By Jan Kral
VP Service Sales & Delivery

Four Major Data Challenges that Devastate Business Impact

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Data insights serve as a powerful tool to understand the customer experience. Empathetic understanding of your customers creates a competitive advantage over any organization. This is why analytic teams spend vast resources and precious time finding, capturing, and formatting data.

Yet most data insights projects fail to materialize. Instead of gaining wealth from their data, companies end up losing extensive resources spent trying to turn their data and insights into value. With such promise, why does data fail to create value? Below we discuss the four most common pitfalls that cause customer experience data and insight programs to fail:

< Go to blog overview

 

Data insights serve as a powerful tool to understand the customer experience. Empathetic understanding of your customers creates a competitive advantage over any organization. This is why analytic teams spend vast resources and precious time finding, capturing, and formatting data.

Yet most data insights projects fail to materialize. Instead of gaining wealth from their data, companies end up losing extensive resources spent trying to turn their data and insights into value. With such promise, why does data fail to create value? Below we discuss the four most common pitfalls that cause customer experience data and insight programs to fail:

Without understanding why, companies struggle to turn business challenges into solvable problems.

1. The problem, action, and solution have not been identified

The recommendable “action” is missing because the problem has not been identified. Businesses rely on operational data (quantitative metrics and KPIs) that describes what is happening but not why it is happening.

A company needs to understand why in order to define the problem and address customer issues. Without understanding why, companies struggle to turn business challenges into solvable problems. They are able to identify novel insights addressing where the problem occurs, but fail to pinpoint why it occurs and thereby the insights that can solve the problem – and how to improve the customer experience and company revenue. Without answering the why, data projects end up as endless and needless research.

 

2. Sluggish time-to-insight degrades decision-making

Decisions need to be quick and well-informed. A regular bottleneck for truly agile organizations is that the existing way of sourcing customer experience data is too slow. If the time-to-insight is slow, the quality of decision-making will lack. The decision will either have to be made without the insight, surrendering important knowledge, or the project must be delayed, missing out on crucial time and resources. Source insights fast and efficiently to create impact.

 

3. Isolated insights waste resources

Organizations that get the most from their data embed analytics into their core business. They democratize insights. Other businesses make the mistake of isolating their analytical insights either through a centralized or decentralized model. In a centralized model the customer insights team acts as a gatekeeper, risking shallow expertise and slow response time.

Decentralized customer insights threaten a comprehensive data strategy and alignment. The challenge is to ensure that the insights are shared across the organization. If insights are not spread throughout the organization, the insights will not end up in the hands of those that have the relevant expertise to make the most use of them. Isolated insights waste resources by not being in the right hands (those with the right expertise), as well as not being in the room when decisions are made.

 

4. The insights format obstruct actions

To make the data actionable and valuable, data must be presented in the right format and share the right information. All too often, full reports containing copious slides are shared across the organization that lack focus on what information is being shared and who the receiver is. This makes it easy to overwhelm the receiver with too much data. What critical information is shared and in what format, is crucial to how the information impacts the receiver. Creating insights in the right format is necessary to effectively share the story you want to tell, and to create a call-to-action from the data and insights being shared. Time and again, the insight format obstructs the clarity of the action that people should take in response to the insight.

In a competitive world, data insights that pinpoint customer pains are make it or break it. A lack of action, sluggish time-to-insights, isolated insights, and obstructive data and insight formats are problems found in and across all industries. Organizations must identify and fix these problems or risk losing the competitive advantage gained from customer insights. There is no time to waste. Stop wasting precious resources and get your data insights back on track.

1. The problem, action, and solution have not been identified

The recommendable “action” is missing because the problem has not been identified. Businesses rely on operational data (quantitative metrics and KPIs) that describes what is happening but not why it is happening.

A company needs to understand why in order to define the problem and address customer issues. Without understanding why, companies struggle to turn business challenges into solvable problems. They are able to identify novel insights addressing where the problem occurs, but fail to pinpoint why it occurs and thereby the insights that can solve the problem – and how to improve the customer experience and company revenue. Without answering the why, data projects end up as endless and needless research.

 

2. Sluggish time-to-insight degrades decision-making

Decisions need to be quick and well-informed. A regular bottleneck for truly agile organizations is that the existing way of sourcing customer experience data is too slow. If the time-to-insight is slow, the quality of decision-making will lack. The decision will either have to be made without the insight, surrendering important knowledge, or the project must be delayed, missing out on crucial time and resources. Source insights fast and efficiently to create impact.

 

3. Isolated insights waste resources

Organizations that get the most from their data embed analytics into their core business. They democratize insights. Other businesses make the mistake of isolating their analytical insights either through a centralized or decentralized model. In a centralized model the customer insights team acts as a gatekeeper, risking shallow expertise and slow response time.

Decentralized customer insights threaten a comprehensive data strategy and alignment. The challenge is to ensure that the insights are shared across the organization. If insights are not spread throughout the organization, the insights will not end up in the hands of those that have the relevant expertise to make the most use of them. Isolated insights waste resources by not being in the right hands (those with the right expertise), as well as not being in the room when decisions are made.

 

4. The insights format obstruct actions

To make the data actionable and valuable, data must be presented in the right format and share the right information. All too often, full reports containing copious slides are shared across the organization that lack focus on what information is being shared and who the receiver is. This makes it easy to overwhelm the receiver with too much data. What critical information is shared and in what format, is crucial to how the information impacts the receiver. Creating insights in the right format is necessary to effectively share the story you want to tell, and to create a call-to-action from the data and insights being shared. Time and again, the insight format obstructs the clarity of the action that people should take in response to the insight.

In a competitive world, data insights that pinpoint customer pains are make it or break it. A lack of action, sluggish time-to-insights, isolated insights, and obstructive data and insight formats are problems found in and across all industries. Organizations must identify and fix these problems or risk losing the competitive advantage gained from customer insights. There is no time to waste. Stop wasting precious resources and get your data insights back on track.

A lack of action, sluggish time-to-insights, isolated insights, and obstructive data and insight formats are problems found in and across all industries.

Jan Kral, VP Service Sales & Delivery

Jan Kral is Vice President of Service Sales and Delivery at UserTribe. He advises leading enterprises including Google, Mastercard, and Maersk on integrating customers into their way of working, helping them translate learnings into tangible business impact.

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