Value in Big Data for Marketing

Marketers have a good opportunity to analyse a big amount of data which are available today. Data collected through websites traffic, emails, click-through rates, social media interactions and apps which helps marketers to understand the customer behaviour (Goldfein, 2019).

Here are key use cases where Big data could have a substantial impact on marketing (Sas, no date):
  • Customer engagement. Big data can help companies to derive more meaningful insights about their customers, who they are, what they want, how and when they want to be contacted.
  • Customer retention and loyalty. Big data companies can provide better understanding of customer loyalty to the brand and determine churn score, what and how affects the loyalty and why the customers want to come again or don’t.
  • Marketing optimization/performance. By analysing Big data companies can identify and calculate the spends through different multiple channels. Moreover, they can optimize marketing programs across testing and analysis.
Big Data can predict the future of sales and helps marketers adjust their campaigns to make them more successful.

Marketers are interested in three main categories of big data: customer, financial, and operational. Usually each type of data is collected from different sources and stored in different locations (Pearlman, 2019):
  • Customer data. This type might consist of customer contact details, current life situation, web behaviour data, click streams, history of purchases, preferences, sentiments and can help to identify their customer’s attitudes. The data can be collected from various customer interactions and activities such as emails, service requests, surveys, social media feeds and online communications.
  • Financial data. This category can include sales, revenue and profits which determine the financial data of an organization.
  • Operational data. This data relates to business processes: shipping, logistics, customer relationships and feedback from different sources. Companies can analyse this type of data and improve their performance and reduce costs. 
There are some examples which show how companies use big data to achieve their marketing goals. 55% of Amazon sales driven by recommendations and it help in forecasting predicted demand for inventory. Target analysing shopper data to predict pregnant women to offer specific promotions. Kroger used Big data to personalize direct mail coupons to their existing customers. They used data from customer loyalty program and sent the coupons to the customers. It earned them 70% coupon return rate (Velasco, no date).

Big data is transforming marketing and sales in ways that were unattainable just a few years ago. Today marketers have the tools and an opportunity to launch successful big data marketing efforts provided by cloud technology (AWS, Azure and Google). They can use data quickly and easily at a reasonable cost (Pearlman, 2019).

Of course, just having Big data doesn’t automatically improve marketing effectiveness – but the potential and opportunities from Big data are huge, the outcome will highly depend on the company vision and intelligent strategy development.


References:

Joshua Goldfein (2019) “Big Data & Marketing: Value, Problems, and Solutions”. Available at https://mercury.one/digital-marketing/big-data-marketing-value-problems-and-solutions/
 (Accessed: 9 February 2020).

Sas (no date) “Big Data, Bigger Marketing”. Available at https://www.sas.com/en_ie/insights/big-data/big-data-marketing.html
(Accessed:10 February 2020).

Shana Pearlman (2019) “Big Data in Marketing 101: Why it’s Important, Where it’s Going, and How to Get Started”. Available at https://www.talend.com/resources/big-data-marketing/ (Accessed:10 February 2020).

Korina Velasco (no date) “8 real-life big data marketing examples”. Available at https://www.lytics.com/blog/8-real-life-big-data-marketing-examples (Accessed:10 February 2020).

Comments

  1. thisthatandeverything12 February 2020 at 06:58

    Quite a good and information based read. You have used some great examples in the blog. Can't wait to read more posts of yours! Thanks a bunch for the information :)

    ReplyDelete
  2. Oksana Shevchuk16 February 2020 at 09:26

    It is very true that main goals for marketers is how to gain a value from the interaction with their customers. You pointed out good key cases and types of data which has to be managed properly by companies!

    ReplyDelete
    Replies
    1. Svetlana24 February 2020 at 13:32

      Many thanks for your feedback! Glad that you share the same point as me.

      Delete
  3. Colin Almeida24 February 2020 at 10:30

    Very well explained how we can use big data as marketers.

    ReplyDelete
    Replies
    1. Svetlana24 February 2020 at 13:33

      Thank you! I appreciated your comment, it is very valuable!

      Delete
  4. Martina24 February 2020 at 12:30

    It is unimaginable how marketers are able to go beyond customers' expectations just by tapping into these data. You have captured the essence of how data can reform businesses and explained it very well. This was such an interesting read. Thank you for sharing!

    ReplyDelete
    Replies
    1. Svetlana24 February 2020 at 13:36

      You are right! Data has a big power and can be heavily utilised by marketers to provide better customers experience.

      Delete
  5. Sergey25 February 2020 at 04:16

    Great article! Very well-determined major use cases with good real examples from tech giants. Thanks!

    ReplyDelete

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