Data wrapping can also help businesses reduce the time it takes to access and use their data. By labeling and organizing data, businesses can make it easier to find the information they need quickly. This can help businesses make more informed decisions and improve their operations. Additionally, data wrapping can help businesses save money. By organizing data, businesses can avoid duplication and reduce the need for expensive storage solutions, helping to reduce their overall costs.
What businesses are using data wrapping today?
Data wrapping is currently being used by a variety of businesses across different industries. Some of the most popular examples include marketing and advertising, finance, and healthcare.
The most famous example of data wrapping is Spotify, which last year we covered in depth looking at how they have been using data wrapping to improve their user experience. Spotify uses data wrapping to keep track of user’s music listening habits. By wrapping data, Spotify is able to provide users with personalized recommendations and ads, most notably: Spotify Wrapped — its end-of-year service which is widely shared between friends and on social media.
Elsewhere, PepsiCo has been using data wrapping to improve its sales and marketing efforts through tracking and analyzing the social media posts of its customers, in doing so, the drinks giant was able to improve its understanding of customer behavior and preferences and create targeted marketing campaigns and improve its overall sales.
The Spanish bank BBVO has also been using data wrapping as part of its customer segmentation strategy. By wrapping data, BBVO was able to identify different customer types and create targeted marketing campaigns for each group. This allowed the bank to improve its customer service and better meet the needs of its customers.
Why is data wrapping such a powerful tool?
As we have seen, businesses that use data wrapping can find a wide variety of benefits by using this technique for their data management needs. In the backend, one of the main benefits of data wrapping is that it provides organizations with a comprehensive overview of their information. This can be especially helpful for large corporations that collect large amounts of data. Data wrapping helps these organizations keep all of their important information organized and easily accessible.
How should a business engage with data wrapping?
According to MIT Sloan, effective data wraps do four things simultaneously:
- Anticipate by intuiting customer needs. Anticipatory wraps offer predictive and proactive features.
- Advise through the use of evidence-based decision-making. Wraps with advisory features provide data and insights that inform a customer’s decisions.
- Adapt by meeting customer needs in a tailored way across different environments and contexts.
- Act, which means that the wrap performs an action to benefit the customer. Wraps that act are integrated into customer processes or behaviors, or they trigger behavior automatically on the customer’s behalf. For example, a bank app that automatically transfers funds to help a customer avoid overdraft fees.
The truth is that without these four core principles, it is unlikely that an enterprise should even engage with data wrapping to begin with. While it may seem useful to wrap data for the sake of it, if an enterprise hasn't done the the measureing required to understand why the data should be wrapped, then the service provided likely won't be particularly useful to the end user.
Measurement is a twofold process. First of all data wrapping creates value indirectly, and so this needs to be measured via a mix of techniques like tracking customer usage, A/B testing, or controlled experiments and surveys. Secondly, companies have to pinpoint the source and magnitude of the value that they’re capturing: how much and in what way does this help customers? Only then can they make informed decisions about how to best provide this service.
For example, a company might choose to develop an API that integrates its data wrapping service with another app. The company might also license its technology to other firms so they can build similar integrations. Or it might choose to keep the service in-house to differentiate its offering from competitors. Each of these choices has different implications for the company’s go-to-market strategy, business model, and value proposition. But they all require an understanding of how the service creates value for customers.
Ultimately, data management is the primary purpose of data wrapping, so every decision about how data is wrapped must take the end user into account first.