Continuing on from Yesterday’s post, here is another extract from the article written by Dr Brian Smith (vice chair of CIM, and runs PragMedic), Dr Hugh Wilson (director of the Cranfield Customer Management Forum), and Professor Moira Clark (director of the Henley Centre for Customer Management).
FIVE KEY LESSONS FROM GREAT VALUE CREATORS
It’s top down
The transformation of data into real value requires significant resources, cross-functional involvement and often cultural change. For that reason, it is usually impossible without the enthusiastic commitment of the board.
It takes every kind of data
The complexity of customers’ needs and motivations is rarely amenable to even complex measurements and analysis. This means that real value creation depends on intelligent and subtle synthesis of hard data, qualitative research and the tacit knowledge that already lives in the corporate memory.
It’s the people
Despite the sophistication of some modern CRM systems and the automation of many customer touch-points, the process of turning data into value still relies on human intuition and imagination. This means that recruiting people wit those qualities is just as important as hiring the best techies.
It’s about learning
Successful and unsuccessful value creators are differentiated by their attitude to knowledge. Many companies just use it to do the same things more effectively. Others use it to challenge their assumptions about the market in order to learn more quickly and create more sustainable value.
The biggest mistake a company can make in the data-to-value process is to think it is a tactical issue. In best practice, firms subsume it into their strategic planning process, using insight to refine segmentation, targeting and positioning.
Finally, the data to value cycle is captured in the diagram below.
The Data To Value Wheel