Data-driven means driven to success.
Imagine if you will two businesses providing a very similar service. One is an established international brand that has built up customer loyalty over two decades, with nearly 10,000 locations worldwide and 85,000 employees on its payroll. The other is a start-up with 80 employees hemorrhaging money by the day and on the brink of bankruptcy. You probably already guessed the way this story ends: the former company, Blockbuster, is almost entirely defunct, while the latter, Netflix, ranks #197 on the Fortune 500 and reported $5.47 billion in earnings during the last quarter of 2019.
It‘s easy to reduce Blockbuster‘s fall from grace to shifting technology and trends, but the real reason Netflix emerged victorious because of their innovation and foresight in using data to predict customer trends and pivot strategies through revolutionary analysis tactics. Research shows that data-driven companies are 23 times more successful in acquiring customers, six times as strong in retaining them, and 19 times more profitable than companies without a strong data strategy.
Netflix was able to leverage this to their advantage—and your enterprise can too.
Where Do You Start?
In an interview with McKinsey, an industry leader opined that the most significant barrier organizations face is the fear—both of change and admitting to needing help.
“It’s a sort of a chicken and egg problem,” says Vijitha Kaduwela, founder and CEO of Kavi Global. “A lot of these discussions are difficult to have inside an operating company because they [have] their heads down, focused on their current business.“ With different departments operating independently, each performing the functions that are optimal for themselves, change can seem impossible, and opportunities missed.
Every organization‘s needs are unique, and there is no “one size fits all“ solution. However, there are a few universal steps that make data-driven business more realistic and feasible:
- Address current strengths and weaknesses. Let‘s face it: your organization is probably making some mistakes in how it‘s handling data, but you‘re probably doing a few things right as well. Having an objective, accurate sense of where you‘re at currently lets you know what next steps to take.
- Have tangible goals with timelines. Set realistic expectations and assess progress regularly. Your business will not become data-driven overnight, and there will be bumps along the road to success. Be open to revising the strategy as you see what‘s working and what isn‘t.
- Keep everyone on the same page. Communication should be consistent from the top down. Many executives feel reluctant to share data with the entire organization, but transparency can lead to bigger and better opportunities.
Katalyst knows the challenge of change and can help ease the process for your organization. Reach out to our experts for consultation in discovering the solutions that will help you manage your data and grow your business.
Data and Privacy
When the California Consumer Privacy Act took effect in January, it was a bell toll of sorts for the heyday of companies amassing customer information with little consequence. Now residents of the Golden State can find out just exactly what data a company has on them, where it‘s being distributed, and demand its deletion.
That presents a challenge to organizations, but a smart company knows the solution to that: if customers are going to provide you what you want, then they expect something of value in return.
“You‘ve got to put your customers in control and let them dictate how they want to interact with you versus you dictating how they should interact,“ says Gordon Littley, Managing Director, Global CX Practice at a leading telecommunications firm. “You have to put them in control of their own privacy. It is a very customer–driven industry right now. If you’re not customer–centric, you’re going to lose customers.“
Don‘t lose the battle against your data. Drive your organization to success with smart practices, forward thinking, and the team at Katalyst Software Services Limited.
