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Data-driven customer insights top business priorities

Regina Pazvakavambwa
By Regina Pazvakavambwa, ITWeb portals journalist.
Johannesburg, 28 Oct 2016
Many business leaders realise they must quickly adapt and evolve existing ways of working to be successful, says Experian.
Many business leaders realise they must quickly adapt and evolve existing ways of working to be successful, says Experian.

Data-driven customer insight is now a top commercial priority for more than four out of five (81%) traditional businesses as they aim to close the gap on leaner, new-to-market digital disruptors.

This is according to a recent study conducted by Forrester Consulting on behalf of Experian, which surveyed 380 business leaders across Europe, Middle East and Africa (EMEA).

The report says around three out of four respondents predict traditional business models to be obsolete within the next five years. However, the majority admit they're far from ready to meet the digital challenge.

The majority of CEOs (66%) now acknowledge many of their current commercial approaches are ineffective, they're operating within a digital divide and need to quickly increase budgets to catch up and improve customer experience and customer management, it adds.

Forty-two percent of business leaders surveyed say they plan to fully migrate services from physical to digital and are enhancing their digital on-boarding, says the study.

According to a Forbes Insights report, data-driven customer experience is critical to the future growth and development of organisations, particularly in today's hyper-competitive economy.

Big data has become something that can deliver a competitive advantage to any company, says Capgemini.

Failure to harness it or take advantage of its usefulness will result in a company lagging behind its competitors and risking becoming irrelevant in its industry, it adds.

The study however revealed organisations are struggling to get it right. It says 70% of organisations are not delivering effective digital customer experiences and two-thirds highlighting their organisations do not have a single-view of the customer and cannot achieve a balanced approach to fraud.

"Time is running out. Nearly half of C-level respondents are worried about external competition, with 73% firmly believing that traditional business models will disappear in the next five years due to the digital revolution."

According to the study, the very best-performing customer-centric businesses will thrive given the direct links between cyber security and commercial performance.

Around 42% of boardrooms now regard cyber security as the biggest block to success - ranking it only behind competitor activity, it says.

Of these, less than one in four (23%) are confident their current fraud prevention strategies were effective against the new breed of online fraudsters, says Experian.

"It's clear from the research just how critical data-driven customer insight is in today's business climate, says Mark Wells, acting MD at Experian.

"The findings reflect a host of common challenges faced by boardrooms everywhere - be it the pace of rapid innovation, fierce competition and rising customer expectations. But all admit dealing with sophisticated fraud while balancing the challenges of friction and consumer safeguards are key commercial priorities."

Many business leaders realise they must quickly adapt and evolve existing ways of working to be successful and remain competitive - or to even survive, says Wells.

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