Big Data, Analytics, Insights … it is evident, in the travel industry, as well as in many other sectors, the importance of using this information. Nowadays, even small companies understand that data are fundamental for the development of better business strategies.
But how much is really the intelligent use of insights a source of competitive advantage? And which is the impact on customer engagement?
“The 2018 Data & Analytics Global Executive Study and Reaserch Project“, an annual research project conducted by MIT about the relationship between companies and the use of analytics, answers these questions. The study involved a sample of 1,919 professionals and managers of companies from all over the world, pointing out interesting results.
1 Competitive advantage from analytics continues to grow.
The percentage of respondents who attribute relevant competitive advantage to their analytics proficiency has risen for the second year, to 59%, up from 51% in 2015.
This upward swing is the result of three factors:
The use of data and analytics to ward off new competitors that are themselves using analytics to enter fresh markets, creating barriers to entry thanks to the information available;
The use of data to enhance customer engagement, constantly improving, for example, the service provided through the data collected during the purchase and consumption phase;
The use of data to better predict human behavior,Building models or even predict scenarios and relevant changes.
2 Analytics is driving customer engagement.
An index called “Analytics Core Index” was developed within the study, based on the organization’s core analytics capabilities in ingesting data, analyzing and applying insights.
The correlation between business with high Analytics Core Index and customer engagement is showed in the bar chart below.
Organizations that demonstrate higher levels of analytical maturity saw a marked advantage in their customer relationships. The most analytically mature organizations are twice as likely to report strong customer engagement as the least analytically mature organizations.
In addiction the offer placed on the market by these companies is, moreover, “tailor-made” and extremely customized according to the needs of the customer.
3 Analytically mature organizations use more data sources to engage customers.
The study demonstrates that organizations that make effective use of a wide range of data sources — from different types of technologies and different types of entities, such as customers, vendors, competitors, and publicly available sources— are more likely to use analytics to generate higher levels of customer engagement and gain a competitive advantage than organizations that use fewer sources of data.
The ability to read analytics in an integrated way is an additional source of competitive advantage.
Higher levels of analytical maturity are associated with higher levels of customer engagement, which in turn is associated with higher scores on the Analytics Core Index and with greater use of diverse data sources.
The world of analytics is constantly evolving and is characterized by different aspects.
If, on one side, to manage the complexity of the data and their related formats is necessary an advanced and professional approach – which, as the research shows, repays – on the other, access to the world of analytics and their use is increasingly facilitated thanks to user-friendly platforms and tools.
The strategic importance and the positive impact of the adoption of big data and insights for organizations is obvious: an intelligent management of information leads unquestionably benefits on customer engagement and business performance.
Source of data and graphs reported in the article: “The 2018 Data & Analytics Global Executive Study and Research Report by MIT Sloan Management Review”.