If one tried to list all the relevant questions in the modern marketing world, such a task would be of Herculean proportions. Amongst those questions, one is ever-present – what is the difference between regular data and big data?
The term “big data” refers to enormous amounts of data that businesses collect. They can stem from their business endeavours, or from their interaction with customers, obtained through different means.
We see this form of information emerging as the foundation of many successful marketing campaigns, in various facets of the industry. Why is this the case and how does big data work in the first place?
Planning – an Indispensable Basis
Every data scientists and marketer will acknowledge that their industry is increasingly volatile. An influx of new trends, mixed with previously unseen customer behaviour (both actions and reactions), is the reason why every company should focus on forging a better and more efficient plan.
Using big data as a starting point of one’s strategy will allow having a better view of existing options. By compiling data about ones modus operandi, as well as customer reactions, it becomes evident what works and what does not.
Knowing what doesn’t function will make every planning period much easier, as the probability of error decreases.
Increased Customisation Options
One of the most important traits, characteristic of every successful marketing campaign, is versatility. Every
efficient stride towards a new customer has to be versatile.
Long gone are the days where teams of data scientists work tirelessly to find one single solution for product promotion. Nowadays, customers have a much higher expectation, and big data is more than capable of helping to achieve them.
Being knowledgeable about customer preferences allows one to deliver a product or service that is precisely catered to a specific client. Moreover, every person one cooperates with will feel exclusive, by being the recipients of an excellent service uniquely designed for them.
One of the most notable examples of big data utilisation stems from the analytics department of Instagram, where they handle user-generated data to design personalised ads.
Big data analytics reached an astounding $18.3bn in 2017.
Pricing Flexibility to Reach a Wider Audience
Higher quality demands a higher price. But no matter how much Apple or Samsung dominate the quality segment of the smartphone market, people still view the price of their products as a big downside. This was a problem for both companies but is slowly disappearing thanks to proper big data utilisation.
Having enough user-generated data gives any company more breathing room for price calibration. Countries like Holland, Belgium, or Luxemburg won’t get different prices compared to the US when it comes to Apple products.
Things like student discounts, 50% off of headphones with every Macbook, didn’t just increase sales – they allowed the company to flourish regarding popularity and esteem with their most price-sensitive customer body. Almost every CEO in the industry acknowledges that an efficient way to success includes big data.
Assembling a Customer Core – a Difficult and Important Step
SEO optimisation, the utilisation of AI and ML concepts, automated mailing lists – these cutting-edge features are
highly important. They fall under one supreme concept that the entire marketing industry gravitates around: customer retention.
SEO optimisation is excellent when it comes to attracting new customers. It attracts a multitude of new clients, but in most cases, they remain one-time clicks and become cheap ego-boosters for marketers.
According to Matthew Robson, the head of SEO at MyMathDone, Big data allows marketers to assess the habits of their most loyal customers and find out what they did to attract them. By repeating the same process, they will manage to assemble the mythical balance of customer retention and customer attraction. Even large companies like Walmart see the value of gathering big data to amass a core customer body.
An astounding fact is that the majority of marketers experience difficulties when it comes to allocating their budgets
correctly. Sadly, this problem stems directly from the fact that handling data is still a foreign feat to most. Allowing big data to step on the scene would alleviate much of the conundrums that experts face on a daily level.
How does big data help? Simply speaking, it allows every CEO and data scientists to calculate even the smallest details correctly and draw relevant conclusions. Correctly using big data in one’s business plan will help calculate one’s ROI more precisely than ever.
Doing so reduces irrelevant and excessive expenses, freeing up more time and resources for the significant
facets of marketing campaigns.
There is nothing worse than pumping money into an unprofitable facet of a marketing plan. By learning how to collect, utilise, and profit off big data, marketers stop dealing with hit or miss projects, because they can check on the outcome up front.
A Long Way To Go
If one believes all this is enough incentive to create a revolution overnight, unfortunately, it is not so. Many companies have caught the wave, but are still struggling. Despite sporadic failures, big data utilisation is the future, and taking baby steps is a slow but surefire way to reach this future.