Data-driven disruption is radically reshaping today’s markets and creating new ones. This disruption also informs changes in customer experience, not only in delivering goods and services on-demand, but also rapidly impacting supply chains and response systems. What makes this possible is fast and seamless movement of data and its accessibility.
Data is the new age corporate force and the only way for enterprises to harness it is by digitizing all processes and functions. The wealth of information generated by digitizing customer interactions, benefits not only marketing and sales, but also product development, customer success and innovation. Digitizing internal processes and customer interactions generates data that can be used to optimize operations and improve productivity.
Those organizations leading the path of digital disruption are deploying new ways of using customer data to provide enhanced customer experiences. The key is to create deep and meaningful personalization, which in turn requires data from across enterprises, partners and external service providers. Tracking customer interactions across as many channels as possible such as email, mobile applications and customer loyalty programs are the most prominent and popular mediums through which data is collected for the purpose of personalization. However powerful channels that can have a huge impact are still untapped like customer support feedback, product usage data and connected device data. Superior customer experience requires that data be delivered from multiple sources to the right place and at the right time. By harnessing this data in an actionable and accessible platform, these insights can be used to build a unified customer profile. Despite the availability of such tools, many organizations struggle to make sense of the data they have surging through their disparate technology systems.
More than one-third of executives in a recent Forbes Insights/Treasure Data survey say they are being directly affected by competition from digital and data-savvy players in their markets.
So what does it take to embark on a data-driven disruption journey? Here are some insights and strategies to help enterprises:
1. Use data and the power of information to drive user acquisition
Organizations that are rapidly improving their customer acquisition and revenue streams by using integrated customer data and adopting digital strategies, have first mover advantage over their competition. They are able to deepen loyalty through precision segmentation and retargeting. With comprehensive customer data, companies can more readily show correlations between customer behavior and purchase probability or loyalty.
2. Shift to data driven business models
As technology becomes increasingly rooted in domestic and industrial products, new sources of value and business models are emerging. Data is becoming an economic and business driver, and a disruptive force in the market. Digital business models leading the way include:
Sharing economy: Products are obtained for an occasion and returned, rather than purchased. For instance, rental subscription for a single occasion use instead of purchasing the item.
Personalization economy: Using a subscription where selected experts assemble and deliver products or items they recommend, based on previous purchase behavior.
Subscription economy: Subscribed products and services are automatically delivered on a regular basis.
Pre-emptive economy: Delivering products or services even before the customer realizes the need.
Services economy: Provide the expertise and services as and when required by the customer helping them save time and effort.
3. Access to organized and consolidated data
With the wealth of data created in today’s digitally connected world, access to clearly organized, consolidated data is critical. Moving away from siloed data and ensuring that data is organized and accessible to the relevant teams for drawing insights and developing strategies on how to target and engage customers better is essential.
4. New product offering and monetization of Information Technology
Some organizations are achieving this by leveraging data or software as value-added products and services. Another way to facilitate innovation is by establishing partnerships with innovators, startups or disruptive companies. A majority of enterprises also attain disruption by the deployment of customer data analytics and insights to provide a differentiated customer experience. Enterprises can radically increase their revenue by gaining knowledge on how to monetize the data and augmenting value creation.
To maximize the monetization of revenue streams companies should focus on automating the process of collecting, enriching, transforming and driving insights from data. The key to success lies in adoption of agile methodologies and processes. In today’s hyper-competitive economy, market share is monopolized by those who can develop brand loyalty and retention with customers. To make this happen organizations need to use the power of their data assets to the maximum. Clearly companies are conquering the retail landscape using personalization and customer convenience strategies. McKinsey Global Institute notes that data-driven organizations are 23 times more likely to acquire customers, six times as likely to retain customers and 19 times as likely to be profitable as a result. This applies to b2b as well as b2c enterprises.
This data driven disruption is profoundly rewriting today’s business environment and digital ecosystems. The only way to keep ahead or stay on par with the competition in this rapidly changing landscape is to take a digital business approach. This digital transformation and the rise of big data usage across diverse sectors of the economy empowers organizations with a scalable and predictable revenue engine that enables improved financial management and sustained profits.
Typically, companies that transition to a recurring revenue model use their existing customer relationship management and ERP systems. Since most ERP systems are designed for transactional businesses, it can be difficult for them to handle sales spanning multiple periods. To address these issues RecVue’s founders built the only enterprise monetization platform built on big data and powered by Oracle’s cloud infrastructure that helps enterprises adopt and manage innovative business models to drive recurring revenue growth. RecVue’s unique, unified platform integrates with ERP and front-end order processing systems. Customers are mastering hybrid subscription and high-volume usage-based models with sophisticated pricing and rating scenarios, while gaining operational efficiencies, expanding their business footprint, and exceeding customer expectations.
Reach out to us today for an order-to-cash assessment and to learn how smart monetization based on big data, can fuel your recurring revenue or traditional business models for unstoppable growth.