5 statistics that show how becoming a data-driven business can help you outdo your competition.
Today, 90% of enterprise analytics and business professionals say that data and analytics are key to their organization’s digital transformation initiatives. However, there are many companies that are reluctant to pull the trigger because they aren’t sure about the advantages of becoming data-driven.
In this article, we’ll look at 5 statistics that show how becoming a data-driven business can help you outdo your competition. Profitability, customer understanding, and business strategy are just some of the areas where obtaining insight into the right data can be invaluable.
According to Mckinsey Global Institute, data-driven organizations are not only 23 times more likely to acquire customers, but they’re also six times as likely to retain customers and 19 times more likely to be profitable! Leveraging this data enables enterprises to make more informed decisions and improve the customer experience. The result? Satisfied customers who keep coming back for more.
Let’s take a look at the example of Red Roof Inn. The hotels belonging to this chain are situated near airports where, on average, 90,000 passengers are left stranded due to weather every day. The chain realized that flight cancellation rates sit at 3%. Their marketing and analytics team worked with openly available data on flight cancellations and weather conditions to identify marketing and selling opportunities.
Red Roof Inn’s marketing team used these insights to launch a campaign aimed at mobile devices in the area when bad weather hit. Their turnover, as a result, increased by 10%.
BARC research surveyed a range of businesses and found that those using big data saw an 8 percent increase in profit and a 10 percent reduction in cost. The companies also listed other benefits that had emerged from the transition to monitoring data: 69% cited better strategic decisions; 54% said that big data improved their control of operational processes, and 52% stated that they had a better understanding of their customers as a result.
Corel Software is a perfect example of how an enhanced understanding of customers can lead to a revenue increase of 106%. Based on their website data and analytics, they began evaluating the buying cycle to see how many times the average user re-visits their page before making a final purchase. They also monitored the steps that these customers take in the lead-up to this (for example, signing up to newsletters, demo calls, etc.).
Based on this data, they have managed to segment their prospects and create a retargeting ad campaign. Through this process, they have managed to create relevant messaging for their buyers to persuade them to return to the web page and make the purchase.
62% of retailers (and 63% of cross-industry respondents) have stated that information and data analytics gives them a competitive advantage. IBM identified that “the most effective big data strategies identify business requirements first, and then tailor the infrastructure, data sources and analytics to support the business opportunity.” Knowing how to use this data to enhance business activities pays dividends against the competition.
By constantly tracking various customer characteristics (such as demographics, interests, etc.), they are able to gain insight into current fashion and popular tastes. They compare their own data with current social media trends to identify certain patterns that help them to make the next move.
One-third of industry professionals have suggested that the right technologies are critical for a better understanding of customers, highlighting the empathetic advantages of being data-driven. As a consequence, 63% of marketers have increased their spend on data-driven marketing in an attempt to reach out to relevant audiences with more targeted promotions. Adopting a data-backed methodology to understand customers’ needs is critical for making informed decisions.
The North Face consistently uses consumer data to deliver a tailor-made experience via their mobile app. With their voice recognition and purchase tracking, they create recommendations that really hit the spot for the user. The first time you download the app, you’ll be asked a series of questions that help the software to understand you better and adjust the suggestions accordingly.
The fifth insight summarizes the effects of the above-mentioned stats. Data-driven, and consequently, insight-driven businesses consistently outperform their peers. By tracking consumer interaction and gaining an in-depth understanding of their behaviors, companies can improve their customer experience and overall satisfaction. This, therefore, impacts lifetime value and increases brand loyalty.
Slevomat’s discount portal has been around for almost a decade. Understanding their customers and rolling out offers for the right people at the right time is what enables their growth. Slevomat was never a stranger to data-driven decision making. However, they used to rely on internal data reporting system with Excel files, often leaving the IT department overwhelmed and their data always stale.
The turnaround happened with the Keboola data innovation platform. It enabled Slevomat to access different data sources in one place and to always work with fresh, cleaned data. Most importantly, Keboola made working with data easy and efficient. Data-driven decisions became possible across the company, resulting in a 23% increase in sales. Read the whole story here.
The growth of data analytics solutions has led us into the data-driven era. Companies have turned to data to fast-track and enhance their decision making. The statistics show that data helps companies to grow and expand faster than ever. Even more so, the fact that data analytics solutions are becoming more accessible to non-technical employees means that the barrier of entry to insights is eroding every day.
However, analytics isn’t a one-size-fits-all solution. A company needs to have a clear use case in mind to reap the rewards of the insights it acquires. Enterprises need to evaluate the potential business applications of an analytics platform before implementation, as this will generate the best results.
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