New study from Harvard Business Review and FocusVision reveals leading global organizations see customer insight as key to business success.
A chronic lack of customer understanding
Despite access to a wealth of customer data, only 23 percent believe that their organization understands why its customers act the way they do.
Research by Forrester Consulting, commissioned by FocusVision, found that how a customer thinks and feels about a brand are both statistically significant drivers of how they act (purchase, loyalty and advocacy). Further, how a customer feels about the brand, their emotional connection with the brand, has a 1.5-times greater influence on driving positive business outcomes than what they think.
So, without understanding how their customers think, feel and act, organizations are unable to deliver on experience.
The need to integrate big and small data
Overall, organizations feel much more comfortable in their ability to leverage small data (56 percent) than big data (18 percent). But neither type alone delivers the insights required for the CX management strategy.
Leaders see greater CX success
The study demonstrated that 15 percent of the respondents, the Leaders, are able to integrate both big and small data to create a holistic customer view and report that they have a far better understanding of their customers.
EFFECTIVE CX MANAGEMENT STRATEGY
UNDERSTAND WHY CUSTOMERS ACT THE WAY THEY DO
These Leaders see the benefit of Insight Integration in terms of their customer experience, with increased customer satisfaction or loyalty/retention topping the charts at 85 percent.
BENEFITS OF CUSTOMER INSIGHT INTEGRATION
The biggest benefits of integrating more customer insight
BIG-SMALL DATA INTEGRATION BOLSTERS BUSINESS RESULTS
Leaders in the mixing of data see better profitability and revenue growth
How has your organization’s performance in each of the following areas changed over the years?
Learning from the Leaders
This is not to say that integrating big and small data is an easy feat. All organizations struggle with four key impediments to CXM success, namely organizational silos, systems and processes such as inconsistent data collection, lack of data management systems, data standardization issues and legacy systems, prioritization to focus time and resources and knowledge sharing of customer insight across the organization.
The Leaders also face these challenges, as well as a few more given they are farther down the path, however, they have taken steps to overcome them.
- Ensure executives buy into the need to integrate big and small data.
- Employ emerging small and big data methodologies, such as mobile, clickstream, telemetry, mobile diaries, online research communities and focus groups.
- Provide the necessary data management systems and ensure data collection consistency.
- Break down organizational silos.
- Equip users with the necessary analytical skills and tools to provide critical insights.
- Be the integration.
- Maintain focus.
Implementing the above is not a quick or painless process but it is essential to create a truly customer- centric organization.
To learn more about integrating small data for CXM success, download the full Harvard Business Review Analytical Services research report, commissioned by FocusVision: Beyond Big Data: Why Small Data Integration Is the Key to CXM Success.
To learn more about the role of emotions in understanding how your customers think, feel and act, download the full Forrester Study, sponsored by FocusVision: How Customers Think, Feel, and Act: the Paradigm of Business Outcomes.