How your company can leverage datafication for growth

How do Netflix and HBO know what we would like to watch next? How does your favorite shop always send you deals on products you love?

One term – datafication.

In this blog, we will define datafication and explore examples across industries. These examples will show how using data can benefit your business and explain what challenges you may encounter.

Firstly, let’s define datafication.

Because of datafication, streaming platforms can personalize movies and show recommendations. Farmers can monitor soil conditions and weather patterns; real estate professionals can predict market trends. Athletes can use it for movement patterns and performance metrics for optimizing training and tactics.

And, in the corporate world, datafication helps businesses:

Generally, people often use these terms interchangeably, but they aren’t the same.

Although implementing datafication can be a challenge for all organizations. However, these examples in various sectors demonstrate its potential for business growth:

By leveraging big data and predictive analysis effectively, your organization can:

Your business can base its tactics on evidence rather than intuition and guesswork. This leads to more informed and effective choices.

Imagine you want to launch a new product. Datafication can help you in market research and competitor analysis. As you gain new knowledge, you can decide on what strategies to implement during this process.

By analyzing your customers’ behavior and preferences, your business can help you create personalized experiences for each one. In the long run, this can foster stronger connections and increase customer satisfaction and engagement.

Datafication can help your business identify bottlenecks and areas for improvement. That can include anything from process automation, exclusion of unnecessary steps, allocation of resources, or process optimization.

For example, airline companies can use sensors and maintenance records data to predict when equipment needs servicing.

In this ever-changing world, staying up to date with the newest trends can be challenging.

Suppose you predicted that the next technological trend in the market is artificial intelligence (AI). With that information, you can take several strategic actions to respond to those market changes.

First, you would assess the risks associated with AI adaptation, such as security, and implement risk management strategies. Then, you would consider how to integrate AI technology into your products and services. And also adjust your marketing strategies to highlight your expertise.

Leveraging datafication can give your business a competitive advantage when responding to market changes and evolving customer preferences. It can lead to the development of new products, services, or business models. This data may encourage you to try something new and take your business to another level.

Knowing the challenges of datafication is essential so your businesses can maximize benefits while mitigating potential risks.

Here are a few challenges and ways to tackle them:

A responsible and ethical approach to datafication can effectively resolve many of these cons.

Collecting and analyzing data helps you make better decisions, streamline workflows, and improve customer experiences. With our customer data platform, People, you can responsibly collect, unify, store, segment, and analyze data.

Furthermore, with our customer engagement solution, Moments, you can design communication using different channels, goals, metrics, segmented audiences, and more. You can measure the conversion, adjust settings, segment audiences, and analyze the funnel. Moments allow behavior-based communication – depending on your customer activity, you can trigger specific messages on multiple channels with one communication flow.