Consumer analytics is a
process of exploration. To address a sticky business issue the analyst starts
by examining the upper strata of the data — perhaps market share and standard
dashboard metrics. These metrics reveal clues as to where to explore and what
to analyse. Each analysis yields further clues taking the analyst along a drill
down path to the answers she is looking for.
In addition to the understanding of the technology
tools and platforms that support consumer analytics, this requires an
understanding of the business, and deep appreciation of the discipline of
marketing in that industry. Organizations that use consumer analytics for
business decisions are therefore developing in-house capabilities and augmenting
these capabilities by partnering service providers that specialize in the
field.
The service providers fall into a two-tier
structure. The first tier comprises a host of companies that develop technology
tools, platforms and related software. The second tier comprises a slew of
companies skilled in the use of these technologies and specialized in specific
sectors. To succeed they need to know the business and market dynamics of their
clients’ industry.
Needless to add that there is considerable shortage
of talent and managerial competencies to exploit the full potential of
analytics. Various studies suggest that only a small proportion of companies
are using consumer analytics/big data for decision making purposes.
Organizations that have made progress are also facing considerable challenges
as they strive to derive insight from the variety and volume of the digital
consumer data that they have access to.
