Using a Sea of Big Data to Create Actionable Customer Engagement Strategies

Big data is a big deal. Today, data is created endlessly by each and every one of us. Nearly every device we touch produces and shares likes, dislikes, preferences and behaviors with the businesses we interact with daily. The flow of big data is so vast today that companies dedicate entire teams to capturing and analyzing big data from current and potential customers.

Within this sea of data lies a current of actionable information allowing you to better understand your customers. Thomas H. Davenport of the Harvard Business Review refers to two different eras, “BBD and ABD - before big data and after big data.” Because of today’s technology, we know more about modern-day customers through the data they share with us than ever before. This translates into limitless potential and pinpoints, and new touch points, allowing us to connect with them on a deeper, more personal level. Data analytics enables us to anticipate buying behavior, including what the customer needs, when to talk, when to listen, which communication vehicle to use, and the best messaging and offer strategy. We can even, “embed data smartness into the products and services customers buy,” according to Davenport. As a result, we gain an opportunity to enjoy richer interactions and create experiences that turn customers from fans into advocates.

Going beyond analysis we can harness the predictive power of data to calculate how customers will react and respond. We can develop products and services the customer wants from this data, and put it to use to deliver a better customer experience and drive ROI. “Google, Amazon, and others have prospered not by giving customers information, but by giving them shortcuts to decisions and actions,” says Davenport.

For marketing and customer experience professionals, almost all well-thought-out programs and new initiatives begin with a test. The test provides us with the opportunity to learn what truly affects the customer most, and the impact it has on our operations and employees. Even the most powerful, successful brands know they can always do a better job, therefore consistent testing of data and predictive analytics is critical. Happy customers can be happier, so it is crucial to learn what you can do to improve your customers’ experiences. Doing so encourages them to tell more people about their positive experience, driving the future growth of our companies.

Step 1: Getting Started: Analyze the Data Ocean

A good place to start is looking at the data you already have. That’s right, start moving forward by looking back. Examine customer behavior over time and look for ways to impact the buying pattern. For example, if you notice a consistent pattern from a customer who traditionally begins shopping online, you may change your communications and messaging approach with the goal of impacting their buying behavior. Or, you may improve the customer experience by encouraging them to shop online first and then reach out to them directly with an opportunity such as, “Did you want to see this certain item in person? Check out our store locator.” Through small, deliberate changes in approach, and encouraging interaction and feedback, we learn how customers behave and are able to move them through the buying cycle faster.

Step 2: Take Advantage of the Waves: Optimize Current Initiatives

Along the journey, remember the long-term goal of any customer-related project is loyalty and retention. Make the processes and benefits clear to your team, and:

• Set finite times to stop and assess. Usually, you can look at offer responses within two to four weeks of a campaign. These short-term results will drive the next action you decide to take.
• Understand you’re looking at loyalty and retention year-over-year or even comparing at a rate of every few years.
• Related results: Look for the positive impacts through customer satisfaction and customer comments in social media, ratings and reviews.

Step 3: Tame the Tide: Continuous Improvement

So, how do we challenge ourselves to continually deliver something even more impactful to our customers? It’s simple. We regularly comb through available data and tests, and constantly analyze, interpret and modify our approach. We also appropriately allocate marketing dollars. In short, we put our customers and their insights at the center of our operations and know we can always do more and be better for them.

You can see how the sea of big data informs the action plan from the beginning stages. It’s an iterative process: data is analyzed, plans are created, the plans are measured, the results are rolled right back into the data set, and you adjust the ways you do business. Most importantly, understand each data point represents a customer, a real human being, and an opportunity to deliver an exceptional customer experience to endear that person to your brand.