3 Reasons Marketers Love Big Data Analytics
As the landscape evolves, we continue to learn that big data analytics is a cross-market phenomenon doing big things in a variety of different fields. When it comes to delivering a big financial payoff, the marketing sector may be more primed than any other. According to research by McKinsey, companies using data to make decisions in marketing and sales boosted their return on investment (ROI) by up to 20 percent. The firm reported that this percentage carries a value of approximately $200 billion of the estimated $1 trillion spent annually on marketing.
There’s tons of information in the digital universe, and consumers are creating more at a high volume. We are constantly producing new data as we navigate across desktop computers, smartphones, tablets, gaming systems, and just about every app we come in contact with. For businesses, this info is equivalent to valuable insights that can be used to drive some of their most important steps. So why exactly is it that marketers are growing to love big data analytics? Oh let us count the reasons.
1. New Business Opportunities are Uncovered
CMOs and marketing managers are laser focused on integrating big data into their daily operations. Many organizations already have huge sets of data from social media interactions, customer surveys, and point of sale transactions. When fed into an advanced analytics system, this info becomes intel with the power to literally transform marketing effectiveness. Perhaps you learn that developing a mobile app is in the best interest of your company and audience. This one revelation can blaze a trail to greater brand awareness, higher engagement, and better relationships with your customers.
2. Targeting and Personalization Becomes Easier
Now more than ever, companies must treat their customers as individuals, opposed to nameless members of the same group with the same wants and desires. Big data analytics helps fuels these personalization efforts by providing the ability to collect and visualize details about preferences, purchasing behavior, browsing habits, and other activities. In combing over this information, it’s possible to learn what customers are likely to buy now and in the future as well. You can also make determinations about pricing, product development, and where your efforts should be focused.
3. Higher ROI and Revenue in Reach
Next to creating awareness, driving sales is the biggest responsibility of marketing. Companies with access to huge amounts of data – both structured and unstructured – have a golden key with the power to open new revenue streams. By analyzing the response an advertising campaign receives across different countries, savvy businesses may conclude that expanding their presence to international shores is a lucrative decision. Whether it’s optimizing customer segments or identifying new markets, big data helps create marketing strategies that improve the customer experience and bolster business performance.
These days, even smaller businesses are dealing with mounds of data from a broad range of different data sources. Few realize that they’re sitting on a potential goldmine. Armed with the insights from big data analytics, companies of any size can tailor highly targeted marketing strategies that cater to each individual customer.