We live in an age when Data or more precisely Big Data is everywhere. Internet users leave a constant stream of Data not only on social media websites but anywhere they go in the form of digital footprints. Even when we walk into a store with a smartphone or iPhone by accepting free WiFi access we become a source of Data for retailers. Our modern devices constantly transmit Data about us and our preferences.
Truly enough Data has always been there and has always been sought by companies and organizations. However, never has it been so easily accessible and in such large quantities. But, why all this fuss with Big Data? Why is everyone writing and talking about it?
The digital age has enabled a huge flow of Data that when exploited correctly offers organizations important benefits. According to Jeff Tanner, professor of marketing at Baylor University and director of the school’s “Business Collaboratory”, “Collecting customer data helps you know each customer more individually and treat them that way”.
Data is valuable in various ways; by gathering demographic, psychographic, transactional Data, brands are able to paint a clear picture of who their target audience is and how to best communicate with them, hence creating an enhanced and personalized customer experience. Greg Van den Heuvel , COO of Software Solutions at Pitney Bowes, shared insights from their research which indicates that 73% of customers prefer to do business with brands that personalize their shopping experience.
Big Data enables marketers to understand the cross channel behavior of prospects that become customers. In fact they get to see the prospect-to-customer journey and the campaign that influenced them most. The insights they get allow them to adjust their marketing strategy to the specific needs of target groups of certain profiles thus providing them customized customer experiences. In an age where the new empowered customer is increasingly savvy and expects a highly personalized and consistent experience, Big Data refines messages to consumers, predicts what they want to hear and yields new insights on what they want. Consumers have become highly demanding and each time they are exposed to an improved customer experience their expectations are immediately reset to a higher level. Thus, companies not only need to gather vast amounts of Big Data but they need to be able to transform it to strategically exploited smart Data in order to offer optimized customer experiences. Only then will it be able to work to its full benefit and become the basis for competition underpinning new waves of productivity growth, innovation and consumer surplus.
Correct Big Data analysis generates value, increases efficiency and quality and saves money in several ways. It makes information transparent and usable at a much higher frequency. As organizations create and store more transactional Data in digital form they collect more accurate and detailed information. Hence they expose variability and boost performance. Big Data analysis allows ever-narrower segmentation of customers and more precisely tailored products and services. Evidently sophisticated analytics substantially improve decision-making and can be used to improve the development of the next generation of products and services. A recent Infosys study showed that 70% of Americans are willing to spend an average of 13% more with companies they feel provide superior service.
Technology offers algorithms that make targeting more accurate. For instance, Netflix relies heavily on algorithms to recommend shows to its viewers. These algorithms save Netflix $1 billion per year by reducing the churn rate and marketing the right shows to the right customers. These algorithms require a constant flow of information in order to remain up to date. In fact, the increasing volume and detail of Data captured by enterprises, the rise of the social media, multimedia and the Internet of Things will fuel exponential growth in Data for the foreseeable future.
It is more than evident that Big Data has become part of our present and a necessary component of a sound and competitive business in any sector. However, key to benefiting from this valuable Data is its accurate and consistent analysis. At Publisto we are here to provide you with solutions not only for its use but also for transforming it into stories that will bring you closer to your customers and their aspirations.