Big Data has been gaining popularity among many professionals, including those who work in marketing. Big Data refers to the problems, capacities, and competencies associated with storing and analyzing massive data volumes to enable a degree of decision-making more precisely and timely than before. This term also means information with an increasing volume, velocity, variety, as well as complexity. The accumulation of Big Data is the result of the new marketing environment, which was created by the digital world we now live in for marketing firms.
Many marketers understand that big data has always been huge, but what about the consumer data firms acquired 20 years ago—point-of-sale transaction data, direct mail campaign replies, coupon redemption (SAAS, n.d.) During modern times, the data that is now being gathered—online purchase data, click-through rates, browsing activity, social media interactions, mobile device usage, geolocation data, is much larger and more complex. However, this ability to obtain this data means that marketers now have more powerful tools to address the issues that their brands make. The decisions for marketing are more precise and can be based on the customer’s previous purchases and preferences.
Having Big Data does not inevitably lead to better marketing — but it has this potential. The insights produced from big data, the judgments the marketing team makes, and the actions they take are what make all the difference (SAAS, n.d.). Marketing firms may have a significant effect in these key areas by integrating Big Data with an integrated marketing management approach. For example, retailers can structure their discounts using the data from the previous years about the customer’s preferences and purchases to promote the sales of products that are not popular (McKinley, 2021). Another competitive edge Big Data can provide is the reduction of expenditures based on the analysis. It may assist firms in reducing their spending because information acquired by businesses may assist in determining where they can achieve cost reductions without negatively impacting business operations. For example, one can execute this by analyzing energy use to measure the efficacy of staff working habits.
Some early Big Data adopters are analyzing data from sensors implanted in items ranging from children’s toys to industrial goods to identify how these things are utilized. This insight is then used to create new service offerings and develop future goods. Based on such information, marketers can modify the products to address the needs of the children more clearly (McStay & Rosner, 2021). However, despite the many benefits of Big Data, this tool, like any other, has several limitations. For example, a marketer works with a significant amount of data that might be tough to go through. There are several correlations that may be drawn between different variables in that data. Making these associations, however, does not always imply something substantial (SAAS). Therefore, not all data points provide meaningful insight into the behaviors of consumers. Moreover, the analysis can be biased, and the marketer can make mistakes that will lead to improper decision-making.
Another issue with Big Data use that marketers should consider is the potential danger of a data breach, which would damage the reputation of the company. This type of analytics is vulnerable to data breaches, and customers and rivals might easily gain access to information and analysis, and conclusions the marketers develop. This introduces new constraints since data requires more levels of protection.
References
McKinley, S. (2021). How Big Data is shaping the future of retail. Web.
McStay, A., & Rosner, G. (2021). Emotional artificial intelligence in children’s toys and devices: Ethics, governance and practical remedies. Big Data & Society. Web.
SAAS. (n.d.). Big data, bigger marketing. Web.