The Value of Big Data in Marketing: How data is revolutionising the market

   



Currently, businesses store hundreds of information files in hopes of using them one day; It is very important for marketers to find information that supports their ability to make decisions, which is why the impact of big data has been growing in this industry; Marketers have invested time and effort trying to understand the large amount of information that is processed today, to be used not only as a backup of their decisions but also to form these decisions completely, decisions like, what product to recommend, what market to attack and what solutions to use for a certain market.


Marketers have chosen to use information from social and mobile applications, which have proven to have a great influence on how customers behave and make their purchase decisions; although big loads of information are still not being processed, a smaller amount of data correctly tailored for a specific marketing issue can add great value to the industry. (Amado et al., 2018)

The following are 5 clear ways in which Big Data adds value and its revolutionising the marketing industry:

1. COMPANIES GAINING CUSTOMER RESPONSIVENESS AND INSIGHTS

Today more than ever with the amount of data businesses are receiving from their customers, marketers have been able to increase the response given by their consumers and also have been able to acquire more insights from this ones, that lead to create more relationship-driven marketing strategies. (Columbus, 2016)

2. IDEAL CUSTOMER PROFILES

Back in the day marketeers will have to pretty much guess the age, address, job, income and likes of their target market, now a days, with the amount of data coming in from social and mobile apps, marketeers can know precisely the demographics of their consumers which helps identify behaviours and preferences of the ICP and these ones can be extremely and accurately targeted. (Spencer, 2014)

3. PERSONALISATION

Business have never known more about their target market like today, this helps to offer not only a real-time personalised interaction but also offers the opportunity to provide a full personalised experience, from the first interaction till the prediction of behaviours and the suggestion of solutions even before the customers come back to the business.  

4. ENGAGEMENT AND LOYALTY

With softwares making all the analytics process and delivering optimised results, marketers can focus on strategies that generate more engagement and lead to a customer loyalty. According to a study conducted by Forbes Insights (Forbes Insights & Turn, 2015) market leaders  have gain greater engagement and customer loyalty by grounding strategies using advanced analytics and Big Data.

4. PRICING

Marketeers have found that Big Data does not only help revolutionising their relationship with the customers and offer a better service but also help them be immediately more profitable by avoiding mistakes on the pricing decision making. McKinsey found that 30% of the thousands of pricing decisions made by a company fail to deliver the best price which can result in the company losing profitability. (McKinsey & Company, 2020)

In conclusion,  Big Data offers a great value for marketing strategies not only regarding the customer relationship but also about the target and pricing decision making proving a string background; all this in order to optimise operations, generate more engagement, increase profits and be able to predict behaviours and situations successfully. 

References:

1. Amado, A., Cortez, P., Rita, P. and Moro, S. (2018). Research trends on Big Data in Marketing: A text mining and topic modeling based literature analysis. 24th ed. [ebook] European Research on Management and Business Economics. Available at: https://www.sciencedirect.com/science/article/pii/S2444883417300268 [Accessed 16 Feb. 2020].

2. Columbus, L. (2016). Ten Ways Big Data Is Revolutionizing Marketing And Sales. [online] Forbes.com. Available at: https://www.forbes.com/sites/louiscolumbus/2016/05/09/ten-ways-big-data-is-revolutionizing-marketing-and-sales/ [Accessed 14 Feb. 2020].

3. Forbes Insights & Turn (2015). THE RISE OF THE NEW MARKETING ORGANIZATION. [online] New York: Forbes Insights. Available at: https://images.forbes.com/forbesinsights/StudyPDFs/Turn-The_Rise_of_the_New_Marketing_Organization-REPORT.pdf [Accessed 14 Feb. 2020].

4. McKinsey & Company (2020). Using big data to make better pricing decisions. [online] Atlanta: McKinsey & Company. Available at: https://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/using-big-data-to-make-better-pricing-decisions [Accessed 16 Feb. 2020].

5. Spencer, J. (2014). 5 Ways Marketers Can Actually Use Big Data. [Blog] SalesForce Blog. Available at: https://www.salesforce.com/blog/2014/11/5-ways-marketers-can-actually-use-big-data-gp.html [Accessed 16 Feb. 2020].