How Big Data Can Lead To A Better Marketing Strategy
Big data refers to extremely large and intricate data sets that require complex systems to extract information from them. Millions, if not trillions of data records are stored in these sets, potentially amounting upwards of 1024 terabytes.
These records can be accumulated from a diverse range of sources; from social networks to medical records.
Developing conclusions and observations based on these data sets can help address business problems that previously would not have been possible to deal with.
Why is big data important?
Analysis of big data can help businesses better understand the behaviors of their consumers, competitors and the external environment. Through this, they are able to make informed decisions that can improve operations, enhance customer service, develop more targeted advertising campaigns and consequently boost profitability.
If big data is effectively utilized, businesses will develop a competitive advantage over those who do not use it, since they are able to make quicker and more productive business decisions.
The value of big data is not determined by how much a business is in possession of, but rather, how they manage it. Effective use of big data should reveal answers that enable businesses to reduce costs and time, optimize offerings and make smarter decisions.
How can big data benefit your business?
- Better understand your customers:
The more information you have about your target customers, the better you can serve them. Using big data to track customer behaviors such as average spending on a typical purchase, how long they were active on your website, or what time they visited, can all contribute to your business’s success. Information regarding all these variables can help your business provide a more personalized and targeted experience for its customers.
- Make more informed business decisions
Big data allows businesses to make decisions based on facts and accurate predictions rather than gut-instinct. While organizations may use data to generate valuable customer insights, it is also critical that the data is used to improve productivity and performance internally.
Analytics can assist with workplace planning by tracking employee behaviors. Relocating staff into positions they are better suited to, or restructuring team arrangements will consequently improve staff morale and retention.
Conversely, big data can help discover opportunities or threats in supply chain operations. Not only will companies be able to reverse inefficiencies, they can also seek improvement opportunities. Also, big data can provide businesses with a foundation for risk management. By creating an accurate reference for measuring risk, businesses can consider this in their marketing strategy.
- Optimize business operations:
Automation is becoming more prevalent in today’s businesses. It allows businesses to become more efficient and productive, with big data providing the basis for it to work. The combination of big data and automation allows dull and repetitive tasks to be replaced by machines. By automating these tasks, time is freed up for skilled workers who can better contribute to the business through creative and productive input.
- Develop targeted offerings:
Once you know more about what your customers want, you can develop offerings that directly appeal to their needs. For example, simply aligning customer behaviors with marketing messaging can be all that is necessary. Utilizing big data to analyse which products consumers are buying and pairing with other items, allows for menus and suggestions such as “Customers also bought…” and “You may also be interested in…”
In a volatile and unpredictable environment, businesses are seeking certainty. Big data allows companies to measure risk and reward in their strategic decisions, while providing outcomes that will best suit their target consumers.