Data Information into insights

Raw data is flowing continuously into and from internal departments and external environment by the very nature of an organization. But raw data is not of much use to decision makers. They need meaningful marketing information and insights. A system device creates such information and insights out off the raw data. Moreover, a system delivers the outputs in the right format. This helps the users appreciate the relationships among the various information.

In particular, a system framework helps create customer insights out of transaction data. And customer insight is the foundation of customer oriented marketing and hence customer satisfaction. Every firm generates a great deal of data about its customers as a matter of routine through its transactions with them. Every transaction with the customer typically generates a document either an electronic document or a hard document. In the latter case, it is subsequently converted into electronic form. A lot of details about the customer are gathered through such documents. Over time, the data gathered becomes really huge. The issue is about creating insights out of it for improving the quality and productivity of marketing, for enhancing customer value and for building relations with customers. A system can generate such insights out of the transaction data. The system processes the data from the transactions into insights on customers’ buying behavior and preferences – insights, which unveil the needs, expectations and behavioral drivers of the consumers and give a clue to their future buying behavior.

The firm can use the insights for several purposes such as identifying new customer segments for some of its products, improving the profitability of existing customers, improving the effectiveness of direct mailings and other closely targeted promotion, and enhancing customer interaction and building customer relations. In short, it can create and deliver marketing offers that are actually needed by the consumers. They help strategic segmentation of the consumers and hence the creation of segment specific marketing offers and segment specific media planning and promotion.

A system device also helps customer retention. The firm can know more about its customers. It can know about its customers corporate wide and over different product lines. It can know who buys which products, and thereby target its marketing effort more efficiently. It can cross sell to customers who have already purchased from it. It can, for example, send a focused direct mail on its washing machine to a customer machine to a customer who has purchased a refrigerator from it. Without a system, the firm cannot have such knowledge about knowledge about customers across lines of business.

Advantages in having a System for Marketing information:

A system framework provides a set of procedures and methods for regular planned purposeful and systematic gathering of data, and its analysis, storage and retrieval.

Serves as a total knowledge-management mechanism:

Converts data into information and information knowledge; supports capture of knowledge also serves as a mechanism for managing it; makes the knowledge flow where it is required; and ensures that it is available in a readily usable form.