Posted on: Thursday 28th of March 2013
New research published by Ctrl-Shift today (Breakthrough Efficiency Summary) today shows organisations could achieve dramatic cost savings/efficiency improvements by connecting to new businesses providing data services to individuals.
Organisations in both public and private sectors currently struggle with multiple, constant headaches when it comes to managing and using customer data. They struggle to keep their data up to date and accurate; with inefficiencies caused by inaccurate and partial data; with high costs of identity assurance and associated risks; with managing market research; and with over-reliance on paper-based rather than digital processes.
Now, however, new services that elicit volunteerd personal information (VPI) from individuals as part of their service are moving from start up mode to critical mass. These services (such as miiCard, Mydex, nFluence, pureprofile, Qiy, Reevoo and VisualDNA) help individuals simplify logging on to multiple different online accounts; build profiles of themselves; express product and service interests and preferences; and manage their own data better. In doing so, they generate data that reach organistions’ data pain points in ways not possible before.
The effects are potentially dramatic: breakthrough, transformational cost-savings in core business processes. Instead of saving of 5% here or 10% there it’s becoming possible to achieve dramatic cost reductions of 50% or more in specific areas. Examples include:
- 80% reduction in fraud risk
- 45-76% reduction in transaction costs
- ten fold increases in advertising response rates
- online sales uplifts of up to 18%
Solving a structural problem
The background to this is the structural problem that lies at the heart of today’s customer data landscape: its organization-centric, top down nature.
In today’s data set-up each organization tries to build its own customer database to generate and use its own insights into customer behaviours. With hundreds of organisations each doing this separately, in parallel, there is massive duplication of effort. Customers’ data is dispersed across hundreds of different databases, none of which have complete, up-to-date accurate pictures of the customers concerned.
For those sitting inside this system it’s well-nigh impossible to change its parameters. All they can do is try to make it work better. The new services, which are developing ‘outside’ of these structures have the potential to re-write the rules.
That is what they are beginning to do. The big challenge for traditional data managers and new services alike has been to gain enough critical mass to really move large organisations’ needles; to make change really worthwhile.
It’s this that’s now changing.
The Breakthrough Efficiencies full report costs £495.00 (free to subscribers)