Why Smart Companies Are Giving Customers More Data Sloan Management Review | The Marteq Alert | Scoop.it

"Companies are data wrapping when they give data and analytics to customers as product features and customer experiences — such as spend categorizers, automatic sound optimizers, and shopper insights — with the goal of increasing a product’s value proposition. There are four key characteristics that make data wrapping distinctive:

  • The data analytics “users” are a company’s customers, not employees.
  • Product owners, not IT, lead the product road map because analytics must be developed as a part of the product’s overall feature and experience portfolio.
  • Economic returns result from a lift in sales, not from an internal business process improvement.
  • It’s risky; unless companies deliver accurate, valued data wrapping, they could confuse, irritate, offend, or drive away the customers they serve.

In a 2018 survey of 511 product managers by the MIT Center for Information Systems Research (CISR), 85% reported they were developing data analytics-based features or had deployed features to the marketplace. The research indicates that companies that get data wrapping right follow three steps that keep their efforts on track."