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
2. #ConsumerPower Big Data or Big Hype? How to Leverage Big Data Analytics to Transform Customer Experience
3. #ConsumerPower
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
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
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
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
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
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?
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
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
12. #ConsumerPower Most organisations recognise the positive impact big data analytics can have on performance….. Source: Fifth Quadrant n=63 Australian Organisations
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
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
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
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
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
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
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
20. #ConsumerPower What we can learn from more mature big data analytics organisations
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…
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…
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
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
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
26. #ConsumerPower Creating a high performing big data analytics organisation
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
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
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”
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