There were a number of other specific statistics that have additional impact. They are noted below.
- The number of positive mentions through social media channels was 14.6% for those who invest in customer analytics and 2.9% for those who do not.
- The cross sale an upsell revenue was 11.6% for those with customer analytics versus negative 2.3% for those who do not.
- Annual company revenue increased 10.5% for those with customer analytics versus 3% for those who do not.
- The return on marketing investments was 8.3% for those with customer analytics versus 4.9% for those who do not.
- The improvement in average cost per customer contact was 5.1% for those with customer analytics versus an increase in cost per customer contact of 1.7% for those who do not.
There is a new book published through the Harvard business review press titled “Keeping Up with the Quants” written by Thomas Davenport and Jinho Kim. It is an introductory guide to understanding and using analytics in business. This book complements the report noted above and gives further justification for the use of analytics.
The bottom line is the statistical improvement in performance that is consistently demonstrated by companies using customer analytics compared to those who do not is no longer questionable. Companies must learn how to take advantage of customer analytics. Those companies, who either do not want to learn how to use customer analytics or don’t know how, will find themselves at a distinct disadvantage in the marketplace.
This article was originally published by The Customer Institute