Data, Insights, Action:

Transforming the
Customer Experience
Contents

Data, Insights, Action: Transforming the Customer Experience.........................................................3

Transformation Starts with the Right Technology Stack....................................................................4

Transformation Takes More Than Technology..................................................................................6

A Data-Driven View of the Customer...............................................................................................8

Data, Insights, Action: Creating the Ideal Environment for Transforming the Customer Experience 2
Data, Insights, Action: Transforming
the Customer Experience
Companies that are striving to become more customer-centric today face a multitude of challenges, from the emergence
of the sharing economy to the rise of online buying. In the face of these challenges, they are increasingly looking to digital
resources to help them understand and ultimately transform the customer experience. But such transformation requires
more than new ways of capturing, analyzing, and understanding data from consumer behavior. It requires new ways of
internally consuming that research, deriving insights from it, and applying those insights.

Or to put it another way, it’s not just what you learn Some organizations are doing this successfully
about consumers; it’s what you do with what you
learn, and how nimbly you’re able to do it.
already — the “digital leaders that place a premium
on internal collaboration, creating processes and
“Digital leaders place a
This paper advocates for a new approach to
teams that integrate various functions across the
business and developing incentives for sharing,”1
premium on internal
delivering consumer data and insights within
companies — an approach that makes it possible
as McKinsey & Company describes them. collaboration, creating
The stakes are high: When organizations are better processes and teams
that integrate various
to adapt and respond to changing market forces equipped to glean, share, and act on customer
and new competitive pressures by fundamentally insights from data, they’re better prepared to deliver
altering how people connect with data, learn from
it, and share their knowledge with each other.
improved customer experiences. That’s the
difference between keeping customers engaged functions across
This new approach is characterized by two
inextricably linked components: 1) digital
and loyal — and losing them to the competition.
the business and
technology for collecting, analyzing, and acting
on data insights and 2) deep cultural change
Read on to learn about the strides in analytics
technology that are helping turn data into insights
developing incentives
that enables companies to extract the greatest
value from that technology.
today, and about the innovations in knowledge sharing
that are helping turn those insights into action.
for sharing.”
— KAREL DORNER AND JURGEN MEFFERT,
MCKINSEY & COMPANY

Data, Insights, Action: Creating the Ideal Environment for Transforming the Customer Experience 3
Transformation Starts with
the Right Technology Stack
When it comes to the customer experience, the foundation for transformation is digital technology —
specifically an insights technology stack that enables organizations to collect data, derive insights from it,
and act on those insights to improve the customer experience.

Building the Stack to see those insights successfully transformed into themselves in an extraordinary position to “use
action, all three of these types of systems need to customer analytics to extend their value and
Back in 2011, Geoffrey Moore — the author
be in place. become strategic business partners.”4
perhaps best known for Crossing the Chasm:
Marketing and Selling High-Tech Products to
Mainstream Customers — introduced the terms
•S
 ystems of record deliver correct, reliable Beyond Data: What Makes Systems
customer data from myriad sources. of Insight Essential
“system of record” and “system of engagement”
to the business lexicon.2 The former refers to Customer insight starts with data, of course, in
•S
 ystems of insight apply analytics to the data
an information system that contains data — systems of record — but without analytics, it’s just
to derive insights from it.
a customer database in a CRM system, for that: data. As one global bank struggling with this
example. The latter refers to a system that issue told Forrester, we are “literally drowning in
enables collaboration and engagement among • Systems of engagement provide collaborative
data and starving for insight.”5 This is why systems
the people in an organization, such as a tools to use to act on insights.
of insight, driven by advanced analytics, have
platform for knowledge sharing. More recently, become so critical to marketers who want to realize
IBM came up with another term in this vein: system Systems of insight and systems of engagement
the full transformative potential of all the information
of insight.3 That’s gained traction today respectively deliver advanced analytics to
that’s available to them. Or, as a headline in
as a term describing a system that delivers drive insights and collaborative platforms
Computerworld recently summed it up: “All your big
data analytics. to drive interactions.
data will mean nothing without systems of insight.”6

To glean more insights from the deluge of data, and Organizations with such tools at their disposal find

Data, Insights, Action: Creating the Ideal Environment for Transforming the Customer Experience 4
Systems of insight are the systems that Beyond Insight: What Makes Systems “A big part of the problem is that everyone seems
constantly monitor and analyze the data pouring of Engagement Essential to be operating in silos and buying up technology
into organizations from so many sources today. independently of each other. At times, IT holds
It’s this analysis that produces insights into A system of engagement can be something as basic customer data hostage while marketing goes
opportunities and risks suggested by the data. as an email system for sending thoughts and ideas behind IT’s back. The result: disconnected data
It’s no wonder, then, that “at the rate at which back and forth. But it can also be a more and systems.”10
data and our ability to analyze it are growing, sophisticated system that’s designed expressly
businesses of all sizes — large and small — to enable people to interact with data insights and In traditionally structured environments, it can almost
will be using some form of data analytics to with each other in specific ways. Knowledge-sharing seem as if organizations are dealing not in systems of
impact their business in the next five years.”7 platforms serve this role in many organizations, engagement but in systems of disengagement.
fostering an ease of exchanging information about
insights, and of using insights for collaborative
This is why technology that actively breaks down
decision-making.
the barriers to collaboration and communication,
QUICK STAT by encouraging and enabling knowledge sharing,
Systems of engagement are vital to making
Satisfaction with timely decisions, especially when they bring
is so important.

together people and groups who might otherwise

analytics functions in be segregated from each other in traditional

2016 was only 46%. organizational silos. That old organizational

structure may account for much of the
dissatisfaction such a large percentage of
organizations report with analytics and insights.
That prediction from a 2015 article in Forbes seems Noting that even though customer insights are
to be proving true as the market for data analytics vital, companies can’t seem to produce them
grows. (It’s projected to be up 33.2% in the five-year fast enough, CIO magazine has stated that:
period ending 2019.8) And yet many organizations
seem to struggle with successfully employing

“A big part of the

analytics technology. One Forrester blog cites a
study indicating that “satisfaction with analytics
functions in 2016 is only 46%.”9

That’s a worrisome data point. After all, it’s the

problem is that
ability to successfully generate insights that makes
data valuable and analytics desirable. And it’s the
everyone seems to
ability to readily share those insights that gives
marketing teams such a profoundly important role in be operating
in silos.”
the transformation of insight to action.

Which brings us to systems of engagement.

— TOM KANESHIGE, CIO MAGAZINE
Transformation Takes
More Than Technology
The right technology can put an organization on the fast track to turning data into insights and turning
insights into action. But technology tools for analytics and collaboration do their best work when
the organizational culture strongly supports data-driven decision making and open, cooperative
workstyles. Organizations that simply bolt on new tools to business-as-usual practices and processes
will inevitably be limited in how much they can accomplish. To derive the greatest benefit from
technology, it’s essential to first cultivate new ways of thinking about work.

Encourage Data-Based Decisions But how do you change the culture to value data
more? Data analytics company NGDATA went to
Forrester reports that “only 49% of business
dozens of business intelligence and marketing
decisions are made using quantitative information QUICK STAT
experts to ask just that. Among their responses:
and analysis — as opposed to subjective factors
such as experience, gut feeling, or opinions.”8
• “For a data-driven culture to truly take hold,
Only 49% of
This isn’t great news for anyone who’s seeking
out higher quality customer insights. “Go with
it must be accepted and fostered by the entire
organization. Every group, from product to
decisions are made
your gut,” while perhaps good personal advice
for those who tend to overthink things, is simply
marketing, sales, engineering, and others,
must recognize the value in a data and using it
using quantitative
not the most effective way to get at the customer
insights that are an insight team’s bread and
to improve on an iterative basis.” information and
butter at work every day.
• “Start leveraging the data your business has to analysis — as opposed
According to Deloitte, going on instinct can
undermine organizations’ efforts to use analytics
guide evidence-based decision making. When
data reinforces or, better yet, contradicts the gut to subjective factors
successfully: “Standing in the way of adopting an
feeling, the conversation around the importance
of a data-driven approach is bound to begin.”
such as gut feelings.
analytic approach may be a corporate culture that
encourages individuals to rely on their intuition
and experience when making decisions.”11

Data, Insights, Action: Creating the Ideal Environment for Transforming the Customer Experience 6
• “You need some quick wins based on data-driven The traditional silos that exist across organizations The customer experience services company
results. When decisions are being made in meetings, — in sales, marketing, and other sharply defined McorpCX counsels companies to “look at these
you need to ask why people came to the decision they areas — present more than a structural challenge functional or organization capabilities more as centers
did… If it isn’t based on data, have them go back and to sharing data, deriving insights from it, and of excellence than silos, with each focused on their
find the data to back their decision.” taking action on it. These silos reflect a way of part of the customer experience. Under this structure,
thinking in which individuals are conditioned to silos of any kind are transparent, integrated and
• “Ensure that every team member is on board with focus first on themselves and their own groups porous.”17 In the process of silos becoming more
the technology your business is using. The entire rather than to think more broadly and inclusively. integrated, technology is the key to organizations
team needs to be using the same platform (an And that can get in the way of achieving critical capturing knowledge, making it readily accessible
integrated business system) with access to data goals. and shareable, and enabling people to act on it in a
from all departments.” timely way to achieve business goals. It’s about
For example, Forrester is hearing from customer- creating an environment that offers new and better
• “It’s important to remember that data does not insight professionals that “We’re leaving money on ways to connect, collaborate, and communicate in the
drive the company. People are the drivers.”12 the table because our different analytics and service of meeting critical needs. That’s what
insights teams work in silos.”16 And as long as they the true digital workplace and the digital
Whatever the strategies and tactics for changing do work that way, it will be difficult to plant the transformation it represents are all about.
the culture around data, they will succeed only if seeds of another way of doing things; you can’t
accompanied by strong executive backing. The expect people to start to work more collaboratively
Economist Intelligence Unit, which surveyed senior if work systems and processes don’t make it easy to
executives on the topic,13 suggests starting at the top do so. One thought is to use technology to break
to make change happen, with executive leadership that down the silos — centralizing analytics-driven
evangelizes for data, provides a “strong, value-based insights and research in one source that’s accessible
vision of what a data-driven culture could be,” and to all the different part of the organization, for
actively seeks to develop its own expertise in the area.14 example — in order to create an environment where
it’s easy to share, cooperate, and collaborate.
Make Collaboration a Mindset

“You can’t expect

The Economist Intelligence Unit’s survey findings
also point to another enemy of data-driven decision
making in organizations: “Data often exists in silos,
for example, sometimes overseen by protective people to start to work
divisional heads.”15 The executives NGDATA
interviewed alluded to this, too, in comments about more collaboratively if
everyone needing to understand the value of data
and to have access to that data. But it’s not about work systems and
merely having access to data. it’s about interacting
with it and sharing it, which leads to the second processes don’t make
requirement for moving successfully from data to
insights to action: collaboration.
it easy to do so.”
— C INNY LITTLE, FORRESTER

Data, Insights, Action: Creating the Ideal Environment for Transforming the Customer Experience 7
A Data-Driven View
of the Customer
With the right technology, organizational structure, and collaborative culture in place, today’s customer-centric teams can
be more productive and effective than ever at deriving insights from data and acting on them. The ultimate impact of their
efforts is on the customer: When organizations successfully use data analytics and knowledge sharing to give everyone a
broader, more comprehensive understanding of the customer, they create a strong platform for responding to changing
customer demands and industry trends, thus delivering a more positive customer experience. Here are a few real-world
examples of the benefits delivered.

Case in Point: Case in Point: Case in Point:

Doubling Customer Satisfaction Improving Problem Resolution Adding Top Line Revenue
Based on customer insights, CX consultancy A bank established a Twitter account to address After a U.S. insurance company collected data
ClearAction worked with a division of a customer issues. With data flowing in from from mobile app customers, analytics quickly
multinational corporation to shorten cycle times customers about their experiences, the bank revealed that customers wanted to actually buy
for delivering the organization’s products. used crowdsourcing and information sharing insurance using the app, not just get quotes.
As a result, customer satisfaction increased among employees to efficiently get the The company took action to add the option,
from 36% to 77%.18 insights and information they needed to adding top line revenue and improving the
resolve problems.19 customer experience in the process.20

Data, Insights, Action: Creating the Ideal Environment for Transforming the Customer Experience 8
Bloomfire is the leader in knowledge engagement, delivering
an experience that connects teams and individuals with
the information they need to do their jobs. Our cloud-based
knowledge engagement platform gives people one centralized,
searchable place to engage with shared knowledge and grow their
organization’s collective intelligence. For more information or to
schedule a demo, visit www.bloomfire.com.

References:
1 “Nine questions to help you get your digital transformation right,” McKinsey & Company, October 2015.
2 ”Big Data: Systems of Insight to Revolutionize Businesses,” Formtek, July 31, 2015.
3 ”Building Systems of Insight with IBM Operational Decision Manager,” IBM Redbooks Software Blog, October 6, 2015.
4 “Turn Data Into Insights With Customer Analytics,” Forrester, April 28, 2016.
5 “Digital Insights Are The New Currency of Business,” Forrester, April 27, 2015.
6 “All your big data will mean nothing without systems of insight,” Computerworld, September 21, 2015.
7 “Big Data: Mind-Boggling Facts Everyone Must Read,” Forbes, September 30, 2015.
8 “Advanced Analytics Market worth $29.53 Billion by 2019,” Markets and Markets.
9 “The Customer Insights Center of Excellence: Know Your Options!” Forrester Blogs, June 3, 2016
10 “CIOs must partner with CMOs on ‘insight teams,’ CIO, April 29, 2015
11 “Customer Insights and Analytics: Shining a light on profitable, lasting relationships,” Deloitte website.
12 “34 Business Intelligence and Marketing Pros Reveal Their Top Tips for Creating a Data-Driven Culture Within an Organization,” NGDATA, January 19, 2016.
13 “Fostering a data-driven culture,” The Economist Intelligence Unit Limited, 2013.
14 “Driving a data-centric culture: The leadership challenge,” The Economist Intelligence Unit Perspectives, January 15, 2015.
15 “The Economist: Fostering a Data-Driven Culture,” Tableau website.
16 “Your Ticket to More Value From Insights: Be A Master Communicator,” Forrester Blogs, May 13, 2016.
17 “Why Silos Suck: Break Down Organizational Barriers for a Better Customer Experience,” McorpX Insights.
18 “Customer Experience Enablement: An Example from GE,” ClearAction, September 23, 2015.
19 “The Nine Elements of Digital Transformation,” MIT Sloan Management Review, January 7, 2014.
20 “Marketing Analytics Can Improve the Customer Experience,” Harvard Business Review (sponsor content), August 9, 2016.

Data, Insights, Action: Creating the Ideal Environment for Transforming the Customer Experience
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