7 facts CMOs Must Know About Big Data’s Influence On Marketing
Big data is rapidly changing the way successful companies are getting in front of their target audience, and smart CMOs are taking advantage of the new opportunities big data analytics provides. Companies are frequently rolling out new technologies to take advantage of the big data revolution, as we detailed in our last article about big data technologies. Perhaps the best opportunity for the application of big data is for marketing departments, as big data analytics provides an immense amount of useful data for marketers to use to increase marketing ROI.
In the era of digital transformation, big data and marketing are forever linked. The wealth of data on customer preferences, profiles, and history has become the driving force behind modern marketing operations at successful companies worldwide.
To succeed in the world of digital marketing and big data analytics, every CMO should understand how big data can be leveraged for their own success.
To help you understand how big data can boost your marketing efforts, we have put together the top seven facts on big data’s impact on marketing that every CMO needs to know.
One of the most immediate impacts of big data is on the product price. According to a McKinsey report, “A 1% price increase translates into an 8.7% increase in operating profits (assuming no loss of volume, of course). Yet we estimate that up to 30% of the thousands of pricing decisions companies make every year fail to deliver the best price.”
With all the incoming information big data provides it can still be challenging to come up with the best prices in real-time, but firms that are able to take advantage of dynamic pricing data will reap the profits. Not only does a slight increase in price massively increase operating profits, but a slight decrease in price could help capture many new customers.
According to an Impact report, Google accounts for over 79% of all global desktop search traffic and averages 63,000 searches per second. 82% of marketers claim the effectiveness of SEO is on the rise and 42% state effectiveness is increasing significantly. Also, 61% of marketers say improving SEO and growing their organic presence is their top inbound marketing priority.
It’s clear the link between the massive amount of user-generated data recorded by Google is increasing the effectiveness of SEO, and marketers need to figure out how to capitalize on this.
Search engines deliver an immeasurable number of useful data points to any business that has a presence online. They tell you what your customers are searching for the most, what customer profiles are more likely to buy, what search sources create the best prospects and so much more.
With the treasure trove of useful data delivered via search, it is no wonder that big data is having a large impact on the SEO decisions that CMOs and marketers are making.
As we demonstrated in a previous article on customer experience, increased customer engagement and loyalty is the number one way to boost revenue in 2019, and big data can help with that.
According to an MIT Sloan Management Review study, “The most analytically mature organizations are twice as likely to report strong customer engagement as the least analytically mature organizations.”
Big data analytics can be used to improve customer experience at every point of the buyer’s by increasing personalization and response time. CMOs should be incorporating big data into their customer experience plans to make a big impact on increasing annual revenue.
The application of big data in internet marketing and all omnichannel marketing operations gives CMOs the opportunity to better plan to where they should devote resources. With more data coming in via the internet and physical channels, marketers know where they are failing and where they are succeeding much better than ever before.
