“Own your customer data today or let your competitors take your customers away.”
As the last century drew to a close, we saw a much greater awareness of personal customer data, with scandals on every premium news channel and the introduction of new privacy laws including the introduction of GDPR the consumer is now in a new to a state of awareness.
Is it possible that we played into the hands of the most significant customer data controllers in the world?
Let’s look at the commodity we know today as OIL, which used to be the most valuable asset in the world before the discovery of big data.
Although the Chinese first discovered Oil in 600 B.C., it was not until 1901 that Gulf Oil and Texaco were formed international oil companies (IOCs) – B.P., Chevron, Exxon, Gulf Oil, Mobil, Royal Dutch/Shell and Texaco – became known as the ‘seven sisters’ and went on to control 85% of the world’s oil reserves at their peak in the early 1970s.
The more the global giants, dominated the market, the further the price inflated, as Oil was ‘distributed’ and the harder it became to get hold of the more the price would rise.
World war one provides historical evidence of this, as the global demand of ever-increasing popularity of cars leading to a shortage of gasoline caused prices to rise £0.62 a barrel in 1914 to £1.51 in 1918.
The harder something is to obtain the higher its value. In 2019 with the awareness and introduction of new privacy laws and education of the value to one’s data, and as consumers are also becoming increasingly aware what is been collected about them. The value of Data is increasing, thus making the companies more profitable.
What is it about Data that is so important.
Insights: This is not the same as analytics, this is about how much Data you have collecting and the trends from said Data which you can then use to get a better understanding of your audience to give you a significant competitive advantage.
Segmentation: Understanding your audience is critical to growth, their age, demographics and interests are what used to make up the early stages of segmentation, but now there is so much more, including social profiling of the users they engage with, their values and affiliations. Clicks, likes, dislikes, friends, purchases, comments, tweets — are captured, stored, mined, and used to influence and perhaps manipulate behaviour.
User Acquisition Metrics: Where did the user come from? Was it organic, paid, or maybe a referral? Where in the country are they from, what devices are they using, this type of Data is often used in technical scenarios so that app companies like us can improve the user experience, therefore increasing the volume of downloads.
Engagement Metrics: How do your users engage with your app, that is a metric we often track, from a technical perspective it allows us to better our technology, without these metrics it’s very easy to hang on to something that does not work, there have been many occasions where Expert Apps have taken engagement metrics and thrown away hours, maybe days or weeks of code because it was not serving the user.
Our clients can identify which of their content works maybe even at what time and identify points of their content that does not work all in the power of engagement metrics,
Why is Data so valuable in business?
As we now can record, store, analyse and share data. Data is a precious commodity in business life, leading to better business performance, nowadays collect data and churn it into useful information which gives useful insights as required.
In my work, take App analytics, many would assume the Data is how many people downloaded your app, or how much revenue was generated this month. No, there is much more to it than that; you could predict who your next customer would be by their behaviours.
We are blessed to have access to so much Data, but do we have access to the gold within said Data? We are told how much of our content has been consumed, maybe the duration of consumption but never WHO? Instead, we work hard to build a community that Is just providing insights for sale, is that fair? Some would say yes its fair, after all, it’s a free platform you are using, this is how they make their money, so yes it is fair. Others would say, if I had an alternative which I had to pay for but meant that the Data was mine and that it would lead me to be ahead of the competition utilising the free platforms then I would opt for that, we know this as they are Expert Apps clients.
Revenue metrics are much more than just the balance sheet, and P&L in the world of data this consists of users buying patterns too, price points too high, too low, times that users like to purchase, times that users are most engaged. CLTV Customer Lifetime value, once again Data that if you are helping mine for others and then seeing it sold on is time in vain, isn’t it?
Data hugely impacts our lives in one way or another; it is the fastest way to identify the right target for your business strategy.
87% of marketing professionals increase their marketing budgets for marketing intelligence to gain a better insight into their customers. Data is in the knowledge it holds.