80% Cos Relying On Analytics To Know Customers Better
Nine out of 10 C-level executives are using data and analytics to gain greater insights into marketing, according to a recent KPMG survey. The report also suggests that over 80% of the companies are relying on analytics to improve their understanding of customers. Seven out of 10 use heavy social media analytics to improve customer relations. In the US alone, more than half of the enterprises even show increased sales as the result of investing and using data and analytics, the study found.
The data deluge
The data collected from over 800 senior business executives across 15 countries including India shows that a considerable number of C-level executives believe that data & analytics have helped them create more targeted offerings to prospective customers.
CIOs from industries including BFSI, telecom, healthcare & life sciences, retail, among others who represented in the study show an increased dependence on analyzing data for customer understanding that has a positive impact on the bottomline.
The study found that in data analytics, most businesses are investing in three key areas, namely risk reduction strategies (97%), sales and marketing (92%), and financial management (87%). In the next 1-2 years, most businesses will invest in financial statement audits (14%), human resources (14%) and capital allocation (13%).
The gap remains
While there’s a growing trend in investment in data and analytics, CXOs see a disconnect between the people who are doing the analytics work, and the people who make decisions on the insights provided including implementing strategies. Evaluating data quality and reliability, appropriate data not always available, and limited expertise in running queries are the biggest challenges to getting more value out of data & analytics.
Just 14% of enterprises surveyed think they have all the talent and capabilities they need to get the full value out of data and analytics investments they have made. This in turn is limiting the potential of analytics to deliver greater value in enterprises globally.
The study found accelerating decision making (86%), improved dialogue with customers (81%), and more accurate decision making (80%) are the three top benefits enterprises are gaining at present from their investments in analytics.
The study found that going forward businesses will be using data for the prediction of future market trends, identification of new revenue streams and offering more personalized service.
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