Companies can put their information to work by teasing out novel patterns, driving productivity, and creating new solutions.
In an increasingly customer-centric world, the ability to capture and use customer insights to shape products, solutions, and the buying experience as a whole is critically important. Research tells us that organizations that leverage customer behavioral insights outperform peers by 85 percent in sales growth and more than 25 percent in gross margin. Customer data must be seen as strategic.
Yet most companies are using only a fraction of the data in their possession. Sprawling legacy systems, siloed databases, and sporadic automation are common obstacles. Models and dashboards may be forced to rely on stale data, and core processes may require considerable manual intervention. Often, too, organizations may not have a clear understanding of the specific outcomes they’re looking to achieve through data optimization. All that is leaving significant value on the table.
How much, you ask? A McKinsey survey of more than 700 organizations worldwide found that spending on analytics to gain competitive intelligence on future market conditions, to target customers more successfully, and to optimize operations and supply chains generated operating-profit increases in the 6 percent range.
Our work suggests that these returns don’t have to be confined to a handful of top players. Rather, when it comes to generating measurable value from their data, most organizations have plenty of low-hanging fruit they have yet to harvest.
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