Ever experienced an overbooked flight at an airport? Hearing the offer to get some cash, if you take the later flight or stay overnight? Well, I heavily recommend to read this posting and the thoughts on predictive analytics and customer experience.

Two trends, each racing forward, that have the potential for disastrous collisions:

  1. The need for truly customer-centric organizations in a fully connected world.
  2. The use of algorithms, predictive analytics, and big data to optimize everything.

In many cases, these can be synergistic. But some are train wrecks.

I experienced just how badly those two things can clash first-hand this week, when the Westin Cleveland Downtown reneged on my supposedly prepaid reservation at Content Marketing World. … How could that be? They failed to accurately predict the demand from an event that was outside their domain of expertise, a rapidly growing Content Marketing World. …
Here’s how something like that happens. Reserving rooms in a hotel is a ridiculously simple algorithm — …. If typically 5% of your reservations fail to show up, you could theoretically book 105% of your capacity.

That’s a classic insight that predictive analytics can deliver. But it’s also the point where you shift from a deterministic booking algorithm to a probabilistic one.

… You may think it’s worth occasionally sacrificing the happiness of individual customers for that extra revenue from overbooking. But in world of search and social media, there’s a risk that you will trigger outsized negative consequences.

Predictive analytics and customer experience can be a dangerous mix – Chief Marketing Technologist.

In the world of Social Media and Word-of-Mouth people need to think before to trust analytics only. Or – in this case – take the risk of bad reputation. In other cases the damage could be even much worse.

I am a strong believer, that analytics is able to help, but there still needs to a human brain involved, before making a decision. And I have the strong feeling, that this human brain is taken out of the process more and more often. This makes me concerned.

Veröffentlicht von StefanP.

One Comment

  1. Quite interesting.
    Check out my new blog post – IBM Watson Analytics – Powerful Analytics for Everyone #IBM #IBMWatson http://ow.ly/BD7RE

    Antwort

Kommentar verfassen

Trage deine Daten unten ein oder klicke ein Icon um dich einzuloggen:

WordPress.com-Logo

Du kommentierst mit Deinem WordPress.com-Konto. Abmelden / Ändern )

Twitter-Bild

Du kommentierst mit Deinem Twitter-Konto. Abmelden / Ändern )

Facebook-Foto

Du kommentierst mit Deinem Facebook-Konto. Abmelden / Ändern )

Google+ Foto

Du kommentierst mit Deinem Google+-Konto. Abmelden / Ändern )

Verbinde mit %s