Role of IT in Customer Retention and Customer Life Cycle Management

Welcome to the digital world where two big constraints are taken away. One, there is hardly any time lag for processing of data thus making the results extremely contextual. Two, we can look at the ENTIRE data set and strive to interpret every single response from the customer. Taking a sample and analyzing and validating hypothesis/results is giving way to find similarities and associations between customer segments and across situations, geographies and events in newer ways that can be imagined. Placing that brand at the checkout counters, whenever the warning for thunderstorms was raised, increased sales by 20 percent. Data and co-relations are driving results and not the other way around.

Over the last 5 years or so, storage costs have declined while processing power has increased manifold. This combination is changing the game for understanding and managing customers over their life cycle while opening up limitless possibilities in harnessing this data for the ‘next big idea’ – something every organization will need to inevitably do simply to survive in this new world. Today, Big Data is a really good proxy for occurrences; correlations offered by Big Data help us capture the present and predict the future. This could also be extended in identifying the correlation of customer service which is especially true in the white goods industry where Customer Life Cycles extend far beyond the instant buying decision and nurturing relationships are clearly co-related with the strength of the brand for the next purchase or the possibilities of value added offerings.

Traditional organizations develop expertise in IT Shared Services at various geographical levels to sustain and support traditional ways of working, but the ‘new world’ will require very different ways of collaborating with the ‘fringes’ of an organization so that digital strategies connect across functions in order that Customer Insights (and its translation into strategy) becomes a case of Commercial Differentiation and not just a tick- in- the- box of applying the latest jargon in Technology while continuing with traditional methods of operation. In the emerging world of technology, words, locations, and relationships are all connected nuggets of data-making digitization passé and ‘Datafication’ the new normal of recognizing the digital customer. This heads-up to the organization can be a great lever for being proactive in engaging the customer and is arguably the biggest opportunity that Big Data can provide today.

Organizations that are serious about jumping onto the digital bandwagon and harnessing the power of Big Data need to combine the expertise of IT with the knowledge of Customer Insights and connect with the customer through all stages of the product lifecycle. Digital-savvy resources in Marketing need to be exposed to the complex constraints of IT while Marketing- savvy IT professionals need to possess the ability to spot business opportunities that new technologies can offer. This can happen only when IT folks truly understand the nuances of customer behavior and their relationships with brands. This collaboration may create a new Digital Organization where IT teams become the catalysts for Digital Transformations, which is now long overdue. The Digital Roadmap with Technology and Customer at the core will be the key differentiation in the future and the organizations that recognize this faster will be the ones that get off with a head start.

Whirlpool of India (NSE:WHIRLPOOL) is well-equipped in manufacturing and marketing of major home appliances. The company was incorporated in 1980.