Big Data in Marketing: What it is and what it is for
Find out in the following article what big data is in marketing and how you can use the advantages for your company.
When we talk about the concept of big data, we are referring to the large amount of structured or unstructured data that companies are currently processing. Properly analyzed, however, are instrumental in optimizing marketing and sales strategies.
Big Data in Marketing: What is it?
Big data is everywhere: from the series we watch on on-demand platforms and social media activity to web surfing. Data refers to various information processing techniques that work with large amounts of data in real-time.
This data allows companies to analyze aspects related to consumer behaviour and create effective strategies to attract them and increase sales.
These data sets have specific characteristics known as the “V” of Big Data:
- It refers to large amounts of data that can come from various sources: among others, interaction histories of a website with thousands of visits, portal logins, hits on mobile applications, data generated during sales processes. With big data, quantities of up to petabytes (1,000 terabytes) are analyz.
- Big data is heterogeneous: not all have the same characteristics, and they cannot be process in the same way. For example, analyzing written information is not the same as analyzing images or other multimedia content. To accomplish this task, tools like ERP or CRM are required.
- Speed refers to how quickly data is created, stored, and process. This data can be structured and easily managed as it comes from databases or unstructured, including videos, images, social media posts, clickstreams, etc.
- In Big Data, this term has two meanings: on the one hand, the number of inconsistencies in the data, and on the other hand, the variety of data dimensions.
- Given the speed and volume of data, volatility must be consider, and rules for the availability and validity of information are required.
- It refers to the origin or reliability of the data source, its context, and its importance for the analysis.
These data come from a diversity of sources. Some of them are:
- They share your data by filling out forms, interacting on social networks, sending emails, or replying to a text message.
- A GPS, a WLAN network, or an electricity meter also generates data analyzed.
- However. They come from security systems and can be fingerprints, face, or voice recognition.
- Data Transaction Statistics. This is the data generate during online purchases, electronic money transfers, reservations made over the Internet, etc.
- generate people
Relationship between Big Data and Business Intelligence
The two terms are related and often confused, so it’s worth taking the time to distinguish between them. Business intelligence (BI) is a set of devices for managing big data, constantly changing and adapting to the pace of information.
These methods allow data to be extracted, analyze, and transform into useful information to develop strategies adapted to the needs of each company.
While big data focuses on collecting and processing data, business intelligence studies information to optimize decisions and actions.
An essential characteristic of Business Intelligence is its orientation towards the past; That is, it examines the historical information of companies to understand their evolution. In this way, BI provides access to previously classified datasets to find analytical patterns.
Relationship between Big Data and Marketing Automation
In the late 1990s, the renowned computer scientist John Mashley published an article entitled “Big Data and the Next Wave of Infrastress,” He presented a grand vision of how technological tools would transform the work process. And data analysis.
From that point on, the concept of big data evolved into what we know today: the storage of vast amounts of information and the actions taken to process and analyze it.
However, to manage big data, we work with automation processes that allow the efficient processing of information. From this aspect, the term “Big Data Marketing” emerges as a methodology for analyzing the market and consumer habits.
Big Data in Marketing: What is it for?
Leveraging Big Data can bring many benefits to your business: more profitable operations based on accurate information. More efficient operations, and greater confidence in decision-making.
Proper analysis of information allows you to create personalized marketing strategies. With data such as taste, surfing habits, and geographic area, among others. You can make more targeted communication and dissemination campaigns.
Data analysis and automation processes enable effective segmentation of customers based on their characteristics, helping to determine the stage of the funnel each one is in. This way, it is much easier to know what actions need to be taken to make the sale possible.
Importance of Big Data in Marketing
The insights provided by Big Data are crucial to uncovering important data about consumers: what are their likes, preferences, needs, consumption trends, online activity hours, etc.
This type of information is critical to take actions that guide users through the buy-to-sell process and to fully optimize your advertising campaigns by sending the right message at the right time.
As previously mentioned, the deep segmentation that is possible with data analytics is critical to the success of your marketing strategies. The information available is so diverse that a variety of factors can categorize users:
- consumption habits. It is possible to know what products they buy, how often and how much money they spend. In addition, categories of products are create. And it is possible to tell if a user accepts one or more of them.
- Interaction with the brand. Big data makes it possible to classify users according to their interaction with the brand on websites or social networks.
- Networks of influence. Relationships between users can be identify if they know each other and are suitable brand promoters.
The benefits that Big Data can generate are many: from increasing sales to improving the management of your work team. This methodology allows you to optimize the flow of your activities and significantly grow your business.
The application of big data in marketing is a fundamental tool of our time. Do not hesitate to familiarize yourself with the topic to use this strategy as soon as possible and get the greatest out of it.
Remember, having as much information as possible and knowing how to use it to your advantage is critical in marketing today.
Also Read:- learn to use this tool in your marketing plan