If you are familiar with marketing, then you have probably heard the phrase, “big data, big
marketing.” Big data in simple terms is used to describe the massive amount of data, structured
and unstructured, that a company may deal with that is not easily processed.
When one hears the phrase big data, we tend to focus on data. However, data itself is not the
importance. The importance attached to big data is that the data can undergo analysis, which
helps businesses strategize and make more accurate moves. The way the world uses business
information is changing today as organizations are using big data to extract insight. This is the
digital world, virtual improvements and changes are necessary.
Data is no scarce commodity today. The volumes of data collected and stored globally are
absolutely incredible, increasing each and every day. This is a potential opportunity for smart
businesses to tap into.
For marketers, it may seem like big data has always been in existence, but the truth is that the
data of today is nothing compared to that of 10 years ago. Compare customer data collected 15
years ago (which was more of point of sale transaction data, coupon redemption, direct mail
campaigns, etc.) to data collected today (by browsing behavior, mobile device usage, online
purchase data, social media interactions, etc.) and you’ll see that they are not on the same level.
Having big data does not automatically guarantee great marketing, but there’s potential for it.
Big data is that essential element for your marketing. Not the data itself, but the insights you get
from the data and the ability to transform those insights into strategies that actually work.
The Impact of Big Data
Big data in addition to a great marketing strategy makes a massive impact in highly important
- Customer engagement: Still wondering who your ideal customers are? Are you
wondering where they are and exactly what they want? Big data can give you all your
answers and also give you insights on how to best engage them.
- Customer retention and loyalty: Big data has a potential to help you know what makes
customers (especially your own customers) loyal to one brand. When put to optimal use,
your customers will keep coming back to you.
- Marketing performance/optimization: Through the privilege of testing, analysis, and
measurements that comes with being in the possession of big data, you can optimize your
marketing programs. In addition to that, you can also come to know what optimal
marketing spend is across various channels.
The Type of Data That Is Largely Related to Marketing
There are three of them:
- Customer: For marketing, the usual big data include behavioral, transactional, and
attitudinal metrics from various sources. These sources include point of sale, social
media, loyalty programs, online communities, and websites.
- Operational: This category of big data usually has to do with objective metrics that
check the quality of marketing processes that have to do with asset management,
marketing operations, budgetary controls, etc.
- Financial: An organization’s financing is where this data is housed. This category has to
do with revenue, sales, and profits. They measure the finances of an organization and
how strong it is.
Big data is highly useful for better marketing as long as you focus on the key objectives
of the data, dig for deeper insight, and give the insights to those who can actually use it.
However, some report facing challenges like knowing the exact type of data to gather and
knowing which tools to use for analysis. Once these challenges are overcome, your
marketing can only sget stronger.