The marketing sector has always been very open to emerging technologies like Digital marketing and big data for innovation. Its purpose is to inform customers about a product or service and ultimately to persuade them to buy it.
As you know there is two main objectives:
- To create a message
- To reach targeted audience.
For instance, you will probably need a different strategy when you advertise a T-shirt brand for teenagers, compared to a product campaign for a dishwasher. Different groups of people will respond differently to the same product, depending on their age, social status, hobbies, and other factors.
Therefore, the main challenge is to design an effective marketing strategy. The good news is that Big Data opens many doors to improve it and to find an optimal approach.
Through several software or only by using search engines, companies can use the available data to be more informed about their customers. In numbers, the Big Data whole market is estimated around $ 210 billion in 2020, and much more when it comes to predictions (8% growth per year in average).
Why is big data analytics so important?
The term “Big Data”, as name specifies, designates the huge volumes of digital data generated using new technologies (connection to a device, exchanges on the web, signals transmitted by GPS, etc.). This data can gather information of various kinds, linked both to companies (databases, address books, history linked to the activity) but also to customers (consumption habits, contact details, exchanges on social networks, etc.)
With the development of digital platforms, smartphones, connected objects, virtual reality headsets, and others, the volume of global data is constantly increasing and doubling every 3 years.
“The global volume of data will double every 3 years.”according to a study conducted by McKinsey Global Institute.
Figures that can only support the idea that Big Data has become essential for businesses.
Indeed, all the data collected from prospects and customers allow companies to analyze their purchasing behavior in order to better understand and anticipate needs.
Thus, databases formed allow the design of predictive models: nothing is insignificant for marketing experts! They can predict which prospect to contact, when to make phone calls, etc.
The key added values here are: saving time (and money!) and improving commercial operations.
A customer centric approach
For an entrepreneur, attracting new customers is vital for the growth of his company.
One of the biggest problems in marketing today is getting the attention of customers. Given the influx of information in our society, customers tend to be more distracted than ever and have a wide range of choices when it comes to buying a product or offering themselves a service they need.
Getting audience is therefore crucial to the success of a campaign. One of the best ways to capture a client is to advertise a client’s actual needs. This is where Big Data can have a huge advantage. Using Digital marketing and big data means focusing on customers and better understanding their needs, so that you can define a specific target and to design your marketing strategy to run a campaign that grabs the attention and interest of your targets.
In reality, many companies promoted their desire to be customer centric, but, many of them are only focused on their profits. The advantage of Big Data analytics is that the lack of customer knowledge will be overcome thanks to the amount of information collected. Thus, the products marketed and the services offered will be highly suited to customers’ needs.
Trends and risks
In the near future, we can predict the use of Digital marketing and big data in three other dimensions. The first dimension is personalization. In other words, the translation of Big Data into tailor-made products and services. The second one consists in automating low added value processes, to bring more operational efficiency. Finally, the third dimension could be integrating artificial intelligence, as a combination of different phases: descriptive, predictive, and prescriptive. It will allow to create automated short- and long-term forecasts based on past data and could help to automate the whole process.
The increasingly intensive use of Big Data tends to cause some issue for the storage of these massive amount of data, and the veracity of the information carried by these.
In fact, the Ecosystem is constantly evolving, and prospects are multiplying due to the development, in parallel, of artificial intelligence.
Thus, investment in big data in terms of time and money is therefore essential to remain competitive compared to competition.
Marketing tends to change rapidly over the next few years. More and more players are opening themselves to technologies around Data, making their marketing strategies more attractive and more profitable thanks to a better knowledge of the market, but also thanks to a better user experience. It is natural to think that the Big Data adventure for marketing professionals has only just begun and is promised a bright future.