How big data can build better customer relationships
“Big Data” is a phrase that strikes fear into the heart of any business owner. Like navigating a boat through a storm, the incoming tidal wave of customer data can overwhelm company bosses. They may feel like their ‘small, leaky boat’ of a business will capsize in the endless sea of customer insight data, allowing their competition to go on ‘full steam ahead’ and conquer new markets before them.
It can be all too tempting for business owners to ‘stay on dry land’ and ignore the call of the sea of big data entirely. But take note, as the tides of demand take hold of customers who are increasingly becoming more expectant of personalization, and as the sheer volume of data increases exponentially, business owners who ignore the signals will find themselves in a rapidly shrinking marketplace.
In beginning to utilize big data within a small to medium-sized business, company bosses should grab a ‘life jacket’ and start thinking of ways they can build better relationships with their existing customers. Here are some points to consider for company bosses who are ready to ‘test the waters’ of utilizing big data.
Where previously a company may have used customer focus groups and surveys to gather all their market data, the resulting insights amounted to little more than ‘anecdotal evidence’ that could prove to be contradictory to what the majority of customers really wanted from a product. Nowadays, brands need to rely on hard consumer data like engagement metrics and predictive analytics that are constantly being fed back in an infinite loop of data.
By utilizing big data for business intelligence and customer insights, an element of ‘dangerous guesswork’ is eliminated. Instead of hunches, benchmarked metrics help corroborate findings and guide marketing decision-making and idea formulation. Landing pages, launch ideas, social media campaigns — all these can be sent out en-masse, with the incoming data analyzed for effectiveness and ROI. At the same time, real-time data also compels businesses to be able to change their minds and pull back from campaigns quickly if initial feedback is negative.
From a customer experience point of view, data is all about joining up the dots between a business’s disparate channels and services. With evidence-based segmentation and reporting in place, adjustments further down the line can justified and implemented easily, providing a more fluid and user-driven customer experience.
In getting to grips with big data, the next ‘port of call’ would be personalization. On the face of it, providing a tailored customer experience can seem like a daunting prospect. However, for those looking to ‘dip their toes’ into the big data waves of personalization, focusing on these main areas can help companies find their footing:
Amazon has made full use of personalization to drive more than 35% of its customers to make purchases through their clever recommendations algorithm.
