In the wake of technological transformations or the digital transformation, there have been many ground-breaking technologies that have come up, which are transforming workspaces into digital ones. Blockchain, IoT, Artificial Intelligence, analytics are just a few technologies that have emerged. These technologies have helped in leveraging the existing work systems and creating new and innovative digital work systems. Among these, analytics has played an important role in the transformation of the businesses.
The effective and appropriate use of analytics will help businesses to grow on a different multitude altogether.
The use of analytics can broadly be classified into four key areas –
- In decision making
- In the customer engagement management
- In a better customer experience
- In influencing behaviours
Data analytics or analytics can be used in making evidence-based decisions. In the digital transformation, evidence-based decision making plays a vital role, as there is a need for making better decisions, and that requires the gathering of accurate data and processing it. The traditional methods of data collection and analysis do not support the modern requirements of businesses. Also with the unreliable data collection methods and long analysis cycles, one can miss the important information. Thus for the digital transformation to occur, it is necessary to create a looped cycle of data collection, analysis and it’s processing. Applying this in the work systems of the organizations will enable better customer conversations and it will also help them to deliver a better experience to their customers.
Analytics can also be used to get to know the insights about what is happening between the organization and the digital customer. Any customer generally expects high quality and personalized experiences from any platform. In this case, analytics must be used across different channels and not just within the channels. Another important aspect of the customers is that they are agile, which means that they can switch from users easily.
The customers’ ability to change the switch from one user to the other is faster than the ability of the organizations to adapt to the changes. Here the analytics plays an important role in engagement management. With the proper use of analytics, the organizations can identify the areas where they are lacking, and how the customer expectations have changed. Here different analytics capabilities are calls, texts, etc. The calls recorded or the interaction through the texts can help the organization to know the expectations and feedbacks of the customers, and they can make changes in their functioning accordingly.
The reach of digitalization has increased, and so has the online engagement of people. With this increasing digital involvement and the use of analytics, it has become easier for the organizations to track the online activity of their customers, know their feedbacks, in general, gather some significant data of the customers. With this information, the organizations can make changes on their website. Giving the customer what he needs is the most important aspect, and that ensures good customer involvement, also the loyalty of customers.
If a customer can get whatever he wants at a single place, that will also improve the customer experience. This analysis of customer experience can help with customer retention. Also, it helps in increasing the profitability of the organizations. The marketing strategies the organizations apply in their marketing campaigns will ensure that they are being targeted to the right audiences and that the customer conversion rates are higher.
With digitalization and increased customer involvement, analytics has helped the organizations to mine the data and with it evaluate the context of it, to indicate what is likely to happen next. These observations and predictions made on that basis can be said as actionable intelligence. If with the help of analytics, one can notice that the customer is walking out the door, then this actionable intelligence should be made available to make an impact on positive customer outcomes. Analytics can be used to know customer behaviour, as in to know the customer and their needs. This helps in communicating with the customer proactively. Thus analytics has helped to influence the behaviours of both the customers and the organizations.
Thus with this digital transformation of the customers, the organizations can manage the exchange of information which is personalized. This can today be done on a large scale with the help of analytics, which was earlier only possible on a low volume, or a small scale, or with one-to-one relationships.