With Consumer Data, It’s Personal
Catalyst Reflects on Data-Driven Customer Experience Management
It has been a difficult 12 months for companies managing “consumer data”. Beginning with the Equifax breach, continuing with the Cambridge Analytica scandal, and just last month with the rollout of GDPR in Europe, the phrase has become synonymous with corporate abuse and negligence. Despite the rough year as it relates to consumer data, businesses continue to invest in technologies that leverage consumer data, largely to improve customer experience; according to Gartner, 40% of data analytics projects will relate to an aspect of customer experience by 2020.
To capitalize on this exciting trend, Catalyst is beginning to explore the Data-Driven Customer Experience Management (“Data-Driven CXM”) space. We define Data-Driven CXM as the systems that leverage consumer intelligence to improve customer experience through positive interactions across consumer-facing functions (sales, marketing, customer success, retail operations, etc.) using methods availed by big data and predictive analytics technologies. In other words, Data-Driven CXM includes all technology solutions that help businesses “know more” about consumers to “interact better”.
Data-Driven CXM solutions follow the “Ingest, Activate, Orchestrate” model:
- Ingest: Consumer data is aggregated from various digital and offline channels
- Activate: Consumer data is transformed into consumer intelligence
- Orchestrate: Consumer intelligence is pushed out to business users and consumer interaction systems
Catalyst is especially interested in businesses operating in the Consumer Identity & Governance space, businesses that provide vertical specific solutions and businesses that have built sustainable, market leadership through data-based network effects.
At Catalyst, we employ a proactive, research-based approach to investing, targeting sectors experiencing outstanding growth. If you are an owner or operator of a growth stage company in the Data-Driven CXM space, we would like to hear from you. Please send inquiries and business plans to [email protected].