If there’s one thing companies don’t lack, it’s data. With today’s advanced digital tools, it’s possible to glean data from more sources than ever before.
But being data-rich doesn’t mean you are insight-rich. Transforming data into insight requires having a complete picture of the customer journey. It requires having the right tools and the right people who have the skills to turn that data into actionable insight.
Businesses that have learned how to turn data into insight are on their way to dominating the market. Forrester calls these companies “insight-driven businesses”-smart enterprises that use “data, analytics, and software in closed, continuously optimized loops to differentiate and compete.”
And as the following stats show, insight-driven businesses have a competitive edge, and the time to join them is now.
Insight drives business growth
1. In the 2017 report Insights-Driven Businesses Set The Pace For Global Growth, Forrester said insight-driven companies are on pace to make $1.8 trillion annually by 2021.
2. The same report found that insight-driven organizations are growing 8x faster than the global GDP.
3. This new league of high-performing companies are growing 30% year-over-year, Forrester’s research shows.
Organizations are integrating insight more and more
4. Sixty-five percent of companies surveyed by Forrester in 2015 rated that their customer intelligence and insight function was “strong”, according to Customer Think.
5. Moreover, marketers are 53% more likely to do “data hygiene” than they were in 2013, according to Experian Marketing Services.
6. Nearly 50% of CMOs who used marketing intelligence experienced improved customer satisfaction, according to a 2017 study from Forrester Consulting.
7. However, there are still challenges: Acxiom reports that 70% of businesses have little to no ability to integrate online and offline customer data.
8. Although customer data is getting increasingly important, only 17% of businesses say they have integrated these insight across their entire organization.
The challenges are many, but they can be solved
9. Customer Think also notes that 40% of the insight delivered by customer intelligence teams are not actionable.
10. Speaking of teams, the same article also reports that 42% of organizations strongly agree that silos are harmful to the quality of insight. To solve this problem, companies should follow Forrester’s advice to “build a closed-loop insight process into every facet of their business”.
11. Acxiom also mentions that the biggest obstacle to customer-centric marketing was a lack of proper data or technology.
Insight-driven businesses win
An insight-driven business means better customer relationships, a more seamless customer experience, better and faster product iteration, and a focus on actionable data.
12. When it comes to customer retention, an insight-driven customer experience is essential; those businesses with excellent integrated, omni-channel customer experience retain 89% of their customers, according to SuperOffice.
13. Customer retention translates into profitability. According to Deloitte & Touche, customer-centric businesses that focus in digital insight are 60% more profitable than those that are not.
It’s not too late to get in that insight-driven action
As you can see, insight-driven businesses already have an advantage compared to those still sticking to their old ways. The time to become insight-driven is now.
To explore the playbook of insight-driven businesses, watch How insight-driven businesses capitalize on customer intelligence, our webinar featuring Forrester.
Note: A version of this article was first published in June 2017. This post was updated with new information and examples.