Why Little Data is a Big Thing!
The business and technology press is awash with stories about Big Data: the ability to extract meaning and insights from large and/or multifaceted sets of data. In the field of customer experience, the Holy Grail is bringing together all information about the customer and understanding how they interrelate. So called linkage analysis can help companies understand which customer segments are most profitable: which attributes of customer experience have the greatest impact on retention, advocacy, and purchase intention or which segments value most the different attributes of the experience. Big data holds out the promise of a richer financial perspective of the different aspects of customer experience.
In the rush to big data solutions, however, companies must not overlook the enormous power of “Little Data”: specific feedback from individual customers. Each of these is an opportunity. Negative feedback provides an opportunity to engage a customer, understand their concerns, and hopefully address their issue. It is an opportunity to turn a customer at risk into a loyal customer, perhaps even an advocate. Positive feedback, on the other hand, is a great source of reference material: proof that your company delivers on its promises.
This cannot happen without the three essential elements of the feedback process: Collect, Centralize, and Act. The collection of feedback at all key touch points on the customer journey is just the starting point. To be of real value, feedback has to be centralized in CRM where it rightfully belongs alongside other information about the customer. This is essential if the third element – action – is to be done in a way that is of value to the customer.
Never forget that retention and advocacy happen one customer at a time. Without these individual pieces of Little Data, there is no Big Data.
In a future blog, I will discuss how Clicktools contributes to the Big Data environment.