NOW THE QUESTION IS, HOW DO SMBS GET ENGAGED AND KEEP / GROW THEIR MARKET PRESENCE?

At the outset, the puzzle can be easily resolved by creating a digital presence with the development of an app or by the creation of a web presence. If a company invests in a web presence, they then takes on the challenge of collecting customer data (web logs, transactions) and employing that information for future decision-making. The opportunities are vast for companies that are able to combine customer data with in-house or third party data to create a richer data set about consumer behavior. This data can be mined and analyzed to understand the customers, their preferences, and other behavior patterns, when gathered correctly. This in turn will help to create a digital persona of the customers which is a gold mine for Marketing and Sales analytics. Social Media engagement data can also be added to the data set as several corporations have some type of “war room,” where the social media is being monitored for any activities that affect them – either positively or negatively. Social Media data also provides a raw look into customer preferences and perspectives on company logos, which become highly valuable for Sales and Marketing teams hoping to create loyalty and influence purchase behavior.

CHALLENGES IN THE OPERATIONAL LANDSCAPE

Based on our experience in working with Small and Medium Businesses (SMB) organizations, most of the SMBs will have a diverse set of application systems supporting the business functionality. As the demand for functionality and performance increases, a new system will be put in place and often there will not be enough room for application consolidation or Enterprise Architecture Strategy. This will eventually lead to the myriad of applications that function within an organization. Adding digital / social media presence will increase the existing complexity for collecting and managing data or information within the organization. Due to the lack of a coherent and concise data management strategy, more time will be spent in scouting for data than analyzing it.

So, the first and foremost step while getting into the “Big Leagues” is getting all your data ducks in a row. We have worked with organizations where there are 1,000+ known databases and many unknown Access / Excel data stores that was used in daily operations and reporting. In situtations like this, a comprehensive information management strategy can act as a backbone for future innovation. Sometimes, you have enough internal knowledge and capability to create and execute a data-centric organizational strategy. However, do not hesitate to bring in external expertize as needed, who can also help with organizational changes needed to build and execute a successful data management program. What you need is not a bunch of executors, but seasoned veterans in the data space who can devise a custom strategy for your organization’s specific needs and goals.

The new digital world produces a ton of data. These outputs can be structured, semi – structured or even unstructured. While the abundance of data is a good thing, it is seldom sufficient, in its raw form, to provide insights on their own. In almost all incidences, you would have to marry the digital data with in-house or third party data to enrich the data set and make it more useful. In our initial assessments before strategy engagements, we found the lack of a mature data management program slowed down or even ruptured the analytics based on digital data. Some of them tried to put a patch on another patch and limped along while others spent enough time to get the basics right and ran. Experience from the past shows that, at least for a good percent of organizations, digital analytics is like the blind men touching and feeling the elephant. They all touch and feel various parts (tusk, tail and legs) but not the whole.

We all agree that the digital age ushered in a new era of customer empowerment. That is exciting and rewarding for a service provider with the right set of capabilities. Let us be clear – there will be winners for those that gather and use data correctly. Building out a presence in the new digital space is not enough. Organizations need to harness the information produced through the digital presence and use it as leverage to provide better customer experience. That ability is what will eventually make or break B2C organizations.

To learn more about how SMBs are adopting Machine Learning & Artificial Intelligence, you may also read a colleague’s blog here.