Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Value of Using Big Data

77 views

Published on

Download the PDF: https://www.demandmetric.com/content/value-using-big-data

Traditionally, marketers connected with individuals through surveys, focus groups or mall intercept
surveys. Today, we have come quite far from tradition, finding ways to accumulate much
more information about the intimate behaviors of our consumers.
Think of yourself as a consumer, going about your regular day. You communicate using your cell
phone, post to Facebook, send out a Tweet, browse the internet, make purchases, share music,
search for something of interest online. As a consumer, you wouldn’t think twice about those daily
activities. However, as a marketer, we realize that through these actions, customers are creating
their own enormous trails of data. The data represent a current hot topic for marketers: Big Data.
By definition, Big Data is a large dataset so complex it defies processing and analysis using existing
database-management tools. Big Data comes in many forms, both structured and unstructured,
such as web-based digital images, online videos, blogs, chats, forums, internal data, GPS signals
and purchase transaction records, to name a few. An overwhelming amount of data exists – how
can marketers manage this data and use it to their advantage?

Published in: Marketing
  • Be the first to comment

  • Be the first to like this

Value of Using Big Data

  1. 1. VALUE OF USING BIG DATA HOW-TO GUIDE
  2. 2. 2 Value of Using Big Data How-to Guide Traditionally, marketers connected with individuals through surveys, focus groups or mall inter- cept surveys. Today, we have come quite far from tradition, finding ways to accumulate much more information about the intimate behaviors of our consumers. Think of yourself as a consumer, going about your regular day. You communicate using your cell phone, post to Facebook, send out a Tweet, browse the internet, make purchases, share music, search for something of interest online. As a consumer, you wouldn’t think twice about those daily activities. However, as a marketer, we realize that through these actions, customers are creating their own enormous trails of data. The data represent a current hot topic for marketers: Big Data. By definition, Big Data is a large dataset so complex it defies processing and analysis using existing database-management tools. Big Data comes in many forms, both structured and unstructured, such as web-based digital images, online videos, blogs, chats, forums, internal data, GPS signals and purchase transaction records, to name a few. An overwhelming amount of data exists – how can marketers manage this data and use it to their advantage? This How-To Guide will outline the following: Big Data refers to having a dataset so large and complex that you cannot process it using the regular database management tools. The definition of Big Data, however, is a moving target. There is no specific limit on data size to qualify as “big,” and it can depend on the organization managing the data set’s capabilities. Big Data can come from many different sources, both internal and external, including but not limited to sensors, posts to social media sites, digital pictures and videos, purchase transaction records, MP3’s, online sharing, cell phone records, etc. Companies are creating a vast amount of data as it becomes more accessible through these sources. HOW-TO GUIDE What is Big Data? How to manage the overwhelming amounts of data using the 3 V’s How marketers can benefit from Big Data Challenges that marketers may face Action plan for getting started with Big Data Value of Using Big Data What Is Big Data?
  3. 3. 3 Value of Using Big Data How-to Guide The three common factors for describing Big Data are the 3 V’s: high volume, high velocity and high variety. Big Data is essentially information that requires new forms of processing to inte- grate with decision-making, discovering new opportunities and optimizing the process. Here is the description of the 3 V’s: HOW-TO GUIDE Velocity (Speed) – Velocity increases as the rate at which data flows into the organization grows. The rate at which the data is coming or changing, and how quickly it’s used to create real value. With so many sources of information, data is available at increasingly rapid speeds. Volume (Large amounts of data) – A very large amount of data is becoming accessible to marketers. This volume of data provides opportunity for those who develop the capacity to process it. Variety (Types) – Diverse data types are both structured; examples include movie files, images, documents, text, call center notes, geo-location data and others in an increasingly wide variety. Value of Using Big Data Describing Big Data Three Key Advantages for Marketers Advantage #1: ROI Marketing has always been a difficult discipline to demonstrate ROI and it’s under constant pressure to demonstrate true business value. Big Data analysis is proving invaluable at helping drive business decisions across various organizations and having a role in improving ROI. Big Data allows marketers to capitalize on unmet needs in key market segments and can facilitate real-time ROI measurement. For example, spending on digital marketing, projected to significantly increase, is being fueled by the ability to demon- strate marketing ROI using Big Data. This increase also provides us with more data to analyze, placing more beneficial research at our disposal.
  4. 4. 4 Value of Using Big Data How-to Guide HOW-TO GUIDE Advantage #2: Creates Value & New Opportunities Advantage #3: Improving Analysis Marketers create value using Big Data in many ways by allowing greater informa- tion transparency, making insights from that data more accessible and usable for marketers. Big Data analytics can expose variability by collecting more accurate and detailed performance information. Using Big Data, you can achieve more precise segmenta- tion of customers that in turn lets you tailor your products and services to better meet their needs. Big Data analytics creates value by enabling data-driven decision-making on a level and scale previously not possible because of the sophisticated analytics involved. One of the greatest advantages of Big Data is the ability to create an optimized and personalized marketing strategy. The analysis of Big Data allows marketers to create highly personalized marketing approaches based on what you can understand about individual customers and their buying patterns. Furthermore, this level of analysis can provide insights that allow marketers to more effectively allocate their marketing budgets and achieve a higher ROI. Predictive analytics using Big Data can even help organizations understand how customers will respond to a proposed price change. The exploitation of Big Data provides organizations with tremendous opportunities to gain competitive advantages. Incorporating data from many different sources can help improve the process and detect problems more quickly. Adding an analysis of social media to the mix, you can understand how their customers feel about your product or service, which is remark- ably valuable. Analyzing Big Data trends can help develop strategies with the messages you can deliver and when. For example if you analyze the data from coupons sent out and merge that information with regional data, demographic data and average spend data, you can start to paint a picture of who your best customers are and how best to connect with them in the future. Value of Using Big Data
  5. 5. 5 Value of Using Big Data How-to Guide HOW-TO GUIDE Value of Using Big Data Challenges Although there are many opportunities for marketers to take advantage of big data, there are also a number of challenges presented. The main challenges include Although there are risks and challenges involved with analyzing Big Data, when managed properly, the insights marketers can obtain from this data provide marketers with a significant advantage. Importance – Another challenge is capturing which data is most important, finding the most important data as it happens and delivering it to the right people. Once it is discovered, marketers may find it challenging to find the meaning of the important data and make use of it. Volume – The sheer volume of data presents a challenge in how to properly manage all the data and ensure the amount of storage space is available. The proper management and analytics soft- ware is required to analyze all the data. In addition, the right analytics skills are needed to perform the analysis and deliver results. Harmonization – Data harmonization is often a challenge. Organizations typically have volumes of data in different formats, structures and databases, making it difficult if not impossible to have a single, harmonized view of it all. Harmonizing data from disparate data sources is often a barrier to Big Data analytics success. Security – Issues with security, privacy, cloud storage and information theft are all issues that have been linked to the age of big data. Bottom Line By using Big Data, organizations can seize the opportunity to improve marketing ROI, develop new opportunities, tailor promotions to specific target markets and help optimize marketing strategy. Big Data is a game-changer with the capability to drive better decisions while disrupting many industries. It is a real and growing discipline, often housed with the Business Intelligence unit of a company. Successful companies are using Big Data and analytics to compete more effectively, because it provides one of the best ways to deeply understand and engage customers in a way that inspires greater loyalty.
  6. 6. 6 Value of Using Big Data How-to Guide 1 2 3 4 5 Vision Skills Architecture & Systems Pilot Business Case Action Plan STEP 1 - Vision Success with Big Data begins with articulating a vision for leveraging it. For most organiz- ations, this means harnessing relevant data and using it to make the better decisions. Align Goals with the B2B Data Management Guide B2B Data Management How-To Guide Your vision should lead to aligning any Big Data initiative with specific business goals. V I E W R E S O U R C E
  7. 7. 7 Value of Using Big Data How-to Guide 1 2 3 4 5 Vision Skills Action Plan STEP 2 - Skills Most organizations don’t have the skills in-house to pursue Big Data initiatives. Iden- tify your skills deficiencies and put a plan in place to acquire them. Architecture & Systems Pilot Business Case Hire Help for Big Data with this Skills Assessment Marketing Technologist Skills Assessment V I E W R E S O U R C E Skills are necessary to design and implement Big Data archi- tecture and also perform the analytics work. Consider using a third party company to provide consulting services to help establish an Analytics Center of Excellence within your company.
  8. 8. 8 Value of Using Big Data How-to Guide 1 2 3 4 5 Architecture & Systems Action Plan STEP 3 - Architecture & Systems Design your Big Data architecture: this is the System design, data flows, timing, and data models required to support a Big Data initia- tive. Consider the alternatives for a platform and tool set you will use and make recom- mendations for them. Vision Skills Pilot Business Case Designing Your Data Architecture for Flow and Clarity
  9. 9. 9 Value of Using Big Data How-to Guide 1 2 3 4 5 Pilot Action Plan STEP 4 - Pilot Identify a pilot project to prove the value of Big Data that uses your data to solve a real problem. Vision Skills Architecture & Systems Business Case Build and Test Big Data with this Project Plan Template V I E W R E S O U R C E Project Plan Template Your pilot project will provide the basis for a business case to make a long-term investment in Big Data analytics, and also create the necessary internal support. Use the results of your Big Data pilot to help define the right metrics for measuring future success.
  10. 10. 10 Value of Using Big Data How-to Guide 1 2 3 4 5 Business Case Combine the results of your pilot with the recommendationsforarchitectureandsystems to develop and present a business case for investing in Big Data. Action Plan STEP 5 - Business Case Vision Skills Architecture & Systems Pilot Make the Case for Business Investment V I E W R E S O U R C E Business Case Template
  11. 11. Demand Metric is a marketing research and advisory firm serving a membership community of over 100,000 marketing professionals and consultants in 75 countries. Offering consulting playbooks, advisory services, and 500+ premium marketing tools and templates, Demand Metric resources and expertise help the marketing community plan more efficiently and effectively, answer the difficult questions about their work with authority and conviction, and complete marketing projects more quickly and with greater confidence — thus boosting the respect of the marketing team and making it easier to justify resources the team needs to succeed. To learn more about Demand Metric, please visit www.demandmetric.com About Demand Metric Follow us on Twitter Like us on Facebook Join Linkedin Group © Demand Metric Research Corporation. All Rights Reserved.

×