|By Mike Bender
Best-in-class companies have made data analytics a part of their DNA for a reason. In today’s digital marketplace, the nature of the game has changed. To succeed, business decisions must now be made based on an enhanced understanding of customers’ preferences and behavior in both online and offline environments. A strong data and analytics program is the foundation to develop a better understanding of your customers and driving innovation in your business to maintain a competitive advantage.
Using Data and Analytics to Disrupt an Industry
One example of how data analytics is being used as a foundation for innovation and competitive differentiation is the financial services and banking sector. The financial sector has become one of the biggest consumers of big data in recent year.
This past summer, “Fintech” officially became a word. FinTech companies are start-up businesses that leverage data analytics and digital technology to compete directly with traditional banking and financial institutions.
Learning From The Innovators
FinTech companies have a passion for being customer-focused and have leveraged advanced data and analytics capabilities to deliver personalized services based on customer segmentation.
Using Customer Segmentation to Personalize Products
The financial industry is focused on dividing their customers based on key demographic, geographic, psychographic, and behavioral characteristics. The disruptors analyze spending habits depending on age, gender, and social class. The most valuable customers, namely those spending the most money, can also be identified. These companies easily tailor products and services to meet the demand of each customer segment.
Not only can FinTech companies identify spending patterns to make banking recommendations, but they can also use those to help the final user save more money. These innovators focus more on creating personalized financial services that meet the very specific demands of the final consumer, and this is where Data and Analytics capabilities are required.
For traditional financial services companies (including banks, insurers and wealth and asset management companies), the risk of disruption is real, as FinTech companies invade their space.
Your Role In This Emerging Data Driven World
As digital offerings become more mature and interconnected, new ecosystems will emerge. These ecosystems will likely develop to follow customer needs, rather than conform to traditional industry lines. Leaders in these ecosystems will need strong data analytic capabilities to develop useful insights from the torrent of customer information available.
Whether your industry offers financial solutions or not, the initial focus must be on securing data of high quality and integrity, which is a prerequisite for a successful data analytics program. Data needs to be accurate, complete, reliable, accessible and timely. This is not always easy to accomplish.
If your goal is to thrive in today’s digital deluge, now more than ever is the time to make data analytics part of your company’s DNA.
|For more than 30 years, ISM has worked closely with world-class B2B and B2C companies like Deutsche Bank, Jaguar Land Rover, Zumba Fitness, Chase Manhattan, Pacific Life and others on Data Analytics and customer intelligence projects. We would enjoy the opportunity to work with your organization to create and/or deliver data analytics excellence.
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