Since 2001 (that’s 25 years ago), when Gartner analyst Doug Laney helped establish the modern “big data” framework, companies have been obsessed with collecting data.
Last I checked, there was more new data created daily than a human brain can process in its entire lifetime.
We know what our customers purchased. What they clicked. What they opened. What they ignored. When their policy renews. When their payment is due. When an order ships. When a claim changes status. When someone was unhappy, what NPS score they gave.
We collect and we collect. Collecting data has become a normal part of doing business. Organizations have invested heavily in platforms that can store it, organize it, analyze it, and use it to automate internal workflows.
But collecting customer data and creating customer value are not the same thing.
Data creates organizational knowledge. But value is only created when that knowledge helps someone. So, let’s explore how we can use the reams of data we have to help.
Switching the Conversational Focus
Most conversations about customer data start with what the organization can gain from it. Can the data help us:
- Segment the audience?
- Improve targeting?
- Predict behavior?
- Automate a workflow?
- Increase conversion?
- Reduce operational costs?
- Data tells us what has happened (trigger)
- Context helps us understand why the moment matters (potential value)
- Permission gives us the right to enter the conversation (and more importantly, creates the conditions for a customer to experience their data in action)
- Communication helps the customer understand what to do next to create the value that they seek
Of course, these are reasonable questions. After all, businesses need their investments in technology and data to produce measurable results. But as consumers, there’s another question that we typicallyexperience in the data exchange:
What do we get in return for sharing our data?
Think about all those websites that want your contact information for a free resource. Or the email you gave to your favorite retail brand to get on their VIP list. When it comes to a purchase (including insurance), people provide whatever information they are requested because they believe it will help inform their account.
But if we’re honest, are we using that data that way?
If we’re only answering the questions related to how the data serves US, we totally miss out on the value equation.
From Data to Direction
Ok, so if data isn’t creating value simply because it exists, we need to take things a step further. So, what else can we add to the equation that might turn this value on?
Let’s try this:
Data + Context + Permission + Communication = Customer Value
Now, let’s break it down into its components:
BOOM! Now we’re going somewhere.
Communicating the Value Customers Seek
In the above equation, it might look like communication is the final step. And often, it’s treated as such. But communication isn’t the final step...
The VALUE for the Customer is.
And it’s a communication job to ensure that gets delivered.
Yes, you heard me right. Now that a MESSAGE gets delivered. Customer Value is.
And that process? It begins with another question:
What does the customer need from us at this moment?
Do they need information? Reassurance? A clear decision? A reminder? A simple way to complete the next step?
This isn’t about just delivering information because your system says you must.
It’s about using communication strategically to create customer value.
AND ACTION.
Because when a customer feels taken care of, they do what you’ve asked.
Customer Value = Customer Action
All of us are constantly having things requested of us. Sign up for this. Upgrade that. I had a door-to-door salesman at my house yesterday selling books.
Common practice? Ignore. And if we’re not ignoring, we’re mostly saying NO.
But when we need a customer to do something, we don’t want them to say no.
We need them saying YES.
And yeses only come when humans understand the value to them.
And if you’re not making it easy to experience, you’re going to spend a lot of time waiting.
The Responsibility—and Opportunity—of Knowing
You know that quote from Spiderman about, “with great power comes great responsibility”? Well, you have that power with your customer data. And the amount you know about them is going to keep growing.
So, what are you going to do with that knowledge?
The greatest opportunity in all that responsibility is helping your customers understand what is happening, so they can make informed decisions, and move through important moments with greater confidence.
Customer data should certainly create business value. But if it is truly being used well, the customer should receive some of that value too.
Or maybe even most of it?
Just imagine you are that customer.
How might that feel?
And how ready are you to do more business with that brand?
Just sayin’.