This is Part Two of Joe Tawfik’s article about the future of Customer Experience. Joe is CEO of Kinetic – a specialist business process outsourcing (BPO) for the telecommunication industry – looks ahead at what is emerging in the field of Customer Experience.
Big Data
We are on the verge today where customer prediction is no longer an enigma but about to become a formal craft that uses scientific methods to increase the probability of accuracy.
By tapping into various sources of data we can better understand our customers and their behaviours. Google is a company that understands the value of big data. Every search term made on Google is collected and used to predict areas of interest and this in turn is used by marketers to determine future demand. Similarly movie distributors are able to determine the likelihood of box office success of a movie using big data analytics. The economic value of such insights is undeniable.
Big data is all about understanding the correlation of two or more variables. It is not about understanding why something happens but that it does happen. Once you understand, with a level of confidence, that an event occurs every time X happens then you have to determine how this affects your customer in the future.
Customers are leaving us with a multitude of clues about what they want and what they don’t want. These clues are contained in the hordes of data contained in company silos and now publicly available on the Internet. These clues come in many forms ranging from the choice of words used in a call made to the call centre right through to the types of pages I like on Facebook.
The future direction of customer management will lie in the ability to harness these clues left behind by customers and using scientific methods make an educated prediction on what our customers want or are likely to desire in the future. The economic consequences of not analysing the data your customers leave for you will ultimately determine the future competiveness and sustainability of companies in all industry sectors. Predicting future customer behaviour and creating products and services to elevate the customer experience is the logical evolutionary step in how we manage our customers in the future.
Prediction & Management of Future Customer Behaviour
Customer experience management is about how well companies can interact with their customers and the way they make them feel about their products and service as they use them in their current state. We believe the next evolutionary stage is to predict and manage how they will feel about products and services in the future.
This forward thinking approach to customer management has only become available recently due the advancements in the technology used to capture mass data, store them and make them available for scientific scrutiny. We are already seeing companies like Telefonica, one of the largest telecom operators in the world, monetising the massive amounts of data captured from their network on customer locations by selling anonymous data to retailers through their subsidiary company called Telefonica Digital Insights.
Predicting the future using scientific means will soon become a reality. It’s not an exact science but more a craft that will be refined over time using modified algorithms, artificial intelligence and innovative use of technology.
Customer Prediction Management as a Future Competitive Advantage
Customer prediction management is not only going to be a reality but it is shaping to become the key future competitive advantage for companies that are able to not only accurately predict future customer behaviour but are able to release products and services before their competitors that can meet the predicted behaviours and needs of their current and future customers.
Just as Steve Jobs was able to catapult Apple ahead of its competition so can any organisation that can master the discipline of customer prediction management. Replicating what Jobs had achieved was difficult in the past since there was no hard science or tools used by Jobs to predict the need for an iPad or iPhone.
What is unique with the advent of big data is that the technology and the tools have now become available for organisations to be able to create a structured discipline around customer prediction management. The ability to accurately match products and services with future customer needs and desires will become a key competitive advantage for organisations.
Issues for Boards
Big data and its use to gain a competitive advantage is a reality today and will become more visible in larger companies as the technology evolves and the ROI is properly understood by board members.
The evolution of big data and its use will require board members to properly understand the issues, risks and potential benefits. The danger we face with big data is the lack of general understanding about it and the issues related to its use by board members. We recommend board members make themselves well versed in this topic and understand the issues.
Where to Next?
The question on most reader’s minds will be what can I do today? I think the first thing companies need to do is acknowledge that this topic is worthy of investigation. There are a number of providers offering “big data” solutions so speaking with them to gather intelligence on the topic makes good sense. One you have gathered the necessary information you will need to make a philosophical shift in your thinking around customer experience management and its evolution towards predicting future needs and wants of customers.
Joe Tawfik
CEO, Kinetic BPO
Joe Tawfik has over 25 years senior management experience. He has been a Board Director since 1996 and held numerous CEO roles. He has been actively involved in the BPO and Online industries in Australia and Asia since 1996, in a leadership capacity. He is currently the CEO of Kinetic BPO, a specialist BPO for the telecommunication industry, and also founder of Karmadeeds (www.karmadeeds.com); an online platform for social good.
Joe is an international CEO and has published and authored numerous industry papers. His experience is extensive covering regions across Australia, Asia and the Middle East. In addition to leading a number of organisations, Joe has successfully lead award-winning BPOs; having attained over 14 industry awards in the Middle East, US and Australia. 