Moving Target: Understanding Customer Demand

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                                                                                                                                                                   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
				
DOCUMENT INFO
Description: 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.
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