The days of clumping customers together based on zip code, age and income are falling by the wayside, thanks to the power of big data integration. Instead, chief marketing officers are getting personal. Business leaders are using personal data to better understand -- and serve -- customers. IT leaders, too, need to be aware of the shift taking place with big data in marketing if they want to keep up with trends.
At Big Data TechCon 2014 in Cambridge, Mass., MindStream Analytics Executive Vice President Robert Dayton discussed how big data integration, the cloud, and consumer engagement are prompting business leaders to focus more on technology investments if they want to succeed.
Keeping pace with consumers
Consumers are engaging with businesses and each other around the clock, and even more importantly, the information shared between them can have a profound impact. "The user-generated review, the user-generated content, is a phenomenon that is fiercely influential," Dayton said. "It trumps marketing in terms of formal advertising and formal messages from the company."
It's not just positive or negative comments or reviews that consumers aren't afraid to share via Twitter, Facebook and online bulletin boards. Consumers are willing to divulge everything, from their preferred brand of orange juice to their specific geological location -- as long as there is a payoff.
They expect personalization and customization in return for their information.
Most customers are sophisticated and have a certain amount of business savvy to understand the relationship between their data and what they can get in return for it, Dayton said. "These new types of customers, this new global culture -- not defined by age, not defined by geography -- they expect personalization and customization in return for their information," he said.
Using big data in marketing
With big data integration technology, marketers can pick up on certain actionable patterns and design a solution to result in better business outcomes. An example would be predictive analytics, where if a company knows an individual's purchasing patterns, it can predict what he or she may buy next. Along the same vein is prescriptive analytics, where a recommended action can be made based on previous decisions.
While clearly businesses can use big data in marketing to help design better campaigns to entice shoppers, consumers may end up saving cash, too. With pricing optimization, Dayton said retailers can offer consumers the right product at the right price. A store manager, for example, can find out what competing stores are charging for a specific product and set prices accordingly.
What big data means for IT
With business leaders realizing major profits are at stake, it's imperative IT professionals are equipped with the skills and thought process necessary to best make use of big data. It's important businesses don't take for granted their customers willingness to divulge details about themselves, for example. Dayton noted there is a "very particular and pronounced consequence" when consumer trust is eroded by security flaws. "When you put together social, mobile and security," Dayton said, "security pervades everything."
Maxine Giza is the associate site editor for SearchSOA and can be reached at email@example.com.