As a kid, I had a Magic 8 Ball that would answer my deepest questions. I would squeeze my eyes shut, shake the ball and turn it over. Typically, what emerged from the mystical ooze was: “Better not tell you now,” which I always thought was an ominous response for the question: “What’s for dinner?”
I bring this up because I don’t know about you, but it feels like some organizations use a Magic 8 Ball as a competitive advantage. How many times have you heard a manager proclaim their business decisions are based on existing customer transactions, a handful of data sets or even by gut instinct? In this age of information, where Big Data is just the beginning, it boggles the mind that “61 percent of executives believe human insights must precede hard analytics when making business decisions,” according to research conducted by advertising agency, Gyro, and Fortune Magazine.
Of course, a more logical approach to business decisions is to analyze customer data, seek out trends and proactively prepare for the future. Without some type of advanced analytics tool, organizations may not have the information necessary to prevent customers from leaving.
This is especially evident in the telecommunications industry where an industry analysis of the cost of customer acquisitions noted that telecoms shell out the most to grab new customers. On average, it costs six to seven times more to acquire a new customer than retain an existing one.
Here’s the breakdown of new customer acquisition costs as posted in a recent Entrepreneur article:
- Travel: Priceline.com: $7
- Retail: Barnesandnoble.com: $10
- Financial: TD Waterhouse: $175
- Telecom: Sprint PCS: $315
But what do customers want? How does your company anticipate your customers’ needs? How can organizations better grasp the context of relevant data and prepare for success? We here at Actuate recommend advanced predictive analytics software that uses customer segmentation to accurately target products and services. Organizations that really want to forecast churn and increase customer loyalty, as well as identify cross-sell and up-sell opportunities, should never leave their business choices up to chance.
Actuate recently hosted a free webinar entitled “Building Customer Loyalty for Telcos with Big Data Analytics” featuring Peter Hoopes, Vice President and General Manager of Actuate’s BIRT Analytics Division. He illustrated just how companies in general, and telcos specifically, could integrate and process large amounts of data from virtually any source (such as Excel, NoSQL, JSON and others) and gain a comprehensive view of individual and group customer buying patterns.
The live demonstration by Mark Gamble, Director of Technical Marketing at Actuate, revealed how easy it is to create a single, view of data in an extremely agile columnar database. Actuate’s advanced analytics package runs deep, including analytics with pre-built algorithms such as decision trees, association rules, profiling and segmentation and Venn diagrams.
Check out the replay of the free webinar to see BIRT Analytics in action.
Then download a free trial of BIRT Analytics and give it a spin.