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:
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
In this latest episode of our Conversations over a Cuppa with CMO series, we catch up with Jane Power, who stepped into the director of marketing and transformation role at GenesisCare in April 2020.
Understanding the core principles of Behavioural Economics will give players in the travel industry a major competitive advantage when restrictions lift and travellers begin to book again. And there are a few insights in here for the rest of the marketing community, too.
Unicorns, the Sunken City of Atlantis, Zeus: They are very famous. So famous in fact, that we often think twice about whether they are real or not. Sometimes if we talk about something widely enough, and for long enough, even the strangest fiction can seem like fact. But ultimately it is still fiction - stories we make up and tell ourselves over and over until we believe.
At a time of uncertainty and economic hardship, customer retention takes on much greater importance. CX Lavender’s Linda O’Grady examines the big grey area between ‘all’ and ‘best’ customers when deciding who is worth fighting for and how.
looking for the best quality of SMM Panel ( Social Media Marketing Panel ) is a website where People Buy Social Media Services Such as Fa...
Kavin kyzal
How to manage social media during Covid-19
Thank you for sharing your knowledge. Definitely bookmarked for future reading! Check this website https://a2designlab.com/ with lots of ...
Pierce Fabreverg
Study: Gen Z are huge opportunity for brands
Thanks for sharing. You might want to check this website https://lagimcardgame.com/. An up and coming strategic card game wherein the cha...
Pierce Fabreverg
Board games distributor partners with Deliveroo in business strategy pivot
Such an important campaign, dyslexia certainly need more awareness. Amazing to see the work Code Read is doing. On the same note we are a...
Hugo
New campaign aims to build understanding around scope and impact of dyslexia
Great Job on this article! It demonstrates how much creativity, strategy and effort actually goes to produce such unique logo and brandin...
Pierce Fabreverg
Does your brand need a personality review? - Brand vision - CMO Australia