Since its emergence, data analytics have helped consumer-facing businesses answer some of their biggest questions. From research and development to pricing scales, advertising and beyond, big data has held the key to better understand a company’s customers and the best ways to reach out and cement relationships with clients.
This isn’t to say that the road has ended in terms of data-driven advancements for B2C retailers. This market is constantly changing, thanks to increasing client demands, new technologies and innovative strategies – and data analytics use cases are changing right alongside the sector itself.
Over the past few years, B2C businesses have shifted the ways they use their informational assets, shaking up the industry as a whole. Let’s take a look at the top ways data analytics is changing the face of the B2C market, and how it will continue to do so in the future:
1) Offering a competitive advantage
Big data and its subsequent analysis can provide a nearly endless list of insights, depending upon the information gathered and how results are applied. In many cases, B2C organizations leverage their informational assets to better understand their customers, shine the spotlight on emerging demands and discover the most efficient ways to utilize their available resources. What’s more, big data has been utilized to make client interactions more personal and customized – the services and support seen by a customer in one area likely aren’t the same as those experienced by another client.
These insights mean one thing for the organizations that seek to discover and utilize them: a growing competitive edge. The best understanding of the customer audience, as well as the most optimal ways to utilize available resources mean the business is operating at its highest quality. What’s more, enterprises and smaller companies that aren’t utilizing big data strategies to their advantage face the very real risk of falling behind other institutions in their industry that do.
“The use of Big Data … will become the basis of competition and growth for individual firms, enhancing productivity and creating significant value for the world economy by reducing waste and increasing the quality of products and services,” Ivey Business Journal noted. “All companies need to take Big Data and its potential to create value seriously if they want to compete. For example, some retailers embracing big data see the potential to increase their operating margins by 60 percent.”
2) Shifting the landscape of the C-suite
In addition to offering a competitive edge, the impact of data analytics is now being felt throughout B2C organizations – from customer service agents and the marketing department all the way up to the C-suite.
Evidence of this change is now especially clear, as many companies are now adding new upper management roles to ensure their analytics efforts receive the attention and resourcing they deserve.
“Today, the power of data and analytics is profoundly altering the business landscape, and once again companies may need more top-management muscle,” wrote McKinsey & Company’s Brad Brown, David Court and Paul Willmott. “It’s becoming apparent that without extra executive horsepower, stoking the momentum of data analytics will be difficult for many organizations.”
A data analytics-focused voice in the boardroom has helped propel these initiatives to the top of the priority list and prevent related projects from being stalled elsewhere in the company. Positions like chief data officer provide businesses with the bandwidth to better harness, manage and utilize their data, supporting the competitive edge that this kind of analysis can offer.
3) Personalizing and improving marketing efforts
Nowhere is the impact of data analytics felt greater within a B2C organization than in its marketing department. In many cases, big data-related projects are taken on for the express purpose of bettering client interactions, especially when it comes to personalizing advertisements and other customer-facing collateral.
In many cases, B2C organizations leverage their informational assets to better understand their customers.
In fact, a range of studies have proven that marketing according to data-backed insights can not only help grow a business’s customer base, but enhance the chances of supporting customer loyalty throughout the relationship with the brand. According to information gathered by Forbes contributor Louis Columbus, 44 percent of B2C marketers leverage data analytics to boost their organizations’ responsiveness. An additional 36 percent utilize analytics techniques and data-driven strategies to support customer relationship-focused strategies that are key to the business.
Overall, however, most B2C marketers have found that optimization of search engine results, email marketing and mobile reachout is where their analytics processes really shine. More than half – 54 percent – of marketers agree that data analytics is paramount for marketing strategies both today and in the future.
4) Supporting an omni-channel presence
One of the most prevalent pushes in the B2C market to date has been the establishment of an omni-channel presence. This helps ensure that no matter where or how customers contact the company – be it in person at a retail store, on the company’s website, through its social media page or via a mobile app – the client has the same, high-quality experience. This is yet another arena where data analytics isn’t just helpful, but is crucial.
As DMI pointed out, big data analysis can help provide the most complete picture of a company’s customers and their demands, and these details are essential for offering a successful end-to-end omni-channel experience.
To find out more about how B2C companies can make the best use of their available big data, contact the Aunalytics experts today.