It’s important to measure the return of analytics. Otherwise it’s technology for technology’s sake, a strategy that won’t survive this competitive era.
But how much value is analytics actually delivering to the enterprise? Unfortunately, many organizations using analytics today can’t claim big value gains.
One of the main reasons is that it can be very hard to turn the analytics people are using today –the popular visualization software, the complex models, the descriptive and predictive tools– into something that the everyday workforce can actually use to improve their KPIs. We call this the “last mile” problem.
But some companies are seeing real, measurable value. Here are a few real-world stories from our travels.
Success Story #1
One success story is a global telecommunications company that uses Emcien to decrease the number of customers who leave every quarter—called “subscriber churn” —for the greener pastures of a competitor.
Customer churn is a big problem for all telecommunications companies. It drives up operating costs, eats into margins, and it’s extremely persistent.
Solutions—data-based or otherwise—haven’t made a real, sustained dent. But every percentage point they shave off customer churn equals big hard dollar return for the company, so they were keen to look outside their backyard for solutions.
They were using standard business intelligence tools to monitor churn trends and drill down for insights, and they had a team of data scientists creating models. But with thousands of online and phone interactions between the brand and its customers happening every day, they knew they lacked the in-the-moment answers they needed to respond to customers in real-time. That’s why they started using Emcien.
They use Emcien to determine which customers are at-risk of churning, why, and what actions to take—calls, offers, product recommendations—to decrease churn for every customer in every interaction.
As a result, the company has reduced customer churn by a measurable 17% while also improving customer experience, efficiency, and revenue.
Success Story #2
Another success story is a national retailer that uses Emcien to increase the value of each customer.
Acquiring new customers is very expensive. And with the rise of disruptive brands and the shift to digital, keeping existing customers buying has become harder—and more important—than ever. Because of the massive scale of retail, even a small increase in order value, purchase volume, and loyalty yields big revenue gains for the company.
Before Emcien, they were using a one-size-fits-all approach to marketing, sales, and service. Every customer got the same messages, the same offers, and the same level of customer support. They knew they were wasting important resources on bad customers, and not doing enough for their best customers, but they didn’t know which was which, or how to change.
They now use Emcien to know exactly which customers could drive the most value for the organization, and which customer likely will not, so they know exactly where to focus resources.
Everyone in the organization knows which customers are their “best prospects” that just need a little prompting to become their highest value customers, and which customers are their “at-risk loyalists” that need some focused TLC in order to return to previously high spending levels.
And they know exactly what promotions, products, marketing messages, and customer service experiences will be most effective at increasing the value of each individual customer.
The results? They’ve improved customer value 21% while also improving revenue, efficiency, and customer experience.
Success Story #3
A third success story is a leading manufacturer that uses Emcien to ensure their deliveries are on-time, every time.
The complexity of supply chains has grown exponentially, making them vulnerable to the cascading exceptions that delay deliveries each day, losing customers and revenue while driving up operating costs.
This manufacturer, like many others, used planning tools and focused on supply chain visibility to ensure deliveries were timely. But these tools didn’t prevent exceptions and did little to solve the natural chaos that led to delayed deliveries.
They turned to Emcien to make sure their workforce knows which deliveries are at-risk of delay before they are delayed, and what to do to prevent it and mitigate the impact if it occurs. They know the risk level of every delivery so they can rearrange workloads and schedules to prioritize deliveries in order of importance.
They use their email and SMS systems to proactively notify customers about potential delays and their customer service staff knows a customer’s delivery may be delayed, and how best to respond, before they even pick up the phone.
As a result, they’ve reduced late deliveries 65%. They’ve also reduced just-in-case inventory, strengthened customer loyalty and revenue, and lowered overall cost to serve.
Measurable Value Awaits
As these 3 use cases illustrate, it’s not just possible, it’s proven, that analytics can add big, measurable value to organizations of all different stripes. And big, measurable value in today’s world is hard to come by and equally hard to survive without.
What’s your story?