Value in Big Data for Marketing

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Value in Big Data for Marketing

One of the most important things in marketing is "getting to know your customer", and know with Big Data the possibility of knowing your targeted audience is more possible than we ever imagined. 

As we have talked in previous classes about the importance of human insight in Big Data for better business decisions, we can't assume the opposite of marketing decisions in order to create successful marketing campaigns. 

Even though we have all the information available to target adequately to potential customers and moreover, it will save a lot of money of trial and error to finally discover the perfect target audience for your product or brand, us marketers have to make sense of all the information gathered and discover the motivation behind the purchase to lead the customer to connect with the brand or product. 

Mentionlytics show us several companies using big data for different marketing purposes, for example; Coca-cola is using big data analytics to drive customer retention by building a digital-led loyalty program, as well as, data is helping Coca-cola to create relevant content for different audiences. Netflix uses big data for targeted adverts to keep their subscribers engaged and keep paying for the monthly subscription by using your past search and watch data and showing you more suggestions of what you would like to watch next. 

Whereas the examples above show how companies have used big data to target audiences, Nirad Dawar, from Harvard Business Review, show us another perspective on how to use big data, where, instead of targeting a customer at the right moment, with the right message and the right price, leading every marketer to fight for the next transaction, furthermore, every competitor will become better and better at predicting each customer's next purchase leading companies no other choice rather than reducing prices and fighting against each other for the marginal profits. As we can imagine, this scenario leads the company to a very poor competitive advantage. 

The solution for this problem Nirad Dawar proposes is to use big data differently, "rather than only asking how we can use data to better target customers, we need to ask how big data creates value for customers". (Dawar, 2016). 

In conclusion, big data has given us bigger insights about our customer behavior and preferences, and this can certainly help us targeting them better, although this doesn't mean that we can just use big data for targeting, we can use it, as well, to create new forms of value for customers, for example; product development, and maybe this will help companies keep a sustainable competitive advantage from the use of data. 

References

Dawar, N. (2016) “Use Big Data to Create Value for Customers, Not Just Target Them”. Available at: https://hbr.org/2016/08/use-big-data-to-create-value-for-customers-not-just-target-them
(Accessed 12 Feb 2020). 

Mentionlytics (2018). “5 Real-World Examples of How Brands are Using Big Data Analytics”. Available at: 


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