How did Netflix go from an upstart Blockbuster-wannabe to one of the most successful streaming platforms in the world? And, on the other hand, how did Blockbuster slip from market leader to bust in barely a decade? Smarter use of data.
From its beginning, Netflix collected extensive information about customer preferences and viewing habits, along with wider market trends. When the world began to shift towards digital streaming, Netflix was one of the first off the mark, launching its streaming service and jumping into content creation at the same time. By tracking customer data in real-time, it was able to produce original content to fit viewer preferences exactly.
Netflix analysed viewing and subscription information closely, producing content to match and growing its global reach. Just a couple of years later, in 2017, the service hit 100 million subscribers globally.
What was Blockbuster doing in the same period? The old-guard DVD rental company had more than 9000 stores at its peak in 2004 but didn’t see streaming coming. By 2010, Blockbuster had just 1700 stores and filed for bankruptcy. The final stores closed in 2014.
Netflix had the data and a way to understand it, so it could identify opportunities and pivot with the market. While undoubtedly Blockbuster had customer information stretching back over decades, it didn’t – or couldn’t – use it to drive decision-making as the market changed.
How can your organisation move toward that Netflix-like agility and avoid being left behind? It’s about sorting out your core business information and leveraging analytics to monitor performance and spot trends. Most importantly, you need to use those insights to make decisions.
Almost every organisation collects customer information and sales data – but many don’t do much with it. If your business can work out how to access and analyse this data, you’re already several steps ahead of the competition. If you can use these insights to enhance decision-making, efficiency and customer experience, you’ll be way ahead of the pack.
What does this look like in the real world? For BP New Zealand, ongoing analytics is a way to communicate with Kiwi customers in engaging, relevant ways. With support from Datamine, the company uses behavioural, demographic, sales and loyalty data to divide its customer base into smaller segments based on commonalities. These groups are then used to inform marketing and communication decisions – from message content and channels to frequency and discount offers. Instead of treating the NZ market like a monolith, the company is now able to engage with customer groups in a relevant and – most importantly – effective way.
Analytics isn’t just about big-picture decisions and strategy – it can help your organisation be very precise about day-to-day operations and service.
If you know what your customers want and when they want it, you can tailor your products, services and marketing strategies to match.
Air New Zealand does a great job of this, using past travel, browsing behaviour and customer preference information to give customers tailored recommendations and offers. This personalised marketing approach makes a better experience for customers, as they only receive messages that are relevant to their interests. It has also helped boost conversions and sales for Air NZ.
Others in your sector are already identifying growth opportunities, adapting their product lines, driving efficiency, minimising waste, and offering a hyper-personalised customer experience. You need to as well.
Of course, harnessing your data isn’t a simple, one-off process – it requires a shift in strategy, new tools and talent, and a deep look at your existing information and reporting processes:
A data strategy is a long-term plan that lays out the goals, processes, technologies and people involved in managing your business information. It’s a blueprint that guides the use of data – so naturally, it should align with and deliver to your wider business objectives. An effective strategy should include your analytics goals, along with methods, planned changes and a timeline for implementation.
Outcomes are only as good as the data you put in. If your data is inaccessible, inaccurate or incomplete, you’ll need to prioritise data quality as you move forward. This is where working with Datamine can be invaluable – our team can check your data, remove double-ups, and ensure you’re working from the most accurate information possible.
This stage may also include developing new tools for data collection – for example, a loyalty programme can be an effective way to gather high-quality customer data as you move forward.
You need the right tools to harness your data and the right people to manage those processes. When the job market in Australia and New Zealand is slow, it makes sense to seek support from experts and upskill current staff members so you know you have the right skillsets on your team.
The deep insights you can draw from your data don’t automatically improve your business. For that, you need a culture that prioritises analytics and continuous improvement.
Check out our guide to Data Strategy
Changing the way you manage and leverage data can come with challenges, often related to your existing systems, processes and data sources. The good news? Expert guidance can help you get around these pitfalls:
Many organisations find it hard to benefit from their data because it’s incomplete, out of date or inaccurate. This is why organising and consolidating information is usually the first step in your analytics journey.
Fragmented, siloed information is another common issue, particularly in large organisations. Your customer details and sales records may be stored in different systems, databases and formats, making it difficult to get a full picture of your customers or operations. Datamine can help here, bringing your business information together and ensuring that it’s accessible and usable.
Your existing tech stack could affect your data goals. Legacy software may not have the capacity or capability for advanced data management, analytics or integration with newer tools. For many organisations, this means reconfiguring or updating some systems. The goal is a set-up that delivers insight and guidance without needing extensive manual work from your team.
What’s the difference between a business that can roll with the punches and one that fails to see change coming? In many cases, it comes down to data. Organisations with a clear view of their customers, sales and product lines can use that information to inform decisions and serve up what customers want. Businesses that don’t have the same level of understanding can struggle to keep up with market changes and shifting customer preferences.
If you want to be a Netflix, not a Blockbuster, it’s time to take control of your business data. With decades of experience in the analytics space and a wide range of analytics products and solutions, Datamine can help. Talk to our team to start your data journey today.