How Does Big Data Relate to Digital Marketing?
A study performed in 2012 by Edgell Knowledge Network found while 80 percent of retailers are familiar with the term "Big Data," less than half, or 47 percent, say they understand how to apply it to their business. Gaurav Pant, who directed the Edgell study, says online retailers have an advantage over other industries when it comes to making use of Big Data. This is because of their ability to be nimble and make quick adjustments.
The data you are able to receive in abundant quantities include demographic, geographic, psychographic, behavioral and social information about your customers and potential customers. Figuring out how to capture, analyze and adjust based on analysis will possibly require some investments and changes in processes and infrastructure within both your marketing team and your organization. The insights you gain will give you a much clearer picture of your customers, their motivations and triggers, and their buying behaviors. What this all boils down to is relevance.
This new level of relevance means we can go well beyond personas and segments and create much more personalized experiences for our customers. There are almost no major retailers who do not have some sort of personalization or recommendation features within their online shopping experiences. Big Data means these features can become vastly more complex.
Despite what can sometimes be a significant initial investment for an infrastructure to support your Big Data needs, there is nearly endless potential for what a digital marketer can do with the insights that can be gained.
The insights you gain may be anything from help in adjusting your e-commerce platform in real time to an understanding about offline behavior. SCVNGR, the technology startup that created the LevelUp mobile payment app, found some interesting behavior based on weather. They found fewer customers left their houses to spend money when it rained. However, customers already in a coffee shop generally spent about 20 percent more while waiting out the storm. What did they do with this data? They pushed out special promotions at the onset of inclement weather in order to counter the lull in individual foot traffic.