How Big Data and Customer 360 Drive Your Businesses in 2021
Big data has emerged as the most powerful business tool. With the growing digital trends, big data analytics has changed the way the world does business.
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"Big data will spell the death of customer segmentation and force the marketer to understand each customer as an individual within 18 months or risk being left in the dust.” - Ginni Rometty, CEO, IBM
Have you ever imagined the power of data that can transform an entire system? Be it a small data analytics solution or the data needed to make a safe driving decision, big data plays a leading role in almost every industry it incorporates.
You must have heard about self-driving cars. What do you think is the technique or the key technology behind who makes the entire system automated?
Yes, we call it big data. Autonomous vehicles rely entirely on the data they receive through GPS, radar, and sensor technology, and the information they process through cameras. This information helps cars to make safe driving decisions.
Big data helps install enough information and deep learning in autonomous cars to make them safer for all drivers.
Big data is a technology that is much bigger than its name. It is the way to accelerate innovation while reimagining data and processes.
By 2020, it’s said that 1.7 megabytes of data will be created every second, for every person on earth. What’s more, spending on big data technology is expected to reach the $57 billion mark this year.
Getting real customer insights using big data can be a boon for businesses facing fragmented or low-quality data challenges.
The digital trail is growing faster than what we have ever thought of. Delivering an inevitable and world-class digital experience is the only trend now.
Advantages of Big Data
Companies across various sectors of the industry are leveraging the power of big data to promote data-driven decision making. According to Gartner:
Big data are high volume, high velocity, and/or high-variety information assets that require new forms of processing to enable enhanced decision making, insight discovery, and process optimization.
Statista's global big data market will grow to $103 billion by 2027, with the software industry leading the big data market with a 45% share. While the global big data and business analytics market was valued at $169 billion in 2018, it is estimated to rise to $274 billion by 2022.
Big data solutions not only foster data-driven decision-making but also empower your development team in multiple ways that add value to your business.
1. Cost Optimization
Big data tools like Hadoop and Spark offer cost benefits to businesses when it comes to storing, processing, and analyzing large amounts of data. Big data tools can also identify cost-efficient ways of doing business.
It facilitates companies to minimize their product return costs. They can estimate which products are most likely to be returned, thereby allowing companies to take suitable measures to reduce losses on returns.
2. Improve Efficiency
By interacting with customers and gaining their valuable feedback, big data tools can accumulate large amounts of relevant customer data. They allow companies to create personalized products/services that also improve operational efficiency by leaps and bounds.
Big data analytics helps you identify and analyze the latest market trends and keep pace with your competitors in the market.
3. Foster Competitive Pricing
Big data analytics helps you with real-time monitoring of the market. You can not only keep an eye on your competitor’s past actions but also see what strategies they are following. Big data analytics provides real-time insights that allow you to:
- Calculate and measure the impact of price changes.
- Implement cost strategies based on customer demands, customer purchasing behavior, and market trends.
- Automate the pricing process of your business.
4. Leads to Innovation
Big data analytics and tools help you extract valuable insights from mass datasets. These insights act as the key drivers that lead to innovation.
These insights can be used to redesign business strategies, develop new products/services, improve marketing techniques, and find new ways to expand brand outreach.
5. Monitor Online Reputation
Today, it has become crucial for companies to check, monitor, and improve their online reputation.
Big data tools help you serve the vast digital sphere to understand what customers are saying about your products/services. When you are able to understand customer requirements, only then can you work hard to improve your services, which will ultimately improve your online reputation.
Customer 360 Using Big Data Analytics
Having a 360-degree view of a customer is a comprehensive collection of customer data starting from purchases to marketing communications via customer service or on social media.
Launching a great product in the market is not enough today. You need advanced customer service to match.
With a 360-degree view of the customer, businesses can achieve consistent, secure customer insights that lead to highly targeted marketing campaigns, improved customer loyalty, and more sales opportunities.
Big data analytics solutions provide seamless and flawless data integration with high performance and scalability.
Consistent and Reliable Data
With consistent and integrated data, businesses can better understand their customers, manage costs, and offer more meaningful products and services.
Easy Integration of New Data
The data generated by IoT devices allows businesses to easily integrate and provide a single solution.
Scalable Storage at a Lower Cost
Distributed storage solutions like Hadoop offer scalable data storage at a lower cost than old solutions like SAN.
This helps businesses maintain customer security and privacy in data stores. Achieving a holistic view of customers and their needs through data requires an investment in integrating and managing that data.
How to Build a Customer 360 View
Applying the right information at the right place and at the right time helps you create a holistic view of your customers.
Let’s check out the four-step process of building a 360 customer view.
- Create a global consumer ID: The information includes the unique global customer ID of a customer.
- Collect internal data: This step collects information regarding customer service details and overall customer satisfaction. It also tracks the customer's activity on the company website and social media sites.
- Collect external data: The external data comprises category includes information, trends, and events, geographic and demographic profiles, and competition analysis.
- Apply predictive analytics: We can now start forecasting customers' likelihood to purchase, potential upsell and cross-sell effectiveness, and the conversion of prospective customers.
“Without big data analytics, companies are blind and deaf, wandering out onto the web like deer on a freeway.” – Geoffrey Moore
5 Ways Can Help Your Business Grow With Customer 360
Big data and analytics trends have entirely changed the way organizations make decisions. It's imperative today to have a 360-degree view of each customer to get real customer insights.
According to Gartner’s study, less than 10% of ventures have a 360-degree view of their customers, and only 5% are able to use a 360-degree view to systemically grow their businesses.
Here are five ways to use a 360-degree view to grow your business.
1. Improved Customer Insights
By analyzing customer data, you can achieve valuable insights into how your customers interact with your brand. What makes them purchase your product, check your website, or take other desired actions. You can use these real-time insights to boost customer satisfaction and increase your brand value.
The more detailed information you have about your customers, the more clear, real, and precise insights you get. Analyze this information using a business intelligence platform to derive valuable insights from it.
2. Better Customer Experience
Businesses can now create more unique, personalized customer experiences with the derived valuable insights. The more you understand your audience, the more accurately you can tailor your messaging to their preferences.
You can use the real insights to customize the content on your website to people’s interests.
A customer 360-degree approach will help your sales, customer service, and technical support teams to have access to all the information about each customer. The information can be used to create a more personalized experience.
3. Increased Customer Loyalty
Customer loyalty will increase when you customize your interactions based on your customers’ preferences. It will help them offer more personalized experiences. Understanding your customers’ needs enables you to meet their needs and to interact with them in a way that inspires them to engage.
Personalization, which has a 360-degree view of your customer, is key to building customer loyalty. It helps create a feeling of connection with your brand.
4. Better Business Planning
The detailed view of the customers facilitates organizations to make better business decisions. Quality data will help you in better business planning and making crucial business decisions.
Customer360 also enables businesses with improved predictive analytics. Predicting future customer behaviors helps you in both short-term and long-term business plans.
5. Low Marketing Cost
A customer 360 model facilitates you to reduce your marketing costs and boost the return on investment. The more precise customer data you have, the more accurately you can target your marketing campaigns.
The focused targeting will improve your ROI on your marketing campaigns. It also enables you to convert leads cost-effectively, and reach new customers.
How Big Brands Use Big Data Analytics (Success Stories You’ve Never Heard)
Case studies are meant to showcase the grand business successes. We have come up with great success stories to show you how big brands make it using big data.
Uber is the prime choice for people around the world when they think of moving and making deliveries. It uses the personal data of the user to closely monitor the features that are mostly used. It focuses on the supply and demand of the services that influence changes in price.
For instance, on New Year’s Eve, the price for driving for one mile goes up from 200 to 1,000.
Netflix is the most popular American entertainment company featuring on-demand streaming video for its customers. Netflix is the perfect example to predict what exactly its customers will enjoy watching with big data.
Netflix clearly depicts what customers want. It’s easy to understand if the companies just don’t make assumptions and make decisions based on big data.
Walmart is considered one of the biggest retailers in the world today. It started using big data analytics years back.
Walmart makes use of data mining to explore patterns that can be used to provide product recommendations to the user. By applying effective data mining, Walmart has increased its conversion rate of customers.
Walmart applies big data solutions for redesigning global websites and developing innovative applications. It helps them create a great shopping experience for their customers.
In the end, we conclude that big data today has emerged as the most powerful business tool for organizations, irrespective of their size and type. With the growing digital trends, big data analytics has changed the way the world does business.
Big data analytics helps enterprises with advantages like huge sales and improved marketing results, enhanced customer service, optimized operational efficiency, and reduced risk.
Despite the proven benefits of big data we’ve witnessed so far, it still holds numerous untapped possibilities that are waiting to be explored.
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