What is Big Data?
The vast accessibility to “big data” in the past few years has taken the marketing world by storm when it comes to uncovering in-depth consumer insights. Big data is known as a large volume of data that is so extensive it is difficult to process using standard methods. The complexity of this information is characterized by a few different factors.
The 5 V’s of Big Data
- Volume: An immense amount of data collected from a variety of sources.
- Veracity: The quality of data accessed from varying sources and systems.
- Variability: The change in frequency of data flow.
- Variety: Data collected in different content formats and structures.
- Velocity: The speed at which data flows due to the capacity of the Internet of Things.
Why Big Data is Used for Consumer Insights
The wealth of information derived from multiple platforms is becoming the new digital age way to analyze consumer habits and trends. Businesses can use this data as a huge advantage in the identification of target market segments as well as applying this knowledge to the development of their marketing campaigns. Specific consumer preferences can be tracked through a never ending range of sources which includes search engines, websites, apps, and social media platforms.
The open accessibility to an abundance of data can help paint a big picture of consumer profiles when contextualizing across sources. While this does bring up consumer privacy concerns, businesses have never before been able to deeply view the wants of the consumer directly through their eyes, and address them as precisely as they can now.
How Marketing Analysts Collect Big Data
The innovative data collection opportunities make it even easier for businesses to gain demographic, psychographic, and behavioral insights about customers, even better than they would get through in store observation. Simply through facial recognition on mobile devices, businesses can gather and analyze the demographic composition of consumers behind their screen. The online shopping patterns of consumers as far as which website they go to, what key words they type in their search, and how long they spend looking at individual items can all be specifically traced.
Selecting a Target Market Based on Data Analysis
Throughout the continuous collection of this data with every click and search, social media and web platforms can target shockingly specific ads to the consumer based on their likes. This can cover a wide spectrum of personal details from lifestyle choices, tv. shows they watch, foods they buy, retail stores they shop, fears they may have, and the list goes on.
After analyzing all this data, businesses can determine which products customers have the most interest in, as well as areas that the company can improve in. The results of the findings can ultimately be highly essential points for businesses to focus their decisions. These insights can lay the foundation to forecast inventory planning and leverage their company resources to meet consumer demand.
Data Tells a Story
When large volumes of data (big data) are organized concisely, analysts are able to zoom in on specific pain points, needs, and desires of specific consumer groups. The customer personas that can be uncovered through breaking down the data into multifaceted categories help create a clear direction for the business to apply their marketing efforts. In this video below by Mango Macro & Crypto, they provide a visual representation of how big data can predict future complaints or needs of the consumer, so that the business can make accurate decisions that are going to most effectively drive sales and appeal to consumers.
Example of Big Data
https://www.youtube.com/watch?v=XjmldAL9RQs
Big Data Levels Up Consumer Insights
Big data is a groundbreaking tool that will change the way data analysts and marketers are able to work more efficiently and knowledgeably. Being able to view these highly detailed and comprehensive insights about consumers from anywhere on the web will have an impact on business decisions for years to come. Companies that use big data to understand their customer from a more in-depth perspective have the opportunity to level up their current services, increase their sales, and ultimately reach high degrees of customer satisfaction.
List of references:
- “Big Data: What It Is and Why It Matters.” SAS, Institute Inc., 2021, www.sas.com/en_us/insights/big-data/what-is-big-data.html.
- Gandomi, Amir, and Murtaza Haider. “Beyond the Hype: Big Data Concepts, Methods, and Analytics.” International Journal of Information Management, Pergamon, 3 Dec. 2014, www.sciencedirect.com/science/article/pii/S0268401214001066.
- Matz, Sandra C, and Oded Netzer. “Using Big Data as a Window into Consumers’ Psychology.” Current Opinion in Behavioral Sciences, Elsevier, 25 May 2017, www.sciencedirect.com/science/article/pii/S2352154617300566?casa_token=SzuiZRJjHeYAAAAA%3AMtVVJEdHQY0QYrkhBmPBObh4rVhBABQETJLqm7MtsdnM4YBVoxPpuFRFINvP7zTuXtdWvAgUSws.