Consumers are inundated every day with ads for products and services. The number of options is exhausting. What makes consumers stop and pay attention?
As brands work to answer this question, they become more creative as a result. In fact, many are diving into the benefits of big data analytics. For instance, in 2016 Starbucks started using AI to send personalized offerings to its customers via email. Beyond customizing drinks to match personal tastes, the company uses its loyalty card and app to collect and analyze customer data, including where and when purchases are made.
Big data isn’t a new term. It’s a concept that has been around for many years — but the first big data analysts used spreadsheets that were typed by hand and then manually analyzed. You can imagine how long that process used to take.
Innovations in technology have changed the rules when it comes to big data. Advanced software systems greatly reduce analytics time, giving companies the ability to make speedy decisions that help increase revenue, reduce costs and stimulate growth. This offers a competitive advantage to the brands that are able to work faster and target their consumers more effectively.
If you’re a brand considering investing in big data analytics, here are some of the ways you may benefit:
1. Customer Acquisition And Retention
To stand out, organizations must have a unique approach to market their products. By using big data, companies can pinpoint exactly what customers are looking for. They establish a solid customer base right out of the gate.
New big data processes observe the patterns of consumers. They then use those patterns to trigger brand loyalty by collecting more data to identify more trends and ways to make customers happy. Amazon has mastered this technique by providing one of the most personalized shopping experiences on the internet today. Suggestions are based not only on past purchases, but also on items that other customers have bought, browsing behavior and many other factors.
2. Focused And Targeted Campaigns
Businesses can use big data to deliver tailored products to their targeted market. Forget spending money on advertising campaigns that don’t work. Big data helps companies make a sophisticated analysis of customer trends. This analysis usually includes monitoring online purchases and observing point-of-sale transactions.
These insights then allow companies to create successful, focused and targeted campaigns, thus allowing companies to match and exceed customer expectations and build greater brand loyalty.
3. Identification Of Potential Risks
These days businesses are thriving in high-risk environments, but these environments require risk management processes — and big data has been instrumental in developing new risk management solutions. Big data can improve the effectiveness of risk management models and create smarter strategies.
4. Innovative Products
Big data continues to help companies update existing products while innovating new ones. By collecting large amounts of data, companies are able to distinguish what fits their customer base.
If a company wants to remain competitive in today’s market, it can no longer rely on instinct. With so much data to work off of, organizations can now implement processes to track their customer feedback, product success and what their competitors are doing.
5. Complex Supplier Networks
By using big data, companies offer supplier networks, otherwise known as B2B communities, with greater precision and insights. Suppliers are able to escape constraints they typically face by applying big data analytics. Through the application of big data, suppliers use higher levels of contextual intelligence, which is necessary for their success.
Supply chain executives are now looking at data analytics as a disruptive technology by changing the foundation of supplier networks to include high-level collaboration. This collaboration lets networks apply new knowledge to existing problems or other scenarios.
How To Begin Putting Big Data To Work
If you are a business that has data, but you do not know where to begin or how to use it, don’t worry. You are not alone.
First, you must determine what business problem you will be trying to solve with the data that you have. For instance, are you trying to determine the level of shopping cart abandonment and why?
Second, just because you have the data doesn’t automatically mean that you can put it to use to solve your problem. Most organizations have been collecting data for a decade or more. Yet, it is unstructured and messy — what is known as “dirty data.” You will need to clean it up by putting it into a structured format before you can put it to use.
Third, if you decide to work with a firm, you will need one that can do more than just visualize the data. It will need to be a firm that can model the data to drive insights that will help you solve your business problem. Modeling data is not easy or inexpensive, so it’s important to have a budget and plan in place before taking this step.
An Important Investment
The biggest businesses are continuing to grow, thanks to big data analytics. Developing technology is becoming available to more organizations than ever before. Once brands have data at their disposal, they can implement the appropriate analysis systems to solve many of their problems.
By Terence Mills
From more reusable packaging to more companies taking back used products to more empowered designers, 2021 will be a key year in the development of new, less wasteful systems.
As we enter this new year, I thought it would be helpful to see what people from a full century ago envisioned for us. Newspapers of 1921 were full of predictions—some right, and some very wrong.
Employees are in need and are demanding better coverage. Here’s how leading companies get mental health coverage right.