Organizations that are advanced in their digital measurement practices track their performance through digitally sourced revenues, digitally impacted costs, digitally enhanced operations, and digitally satisfied customers. To help our clients do just that, we’ve created a digital measurement framework and customized it to specific industry sectors.
Digital leaders from financial institutions including banking, insurance, and wealth management can use the framework and inventoried metrics referenced below to identify gaps in their own digital measurement approach and follow industry best practices.
Link Actions To Outcomes With A Digital Measurement Framework
Having a robust digital measurement framework enables smarter tracking, controlling, and directing of digital spending and investments by targeting higher revenue yields and better digital experiences per dollar spent. For example:
- In insurance, when a greater portion of new policies is issued digitally, in one go, within minutes, and without manual intervention, the revenue grows faster and at cheaper acquisition costs per policy.
- In retail banking, when customers actively use digital tools and automated features tailored to control their monthly cashflow, pay their bills, and grow their savings, current account and savings balances rise and credit risk is kept in check.
- In wealth and investment management, when online customers set up an auto-deposit that routes a set amount of monthly savings to an investment account that subsequently distributes it according to preset instructions for planned portfolio allocations, investment balances steadily grow and customers learn to apply proper investor disciplines.
The point is, advanced organizations know their “digital DNA” and how to steer it toward better results because they’ve built multidimensional data frameworks that show meaningful connections between relevant downstream data and coveted upstream outcomes.
The Beauty Of Digital Is Traceability: Leverage It!
Digital journeys are designed to be simple, efficient, and data-rich. This creates a valuable data pool that can be linked to business outcomes — for example, analyzing digital purchase journeys reveals insights into income, customer behavior, and more.
But many organizations struggle to effectively use this data. Often, they default to simpler metrics such as app downloads and reviews due to the complexity of creating a coherent “digital money story.” This highlights the necessity for skill and dedication in translating digital data into actionable business insights. This is a problem that we at Forrester aim to address for the benefit of digital business leaders in every sector.
Use Forrester’s Digital Measurement Frameworks To Tell Your Digital Money Story
Our latest series of template reports containing digital metric inventories for various industry sectors aim to help clients boost their digital measurement know-how and begin to track their digital dollars with a greater sense of confidence.
Our Digital Wealth Management, Digital Insurance, and Digital Retail Banking Metrics Inventories each contain over 100 relevant metrics, organized into four distinct categories: revenue, costs, operations, and customer experience.
Understanding that some metrics require more advanced measurement capabilities and that some metrics have a higher impact on the underlying outcome (e.g., impact on revenues or costs), we have also classified them based on maturity.
The full downloadable versions of the respective reports can be accessed via the links below (Forrester client access required).