[[{"@context":"http:\/\/schema.org","@type":"Answer","name":"what is customer data strategy?","text":"Customer data strategy is how a company will use data to generate value and achieve business goals. It describes how a company manages data to generate value, i.e. collecting, storing, processing and distributing data . It describes the changes the organization needs to make to maximize the value of its data activities","@id":"https:\/\/www.the-future-of-commerce.com\/2023\/01\/11\/the-value-of-customer-data\/#Answer"},{"@context":"http:\/\/schema.org","@type":"BlogPosting","keywords":["Customer Data Strategy","Customer 360","SAP Customer Data Platform","https:\/\/www.the-future-of-commerce.com\/2023\/01\/11\/the-value-of-customer-data\/#BlogPosting#3"],"wordCount":1072,"datePublished":"2023-01-11","url":"https:\/\/www.the-future-of-commerce.com\/2023\/01\/11\/the-value-of-customer-data\/","mainEntityOfPage":"https:\/\/www.the-future-of-commerce.com\/2023\/01\/11\/the-value-of-customer-data\/","description":"Data \u2013 and in particular customer data \u2013 today represent a key asset for an enterprise, but what's their value?","name":"The value of customer data, and an action plan for maximum impact","headline":"The value of customer data, and an action plan for maximum impact","dateModified":"2023-01-12","about":["https:\/\/www.the-future-of-commerce.com\/2023\/01\/11\/the-value-of-customer-data\/#BlogPosting#2","http:\/\/www.wikidata.org\/entity\/Q56278300","http:\/\/www.wikidata.org\/entity\/Q48997925",{"@type":"Thing","name":"Customer data","@id":"https:\/\/en.wikipedia.org\/wiki\/Customer_data"}],"articleBody":"Not long ago, a business executive asked me, \u201cEverybody is saying that data is the new oil, but what does it mean for our company? What\u2019s the value of our customer data?\u201dLet\u2019s stop for a moment and think about this question. Would you have an answer for your organization?A study by Forrester suggests that data-driven organizations are growing at an average of more than 30% annually, outpacing their competitors.Having the right data and leveraging them is a way to execute better strategic decisions, optimize marketing spending, create superior customer experiences, and much more.An interesting study by Ocean Tomo highlighted another important element that helps us to get a better sense of the magnitude of the value of information: In 2020, 90% of S&P 500 market value is related to \u201cintangible assets\u201d \u2013 including data and software.Data \u2013 and in particular customer data \u2013 today represent a key asset for an enterprise, but what\u2019s their value?      Turn on a dime: Business agility starts with customer data management                Business agility requires great customer data management. Understand customers with a single, enterprise-wide view of data to pivot on a dime.      Value hinges on a customer data strategyIn principle, the value of your customer data is equal to the incremental profit that you can generate from it. (Stock investors might see the parallel with enterprise market value \u2013 i.e., the sum of its future earnings).There are many opinions on this topic. However there\u2019s one point on which everybody seems to agree: in order to harness the value of customer data, enterprises need to take actions on them. Otherwise, capturing and maintaining customer data is nothing but an IT cost.In other words, unleashing the value of customer data requires a customer data strategy.But what is exactly a customer data strategy?Google \u201cdata strategy definition\u201d and you\u2019ll find many different answers. However there are some similarities among the most authoritative sources, which tend to define it as follows:Customer data strategy is how a company will use data to generate value and achieve business goalsIt describes how a company manages data to generate value, i.e. collecting, storing, processing and distributing dataIt describes the changes the organization needs to make to maximize the value of its data activities      Redefining your customer data strategy for amazing results                New research shows how companies are taking a more comprehensive and customer-centric approach to customer data with an eye on a big payoff.      Start with customer obsessionHaving a clear end in mind is always a good way to start, but many companies struggle when it comes to getting value from their customer data. Sometimes an IT organization implements a customer data platform and then looks back at their business colleagues to sadly realize that part of their effort was basically useless.The business teams sponsoring the project and the perfect \u201ccustomer 360 view\u201d hope that it will miraculously tell them what to do next. It doesn\u2019t work that way.The right way to start deriving the most value from your customer data is\u2026 the customer!Consider:At what time and on which channel I can best reach them?How can I immediately solve their problems when they\u2019re on the phone with my call center?What\u2019s the most relevant content to bring when I meet them in person or virtually?How can I turn a difficult situation (such as a late delivery of their order) into a positive experience?Coming up with a list of three to four high-impact use cases is an exercise that requires a multifunctional team effort with a strong customer-obsessed mindset.A siloed approach won\u2019t work. For example, if the marketing team creates a new way to better target a specific audience, but doesn\u2019t include the sales team (to consider which customers are driving more impact on revenues) or the call center (to consider complaints) or the operations team (to ensure that orders aren\u2019t late), customer experience will suffer.  Rock retail in 2023 + beyond.\u00a03 days.175+ sessions.800+ exhibitors.Emerging retail tech + trends.Join us at NRF.      What is customer centricity: The importance of CX in the age of data                Customer centricity is the act of putting your customers at the heart of everything an organization does. To be customer-centric, brands should consider a customer data platform - here\u2019s why.      Calculating customer value\u00a0The selection of the right use cases \u2013 and consequently, your decision about what value you want from your data \u2014 is sometimes influenced by what you consider as easily available. This isn\u2019t totally wrong, however, you might miss key details.To illustrate the concept, here are a couple examples:If you have 50 unfulfilled orders, how important is it to ensure that \u2014 as soon as goods are available \u2013 you ship orders to your most strategic customers first?If you\u2019re re-targeting your most important customers for a campaign, do you classify them as \u201cmost important\u201d just by looking at their revenues? Wouldn\u2019t it be better to rely on more relevant KPIs, such as returns, influence on social media, customer-level COGS, and spend your marketing budget based on the real customer lifetime value?These examples lead to a couple of observations:The definition of \u201cstrategic\u201d or \u201cimportant\u201d customer is always key information for any use case. Efficiency is a priority, and the ability to discern between high and low-value customers is more critical than ever.The value of customers must be calculated based on transactional elements (such as purchases) as well as back-office processes (returns).Customer data platforms help companies make the right decisions based on data from both back-end processes (returns, profitability, real-time inventory) and customer-facing touchpoints (portals, e-commerce websites, apps).      CDP use cases: From marketing and CRM to the enterprise                Learn how customer data platforms have evolved beyond marketing to provide a deeper view of the customer for better CX and bottom-line benefits.      Strategy and team effort\u00a0The FIFA World Cup showed us that the value of a team doesn\u2019t simply depend on the quality of the players, but also by the coach\u2019s strategy and how defense, midfield and attack positions collaborate to execute it.In a similar way, customer data can give your company competitive advantage if you\u2019re able to define a clear strategy and act upon it in a collaborative way across functions.  Ready for a CDP?Get an in-depth analysis of 13 CDP vendors HERE.","author":{"@type":"Person","image":{"@type":"ImageObject","url":"https:\/\/secure.gravatar.com\/avatar\/fd409ad61d02fbca84f81503eb118cab?s=96&d=mm&r=g","height":96,"width":96,"@id":"https:\/\/secure.gravatar.com\/avatar\/fd409ad61d02fbca84f81503eb118cab?s=96&d=mm&r=g"},"url":"https:\/\/www.the-future-of-commerce.com\/contributor\/filippo-gandolfo\/","name":"Filippo Gandolfo","@id":"https:\/\/www.the-future-of-commerce.com\/contributor\/filippo-gandolfo\/#Person"},"subjectOf":{"@type":"FAQPage","url":"https:\/\/www.the-future-of-commerce.com\/2023\/01\/11\/the-value-of-customer-data\/","name":"what is customer data strategy?","about":[{"@id":"https:\/\/en.wikipedia.org\/wiki\/Customer_data"},{"@type":"Thing","name":"Customer Data","@id":"https:\/\/www.wikidata.org\/wiki\/Q56278300"},"https:\/\/www.the-future-of-commerce.com\/2023\/01\/11\/the-value-of-customer-data\/#About"],"mainEntity":{"@type":"Question","name":"what is customer data strategy?","acceptedAnswer":{"@id":"https:\/\/www.the-future-of-commerce.com\/2023\/01\/11\/the-value-of-customer-data\/#Answer"},"@id":"https:\/\/www.the-future-of-commerce.com\/2023\/01\/11\/the-value-of-customer-data\/#Question"},"@id":"https:\/\/www.the-future-of-commerce.com\/2023\/01\/11\/the-value-of-customer-data\/#FAQPage"},"publisher":{"@type":"Organization","logo":{"@type":"ImageObject","url":"https:\/\/www.the-future-of-commerce.com\/wp-content\/themes\/hybris_foc\/assets\/images\/layout\/logo-foc-2x.svg","height":"96","width":"293","@id":"https:\/\/www.the-future-of-commerce.com\/wp-content\/themes\/hybris_foc\/assets\/images\/layout\/logo-foc-2x.svg"},"address":{"@type":"PostalAddress","name":"The Future of Commerce","addressCountry":"https:\/\/www.the-future-of-commerce.com\/#Country","addressLocality":"Newtown Square","addressRegion":"PA","postalCode":"19073","streetAddress":"3999 West Chester Pike","@id":"https:\/\/www.the-future-of-commerce.com\/#PostalAddress"},"url":"https:\/\/www.the-future-of-commerce.com\/","alternateName":"The Future of Commerce and Customer Engagement","additionalType":"news media","name":"The Future of Commerce","description":"News, information, and analysis on the future of commerce, including e-commerce, customer engagement, B2B, B2C, DTC, supply chain, sustainability, and purpose.","sameAs":["https:\/\/www.linkedin.com\/groups\/4844282","https:\/\/podcasts.apple.com\/us\/podcast\/a-call-for-a-better-experience\/id1479742201","https:\/\/twitter.com\/FutureOfCEC","https:\/\/www.the-future-of-commerce.com\/feed\/"],"contactPoint":"https:\/\/www.the-future-of-commerce.com\/#ContactPoint","legalName":"The Future of Commerce","parentOrganization":"https:\/\/www.sap.com\/index.html#Organization","numberOfEmployees":"https:\/\/www.the-future-of-commerce.com\/#QuantitativeValue","@id":"https:\/\/www.the-future-of-commerce.com\/"},"image":{"@type":"ImageObject","url":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2023\/01\/value-of-customer-data-FTR-1200x370.jpeg","height":"370","width":"1200","@id":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2023\/01\/value-of-customer-data-FTR-1200x370.jpeg"},"@id":"https:\/\/www.the-future-of-commerce.com\/2023\/01\/11\/the-value-of-customer-data\/#BlogPosting"}],{"@context":"https:\/\/schema.org\/","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"2023","item":"https:\/\/www.the-future-of-commerce.com\/2023\/#breadcrumbitem"},{"@type":"ListItem","position":2,"name":"01","item":"https:\/\/www.the-future-of-commerce.com\/2023\/\/01\/#breadcrumbitem"},{"@type":"ListItem","position":3,"name":"11","item":"https:\/\/www.the-future-of-commerce.com\/2023\/\/01\/\/11\/#breadcrumbitem"},{"@type":"ListItem","position":4,"name":"The value of customer data, and an action plan for maximum impact","item":"https:\/\/www.the-future-of-commerce.com\/2023\/01\/11\/the-value-of-customer-data\/#breadcrumbitem"}]}]