You might be failing this test to drive your business growth

ARE YOU MAKING the best use of information on your customers to drive your business growth? Chances are you are failing to do so. At least, failing to do so effectively.

Here’s why: A new study finds that only 14% of U.S. companies are making good use of customer data in marketing, sales, service and product development. The study also finds that those companies have achieved four times higher income growth over the past four years than their counterparts who are not doing so.

In short, the study founds in pays to be highly customer-centric and data-obsessed.

The study of 300 large companies—conducted by Virtusa Corporation, a leader in business strategy, digital engineering and IT services—found:

• “Customer-obsessed” firms enjoyed a 15% growth in revenue. And what Virtusa calls “customer-clairvoyant” companies have grown by 18%  since 2020. Those with poor data practices few by only 4% over that time.

• Most companies struggle to turn data into action. Although 79% do a good job of collecting sales figures, only 54% use customer feedback (such as that on social media) to boost their marketing, sales and service strategies.

• Not unexpectedly, insights gathered using AI are a game-changer, Virtusa says. Companies that integrate generative AI for data processing have reduced costs by 29% and accelerated data transformation by 68%, enabling faster, more personalized customer interactions.

• Having a strong global data office is a great help in boosting income. Businesses with centralized data governance frameworks outperform competitors by ensuring structured data collection, privacy adherence, and real-time cross-functional data sharing.

• The top-performing firms follow a structured four-step approach:

• Build a strong data foundation
• Leverage AI for predictive insights
• Implement metadata-driven analytics for deeper customer understanding
• Establish a global data office

"The global data office has become a powerful force for companies that lead the market," says Euan Davis, head of the Virtusa Research Center and VP of growth markets. "It sits squarely between two groups: the IT organization, which collects digital data, and the business functions that use that data. It must work with the IT organization to ensure it collects the right types and quantities of data, and that it is clean and fresh. On the other hand, the global data office needs to turn that data into powerful insights on customers that marketing, sales, service and product development managers can use."

The most effective global data offices perceive customer insights as "products" to be delivered to marketing, sales, service, and product development leaders, according to Virtusa.

As noted in the study, by applying the principles of "product management"—traditionally used for marketable products—internally within their organizations, companies can turn their data into competitive advantage. These data products can be a catalyst for multiple company functions, from helping marketers create more impactful campaigns, assisting sales executives in determining optimal selling strategies, to helping service managers prevent customer attrition, and product development managers in generating new product offerings. 

You can download the study, "Beyond customer obsession: Engineering data mastery for what comes next," here.