The Internet has forced companies to compete for customers in a dramatically different fashion. Customer demand, which is hidden inside the usage data, is the intelligence behind winners in a changing market. The switch to digital creates more opportunities for innovation and new sources of value. Value has shifted from product delivery to service usage. Measuring demand has moved. The broad transition from product offerings to service offerings has driven the need for new means of measurement. Termed "subscription analytics," this new set of customer-demand metrics gives organizations insight into dependence on the service from individuals or organizations.
InformationToday 21 www.infotoday.com February 2010 Analytics. But while web analytics let a vation to new customers and satisfying publisher measure the popularity of its those new customers,” he says. content, it still only reveals part of the While content providers may not ex- story. Shanahan says that finding out pect to see any huge gains from new rev- more about the customer is essential. “Seg- enue streams in the current economy, mentation and understanding each cus- status quo isn’t that bad either. After all, tomer demand are critical to solving this says Shanahan, “Flat is the new up.” problem,” he says. “People are amazed when they see the results of the analytics —Barbara Brynko and often say, ‘You can do that?’ It’s just not where the thinking has been.” Armed with such targeted data, con- CHECK THE tent providers can switch their focus to follow the leading indicators of specific INFORMATION TODAY, INC. revenue optimization. “They can detect WEBSITE unlicensed use, they can monetize usage, (WWW.INFOTODAY.COM) and they can create better tools to help the customer base,” says Shanahan. The FOR THE LATEST goal is to get large global providers in the INDUSTRY NEWSBREAKS. information industry “bringing new inno- Insider’s Perspective Moving Target: Understanding Customer Demand by MATTHEW SHANAHAN | Scout Analytics, Inc. answers to these questions were unknow- of value. Value has shifted from product The elemental question shifts from able. Usage data simply wasn’t a factor. delivery to service usage. Consequently, “Was it shipped?” to “How is it used?” And [This column lets experts in the infor- demand is increasingly influ- with this shift, usage data and the new mation technology industry discuss the enced by speed of deployment analytics associated with it come to the challenges and trends their businesses The ‘Secret Sauce’ and time to impact of a service. forefront. This new category of analytics are facing in their special niche of the But in today’s self-serve, Salesforce.com exemplified this doesn’t revolve around purchase patterns, marketplace. —Ed.] always-available world, de- value proposition by enabling but instead, it determines the demand for mand metrics derived from us- CRM (customer relationship the service provided through customer- T he internet has forced companies age data are the secret sauce of management) for customers usage patterns. Termed “subscription an- to compete for customers in a an organization—an absolute within hours compared to so- alytics,” this new set of customer-demand dramatically different fashion. minimum requirement for a lutions such as Siebel Systems metrics gives organizations insight into In today’s service-oriented world, under- competitive advantage. So what that took months, if not quar- dependence on the service from individu- standing demand is no longer as si
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