Navigating the river of customer data
19th April 2011
Those of us who are interested in the way organisations engage with customers, are inexorably drawn to data, whether we like it or not! An evidence-based approach is critical and the evidence can only really be found in the customer data trail. Follow the customer, follow the data.
However, with the data explosion of the digital era, the challenge we face today is more akin to a "river of information" than a trail - a river that is threatening to engulf us.
According to IDC, 95% of the 1.2 zettabytes of data in the digital universe is unstructured; and 70% of of this is user-generated content. Unstructured data is also projected for explosive growth, with estimates of compound annual growth (CAGR) at 62% from 2008 - 2012.
This idea of a river of information and the future of market research is quoted here from the March issue of the Journal of Advertising Research - an examination of the future of market research:
"The fundamental premise is that research in 2021 will represent a continuous, organic flow of knowledge - a "river" of information. Today, maybe 80% of marketing issues are addressed by conducting a market research project. By 2021, we think that leading edge companies - probably led by consumer packaged goods and technologically driven enterprises - will look for answers to 80% of their marketing issues by "fishing the river"of information."
And some of the tributaries that will flow in to this new river system:
- User generated content
- Social media conversations
- Observational data from store video cameras and RFID tracking
- Clickstream data from web browsing
- Mobile data about consumers' current locations
- The "internet of things" communicating information directly from products consumers are using
That is, we are at the start of this inflection point - hold tight and keep your life jacket securely fastened. And, if you dare, be ready for opportunities - this is an exciting time to understand the new river system. Just do it quickly.
We have talked previously about a 21st century model for consumer research; but the implications of the "customer data river" deserve some additonal focus:
- It is less about discrete projects or campaigns and more about process - an "always on" customer listening and engagement process. Social media monitoring rather than one-off surveys; online communities/research panels rather than focus groups; closed loop feedback (net promoter) programs rather than mystery shopper events. And all requiring understanding, commitment and capability in collecting (imperfect) data across multiple customer touchpoints and lifecycle phases
- The growth in unstructured data represents a great opportunity for those who embrace it. This data contains the best insights - the "why" behind the quantitative data. And it no longer needs to remain trapped - waiting for for a manual coding process or intervention - the technology is now available to release these insights
Happy rafting!
