What is the difference between gaming giant – Electronic Arts, and relatively newer game changer – Zynga? Zynga’s CEO and founder –Mark Pincus, recently talked with D10 about Zynga’s major strength – innovative decision making guided by analytics. Whereas traditional product development would involve making product decisions using business intuition and knowledge, Zynga turned decision-making on its head by hypothesis-driven product testing, quick analysis and agile roll-out based on how customers behaved. This agile, data-driven test-and-learn methodology enabled Zynga to roll out new features every 24 hours, a previously unheard-of release frequency.
In the same vein, while Netflix, as with most companies in entertainment business, struggles to maintain stock price and consumer engagement, the DVD rental kiosk company, Redbox is growing at 40%. How is that? Jayson Tipp – VP of Analytics with RedBox, shares how analytics and testing are being used to understand customer behavior and affinity and thus drive product strategy and decisions. Their successful increase in price recently with no detrimental impact on their revenue or share of wallet bears great testimony to their analytics maturity.
At the end of the day, customers are central to our business. Organizations which leverage analytics and testing to understand their customers’ needs and behavior, and transform their offering accordingly, are fast gaining market share and popularity.
Zynga and Redbox both have analytics in their DNA i.e their analytics maturity is pretty high. This analytics maturity is measurable by what we defined as Analytics Maturity Quotient™ (AMQ™) with key dependency on data quality (DQ), data-driven leadership (L),people with analytic skills (P), data-driven decision making process (D) and agile infrastructure (I).
Based on our methodology, I would estimate, Zynga’s AMQ = 87 and Redbox’s AMQ = 77. Both Netflix and Electronic Arts have AMQ less than 50 largely driven by lack of data-driven leadership and decision making process.
So, what’s your organization’s AMQ?
To learn more about Analytics Maturity Quotient and how to compute your organization’s AMQ, download Aryng’s AMQ whitepaper here.
To help organizations understand their relative analytics maturity, we are conducting a brief AMQ Benchmark study. If you are interested in participating, please take this short survey now. The survey will close on July 31st and all the survey respondents will get a detailed AMQ benchmark report by 1st week of August.