In a previous era, any visibility at all into a customer's behavior would be just the competitive advantage a business would need to deliver an exceptional, personalized experience and, hopefully, spur greater customer loyalty.
Today, businesses are so focused on understanding their customers – and customers expect such uniquely tailored experiences – that they spend a collective $11 billion annually on customer relationship management tools.
And thanks to these tools, companies have gotten their wish for more customer data – and then much, much more than they expected. Digital technology has opened the floodgates of customer data, leaving many businesses awash in more numbers and figures than they can conceivably manage, let alone properly leverage.
In this super-saturated form, data can lack precision, context or accuracy, and is therefore unlikely to yield the new, actionable insights businesses crave. Without high-quality data, a company's ability to understand its customers, build relationships, improve their satisfaction and, ultimately, generate more revenue, will be limited.
The Problem with Vast Data
For the Auto Club Group (ACG) – the second-largest AAA club in the country – flawed customer data sets were a regular occurrence in the flood of information coming in from its 6 million customers sprawled across the Southeast, and dispersed among nine different business units.
The ACG’s Advanced Analytics team required these vast volumes of data to be accurate in order for it to produce predictive models that would inform business strategy for improved operations, as well as future cross-selling opportunities and relevant sales prompts. Yet, these modeling projects were taking up to six months to complete.
Since rolling out new customer information management solutions, the ACG has been able to increase its analytic output and use data more efficiently to gain rapid insights into customer behavior and preferences. What’s more, it is now able to finish modeling projects in just six weeks.
As the ACG discovered, data management technology helps companies better understand customers and engage with them more effectively. Better engagement then leads to more sales, which leads to bottom line growth.
Learn more about using trusted data and insights in context across your enterprise.