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A Necessary Evil: Why is big data important in today’s marketing decisions.

We are all hooked on data.  Big Data has become an indispensable tool in today’s marketing strategies and decision-making.  Building a comprehensive knowledge of our existing and potential customers is essential if we are to provide the best possible product or service.

More than ever before, customers are more knowledgeable, thus demanding more personalized experience. Understanding the behaviors is the key to delivering the right content.

 What do we gain with all this information and how can data help marketers?  There are numerous ways:

  • First of all, we are getting a full-circle view of our audiences.  Who our buyers are, their necessary information and behavior. 
  • Acquiring potential new clients.  According to a McKinsey survey, the use of customer analytics is 23 times more likely to outperform their competitors.  
  • Segmenting target markets.  We are dividing an extensive target marketing into distinct groups of consumers who have similar characteristics, needs, or behaviors.
  • Integrating data across platforms, we can gather and analyze consistent and personalized information from all sources, web, email, applications, chats, etc.
  • Attributing to sales revenue.  
  • Aligning marketing and sales teams by defining goals and strategies together, moving forward as one. 
  • We can measure the recognition of brands under different conditions, among other benefits like website personalization, cart, and email abandonment analysis, 
  • competitor benchmark, online surveys, customer feedback, expert usability reviews, etc.

Very impressive! Right?  Well, sometimes too much of a good thing can bring us challenges.  

According to Stephen Masiclat, associate professor of communications, Syracuse University, predicted, “Big Data use will be the norm for all business, and an increasing sector of the population will eventually be in the business of explaining Big Data insights to people not trained to understand the statistical mechanics and limits of the systems. This will not be a universal good: in America, especially people dislike the idea of classification. As our data become more granular and our analysis is more refined, we’ll likely see more class stratification driven by marketers and other business operations. But the benefits will very likely outweigh these negatives as we will be able to do more things more cost-effectively with the insights gained from more data.”

Just as the countless benefits, we can find countless disadvantages.

According to Demand Gen Report, more than 62% of companies use prospect data that is incomplete or just imprecise. This is scary if we think about it!  Data incompleteness, unfitting management of maintenance, and poor storage prevent marketers from building a precise profile of the target customer.

So, How do we find the balance?

We need to ensure that our data is as clean, up to date and precisely as they can possible by investing in proper management and maybe then we can have a significant impact on the return of investment of the data analysis.

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