During the time it takes you to read this article, as much data will have been generated as all the data ever generated prior to the year 2000. That’s huge isn’t it?

There is no doubt that there has been an explosion of data in the past five years, during which time digital interaction and social media has fuelled the exponential expansion of data. So what is big data? Practitioners often quote that it’s data that is high in volume, velocity and validity but in my opinion none of this matters if it’s not delivering value.

The opportunities to capture data are huge

As a brand you now have more opportunities than ever to capture information about your customers: when do they like to shop? What kind of products do they buy? Do they buy more at the end of the month? What device do they use to buy your products? Are they buying online or in store? And the list goes on. On first glance this sounds brilliant, right? But the big question is, do you need to capture all of this data, and if you do, can you actually use it?

But you don’t need to capture everything

A common mistake made by brands is that they try and capture every single drop of information they can about their customers because they don’t want to miss a trick. I compare this to the Rime of the Ancient Mariner – ‘water water everywhere, and not a drop to drink’. My meaning? Yes there is a lot of data out there, but only a small portion of it will be useful and relevant to your business.

You need to be smart and realistic about the data you collect, where you store it (you still have the fear of 'missing something' don't you!) and most importantly how you intend to use it.

Make sure you own big data, not the other way around

With big data you should own it; you shouldn't allow it to own you! So if it's not relevant or key to your business objective and focus, then don't collect it – a maxim you should always keep in mind when considering what big data sources to use.

So don't collect vast amounts of data if one field is enough! There are smart ways to collect minimal data, whilst still building a rich picture of your customer’s needs and habits. A nice analogy is the weather, would you ever need to collect every reading from a temperature gauge that is outputting big data at every millisecond, all day, every day? Surely an average or min/max temperature reached in a day could be more efficient? So remember to be smart with what you collect, and even smarter with how you use it.

Use data to engage in a two-way conversation with your customers

One size doesn’t fit all. The channels that provide you with the opportunities to gather more information from your customers also allow you to enter into a two-way conversation with them. Days of the one sided marketing tactics, one-size fits all emails for example, are over.

Use the data you collect to start a two way conversation with your customer, find out what they want from you, when they want it, how they want it and then deliver. That is what will ultimately gain you customer loyalty and therefore value from your data.

 

By Barry Smith, Senior Consultant at Ikano Insight. 

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