Were you surprised to read the title of this post? Do you believe that using technology to understand customers is the only way today? Then let me explain why I believe it’s not quite that simple.
In today’s data-rich environment I’m not really suggesting that you actually ignore data nor technology! However, in working with clients around the world as well as in numerous industries, I have found that many are lost by the wealth of information that is available to them.
In fact it seems to drown out their reasoning of what to do with all the data and they remain frozen in indecision. Or worse, they invest in the latest platforms and systems in the hope that using technology to understand customers will help them with their knowledge void. Is this your case? If so, then just follow the steps I detail below and you will soon be doubling, quadrupling, if not getting 10x the ROI from your data.
The Current Situation with Data
Data is everywhere and most organisations are drowning in it! Technology is being blamed for disrupting businesses, but in most cases these companies have simply not adapted to this new data-rich world.
I admit, a lot has changed. Consumers are adapting their behaviours to the trading of their personal information. Companies are changing business models as their value shifts from products to services, or even to the sale of the information they gather.
Some organisations are reinventing themselves to take advantage of these changes. Others are ignoring them – at their peril – since they are at risk of becoming the next Kodak, Borders or Blockbusters. And of course the latest covid-19 epidemic will hasten many others to unfortunately follow suit in the coming months.
If you’re interested in reading an analysis of the US Retail Apocalypse and the 23 big retailers closing stores then I highly recommend this post on Fox Business from last year. No doubt it will need updating in 2021 when the fallout from the current pandemic becomes clearer.
So what should you do? Well, I believe that you should start by renovating your business model to take advantage of the countless new opportunities all the data and new technologies open up for you. And in my opinion, you had better do it sooner rather than later, because your competition will almost certainly be investigating ways to make use of it all!
Yes you have data and information, but if you’re a regular reader of my blog, you will know that you have to turn these into knowledge to understand your customers. And then develop insights and actions. But this can only be done by asking the right questions of your data and information. The latest technology is not going to make up for your lack of thinking!
If you are struggling to take needed action despite a wealth of information, then this is certainly where you should start making changes – fast!
A 2015 Capgemini and EMC study called “Big & Fast Data: The rise of Insight-Driven Business” showed that:
- 56% of the 1,000 senior decision makers surveyed claim that their investment in big data over the next three years will exceed past investment in information management.