Kyle McNamara

Writing on the use of data and technology for competitive advantage

Archive for June, 2008

What is Analytics?

Posted by Kyle on June 9, 2008

The other day, I came across a post titled, “The most important thing I know about Analytics is that no-one agrees what it means.” Interestingly enough, my colleagues and I have been working to define the same, and my working definition after a few iterations was:

Analytics is the intelligent use of data and models to discover relationships and causations that companies can use to obtain a competitive advantage by predicting outcomes associated with their processes, customers, and products.

Admittedly, this definition is still fairly broad and doesn’t fully answer my clients’ questions about what it is – or how it is different from all of the Business Intelligence (BI) work they have been doing. In the book, “Competing on Analytics,” the authors describe analytics as a subset of BI, and include a chart that illustrates how analytics can leverage data in the existing BI store to achieve competitive advantage:
Business Intelligence and Analytics

One of the best ways I have found to explain analytics is to describe the types of insights it can offer across the enterprise. Below is a sample of some of the applications I’ve seen of analytics across the value chain.

Applications of Analytics Across the Value Chain

Posted in Information Advantage | 3 Comments »

Experience Growth with a Customer-Focused Strategy

Posted by Kyle on June 3, 2008

During his sermon this Sunday, my pastor talked about how the church has evolved to meet the needs of the local community through understanding the people who attend the church and providing relevant programming, groups, and events. He mentioned that the church and parishioners participated in a survey to better understand their attitudes and behaviors. Being a lifelong consultant, I envisioned the framework that they had adopted to guide their analysis:

What I quickly realized is that the church serves its members in the same way as many businesses by:

  1. Segmenting their customers (parishioners)
  2. Understanding the unique needs of each segment (group worship, study guides, life applications of Bible verses)
  3. Targeting products and services to each segment (baptism, small group study, mission trips)
  4. Moving the customers through the life cycle (“Explorers” to “Committed Christ Followers”)

This is not a new concept for churches; many articles (including one in The Economist) over the past few years have chronicled the tremendous growth that churches have experienced by adopting business principles, and I was keenly aware that my last church in Michigan had adopted a customer focus to help parishioners along their spiritual journey (through the life cycle).

He also mentioned that they previously thought they could open a new church (a “branch”) and provide standard content, and that people would flock to the church – sort of a “build it and they will come” mentality. But once they adopted a more “customer-focused” approach, they experienced far more growth than they ever imagined.

Many companies have already adopted a rigorous, customer-focused marketing strategy to attract and retain customers, and to continually provide them with relevant products and services. But many companies that I have worked with either have not or need to become smarter about incorporating knowledge of their customer base into product and marketing decisions. If my local church can do this, surely most companies can as well.

Posted in Customer Life Cycle Management, Customer Segmentation | Leave a Comment »

The Power of Small Changes Tested

Posted by Kyle on June 2, 2008

Here is a webcast that outlines the increases in conversion and ROI that companies can gain from employing a rigorous testing program for their online marketing efforts.

We quoted similar research in our paper on using Behavioral Economics to improve online marketing efforts.

Posted in Behavioral Economics, Customer Life Cycle Management | Leave a Comment »

 
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