Big data and big data analytics have helped many businesses find out what customers want. This is the reason why companies invest billions of dollars into big data to enable the collection of customer data that allows them to find out the trends and patterns in the market. The usefulness of marketing analytics has seen big data reliance rise from 30% to 40% over the past five years as per the CMO survey. B2C companies now use analytics in many instances.
The biggest challenge despite the usefulness of big data lies in finding the right data. Many brands now face a challenge of differentiating the right data that can be used in making critical decisions from the useless data. As sources of data increase by the day, companies need to focus on obtaining better data rather than just more data. The sad reality is that many companies continue casting a wide net that in the end sees them collecting any and all data available out there instead of targeting data that can be beneficial to them.
To ensure that your organization only has better data, consider the elements below.
- Only gather data that can help your organization deliver value
To get the best from your big data strategy, your organizations must focus on the needs of the customers and embark on asking the right questions such as the type of data that will improve customer lifetime value, sources that should be used to gather data, and how the amount of data that your company collects can be minimized to only viable data. By asking such questions and collecting the right data, you will better understand your customers and their purchasing behavior, their preferences, and experiences and deliver value.
- Build trust and transparency with your customers
What keeps your organization from realizing its full potential is perhaps a lack of transparency in operations. As such, your brand should be 100% transparent with the clients with regard to how their personal data is collected and used. Lack of transparency and collecting sensitive customer data without the knowledge of the customer may be a recipe for mistrust that in the end may result in losses. Despite many customers being ready to share their personal data in many instances, promise for better experience and security of their information is crucial as it builds trust. Your brand should only collect sensitive data when they really need it, and inform customers of the type of data they are collecting and why they are doing so.
- Strike the right balance
One main problem for modern organizations is that they tend to over-rely on data alone when making critical marketing and manufacturing strategies. As such, they end up concentrating too much on seeking data, therefore, getting massive amounts of data that end up being useless as they lack practicality. Rather than aimlessly collecting data without a proper strategy, companies should try to find only the important data by striking a balance between staying in touch with target customers and competitors and getting what a company needs to make decisions. This will not only lead to reduced costs but will also lead to accuracy and enhanced results.