Economic Impact of Data Innovation 2023 | Splunk

• Read original article here

Model content data
Innovating a market-leading customer experience
Data innovation leaders set the standard for CX. Leaders understand their customers more deeply and apply that insight to their marketing and support. 
Leaders are more likely to report that applying data innovation to sales, marketing and customer service/support has contributed to: 
Greater brand loyalty (48% of leaders vs. 30% of beginners)
Increasing customer lifetime value (49% versus 30%)
Improving customer satisfaction (53% to 43%)
Generating positive word of mouth (45% to 22%)
Converting leads to sales (leaders: 65% win rate; beginners: 39%)
Leaders Know What Their Customers Want — And Make the Right Offer
My org is strong/very strong at:
Developing real-time customer segments to directly route customers to relevant information or send proactive notifications
Developing real-time customer segments to directly route customers to relevant information or send proactive notifications
Using customer purchase data to predict interest in upcoming products and making real-time recommendations to drive sales
Using customer purchase data to predict interest in upcoming products and making real-time recommendations to drive sales
Show me the data monetization
Nearly all (98%) leaders monetize data (resell it, provide data as a service, etc.). Intermediates report a very strong 92%, while beginners trail at 65%. Leaders also report that data monetization is:
More profitable than other business lines (according to 68%, versus 47% of beginners)
Easier to sell (67% versus 45%)
Growing faster (74% versus 49%)
Differentiated (56% versus 47%)
Leaders report that their data monetization businesses are growing more than twice as fast as beginners — 40.5% annually, compared to 20%.
 
Leaders win at product innovation
On average, leaders report launching nine products per year that wouldn’t have been possible without their data innovation capabilities. Which stacks up nicely against beginners’ average of three new products per year. An average of 20% of leaders’ revenue comes from products launched in the last year, more than triple the 6% of beginners. But wait, there’s more. Leaders enjoy:
Higher customer satisfaction (according to 36% of leaders, versus 21% of beginners)
Entry into new markets (33% versus 16%)
Engagement of customers in new channels (30% versus 16%)
Increased customer wallet share (32% versus 13%)
Higher win rates (34% versus 17%)
improved customer retention (35% versus 18%)
Better brand standing (35% versus 17%)
 
Unkinking the supply chain
Using data to innovate around supply chain challenges delivers a measurable advantage. Leaders, unsurprisingly, see greater improvements from applying data to supply chains: 79% of data innovation leaders said they had reduced costs, versus 60% of beginners. And 73% of leaders said they had reduced supply chain disruptions, compared to only 51% of beginner-level organizations.
Advantage, resilience, optimism
Data innovation leaders are more resilient, have a leg up on the competition (several, actually), and know it. We could do this all day, but here are just four more highlights:
Leaders make better decisions.
They are 5.7 times as likely to say their organization almost always makes better decisions than competitors.
Leaders are more profitable.
While Fifty-eight percent of leaders say they beat their most recent fiscal year revenue goals by 7% or more, just 23% of beginners can say the same.
Leaders are more hopeful.
Seventy-seven percent of leaders say their organization is in a very strong position to compete and succeed in their markets over the next few years — 4.5 times the 17% of beginners who feel the same way.
Leaders are more resilient.
They report that it took 17 hours to investigate, identify root cause and take corrective action to resolve application availability/performance problems stemming from a security issue. Beginners: 19 hours, making leaders about 11% more efficient.
With numbers like this, the business case for pursuing data innovation maturity writes itself. (But we’re happy to help.)
INDUSTRIES EXAMINED
Industry insights
See our companion report for highlights on seven key industries. Here are some highlights of the highlights:
Financial Services
79% have adopted AI/ML for data innovation, versus 67% overall.
x