What do great corporations have in common? A strong data strategy.
If we look at any type of business, behavioral analytics are being introduced to track and predict consumer behavior. Data analysis not only provides a holistic view over a business, but it empowers all areas of an organization to offer customized offers, sales, and a birds-eye view for new opportunities. This broad look into data, is what will provide the tools to stay one step ahead of the competition.
This broad look into data, is what will provide the tools to stay one step ahead of the competition.
Attribution is the first step to cut through the noise. Establish clear and unique key performance indicators that are responsible for keeping a business running. Breaking off from ordinary KPIs can provide a huge advantage over competitors. Some non-traditional KPIs are:
Average revenue per unit
Out of stock rate
Margin by product category
Delivered on-time & in-full
Top content categories
New vs lost consumer
Flesch reading ease
Ask questions today that you weren’t asking before. If data shows how many times a customer transacts with your business, find out then how many touchpoints you had with your customer until a transaction was made. Go even deeper to find out when and where these interactions happen.
Optimizing data is the next step to staying ahead of the curve. Clean and organized data that does not live in silos is vital to get real outcomes. By standardizing data into one platform, companies are able to collaborate within departments, fast and easy.
Take Action based on predictions. Vince Campisi, Vice president and Chief Digital Officer for United Technologies:
“Take driving supply-chain optimization as an example. We’ve been able to take over 60 different silos of information related to direct-material purchasing, leverage analytics to look at new relationships, and use machine learning to identify tremendous amounts of efficiency in how we procure direct materials that go into our product.”
Predictive analytics uses data, statistical algorithms and machine learning to identify future outcomes based on historical data. It goes beyond knowing what has happened to providing a best assessment of what will happen in the future.
Collaboration within a company is of the utmost importance, since it enables a sharing culture within departments. Digitally native brands for example, need to maintain flexibility in the supply chain to adapt to changes in consumer demand. This can only be accomplished by having a collaborative structured company, where all departments work together in order to analyze, predict, take action and iterate fast.
“Internal decisiveness is probably the single biggest challenge in terms of speed to market,” said Ed Gribbins, president of Alvanon. “Luxury has been more nimble at making decisions than, say, department stores or specialty retailers, which have been on an 18-month cycle. That doesn’t work anymore. Who knows what we’re going to want in spring?” “Speed to market is crucial, and we need to work as quickly as possible.”
Evolving and acting differently by asking questions that were not being asked in the past is crucial. Beating the competition entails having a clear data strategy backed by a more dynamic and open mindset. This shift will help achieve sustainable growth for companies of all sizes.