Forrester: Customer analytics still immature across the region

Many organisations are still relying on data analytics for customer acquisition rather than looking at the customer journey, says new report

Customer analytics remain a relatively immature play for many organisations in Australia and Asia-Pacific even as data becomes the cornerstone of differentiation and engagement, a new report claims.

According to Forrester’s latest Asia-Pacific Companies Embrace Customer Analytics report, siloed operational structures within organisations, coupled with a narrow focus on existing services and capabilities in digital marketing strategies and immature customer journey mapping techniques, are preventing many organisations from improving their customer engagement approach.

The research firm pointed out customer insight professionals and competencies typically focus on customer segmentation and campaign performance measurement and more recently, have been extended into digital marketing strategies. However, these are mostly about customer acquisition and on-boarding, and fail to recognise the importance of looking at the whole customer lifecycle.

“It’s not enough to have a world-class digital capability for acquiring new customers,” the report authors stated. “Empowered customers expect the same type of seamless experience, improved efficiency and heightened responsiveness in all subsequent interactions with your brand – not just within the same channel across multiple sessions, but across multiple channels and multiple sessions.”

One of the core reasons cited by Forrester is that Web analytics initiatives are centred on optimising conversion rates and interactions through digital channels, yet aren’t reconciled to existing business intelligence capabilities, campaign management and advanced analytics tools extending across front-end and back-end platforms.

In addition, few regional firms have developed a strong internal link between improved customer experience and data-driven customer insights, Forrester stated. Existing organisational silos separating marketing from sales, service and production have kept many focused on product-based initiatives rather than a business-oriented customer strategy, as have siloed digital strategies, the research firm said.

More on this topic: Measuring up to expectations with customer analytics at Medibank
Why the marketing/technology disconnect is hindering customer analytics success
Using big data analytics to power customer lifetime value at HotelClub

In a survey of Asia-Pacific marketers earlier in 2014, Forrester also found less than half completely trusted the data quality and analysis results of their company’s business intelligence applications, while 17 per cent had little or no trust in these capabilities.

While there are specific reasons for the lack of advancement in growth markets across the Asia-Pacific, Forrester offered a range of advice relevant to all organisations including Australia, on how to overcome core challenges and help mature a customer analytics approach:

  • Secure senior management buy-in to drive a customer-centric strategy
  • Understand and overcome data quality concerns and lack of adequate governance
  • Identify metrics and implement effective measurement capabilities
  • Work with digital strategy and customer experience teams to identify challenges and/or opportunities across the full customer lifecycle
  • Prioritise investments accordingly.

Primary report author and Forrester Australia research director for Customer Insights, Michael Barnes told CMO that Australian organisations are typically advanced in terms of customer analytics understanding and capabilities, but challenges remain.

“For example, many Australian organisations still lack alignment between IT and the business on customer analytics-related goals and objectives,” he said.

“While Australian companies typically have some experience and capabilities identifying and extracting customer insights from both internal and external data sources, most also still struggle to actually apply those customer insights to business, and in particular digital strategies.”

In the report, Forrester said effective customer analytics initiatives will typically be part of a broader, CEO-led digital transformation that embraces an outside-in approach to customer understanding.

“But customer insights professionals must help their organisations expand current customer analytics initiatives into a true digital intelligence capability that effectively served empowered customers who demand improved experiences,” the report stated.

Follow CMO on Twitter: @CMOAustralia, take part in the CMO Australia conversation on LinkedIn: CMO Australia, or join us on Facebook: https://www.facebook.com/CMOAustralia

Signup to CMO’s new email newsletter to receive your weekly dose of targeted content for the modern marketing chief.

Join the CMO newsletter!

Error: Please check your email address.
Show Comments

Supporting Association

Blog Posts

Disruption Down Under – What’s Amazon’s real competitive advantage?

Savvy shoppers wait in anticipation, while Australian retailers are gearing up for the onslaught. Amazon’s arrival is imminent.

Change across the board: Why boards need to digitally evolve

Traditionally the non-executive board of a company acts in an advisory capacity - attending monthly board meetings to offer overarching advice and guidance typically focusing on:

Jodie Sangster

CEO, ADMA

The most desirable customers you’ve overlooked

“What will really move the needle?” This is a question that keeps leaders awake at night. And at the intersection of some of their top priorities – finding pockets of growth, redefining the customer experience, and making an emotional impact – lies a latent market: Their diverse customers.

Really inspiring !

Goldenboy Media

Jaywing sets sights on Australian growth with digital and data-driven agency model

Read more

Being aware of regulations or guidlines is just the start. As our CEO Emma Lo Russo stated exactly two weeks ago at an event we supported...

Alan Smith

​Are the Wild West days of influencer collaboration over?

Read more

Rebranding is always nice solution to get better organisation. Businessman may apply certain special services (for example, https://www.l...

David Hill

CMO interview: Spearheading the global rebranding of OFX

Read more

Thank you so much for sharing this article.Top Digital Marketing company in Bangalore

Way To DM

Predictions: 17 digital marketing trends for 2017

Read more

Thanks for the great article Jodie, agree many boards and senior execs are operating in outdated modes, just as we need some reverse soci...

sharyn

Change across the board: Why boards need to digitally evolve - Data-driven marketing - CMO Australia

Read more

Latest Podcast

More podcasts

Sign in