If there’s one thing companies don’t lack, it’s data. With today’s advanced digital tools, it’s possible to glean data from more sources than ever before.
But having a lot of data doesn’t mean you’re insight-rich. Transforming data into insight requires having a complete picture of the customer journey. It requires having the right tools and the right people who have the skills to turn that data into actionable insight.
Businesses that have learned how to turn data into insight are on their way to dominating the market. Forrester calls these companies “insight-driven businesses”—smart enterprises that use “data, analytics, and software in closed, continuously optimized loops to differentiate and compete.”
And as the following stats show, insight-driven businesses have a competitive edge, and the time to join them is now.
Insight drives business growth
- The insights-Driven Business report by Forrester predicts a threefold increase in revenue for insight-driven companies between 2015 and 2020—from $333 billion to $1.2 trillion.
- Insight-driven businesses will grow faster, at 27 percent for public companies and 40 percent for startups, than the projected global GDP growth of 3.5 percent.
Organizations are integrating insight more and more
- Sixty-five percent of companies surveyed by Forrester in 2015 rated that their customer intelligence and insight function was “strong”, according to Customer Think.
- Moreover, marketers are 53 percent more likely to do “data hygiene” than they were in 2013, according to Experian Marketing Services.
- However, there are still challenges: Acxiom reports that 70 percent of businesses have little to no ability to integrate online and offline customer data.
- Although customer data is getting increasingly important, only 17 percent of businesses say they have integrated these insight across their entire organization.
The challenges are many, but they can be solved
- Customer Think also notes that 40 percent of the insight delivered by customer intelligence teams are not actionable.
- Speaking of teams, the same article also reports that 42 percent of organizations strongly agree that silos are harmful to the quality of insight. To solve this problem, companies should follow Forrester’s advice to “build a closed-loop insight process into every facet of their business”.
- According to Kapost, only 23 percent of B2B marketers have a customer-centric approach and structure. A customer-centric structure strengthens the value of data-driven insight and improves collaboration across teams and departments.
- Acxiom also mentions that the biggest obstacle to customer-centric marketing was a lack of proper data or technology.
Insight-driven businesses win
An insight-driven business means better customer relationships, a more seamless customer experience, better and faster product iteration, and a focus on actionable data.
- Customers are 5.2 times more likely to purchase from a company with great customer experience.
- When it comes to customer retention, an insight-driven customer experience is essential; those businesses with excellent integrated, omni-channel customer experience retain 89 percent of their customers, according to SuperOffice.
- Customer retention translates into profitability. According to Deloitte & Touche, customer-centric businesses that focus in digital insight are 60% more profitable than those that are not.
It’s not too late to get in that insight-driven action
As you can see, insight-driven businesses already have an advantage compared to those still sticking to their old ways. But it’s not too late to transform your organization. Check out Forrester’s report to learn how to create an insight-driven enterprise.