“Without Big Data analytics, companies are blind and deaf, wandering out onto the web like deer on a freeway” — Geoffrey Moore, Author, Crossing The Chasm
We hear the term “Big Data” really often but What exactly is big data? “Big Data” is data sets that are so voluminous and complex. It refers to the collection of our “digital footprints”, analyze it and make use of it in business.
There are 3 Vs of Big data
Volume – Big data is a huge amount of data.
Velocity – The speed at which data are received and being processed. Data has a time value; the information needs to be processed quickly before it loses the time value
Variety – There should be different varieties of data coming from different sources to make sure the data is not biased. The different types of data may be used for different purposes.
Big Data works on the principle that the more you know about anything or any situation, the more reliably you can gain new insights and make predictions about what will happen in the future. Therefore companies analyze the data collected, create models, and come up with relationships. Companies can now accurately predict what specific segments of customers will want to buy, and when, to an incredibly accurate degree. They use the results from the analysis to improve the business and create marketing plans accordingly.
Three types of big data that are a big deal for marketing
Customer: The big data category most familiar to marketing may include behavioral, attitudinal and transactional metrics from such sources as marketing campaigns, points of sale, websites, customer surveys, social media, online communities and loyalty programs. Companies maybe use these information to analyze consumer consumption habits, platforms they use, days and times of most consumption, qualities that consumers value the most and etcetera. These analysis would help improve on the product, pricing and marketing strategies.
Operational: This big data category typically includes objective metrics that measure the quality of marketing processes relating to marketing operations, resource allocation, asset management, budgetary controls, etc. These information could be used to analyze return on investment on each product, an through each marketing channel. This could help business to better develop the marketing strategies and budgets.
Financial: Typically stored in an organization’s financial systems, this big data category may include sales, revenue, profits and other objective data types that measure the financial health of the organization. These information could help the business to check the liquidity, develop new marketing budget and etcetera.
Here are two tips of using big data marketing
Make analysis- based marketing
Make use of the big data – analysis, and make marketing plans accordingly. You always have to know the maket, your consumer and your business well, before making any decisions, the decisions should your company specifically with the analytical evidences.
Review the results constantly and adjust the strategy
Compare your predictions and the reality, constantly review the results, and make changes accordingly. The market and the consumers are constantly changing. The reality will not necessarily turn out to be the same with what your expectations were. Companies have to compare and review the results, make comparisons to the predictions, previous time period, and industry avg, make adjustment to the strategies accordingly.