How Big Data Can Help Your Digital Strategy
Digital marketing is a diverse field that requires carefully vetted strategies to build and grow your online brand. However, with recent leaps in technology, digital marketing is becoming less dependent on human decisions. This is where big data steps in. Big data refers to the study and implementation of big, complex datasets instead of human intuition and experience. These complex datasets help in generating insights that can be used to make better business decisions and develop high-end strategies that predict future prospects. This directly compliments the quality of different digital marketing practices and how they affect the end consumer.
With the increase in the number of outputs and new diversity customer characteristics, companies now need to process a massive volume of structured and unstructured data to start marketing campaigns. This data is cannot be processed through traditional software techniques and database systems.
Since many marketers use Google Analytics and similar data tools to track their website’s progress, they will understand the imperative of big data for the betterment of their digital marketing efforts. In this article, we will share 3 ways how the big data can help marketers in getting the better of Google, design better products and create targeted content.
Building Responsive Marketing Campaigns
Big data is a key determinant in finding relevant information about customers, learn their core needs and then use it to develop content that is rich and informative. So to understand how it works, you must study its chain of procedures. For example, cookies collect information about customer behaviors from websites. These applications use customers consent to collect information and generate personalized, processable data.
Compared to aggregative advertising techniques that were popularly used in the past, campaigns that use big data are more effective, and accurate. The best thing about big data when designing a marketing campaign is that it eliminates the guesswork out of the process. Marketers can use that effort in building buyer personas, determining different purchase patterns, identifying customer behaviors, predicting upcoming trends, and how they tend to influence them in the future. This will improve targeted campaigns and develop several KPIs that could be vital to a business future strategy. For example, big data can help identify demographics within a target segment. It can be conclusive from big data that middle-aged women are more likely to respond to emails, engage in bargains and use coupons. This can be a major breakthrough from the sales point of view.
Although big data is a great solution for improving digital marketing campaigns, it cannot work all by itself. To make it work at its best spectrum, you must use analytical tools so the data you get derived valuable conclusions. This gives online brands the actionable insight they need to make informed decisions in an efficient manner. A good analytical tool makes unstructured data easily accessible such as cloud storage, log files, social media data, emails, and websites. Moreover, it should able to effectively perform attribution tracking, funnels and third-party testing, real-time analytics, and different integration tasks.
Developing More Effective Pricing Decisions
In most companies, the conventional approach for pricing products and services involves core factors such as product cost, perceived value, competitor pricing and demand of the product. While this traditional approach has worked well for many companies so far, big data offers a lot more than just profit margins. With big data, you can easily increase the sales volume of your products simply by adding other key factors also play a part in the purchase decisions. This allows brands to build more vibrant pricing strategies that take into account all factors that influence a buying decision. This can include data from completed deals, performance-based data, incentives, and other metrics. Big data is all about lock and key performance, especially in B2B sectors where every product/service requires a unique pricing approach for digital marketing.
However, there is also plenty of data that often gets sidelined during pricing decisions. This has a major role to play in big data. General economic information and customer preferences are equally important in big data as any other information. The goal is to use this unstructured data and derive valuable insights. In a typical marketing stratagem, it may have to consider any special products the customer has frequently purchased, their disposal income, what is the affordability threshold of that customer segment, and macroeconomic indicators such as GDP, exchange rate, inflation rate, and interest rate of the country/region. This will not only engender precision, but stimulate the automation phase since the processes will start to become less reliant on assistance.
Showing Individualized Content to Visitors
Another major leverage big data will give online marketers is the ability to serve customized content to their target audience by tapping into their knowledge base and identifying the ideal type of content to engage every visitor differently. A great example is Netflix that uses AI and big data to give its visitors individualized recommendations from the shows and movies they watch. 80% of what is watched on Netflix is due to AI recommended. The same concept can be applied when designing your website. You can search and examine the pattern of each visitor, from the time they spent on a particular page, to the number of clicks they made when interacting with your website. Using the browsing history, you can show them content relevant to their actions.
This is quite similar to search engines. When you enter a query from a different location, the results that return are based on those geographic preferences. Just as that, your website will function differently to a person who has different needs and preferences. While customized content is slowly entering the mainstream, there is still a lot of work that still needs to be done on it. Many online brands struggle in providing a personalized experience to customers’ due to development constraints. Others fear security concerns. However, it’s a growing domain of digital marketing that will soon meet perfection.
Big data has been the subject to a lot of attention recently, not just as an effective tool for digital marketers, but as a key to future efficiency, AI development and automation. With its ability to process massive amounts of complex datasets and advanced information, traditional systems are gradually becoming obsolete. While many organizations have started integrating big data into their digital marketing models, many have yet to follow.
Mirza Irfan is a Lead Writer at FME Extensions. He has a passion for helping people find innovative solutions in online marketing and has written numerous blogs on science, technology, digital marketing and business strategy. A writer by day and a reader by night, you can find him on LinkedIn.