Skip to main content

Customer Data Analytics Can Stimulate Digital Growth

Informed CEOs know that harnessing their organization's customer data with analytics can expose valuable new insights that enable business model optimization and product or service innovation. That said, the early adopter organizations have already gained a competitive advantage over their peer group.

Companies that have experienced significant revenue growth collect more customer experience (CX) data than non-growth companies, according to the latest worldwide market study by Gartner.

The market study found that nearly 80 percent of growth organizations use customer surveys to collect CX data, compared with just 58 percent of non-growth organizations.

Customer Data Analytics Market Development

"There is a clear trend among growing companies to actively collect CX data using a wide variety of tools such as surveys, usability testing, focus groups and real-time analytics," said Jessica Ekholm, vice president at Gartner.

This is what Gartner's analysts call the outside-in approach  -- the idea that customer value creation, customer orientation and CX will drive long-term business success.

A growth organization is defined as one that had positive revenue growth from 2018 to 2019 and is expected to have positive revenue growth from 2019 to 2020.

In contrast, a typical non-growth organization had reportedly unchanged or declining revenue from 2018 to 2019, with the same expected for 2019 to 2020.

Customer surveys remain the most popular medium among both growth and nongrowth organizations for collecting CX data, according to the market study findings.

While market research surveys can provide product managers with a baseline understanding of customer experiences and sentiment, they do have some limitations.

Consumers are increasingly experiencing 'survey fatigue', with Gartner's research showing declining response rates for each subsequent survey that a customer receives.

Furthermore, survey responses are often written in haste by the respondent or provide ambiguous information, lowering the quality of the data collected.

According to the Gartner assessment, surveys are also unable to surface real-time information.

"Despite their widespread use, customer surveys have some flaws that limit their ability to collect quality CX data," said Ms. Ekholm. "Recognizing this, growth companies are beginning to use near- or real-time analytics, to complement or build upon the data collected from surveys."

Outlook for Customer Data Analytics Applications

The use of near- and real-time analytics to collect CX data is a rising trend among growth companies, with 43 percent of product managers at growth companies using analytics to collect and analyze customer perception and sentiment data. This is compared with just 22 percent of product managers at non-growth companies.

Artificial intelligence (AI) technologies can help organizations gather real-time data about customers’ current issues and experiences. This data can then be used to predict the customer’s next move, proactively recommending features, solutions or actions that improve the customer journey.

"Companies that leverage AI and near- and real-time analytics applications to collect customer data will stand out as CX leaders in the next five to 10 years," said Ms. Ekholm.

Popular posts from this blog

Industrial and Manufacturing Technology Growth

In an evolving era of rapid advancement, market demand for innovative technology in the industrial and manufacturing sectors is skyrocketing. Leaders are recognizing the immense potential of digital transformation and are driving initiatives to integrate technologies into their business operations.  These initiatives aim to enhance efficiency, reduce costs, and ultimately drive growth and competitiveness in an increasingly digital business upward trajectory. The industrial and manufacturing sectors have been the backbone of the Global Networked Economy, contributing $16 trillion in value in 2021. Industrial and Manufacturing Tech Market Development   This growth represents a 20 percent increase from 2020, highlighting the resilience and adaptability of these sectors in the face of unprecedented challenges, according to the latest worldwide market study by ABI Research . The five largest manufacturing verticals -- automotive, computer and electronic, primary metal, food, and machinery -

Rise of AI-Enabled Smart Traffic Management

The demand for smart traffic management systems has grown due to rising urban populations and increasing vehicle ownership. With more people and cars concentrated in cities, problems like traffic congestion, air pollution, and greenhouse gas emissions are pressing issues. Since the early 2000s, government leaders have been exploring ways to leverage advances in IoT connectivity, sensors, artificial intelligence (AI), and data analytics to address these transportation challenges. The concept of a Smart City emerged in the 2010s, with smart mobility and intelligent traffic management as key components.  Smart Traffic Management Market Development Concerns about continued climate change, as well as cost savings from improved traffic flow, have further motivated local government investment in these advanced systems. According to the latest worldwide market study by Juniper Research, they found that by 2028, smart traffic management investment will be up by 75 percent from a 2023 figure of

How GenAI is Transforming the Role of CIO

The introduction of Artificial intelligence (AI), and the emergence of Generative AI  (GenAI), are now resulting in two key focus areas for Chief Information Officers (CIOs) and their IT leadership team. "GenAI is not just a technology or just a business trend. It is a profound shift in how humans and machines interact," said Mary Mesaglio, VP Analyst at Gartner . "We are moving from what machines can do for us to what machines can be for us." AI platforms are evolving rapidly from being our tools to becoming our teammates. Gartner predicts that by 2025, GenAI will be a workforce partner for 90 percent of companies worldwide. CIO Leadership Market Development CIOs have a major role in how they shape AI and how AI shapes us. According to recent Gartner surveys of CEOs, enterprise CIOs are their number one choice to unlock the value of GenAI tools. In fact, CIOs and IT executives will prioritize two areas to unleash the possibility of AI over the next 12-24 months – t