POWER OF DATA
can gain access to more accurate forecasting and artificial intelligence- enabled features such as pattern recognition and predictive analytics. Once this capability is in place, distributors should be ready to take a giant step forward by transforming their entire approach to analytics. In my earlier articles about digital transformation and sales transformation (see the spring and summer 2024 issues of News & Views), I explained that digital transformation is most effective when it’s part of a holistic strategy that includes sales and analytics. So now let’s talk about the third part of that triad — the one that helps companies connect the dots so that they can reap the rewards.
Becoming a Data-Driven Distributor
The way to successfully unlock the power of data and turn it into an engine that can propel an organization toward its goals is to stop thinking of it as information about the present. Instead, distributors should start seeing it as actionable information for the future. Of course, companies can analyze past data about everything from sales to accounts receivable to form a picture of what was happening last week, last month or last year. But the transformative possibilities lie in discovering patterns to help predict what will happen next month or next year — and then capitalizing on that understanding. Mastering that third step is when distributors truly become a data-driven organization.
Te Power of Prescriptive Data Let’s think of this in medical terms. When
a patient discusses their symptoms with their doctor, that’s data about the past: what might be called descriptive data. When the doctor then offers a diagnosis and a prognosis, we could think of that as predictive data, because it tells the patient what’s likely to happen next, and it allows them to start figuring out what to do about it. Finally, when the patient and doctor arrive at a treatment plan, that’s prescriptive data: turning understanding into action that can change everything for the better. In business terms, this means distributors can use the power of analytics to get a diagnostic X-ray view of a customer’s purchasing patterns, as well as their interests, motivations and pain points. Armed with that information, distributors can predict a customer’s needs and behavior and then prescribe a plan of action to keep them happy and engaged. Alternatively, they can use those insights to acquire new clients. Those possibilities show
Fall 2024 31
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60
