‘Big Data’ is no longer a bright new concept that is just starting to be explored but has emerged as mainstream approach that every company – and individual departments within it – needs to embrace. This will not come as news to many, but we have reached the stage where key departments within companies are being asked by management to use data from across the business to enhance their capabilities while improving efficiency and profitability. One of the first areas that companies are focusing on is marketing – no stranger to using data to meet its goals.

And many marketers are, in fact, already seeing the huge possibilities Big Data can offer, especially when it comes to employing newer streams of information such as web, mobile and social data. The huge amount of data available to companies, however, can sometimes be more daunting than it is helpful, especially in the digital age where people are sharing information with companies online at an unprecedented rate. So where should marketers begin?

Start by outlining your marketing objectives

What is it you wish to achieve? For most the answer will be an increase in revenue from your database and linking it to the overall marketing strategy. There are three key areas that need to be looked at in order to do this:

• Increasing customer spend
• Increasing the frequency of customer visits
• Reducing the number of lost customers

Taking this approach will help you ensure you are employing the information you need to drive your business goals rather than letting your organisation’s strategy grow out of whatever data is available. In order to properly employ Big Data, it is vital that your company has a clear data management policy in place. It is essential that all data is complete, consistent, accurate and up-to-data in order for it to be analysed properly, so having the necessary procedures and infrastructure is crucial.

Be ruthless with your data – what is essential?

In addition to ensuring you have clean and comprehsive data, it is then necessary to make sure you are focused on what the the necessary data is to prevent time from being wasted by irrelevant information. Bear in mind your objectives when deciding whether the data is essential or not and ask these questions:

• Does it further your relationship with the customer?
• Is it in a functional condition?
• Can you link to a known customer?
• Will employing this data boost profits?

The data should tick all of the above boxes. If not, you need to decide whether it is needed. These questions should be asked for all kinds of marketing activities – including traditional post – but with customers leaving a bigger digital footprint with each passing day, they are even more important for multichannel campaigns. If any of the information that falls under the Big Data umbrella in your organisation does not help to achieve an organisation’s marketing goals it is safe to say it can be set aside – at least when it comes to marketing communication and other elements of customer relationship management (CRM) .

Find the best way of capturing the essential data

Once it has been decided what data is essential, the next logical step is to determine what the best way of capturing it is. One of the ways of creating a means of capturing essential marketing data is through either a CRM or loyalty programme. Not only does this show what, when and where customers are buying – and, ultimately, reveals much about their personal and family circumstances – it also means the customers are motivated to keep contact details updated in order to collect rewards and special offers.

Secure data permissions and trust

Ultimately, any and all customer data has to be used responsibly and effectively, or your business will lose customer trust. Customers have to have confidence that a company is taking care of their data – keeping it secure and not sharing it without permission – and using it judiciously for appropriate and useful offers and rewards. There is always an exchange of value at the heart of the successful database marketing relationship. Big Data will only work in the long run if consumers feel the benefit from sharing personal information with the brands they deal with – otherwise the well that keeps useful customer data flowing into companies will dry up.

Put an SCV database at the heart of your activity

Once you have identified the ‘Big Data’ you need, can capture and can link to a customer, you need to ensure you are able to do this within the capabilities of a single customer view (SCV). This will enable marketing, CRM, servicing, in-store, delivery, social media, and other data to be viewed together and is used to create an accurate and comprehensive profile of that individual. The SCV ties together the customer details and from this you can develop a customer journey.

The key point is to focus on what really matters when handling Big Data. It is all too easy to get caught up in the drive to use anything and everything, but marketers need to remember the two main goals: real value for your customer and real value for your business.

 

By Andy Wood, Managing Director at GI Insight.

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