Knowing your customers through the “thick” and the “thin”
“Thick data” refers to qualitative information that provides insights into the context, emotions, and human experiences associated with a particular phenomenon.
Thick Data is often contrasted with “big data,” which typically consists of large volumes of quantitative and structured data. While big data is valuable for statistical analysis and identifying patterns, thick data adds depth and richness by offering a more nuanced understanding of the social and cultural factors influencing a situation.
Thick data is usually collected through methods such as interviews, ethnographic studies, participant observations, and open-ended surveys. These approaches allow researchers to gather subjective and context-specific information that may be challenging to capture through quantitative means alone. The combination of big data and thick data is often seen as a holistic approach to gaining comprehensive insights into complex phenomena.
“Thin data” is a term that might be used to describe a small amount of information or data points that may lack depth or context. Unlike big data, which involves massive datasets with diverse and complex information, thin data typically refers to limited and less detailed datasets. This Thin Data may not provide a comprehensive understanding of a particular subject, and its analysis may be more straightforward compared to the intricate analysis required for big data.
In some cases, the distinction between thick data and thin data is made to highlight the depth of qualitative insights (thick data) versus the limited and often quantitative nature of some datasets (thin data). The Thin Data might be more readily available but may not capture the full complexity or richness of a situation. It’s essential to consider the quality, relevance, and depth of data when making decisions or drawing conclusions based on thin data.
It’s easy to say an organization should make customers their north star. Yet the reality is many organizations remain product and service-focused and are far from customer-centric. To tackle the challenge of customer-centricity and improve the overall customer experience, businesses need to execute a strategy that is business culture-aligned and technologically provides an advantage.
The concept of Thick Data gained prominence through a 2016 TEDx Cambridge talk and a compelling Ethnography Matters article by former Nokia researcher Tricia Wang. Thick Data is a derivative of qualitative methods, it offers insights into the emotional and motivational aspects of people, shedding light on their thought processes. This goes beyond mere facts and behaviors, providing crucial context and narrating the stories that “breathe life” into the numbers and statistics associated with the customer.
Big Data emphasizes quantification and numerical analysis, Thick Data reminds us of the human side of business, capturing the nuances that might be overlooked in the proverbial sea of spreadsheets and graphs.
The Duality of Big Data and Thick Data
Big Data and Thick Data, though seemingly at odds, play complementary roles in driving optimal business decisions. Big Data analytics focuses on incremental improvements, optimizing existing systems based on data-generated insights. In contrast, Thick Data analytics ventures into the realm of change, challenging the status quo and uncovering transformative opportunities, albeit on a smaller scale.
The sweet spot lies in integrating both types of data, especially in understanding the customer experience. Big Data reveals what customers are doing and where improvements can be made, while Thick Data uncovers the reasons behind their behaviors and their desires for a different experience.
Customer Master Data Management: A Holistic Approach
With Customer Master Data Management (CMDM), the integration of Big Data and Thick Data can be pivotal. CMDM involves the meticulous process of gathering, curating, analyzing, and syndicating customer data.
The Thick
Thick Data in CMDM can originate from qualitative sources such as customer interviews, feedback sessions, and ethnographic studies, such methods delve into the emotional and motivational aspects of customers, with a deeper understanding of customer preferences, experiences, and expectations. Qualitative insights, for example, might reveal that a customer’s loyalty is tied to personalized interactions rather than just transactional efficiency.
Thick Data in CMDM can be profoundly impactful as it adds a layer of context to the quantitative metrics gathered through CMDM processes, enabling organizations to tailor their strategies to align with the genuine needs and desires of their customers. When CMDM decisions are informed by Thick Data, they are rooted in statistical analysis and reflect a deep understanding of the humanness behind customer records.
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https://www.pretectum.com/knowing-your-customers-through-the-think-and-the-thin/