- According to a recent KPMG survey of C-level executives, 92% are using data and analytics to gain greater insights into marketing.
- 72% report their enterprises are regular to heavy users of social media data to improve customer relationships.
- 81% of enterprises are relying analytics to improve their understanding of customers.
- 50% of U.S. enterprises report increased sales as the result of investing and using data and analytics.
- 41% of C-level respondents say that data & analytics have helped them create more targeted offerings to prospective customers.
These and many other insights are from the KPMG study published earlier this month, Going Beyond The Data, Turning Data From Insights To Value (free, no opt-in, PDF). KPMG’s page summarizing the results and providing download links to the report and infographic can be found here. This report is based on survey data collected from 830 senior business executives across more than 15 countries. The survey was conducted on behalf of KPMG International by an independent research partner between August 2014 and January 2015, and was augmented by one-on-one interviews with sector leaders and KPMG subject matter experts in May 2015. Industries including telecommunications, healthcare & life sciences, retail, insurance, banking and industrials & chemicals are represented in the study.
Key take-aways from the study include the following:
- Risk reduction strategies (97%), sales and marketing (92%), and financial management (87%) are the three leading areas enterprises are investing in data and analytics today. KPMG found that enterprises will most heavily invest in financial statement audits (14%), human resources (14%) and capital allocation (13%) in the next 12 – 24 months.
- Improving productivity (47%), generating sales growth (37%), and reducing costs (16%) are enterprises’ greatest motivations for investing in data and analytics. The UK leads all nations surveyed in investments made in data and analytics to generate sales growth followed by Germany (39%) and the U.S.(35%). Reducing costs is the third priority globally across all nations surveyed, with Germany (23%) having the highest percentage of C-level executives mentioning this factor as the greatest motivation for investing in analytics.
- Enterprises are investing to improve data analysis techniques (84%), increase analytics adoption across the business (66%), improve data capture (66%), and build understanding of how to use data & analytics in business processes (52%). With just 50% of enterprises in the U.S. reporting they are generating revenue from their existing data and analytics investments, there’s upside potential that many of the study respondents want to achieve. Respondents mention that there’s a disconnect between the people who are doing the analytics work, and the people who make decisions on the insights provided including implementing strategies.
- Accelerating decision making (86%), improved dialogue with customers (81%), and more accurate decision making (80%) are the three top benefits enterprises are gaining today from their investments in analytics. KPMG found that the prediction of future market trends (80%), identification of new revenue streams (73%) and individualized marketing (62%) are the top three potential future benefits enterprises are investing in data and analytics initiatives to attain. The following graphic provides a comparative overview of current and potential future benefits of the top ten data and analytics initiatives KPMG found most relevant from their research.
- Telecommunications (60%), insurance (60%), and banking (58%) invest the most in data & analytics to improve productivity. KPMG also found that retail dominates data and analytics investments by industry on the dimension of generating sales growth (73%). Telecommunications also leads all industries by a wide margin in the percentage the industry invests in data and analytics to reduce costs (23%).
- Evaluating data quality and reliability (58%), appropriate data not always available (47%), and limited expertise in running queries (44%) are the biggest challenges to getting more value out of data & analytics. Just 14% of enterprises surveyed think they have all the talent and capabilities they need to get the full value out of data and analytics investments they have made. Data quality and reliability is limiting the potential of analytics to deliver greater value in enterprises globally.