Up Your Marketing Game with the Power of Data
There is a famous stat on the internet that 90% of all data is collected in last 2 years (predicted by IBM in 2013). Ever since then, data gathering has only increased. According to Cisco, data created in 2019 will surpass the total data collected ever.
So, marketers, who for a good part of history have complained about the lack of sufficient data, are now facing a new challenge – how to handle and use this ever-growing data deluge?
It is clear that traditional technology cannot be of much help here. So, let’s find out what tactics and tools marketers should use in the current dynamics.
Today, there are various tools to manage big data – from its storage to cleaning, analysis to visualization. Incorporating them in your marketing mix through AI-powered algorithms can be a game changer. In fact, AI-based recommendation systems to cross/upsell products and programmatic advertising to automate and personalize online ads are already popular and enabling companies to make good cash on the data they have.
In the growing complexity of multichannel engagement, all these tools and tactics can help marketers to analyze user behavior patterns across channels and create machine learning powered marketing models that automate personalized interaction with customers at every touch point.
Pricing decisions are no longer limited to simplistic factors like production cost, standard margins, similar product prices, and volume. With automated analysis of big data, marketers can now analyze complex factors like broader economic situation, product preferences, and negotiations to access market dynamics at a granular level and come up with optimum pricing for different products among different customer segments.
The real-time analysis of data has also made dynamic pricing possible (price surge on increased demand), which can help companies gain substantial profits (1% price hike can improve operating profits by 8.7%, according to McKinsey). Cab and airline ticket booking companies are already extensively using dynamic pricing. Industries like energy, hospitality, and entertainment can also potentially benefit from it.
Market Research & Predictions
In today’s data-driven economy, market research analysis is the key to take better product/service related decisions. The process involves a thorough analysis of market conditions, changing consumer behavior, and competitors’ activities to find patterns and predict trends. By understanding customers’ present and future needs better marketers can align their products better with customers’ expectations.
The process requires a mix of business intelligence and predictive analytics tools with data visualization capabilities (to convert research findings into graphs). By fetching actionable insights from this visual data, marketers can help optimize resources to enable seamless implementation of business decisions.
The Road Ahead
With new technology, new customer touchpoints are emerging. And gargantuan amount of data is being collected from them. So, marketing is inevitably on the way to automation. In fact, marketing without advanced data analytics (automation and AI algorithms) would soon be considered pointless.
To stay competitive, marketers need to continuously update themselves with new skills, tech, tools, and practices to be able to handle data efficiently and take customer experience to the next level.