The convergence of social media, cloud computing, mobile
access, location-based information and e-commerce is creating an optimum
environment for big data analytics.
Marketing provides a natural application for theses analytics as they
enable organizations to determine where to spend, and how best to communicate
with customers. However, many
organizations are ill prepared for this shift as marketing has historically
been about brand marketing, and lack the technical and statistic knowledge
now demanded. Furthermore, companies
are organized in a manner that leads to the fragmentation of efforts by
different teams. Tools and data sources
are often siloed across channels, brands and regions.
The evolution of marketing driven by big data will cause a fundamental
paradigm shift. Decision-making will
shift from intuition to evidence based. Organizations
will need to mine the digital footprints customers leave across channels
through loyalty data, smart phone location data, e-commerce visits, social media
reviews. They will need to add skilled
technicians to their ranks to use technologies such as R and Hadoop to build
predictive models to improve customer experiences, and personalize relevant
content. Customer information will need
to exist across channels to enable real time insights, and retailers will have
to rethink their strategy to optimize their in-store and mobile experiences. Applications will evolve to provide
recommendations as opposed to solely analytics.
This evolution will increasingly become integrated into a
company’s competitive advantage. Data
will be used not only to understand how to get customers to purchase more, but
to understand how to improve customer’s satisfaction, identify at-risk
customers with a high probability of defecting, and understand why customers
are terminating their accounts.
These factors are leading to rapid growth in IT spending, as
well as dramatic job creation. The
market for big data technology is expected to grow at a CAGR of 40%, from $3.2B
in 2010 to $16.9B in 2015. Leaders in the space include IBM, EMC, HP, and
Teradata. According to Gartner research
there is going to be approximately 4.4 million IT jobs created globally to
support big data by 2015.
The results that can be driven by these changes are
dramatic. A recent report by the IDC
provides a few examples:
Without adding additional sales staff, a major enterprise software vendor added 200 million euros to its revenue line.
A major sports and entertainment website boosted
subscription revenue by 45% without increasing its marketing spend.Without adding additional sales staff, a major enterprise software vendor added 200 million euros to its revenue line.
One of the web’s most popular financial services sites drove tens of millions of dollars in revenue with its change to its customer experience roadmap.
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