There is a lot of value in combining data from one business area with data from another business area. Similar to a jigsaw puzzle, when we combine data sets and put the pieces together, we get a complete picture of customers, events, and activities. But how do you know what data to combine?
Last week, we introduced you to Propensity Modeling and how it can help your association make data-guided decisions while providing great value to your customers. We'll now dig into some of the technical detail and steps to implement Propensity Modeling.
Taking a customer-focused approach to data analytics helps provide optimal value, enhance engagement and understand the overall customer journey. Individuals' actions provide valuable information that goes further than what is collected with surveys and online profiles. Additionally, actions uncover hidden patterns that can be used to build a recommendation system to guide customers toward other interests.
The analytics cycle described by Gartner depicts moving beyond descriptive analytics towards analytics that answer questions of "why did it happen?", "what will happen?", and "how can we make it happen?" Value and difficulty both increase throughout this natural progression.
The TV show, Parks and Recreation, recently had an episode where a huge tech company used data mining to the extreme-- knowing what would be the perfect present for every person in the town. In the episode it caused a huge stir due to privacy concerns. And I am sure most of you remember the incident where Target predicted a girl’s pregnancy before her family even knew. Although data mining is getting a bad rap lately, when done in a way that respects the privacy of your customers, it can provide valuable information for your association.
Data is one of the most important assets an association has because it defines each association’s uniqueness. You have data on members and prospects, their interests and purchases, your events, speakers, your content, social media, press, your staff, budget, strategic plan, and much more. But is your data accurate and are you using it fully? Your data is an asset and should be carefully cultivated, managed and refined into information which will allow you to better serve your community and ensure you remain viable in today’s competitive landscape.