Big Data, do you hear this terminology everywhere and almost every day?
I would say yes, we are at the beginning of a revolution that will touch and affect every business, industry, and specialisation in this planet. For this reason, I decided to share some insights about it in this blog.
To start with, what is big data? It is an extremely large data set that may be analysed computationally to reveal patterns, trends and associations. It is also used to enhance decision making.
Today, data is growing faster than ever before and it is expected that by the year 2020, about 1.7 megabytes of new information will be created every second. Also, it is interesting to mention that, every second we create new data – just think how we perform on the search engine – as an example, we perform 40,000 search queries every second using google, that makes 1.2 trillion searches per year. Aren’t these facts fascinating?! Yes, it is but unfortunately, people are still stuck in their own lanes and choose to ignore the importance of the concept “Big Data”.
In the context of big data, IBM has come with a comprehensive model comprising of the four V’s of big data as below:
Today, marketers use and proclaim customer data as their new master for decision making. As Mark Flaharty, Executive Vice President of Advertising, SundaySky said, “Arguably, the most important evolution of marketing is the ability to understand what data you have, what data you can get, how to organize and ultimately, how to activate the data”.
As a marketer, you can get customer data from anywhere such as sales transactions, customer interactions, customer service, social platforms, online survey and customer feedback. Also, they are external data providers who support businesses in this area. By those data, you might feel overwhelmed by the amount of data you are expected to analyse and make a decision based on. Remember, data comes from many sources but they don’t all contribute equally to you as some are useful whereas, some might be just additional and doesn’t make any difference to have. Therefore; it is your role to determine what is good data to analyse and that will normally be based on the business objectives and decisions you are trying to make.
You can benefit from the customer data you have in the following areas:
- Create more personalised pleasurable shopping experience
- Customise promotions and special offers
- Get helpful product feedback – improve your product or service
- Improve your marketing and campaigns
- Create new product or service
- Provide better customer service
- Improve organisational effectiveness and reduce risk and fraud
- Create shareable content
Another interesting model is discussed in Harvard Business Review – Advertising Analytics 2.0 whereby, it showcases the statistical model that reveal the effect of advertising on consumer behavior and that the business results must account for hundreds of variables related to market conditions, marketing actions, and competitive activities. This model is used to attribute each variable’s effect, to optimise the marketing mix and guide for spending allocation. Finally, the data on consumer response and business outcomes feedback will allow marketers to tune their cross-media spending in real time.
The big data has been generally used by organizations and have succeeded and supported them in making important decisions. An example of that would be “Netflix” which is a data – driven company and it aims to provide the audience with what they want to watch.
So how do they do that? Netflix gathers consumer data to support them make better decisions that will ultimately make the audience happier with their service. Therefore; it tracks not only the movie you watch but also when you pause, the date you watch, location (zip code), browsing and scrolling behavior, what device you used to watch, etc. This information helps Netflix in determining their next strategy. To read more about it, Click.
In summary, we have seen how big data is growing and how important it is to us as marketers to support us in making strategic decisions that will benefit our organizations and increase our return on investments (ROI) by being able to determine successful campaigns, customer segments, product testing, what customers prefer, etc. By doing that, we will be able to serve our consumers better and they will ultimately be loyal to us and happier with our services. As Wes Nichols said,“Marketers now have an unprecedented ability to fine-tune their allocation decisions while making course corrections in real time”. Let’s all use big data to our advantage to support our organizations to succeed.
To learn more about Big Data concept and best practices:
- Harvard Business Review – Analytics 2.0