Traditionally it has been said that Big Data is about 3 V’s: Volume, Variety, and Velocity. Volume refers to the amount of data, variety to the number of types of data, and velocity to the speed of data processing.
I would like to share some thoughts around the Value of big data.
Key value levers of big data can be categorized into three main areas:
Improved revenue with targeting
Better products and services
Decreased operational costs
Here I would like to dive into #1 lever – increased revenue with targeting.
First, what is big data in consumer marketing space? Big data is NOT consumer sales transactions or marketing preferences the customer shares with you. Big data is neither loyalty club records collected about your consumer base. Big data in consumer space is all the events your consumer triggers visiting different touch points, leaving footsteps behind him, for example, when running google search or product comparison on the web or using mobile applications you launched. In a nutshell, big data is the behavioral data that can be collected across different touch points and brought together. Volume, variety and velocity of these footsteps are extremely high.
Interested in knowing your consumer behavior, getting beyond sales transactions, getting beyond what your customer shares directly with you? Think about knowing all the sales transactions enriched, for instance, with:
- His/her social profile about network, his/her likes or dislikes
- Key words he/she is searching in web
- Ads he/she views on web page for a longer time than normally
- His/her social media links & recommendations
Think about combining all that data together and adding some analytics that forecast customer behavior. This is the moment where you have collected a real 360 degree view of your customer. Simplifying, 360 degree view is an extensive customer profile built based on everything you could know about him/her.
So what’s the value? Evident value of a 360 degree view from the consumer point of view is the relevance. When using the big data and analytics you can optimize the offer being the most relevant to your customer. You can optimize the message so that it also brings the maximal sales conversion. When your customer next time visits your contact center or web product pages, you will be able to provide the most relevant product offer knowing more on his/her needs based on past transactions and behavior. You can provide an offer that is built based on what you have learned and collected from your customer behavior during past months or just 10 seconds ago.
An important point to think about when using customer information is Consumer Privacy, which must be taken into account in all steps of the process.
Using big data supporting sales and marketing can have a direct impact on the most important Key Performance Indicators (KPIs): Customer Satisfaction, Customer Loyalty, Retention and Sales. Succeeding with these strategic KPIs will enable your company to succeed profitably today and in the long run.