of corporate
    activities
    Data analytics is a core business
    inititative
    Data analytics is frequently used to
    determine success of
    projects/products
    Data analytics is used to allocate
    internal resources
    Disagree (1-6) Neither Agree nor Disagree (7-8) Agree (9-10)
    …however the effectiveness of organisations to leverage
    big data analytics is inconsistent
    Source: Fifth Quadrant n=63 Australian Organisations
    

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15. #ConsumerPower
    Therefore most organisations do not rate themselves as
    very successful in leveraging big data analytics for
    customer experience
    54%
    33%
    13%
    Not Sucessful (1-6)
    Somewhat Successful (7-8)
    Extremely Successful (9-10)
    Organisation success at leveraging big data analytics for customer
    experience
    Source: Fifth Quadrant n=63 Australian Organisations
    

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16. #ConsumerPower
    Use of big data analytics
    Enterprise-wide big data analytics
    strategy, technology and ROI
    Breadth of data utilised
    Success of leveraging big data
    analytics
    Big Data Analytics Maturity Index
    © 2011 callcentres.net Pty Ltd. All rights reserved
    Big Data Maturity
    Model
    

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17. #ConsumerPower
    Revenue
    generation
    Employee
    engagement
    Operational
    efficiency
    Organisational Performance
    Outcomes
    Big data analytics link to performance
    Customer
    experience
    Use of big data analytics
    Enterprise-wide big data analytics
    strategy, technology and ROI
    Breadth of data utilised
    Success of leveraging big data
    analytics
    Big Data Analytics Maturity Index
    

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18. #ConsumerPower
    There is a positive
    correlation between
    organisations that
    have a higher Big
    Data Analytics
    Maturity Index and
    stronger overall
    business performance
    R² = 0.3705
    40
    50
    60
    70
    80
    90
    100
    40 60 80 100
    Big Data Maturity Index
    Business Performance Index
    Source: Fifth Quadrant n=63 Australian Organisations
    

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19. #ConsumerPower
    5.85
    6.90
    5.90
    7.20
    8.24 7.88
    7.42 7.79
    Improving customer
    experience/satisfaction
    Increase productivity and
    operational efficiency
    Improving employee
    engagement
    Improve revenue
    generation
    Performance Score Index /10
    Immature Mature
    Big data analytics maturity is proven to have the biggest
    impact on improving customer experience performance
    Source: Fifth Quadrant n=63 Australian Organisations
    

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20. #ConsumerPower
    What we can learn from more mature
    big data analytics organisations
    

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21. #ConsumerPower
    20%
    56%
    32%
    24%
    41%
    75%
    34%
    25%
    CEO
    Line of Business /
    Business Unit Head
    Function Head
    Department Head
    Immature
    Mature
    Executive leadership of big data analytics
    strategy
    Big data analytics
    thought leadership
    stems from the more
    senior management
    in mature big data
    analytics
    organisations
    Source: Fifth Quadrant n=63 Australian Organisations
    Thought leadership regarding big data analytics resides with…
    

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22. #ConsumerPower
    62%
    50%
    38%
    54%
    42%
    27%
    35%
    23%
    4%
    76%
    58%
    58%
    55%
    52%
    39%
    36%
    33%
    12%
    Customer service
    Sales
    Marketing
    Business intelligence
    Finance
    IT analytics
    Operations / logistics
    Product development
    HR
    Immature Mature
    Users of big data analytics
    Big data analytics is
    used more widely
    amongst mature
    organisations, in
    particular customer
    service and marketing
    Source: Fifth Quadrant n=63 Australian Organisations
    Most prolific users of big data analytics in your organisation…
    

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23. #ConsumerPower
    46%
    54%
    31%
    27%
    12%
    8%
    0%
    12%
    88%
    79%
    79%
    70%
    48%
    42%
    30%
    12%
    Customer transaction data
    CRM data
    Customer feedback streams
    Web browsing data
    Social media data
    Mobile device user generated data
    Social network profiles
    GPS data
    Data Currently Used
    Immature Mature
    Data utilisation
    Mature
    organisations utilise
    a wider range of
    data sets, in
    particular customer
    transaction,
    feedback and web
    browsing data
    Source: Fifth Quadrant n=63 Australian Organisations
    

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24. #ConsumerPower
    62%
    42%
    42%
    27%
    8%
    15%
    42%
    31%
    35%
    19%
    36%
    30%
    27%
    24%
    24%
    21%
    21%
    18%
    15%
    9%
    Lack of skills
    Lack of appropriate technology solution
    Poorly integrated IT systems
    Don’t have a clear data quality strategy
    Getting consistent information for input into
    system
    Poor data quality
    Lack of internal resources to manage change
    Lack of training
    Other initiatives have higher priorities
    The customer databases are too fragmented
    Immatue Mature
    Mature
    organisations have
    overcome issues
    regarding:
    • Skills
    • Technology
    Solution
    • IT Integration
    • Resource
    • Focus
    • Data quality
    Challenges experienced
    Source: Fifth Quadrant n=63 Australian Organisations
    Big data challenges
    

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25. #ConsumerPower
    36%
    24%
    18%
    33%
    39%
    52%
    52%
    42%
    24%
    24%
    30%
    24%
    High quality data
    Relevant data
    Accurate data
    Real time data
    Disagree (1-6) Neither Agree nor Disagree (7-8) Agree (9-10)
    Data access, data relevancy and real time data remain
    critical issues amongst mature big data organisations
    Rate quality of access your organisation has to…
    (Mature Organisations Only)
    Source: Fifth Quadrant n=63 Australian Organisations
    

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26. #ConsumerPower
    Creating a high
    performing big
    data analytics
    organisation
    

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27. #ConsumerPower
     Long term data collection initiative - $4 - $5 million invested
     $1 million investment to execute big data strategy with technology
    implementation to be completed by late 2013
     BI team sits outside of IT
     Data warehouse team now sits with BI team
     BI team integrated with marketing intelligence and sits with the
    customer department
     BI team responsible for data warehousing, for reporting and analytics,
    for market research, and targeted marketing
     Focused on new more agile technologies
    Source: ZDNet
    

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28. #ConsumerPower
    1. Forward looking organisations recognise the importance of understanding
    customer needs and the value big data analytics can deliver
    2. Big data analytics is a proven driver of business performance – in particular
    customer experience outcomes
    3. Success will come through an integrated customer analytics strategy that puts
    quality data in the hands of decision makers
    Key messages
    

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29. #ConsumerPower
    Jack Welch Former CEO GE
    “There are only two sources of
    competitive advantage: the ability to
    learn more about our customers faster
    than the competition, and the ability to
    turn that learning into action fast”
    

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30. #ConsumerPower
    E: info@fifthquadrant.com.au
    W: www.fifthquadrant.com.au
    F: www.facebook.com/fifth.quadrant
    T: www.twitter.com/5thQuad
    L: www.linkedin.com/company/fifth-quadrant-pty-ltd
    Chris Kirby
    Head of Research
    T: +61 2 9927 3369
    E: ckirby@fifthquadrant.com.at
    Blog: http://www.fifthquadrant.com.au/_blog/customervoice
    Fifth Quadrant
    Northpoint, Level 11, 100 Miller Street,
    North Sydney, NSW, 2060, Australia
    T: +61 2 9927 3399 | F: +61 2 9927 3327
    

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