In today’s crowded marketplace, increasing margin and growth pressure mean that marketers must find new ways to keep existing customers happy, stop them from transferring their business to a competitor, and increase their revenue. Customer data is the key to this search. Harnessed effectively, the collection, analysis and application of customer data can revolutionise marketing as we know it.

Not that customer data is a new thing. Companies have long had information on their customers, but in recent years the amount of data available (from the internet, social media, mobile, credit cards, transport and building infrastructure and so on) has become so vast that we can really only make sense of it with the help of automation and machines – the advent of big data.

Now that technology is at the point where big data analysis and machine learning platforms can process hundreds of millions of records every day, applying algorithms that can be used to solve a problem or find a link a thousand times faster than conventional computing methods, marketers can finally harness the full power of these new data streams. Not only do they have a far more complete profile of the individual at their disposal, but they have the ability to apply the results of analysis in order to optimise marketing offer allocation and interaction with customers.

As a result, marketing can finally live up to the promise of one to one marketing made back in the 1980s, moving beyond the segment to the individual and creating truly personalised marketing. In turn, this represents greater freedom for marketers: negating the need for lengthy test and learn marketing cycles, reducing the level of engagement required and making choices more accurate. This enables marketers to concentrate time and effort on the creative elements involved in generating the right offers and therefore giving the machine more to work with.

If we look at a mobile operator as an example, this might mean offering one roaming customer a roaming bundle via SMS, while for another customer who is running out of data, you notify them and upsell them more data.

In this way, big data and machine learning enable true Customer Value Management, enabling marketers to understand and maximise the value of each individual customer through ongoing, tailored interactions. Customer interactions are relevant and valuable and customer experience can be easily tracked and improved, providing marketers with the opportunity to create rich records of what a consumer wants while creating greater “stickiness” with the brand.

While this clearly has impact on decreasing the likelihood of customers churning to a competitor, it can also directly impact the bottom line by delivering a greater return on investment. Our customers typically experience incremental increases of 3-5%.

So there you have it – the proof is in the pudding. Big data and machine learning represent the next step in the evolution of customer marketing; extracting more value from data and enabling faster, more intelligent customer interactions that are based on relevance, value and personalisation, and living up to the promise of one to one marketing. Are you ready to confront and harness the world of big data, and reap the rewards?

 

By Dave Peters, CEO and Founder of Emagine International. 

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