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Thursday, November 15, 2018

Digital Marketing succeeds because of Big Data




The days when marketing decisions were guided by intuition and experience is over. Big Data is now in charge of determining important marketing decisions. This refers to the study and application of big, complex datasets, which cannot be processed by traditional data-processing applications. Companies can make better business decisions and strategic moves by using these figures which generate insights. The quality of decisions making and detailing processes is improved because of companies applying the right technology.

Because of the increase of number of outputs and customer characteristics, companies are faced with huge volumes of both structured and unstructured data. This level of processing is beyond the capacity of traditional databases and software techniques.

I use Google Analytics extensively in my work and also have my hands on a couple of big data tools. Digital marketing is what I am good at, so I know where businesses can start when using big data in digital marketing. In this article, you will learn three examples of how big data can be leveraged for digital marketing success.

Improving Marketing Campaigns

By using Big Data, companies are enabled to better target the core needs of customers by developing rich and informative content. Let’s understand how it helps companies collect data about customer behaviors. One example is cookie files. They collect information about customers’ activities as they browse the internet, generating personalized data in the process.

Aggregative advertising used in the past is no match against campaigns using big data. Taking the guesswork out of determining what customers want can be considered as the good thing about using big data when it comes to forming marketing campaigns. By using data like customer behavior, purchasing patterns, favorites and background, marketers can develop different buyer personas. For example, they may find that women are more likely to respond to email campaigns, use coupons and engage in bargains and deals, and shape their digital marketing campaign from there.

Though applying big data to digital marketing is a great idea, it’s necessary to use good analytical tools to ensure the data presents valuable conclusions. These methods ensure that actionable insight is derived in an efficient manner so that companies can make their decisions without delays. To evaluate what makes a good analytical tool, it should be able to access all types of data including cloud, social media data, log files, websites, emails and other unstructured data. It should support campaign attribution tracking, real-time analytics, funnels and third-party testing and integration tools.

Deciding prices of products and services

Companies traditionally price products and services using basic information like product cost, competitor pricing, perceived value of the product from the customer and demand. With big data, many other factors can also be used to make pricing decisions. For example, you can use data from completed deals, incentives and performance-based data. Big data emphasizes making pricing decisions as granular as possible, particularly in the business-to-business (B2B) sector, as each deal is different from the next.

It is necessary that companies need to remember that they may already have plenty of unused data at their disposal, such as customer preferences and general economic information. The challenge is how to derive valuable insight from this information. For example, does your pricing strategy consider what products a particular customer has purchased over the last five years? What is their disposable income? How much can they afford to pay for a product? Additionally, does your pricing strategy consider macroeconomic indicators like quarterly GDP growth rate, inflation rate, exchange rate, interest rate and government spending of the countries you operate in? Incorporating these insights will lead to better pricing decisions.

By using Big Data, human assistance possibly is no longer required, thus less chance of error since big data also allows you to automate, which can save time in price settings and lead to more accurate pricing decisions

Showing Appropriate Web Content

Online marketers will be able to serve customized content to their website visitors by tapping into their knowledge base to determine which content will be more engaging to each visitor. By using the information about which movies and shows the visitors have watched, Netflix does an exceptional job providing visitors with individualized recommendations. You can apply the same concept when designing your website by refraining from thinking of your page as a static site. For example, look at “time spent on page” data to determine what the visitor is interested in; the next time that particular visitor comes to your website, you can show them relevant content based on their browsing history.

Just as search engines return different results when you search for a term in different locations, your website will look different depending on who is looking at it. Though it will be a technical challenge to show customized content, an increasing number of consumers are demanding personalized experiences. Organizations cannot compete against their competitors if their digital marketing teams cannot meet these demands.

Use deductive and inductive research and customer self-selected methods in order to build your personalization strategy. Ultimately, the consumer will decide where to click and what to purchase, and companies that can serve those consumers better will win the game. It will be the early adopters who win the race because they have an initial lead.

Because of being able to gain insight into what their customers need and want, the amount of attention gained by big data has been significantly increased. The capacity to process large datasets is far more complex and advanced compared to traditional systems. Unlike early adopters, not all organizations have integrated big data into their marketing strategies. If those organizations want to compete in today market, evaluating their current systems is one thing they must do.

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