Embrace Big Data In A Big Way [VIDEO]

Anja Reschke

Businesspeople Looking at Graph in Meeting --- Image by © Simon Jarratt/CorbisAs more and more companies embrace digital transformation, their competitors are increasingly feeling the pressure to do the same.

One of the biggest components of digital transformation is improving the customer experience across all channels within an organization. This is called the omni-channel experience, and it means businesses must focus on creating a strong and consistent experience in a multitude of touch points with customers and clients.

One-third of companies use digital technology to create a personalized sales experience for their customers.*

Big data analytics can help to deliver this experience, by enabling organizations to collect and analyze detailed information about their customers, which helps to develop more accurate customer profiles and better predict future customer behavior.

20% of leader companies use location-based marketing techniques.*

Sentiment analysis – also known as opinion mining – is another common way to collect customer data. It automatically detects if a piece of writing is positive, negative, or neutral. This process of detecting the opinion or attitude of customers through social media screening is already a widespread practice among leading businesses.

This is just the beginning of the benefits of Big Data, according to the Capgemini Consulting video  Data Dimensions, which looks at the all-channel experience and digital transformation. Capgemini’s joint research with MIT shows that companies advanced in digital transformation are reaping profitable benefits.

It reveals that companies with strong digital vision and governance that had executed successful digital initiatives had achieved:

  • 26% more profitability
  • 9% higher revenue than their peers

Some businesses are still intimidated by Big Data because there has traditionally been a gap between the shear volume of fairly unstructured data streaming in from multiple sources compared to the structured data readily available in company databases. SAP just announced the release of SAP HANA Vora, which will make it easier for businesses to combine structured transactional data from existing applications with new contextual data from multiple other sources such as sensors, machinery, the Web, social media, and Internet of Things (IoT) applications. This is one option businesses can consider that will reduce the complexity of Big Data.

In addition to improving business performance, Capgemini says Big Data has the potential to drive benefits in 5 other areas.

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The benefits of Big Data in the all-channel customer experience

  1. Customer insights. Big Data can help companies more deeply understand the individual needs and behaviours of their customers.
  1. Top-line growth. Data can enable companies to increase the number of interactions with customers through personalized offers or regular interaction to increase customer loyalty.
  1. Drive margins and profitability through dynamic pricing and digital marketing. Predictive marketing can increase the ROI of marketing spend by developing concise and individualized marketing messages that target key customers.
  1. Innovation. Analytics allows companies to gather customer feedback on a large scale and feed that information back to the product development process. This is an efficient and cost-effective way to test innovative new products.
  1. Customer service. Analytics helps companies understand the best way to communicate with customers and accurately predict demands, which can help lower response times and improve service delivery.

The Capgemini video states that analytics increases the pace of business, so companies need to get up to speed quickly if they want to keep up with their competitors in the race toward digital transformation.

*This information was based on Capgemini’s video Data Dimensions: The all-channel experience and digital transformation.

For more information about digital transformation, data analytics, and the changing omni-channel customer experience, download the SAP eBook, Digital Disruption: How Digital Technology is Transforming Our World.

For an in-depth look at how the digital era is changing the business landscape, download the SAP eBook, The Digital Economy: Reinventing the Business World.

To learn more about the SAP Vora release, read SAP pitches Vora to bridge the big data gap.

Want more strategies to maximize the omnichannel customer experience? See How to Deliver a Coordinated Customer Experience across Every Channel.

 


About Anja Reschke

Anja Reschke is the Senior Director of Strategic Ecosystem Marketing at SAP. She is responsible for the development of joint strategic marketing plans, programs, and activities, with global strategic services and technology partners.