Businesses failing to use analytics to predict customer needs
BUSINESSES are failing to use analytics effectively and so can’t keep up with the current needs of their customers, according to new research.
The report from data specialists SAS found that over 90 per cent of businesses are unable to use analytics to accurately predict what individual customers will want in future.
This is despite over half of businesses believing that they are ‘best-in-class’ when it comes to using customer intelligence to shape their marketing campaigns.
“No matter how many organisations say they’re using artificial intelligence and predictive analytics to improve their customer experience, the reality is clearly far behind the talk,” said Tiffany Carpenter, head of customer intelligence at SAS UK and Ireland.
Read more: Report reveals economic boost from US online lenders
“Too many companies are not using all the information available to make accurate predictions about their customers’ latest tastes and circumstances, trapping them in the digital shadows of their past selves.
“As a result, businesses are missing out on new revenue streams, not to mention the risk of damaging their customer relationships.”
The survey also found that 30 per cent of companies use less than half of the customer data they hold to personalise the customer experience.
And post-GDPR, eight per cent fewer companies will collect information about customers’ physical location and personal contact details.
Also, about 70 per cent of organisations are typically not collecting meaningful data to personalise digital experiences.
Read more: Brits embrace fintech amid digital shift
“Regardless of the industry, most consumer-facing organisations admit they are still driven by internal sales and targets over customer experience, said Carpenter.
“They need to implement predictive analytics to avoid leaving customers in a rut.
“It’s essential to incorporate as much data as possible – internal and external, online and offline – in real-time analytics engines to ensure the insights they produce are as accurate as possible.
“Only then can you achieve the kind of intelligent personalisation that modern consumers now demand.”
Read more: Digital transformation creating risks in financial services
