The role big data plays in business development strategy is far-reaching – especially when it comes to long-term customer satisfaction.
Business development is the process of devising a sustainable business model for all stakeholders, including shareholders, customers, employees, and any other parties affected by the business. It encompasses every stage of business functions, including research, analysis, and execution. Now, data analytics are essential in almost every sector, from healthcare to retail. Companies are using big data to gain a better understanding of customer preferences, which in turn, helps them to develop more effective marketing strategies. Furthermore, businesses are using analytics to mitigate risk; for instance, organizations use deep learning and predictive analytics to optimize actuarial practices.
Although many organizations are aware of the value of data, there are still many that have not invested enough. Data are arguably the most important tools available to a business. Comprehensive analysis will provide a bespoke, timely, and accurate view of every organizational component, generating more informed decisions. If used to its full potential, data can reduce overheads, drive profit, and boost productivity, creating transformative business growth. In this article, we discuss five key ways data analytics are crucial to a high-functioning business development strategy. To conclude, we discuss how a major telecoms provider is leveraging data to its fullest potential, driving better customer service.
1. Support human resources
Hiring the right people is extremely important. Businesses need to ensure employees are fulfilled, thriving, and bringing value to the organization. However, sourcing these individuals is challenging – especially if they are not actively seeking a career change. Companies may need to identify talent within other organizations and convince them that defecting to a competitor would further their career. From here, businesses need to optimize their hiring processes to make sure these prospective employees are properly vetted.
Big data can facilitate this process by allowing companies to learn more about people before hiring them. For example, businesses can use historical data to identify an individual’s successes based on known variables. The benefits of this approach are proven by research; according to one study, Fortune 1000 companies with enhanced data accessibility by 10% increased value by $65 million – and at least half of these benefits came from optimized human resources.
2. Leverage specificity
Top performing organizations use a variety of data sources to establish the total addressable market (TAM). From here, they can identify companies with similar technology, in the relevant geographical, within the industries they serve best. With this intelligence, businesses can establish if the market is saturated, or if there are opportunities to attract custom away from competitors. Once companies develop a strategy, they can use big data to create personalized digital marketing campaigns that respond to consumer preferences.
3. Better lead scoring
With big data, companies can develop algorithms that identify patterns in customer preferences. By studying landing page behavior, social media interactions, credit files and more, businesses can score more leads, generate risk analysis, and determine the likelihood of conversion. This intelligence allows companies to allocate leads with more nuance, which enables them to sell more effectively. Not only does this shorten the sales cycle, it also drives productivity amongst sales representatives.
4. Enhance training programs
In many ways, business metrics are an account of human behavior – however, this should not diminish the necessity of data. Without robust data sets, business development strategy is destined for failure. As such, data should be fully integrated into training programs and coaching strategies. By combining data analysis and talent development, businesses can work towards achieving targets faster.
5. Drive client satisfaction
Satisfied customers are essential to a successful business. After all, the easiest way to lose revenue is alienating customers by under-delivering on promises. However, with big data, businesses can learn more about what their clients want. Organizations can mine data on specific requirements and respond to these preferences with laser focus. Furthermore, businesses can also analyze aggregate data on several clients to holistically optimize business development strategy.
For instance, companies should leverage big data to create detailed customer personas. Management should review the most profitable client profiles and identify successes in the sales cycle. Once companies aggregate this data, their sales teams can identify trends based on specific demographic data. From here, they can assess whether or not a lead is likely to convert early in the process.
A data-driven business development strategy case study
British telecoms provider 3 is currently executing a business development strategy that aims to ensure all data contributes to business value. The company has transitioned from traditional analytic approaches to leveraging big data to create a more proactive customer care strategy. After basing fundamental business functions on evidence gained from analytics, the company has dramatically increased customer satisfaction and efficiency. By applying relevant data analysis tools on a daily basis, the company is able to visualize and better understand customer behavior. With this intelligence, they can construct a clearer picture of their interneal development possibilities.
Furthermore, analytics have allowed 3 to begin working proactively rather than reactively. According to Elis Rosén, their Head of Analytics, “With the right segmentation and analytics, we can always be on our toes and act proactively. For example, analysis showed that the repair process for mobile telephones took both time and focus away from our customer service. We improved our customer communication on repairs and thus made the process more efficient.”
Big Data: The Key to More Effective Business Development Strategies
In summary, big data is essential to a modern approach to business development strategy. Detailed data analysis can provide accurate and agile intelligence about every business function, enabling management to develop a more refined, proactive approach. With the proper analytic tools, companies can enhance client relations, employee productivity, and business performance with technological solutions. Moreover, it is essential that these solutions are integrated; this will allow for the seamless movement of information across the organization. With these capabilities, businesses can create real-time solutions for clients. By isolating relevant development practices, strategies and procedures, management can nurture an effective team and grow the business.