POSTED BY: Jim Ittenbach | May 1, 2019
The extraordinary volume of data piling up in Cloud servers is daunting and elucidating. Thus, the pursuit of breathtaking algorithms, destined to exalt keen consumer insight, is underway in many organizations. While management awaits, with bated breath, for the next fascinating algorithm to forecast customer opportunity, rarely does meaningful outcomes result in short order; given the inherent exhausting demands for a validating ROI.
To achieve go-forward strategic insight in real time, a continuously improving model should be adopted.
Let’s begin by clearly defining the ultimate purpose of our data demand. This mission should be grounded within a well-understood consumer desire, supported by validating behavior and expressible in the consumer’s own unique language style. Without a focused consumer-driven insight guiding data mining, magical breakthroughs are unlikely to emerge from mystical algorithms alone.
Our experiences have proven that profits are cost-effectively realizable by getting outside of the sanitized data sets. Look for insights in nontraditional locations. While a well-crafted algorithm provides guidance, embracing fringe data points, supported by qualitative input like consumer feedback language, can give a better “feel” for what consumers want, beyond what they are now receiving. Yes, this type of input may be considered soft and fuzzy, but these types of subtle hints into consumer desires trigger an opportunity for a quick fix. Observation also works. Putting a set of objective eyes in observation of consumer behavior often identifies “pain-points” during the selection to purchase process.
Why look for the idiosyncrasy? Because incremental improvements are swift to implement and capable of yielding improving ROI’s in real-time. Best-in-class organizations that develop improving assumptions by continuously processing fringe data points also develop market agility and consumer loyalty, plus a little bonus; improving profitability.
A simple OODA model can easily be adopted to support this process. Observe, (data, circumstances, fringe information), Orient, (new insight/current process = improving expectation), Decide, (generate alternative experiences) Act, (implement, observe, validate).
Live Long & Prosper