The Importance of Data Ownership in User Behavioural Analysis
What’s the Cost of Not Owning Your Analytics Data?
Do businesses actually own their user interaction data? Do they have access to raw information on user behaviour within web application environments? Platforms that collect and manage data are all too common nowadays. Websites have been connected to third-party providers to collect and manage their analytics. It’s a lucrative trade until one needs access to raw data. Let’s analyse the significance of owning your data and some of the consequences of not having control over it.
Data Ownership
Owning raw data and having access to real-time analytics provides significant advantages for businesses. However, the costs associated with implementing these solutions can be prohibitive, particularly for small to medium-sized enterprises (SMEs). To stay competitive, businesses must adapt to modern data strategies that enable real-time decision-making.
Context
By 2027, over 35% of software will use AI-based digital twins as user personas for user experience (UX) development through the product life cycle, up from less than 5% today.
Most platforms used for automation, data collection, and lead generation are designed to gather insights on user interaction. These tools typically collect significant amounts of data on how users engage with different touchpoints throughout their navigation journey. The insights are usually provided as aggregated reports or metrics, often sampled or enhanced with AI to help businesses make informed decisions.
The Point of Data Collection vs. The Point of Taking Action
For a considerable period, the data collected on user interaction with web platforms has been used as a tool for making informed business decisions, predictions, and medium to long-term strategies. But let’s observe the timing and default workflow. Platforms provide aggregated data, and businesses use reports to make informed decisions. Can all these steps be performed in real time? It’s definitely possible, but companies would need access to their raw data in real time.
User Behavioural Analysis
Controlling data allows businesses to build tools for understanding their users beyond basic interaction points. Complex profiling, driven by behavioural analysis, is possible when data is provided. This analysis can inform decisions on personalisation, marketing strategies, and product development. Controlling the metrics, the model’s training, and the criteria of analysis can be achieved once access to raw data is established. Without ownership, businesses are often limited by the restrictions and constraints imposed by third-party providers.
Data Ownership and Real-Time Feedback
There is a complex relationship between owning the data, building a system to analyse and understand user behaviour, and providing real-time feedback to users. Owning the data is the first step. The next challenge is applying the insights in the desired context and making use of AI and machine learning capabilities to fully personalise the user journey.