Big data has opened up several opportunities since the invention of the phone or the internet going mainstream. It is being used by several marketing organizations for decisions –making, analyzing, and understanding challenges, capabilities, and competencies. This overwhelming amount of data is increasing complexity, competitive pressures, and customer behaviors. Big data can help within creating better marketing if used properly. Big data works as a secret ingredient, an essential element, and raw material. However, data itself is not so important but the insights derived are.
Application of data can improve customer loyalty and engagement, help make pricing decisions, optimize your performance, and prove to be an indispensable tool. Three types of big data are crucial for marketing:
#1. Customer Data:
The most crucial data required for marketing is customer data that includes names, email addresses, purchase histories, and web searches. This can provide marketers with customer’s insights such as their behavioral, attitude, and transactional metrics. The data is collected from several sources such as marketing campaigns, websites, social media, online communities, customer surveys, and loyalty programs. Customer data helps marketers understand their target audience.
#2. Operational Data:
Operational data includes is data of different business processes such as shipping and logistics, customer relationship management systems, marketing operations, resource allocation, asset management, budgetary controls, feedback from hardware sensors and other sources. It includes objective metrics that help measure the quality of marketing processes. This data can lead to improved performance and reduced costs.
#3. Financial Data:
Financial data is crucial for measuring performance for effective operations. This category covers an organization’s sales and marketing statistics, margins, revenue, profits, and other objective data. This data also includes competitors’ financial data such as pricing.
In marketing, the big data comprised by gathering, analyzing, and applications of digital information to improve business operations, such as:
The concept of “know your customer” was coined many years ago to large financial institutions. Now, the benefits of knowing the target customer are available to even small and medium-sized businesses due to accessibility to big data and cloud computing.
A business must know how their customers perceive there brand and interact with it. Big data analytics can help businesses by providing business intelligence such as improving existing products, increasing revenue, and others.
Data can play a major role in significantly impacting marketing by increasing brand awareness. Data-driven retailers can annual gain brand awareness by 2.7 times than others.
Data helps marketed understand their specific audience and simultaneously present them with specific content according to the best time and place. This is the most effective to improve online and in-store customer recall and brand recognition.
Data can improve customer acquisition. According to a survey by McKinsey, users of customer analytics are 23 times likely to outperform their competitors in terms of new customer acquisition.
Big data can be used to leverage real-time data in cloud computing environments. It can acquire, process, and analyze real-time data accurately. This data can help take immediate and effective action, especially when analyzing data from IoT sensors, GPS, clicks on a webpage, and other real-time data.
The following are the ways Big Data is revolutionizing marketing and sales:
- Companies attaining greater customer responsiveness and customer insights by using big data and analytics to improve responsiveness and to plan more relationship-driven strategies.
- Big Data along with its technologies have made it possible to use this intelligence into contextual marketing. Many companies are experiencing exponential growth due to evolving customer, service, sales, and channel and many marketing stacks aren’t integrated at the data process levels. Big data analytics have the potential to create a foundation for scalable Systems of Insight, helping alleviate this problem.
- Big data analytics is also increasing the marketer’s capabilities to go beyond campaign execution to connect with the customer on a personal level. Big data analytics guide customer development by helping marketers create greater customer loyalty and improving customer lifetime.
- Big data is having the largest impact on the marketing programs, as according to the CMOs it is helping with SEOs, email marketing, and mobile marketing.
- Big Data and advanced analytics are also helping market leaders gain greater customer engagement and customer loyalty.
Big data is playing a crucial role in changing how marketing traditionally worked. It is creating new opportunities for them to not only understand their target audience but also to connect with them on a personal level. Further, big data has also opened an ocean of information about the competitors. This new information can be leveraged by marketers for increasing their efficiency and improving there operations.