Shareholder Value versus Lifetime Customer Value.
A business has to choose a pathway, either to focus on the needs of shareholders or the needs of customers. No one likes to hear this, because in the perfect world, we’d love to think that we can do both.
When you focus on shareholder value you look for every opportunity to maximize revenue and profit while minimizing costs.
When you focus on lifetime customer value, you look for every opportunity to delight your customers with reasons to keep using your products and services in ever increasing ways.
Why can’t you do both at the same time?
Well, next time you spend 40 minutes on an automated help line to your vendor, repeating your request in slow enunciated sentences, pressing a few numbers and waiting through hold music, spend the time thinking about why it is so hard to actually speak to a real person without a very strong Asian accent.
Vendors today are rewarded for stripping costs to the bone, and for finding ways to make a product good enough to buy, but still requiring services and upgrades to keep it working.
Many great ideas don’t make it into products because the concept would reduce the amount of overall revenue a vendor can make using their existing architecture. The legendary stories about how the car industry buried electric cars for decades, as a way of maximizing their revenue from the established internal-combustion-engine based model makes this case very clearly. And there are hundreds of such examples documented in almost every industry from banking and finance, manufacturers of cars and planes and through to retail.
It’s been clear for decades that the value of a retail store is not just selling items, it’s showcasing items. People love to touch and try products before they buy them, and then research the best price to buy the product. And yet retail still runs by revenue not awareness, allowing online logistics driven companies (such as Amazon) to undercut them every time. We’ve seen malls decimated, chains of established department stores bankrupted, but even on their very last day in business a store clerks first question will be “has any other clerk served you, if so you must go back to that clerk”, because they are paid by commission. The model just doesn’t work anymore. And instead of innovating, and accepting a change in their business model, these needed establishments are choosing to die, because it’s in the benefit of their shareholders, who cannot see change as possible.
But something amazing is possible through the use of data analytics. It’s possible to understand how much value each part of a process provides to the final sale, even when the final sale happens within a different location or medium. Today’s music and movie industry is predominately streaming services, where companies such as Apple, Google and Netflix provide comprehensive catalogs of media at very low prices. Gone are the days when we buy $15 CD’s or $20 DVD’s, now we subscribe to a streaming service for the price each month of around the previous cost of one physical disk, and we listen and watch everything, everywhere. This shift was not an easy one for the movie and music industry, and especially for the agencies who distributed media. Armies of very well-paid executives lost their raison d’etre, and they fought hard through every means at their disposal to hold on. It’s only when they realized that they couldn’t overcome the inevitable and instead embraced the new reality did they find ways to rebuild their strategies. Today these same executives work for the likes of Amazon, Apple, Google and Netflix and still make incredible incomes.
The revolution is still underway. And it is companies that truly understand the pathway a consumer of any product or service takes through the buyer’s journey that excel.
In every business there is a pathway that prospects must tread to become customers. And this pathway is codified into the very systems that make up the business. If you can trace and track each users journey, then you can learn incredible things about how to make the journey better for the prospective customer and make it more likely they will become actual customers.
And it doesn’t matter what your business is, you can use data to discover information and learn critical facts that will make you more successful at delighting your prospects and customers while at the same time being as efficient and effective as possible with everything you spend money on.
Here are some live examples of what you can learn by tracking and tracing user experiences:
Use case 1 – The US Presidential Elections, who is going to Win Trump or Biden?
You will see the applied analytics to the real-time feeds of all the Tweets and Reddit posts that are associated with the USA presidential elections. The data is categorized and analyzed in real time and grouped as Gossip, Positive and Negative public sentiments and the impact on the Electoral College per state. The system projects a winner in real time, and you may be surprised how some states are flipping! It provides a different view of the social-media and public mood about the presidential candidates, in ways that no one else is considering and is very different from any of the polls.
Use case 2 – Are you concerned about COVID-19?
You can see (and drill down into the real-time feeds) a number of public data sources of COVID-19 data such as Johns Hopkins University, CDC, Reddit and others. The analysis of the data shows information that will help you understand the current trends, the spread, the infection density per million people, and current fatality rates of the virus in new ways. Want to know how your state, county or country is dealing with COVID-19 right now, just drill into the dashboards to see.
Use case 3 – Are you interested in blockchains?
Based on the Nastel XRay analytics platform and digests in real time all the transactions on a number of major public blockchain platforms such as Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH) and Libra. Nastel XRay provides critical information to make intelligent decisions in crypto currency trading. This platform can be used for private blockchains as well. This is a live system with real data and you may be able to discover critical information that you can exploit to make a fortune.
Imagine what you can discover in your own data?
Visit Nastel Technologies to learn more!
Nastel Technologies helps companies achieve flawless delivery of digital services powered by middleware. Nastel delivers Middleware Management, Monitoring, Tracking and Analytics to detect anomalies, accelerate decisions, and enable customers to constantly innovate. To answer business-centric questions and provide actionable guidance for decision-makers, Nastel’s Navigator X fuses:
- Advanced predictive anomaly detection, Bayesian Classification and other machine learning algorithms
- Raw information handling and analytics speed
- End-to-end business transaction tracking that spans technologies, tiers, and organizations
- Intuitive, easy-to-use data visualizations and dashboards