New research from Experian has identified four key priorities for businesses in an evolving market place, all influenced by technology and consumer experience. Organisations are targeting investments in data technologies to boost growth.
Experian’s Business Review found companies are shaping their strategies around: data and analytics; customer insight and customer experience; fraud and risk reduction; and regulation and competition.
In response, four in five (78%) of organisations are making investments in advanced analytics to future-proof their businesses, while 76% are putting money in to big data technology. Fraud is also influencing businesses, with 71% admitting their current methods mean genuine customers are being turned away.
>See also: Investing in technology for your business
Tom Blacksell, Managing Director of B2B at Experian, said: “The rapid development of technology has provided countless opportunities for businesses, and now many are refining their strategies for further growth. Organisations are aware they have valuable data at their disposal, yet often lack the analytical skills required to extract its value.”
“Our report also found that companies face challenges in identifying and protecting their customers from fraud. In many cases, they lack the technology to confidently identify fraudsters, so turn away genuine customers. Companies must invest in innovation and analytics so they can deliver the best outcomes for their customers.”
The four technology priorities
1. Data and analytics
Four in 10 (40%) of businesses still rely on instinct and subjective opinion to make their decisions, while less than a third say they can effectively use analytics to extract insight from data. Businesses are responding by making the enhancement of their analytical capability a priority (71%) and increasing their budgets for analytics (78%).
Investments in advanced analytics are being made by 78% of organisations, while 76% are putting money into big data technology.
2. Customer insight and customer experience
Many companies struggle to tell one customer from another and offer the same experience to all, regardless of needs, desires or traits. Less than one in four (23%) personalise their marketing, even though 77% of businesses view better customer insight as a high or critical priority.
Two in three (65%) of organisations acknowledge the need to improve their consumer insight and just 19% can currently harness all data to make the best customer experience. A further 63% lack a single customer view.
3. Fraud and risk reduction
Fraud is an obstacle for growth-hungry businesses, and many legitimate customers who wish to use their products or services. More than half (57%) of business say fraud is the number one inhibitor to their success, while 39% say they have incurred increased costs due to fraud, particularly due to online threats.
Seven in 10 (71%) of organisations use security methods which err on the side of suspicion*, instead of trust, so decline more transactions than is probably necessary. Conscious they are turning away good customers, 75% are interested in more advanced security measures and authentication processes which have little or no impact on the customer experience*.
4. Regulation and competition
The changing business environment is weighing heavily on businesses and how they make strategic decisions. Increasing competition was cited by 93% of organisations as a barrier to accomplishing their business priorities.
Often it is new entrants to the market which are creating headaches in the boardroom. One in three (33%) are experiencing non-traditional competitors entering their markets.