As its name suggests, Big Data Marketing is the concept of Big Data applied to Marketing. Not everyone knows that the practice has been gaining so much space that there are already postgraduate courses focused on it.
But why does my company need to worry about this? We created this particular post to answer this and other questions. Next, we briefly review the concept of Big Data and the 5 V’s that support this technology to show how it is applied to marketing.
Finally, we explain the benefits and importance of taking this idea to your company (spoiler: your competitors are already doing this). So let’s go!
What Are The 5 V’s Of Big Data?
Big Data refers to collecting, storing, processing and interpreting large amounts of data. The objective is to generate relevant information to support an organization’s strategy and decision-making. In recent years, this technology has become one of the digital transformation pillars.
However, it is natural that the concept is approached in a somewhat abstract way, leaving doubts about how it works — and how it is applied to an area like marketing. If you want to understand the subject, know the 5 V’s behind Big Data. We will explain it to you.
Volume
One of the main characteristics of Big Data is the massive volume of data. After all, if the information is scarce, we have two alternatives: the analysis may be limited and irrelevant, or a human being can handle it without the support of software that identifies patterns and performs complex analyses.
Variety
Another critical factor for the quality of the information generated is the variety of data. They are generally of two types: structured, which already has a defined format, and unstructured. In this case, the challenge is precisely to make this material interpretable.
Speed
The third V concerns speed. In a digitized world, time is a crucial factor in the success of a business strategy. Therefore, the entire process must be agile — if possible, instantaneous.
Veracity
Data reliability is also an important issue. What is the source? How were they collected? What is the guarantee of honesty? These are essential questions to ensure that the company can trust the information taken from there.
Value
Finally, the value of data is crucial to using Big Data. After all, what potential do they have to be transformed into relevant information? An example is imagining what types of data can be used for marketing. As many as there are, some are more valuable than others. With that in mind, let’s now see what exactly Big Data is applied to Marketing.
What Is Big Data Marketing?
Applying Big Data to Marketing involves generating relevant information to support the decisions made by marketing. Before approaching a practical example, it is interesting to clarify a significant difference. After all, have you ever stopped to think about what characterizes a data set and when it becomes information?
In the context of Big Data, transformation occurs in the processing phase. The collected data is refined and processed to generate relevant information. In practice, an Analytics solution, for example, identifies patterns and performs analysis with statistical and mathematical models to generate relevant insights.
Your marketing department can capture all the data provided by your customers to map the consumer’s profile: age, favorite products, origin and time of access to your website, how much they usually spend, etc. Transforming this into relevant information involves this analysis step.
By crossing the data, the software can identify, for example, which age group usually buys a product X on your website, at what time the click-through rate on the ad for that product was higher and which other items were purchased together. This is what we can call relevant information.
What Are The Benefits For Your Company?
Big Data Marketing, in a very objective way, takes the automation of processes to a higher level. It’s not just about streamlining repetitive activities: we’re talking about automating real-time decision-making.
The example above shows how this happens. With the insights generated, you could improve your online ads, investing in the ones that give the most results and firing them at the times when that audience is most accessible.
If you have e-commerce, you can also suggest purchasing the best-selling products together on the desired item page. Content marketing can create your Buyer’s Persona based on this detailed profile of your customer.
The benefits, of course, go further.
Customized Strategy
The information provided allows you to create personalized campaigns for each audience in your company. Even pricing can be adjusted to improve your competitiveness.
Cost Reduction
Overall, Big Data Marketing helps you better understand your company’s performance. Therefore, it is possible to improve the marketing strategy continuously, improving its efficiency and reducing costs.
Have you ever stopped to think about how much you spend on ad clicks on Google Ads, for example? What is the sales rate from these hits? Using relevant information helps you identify which decisions give the best results, allowing you to define where and how much you will invest confidently.
Finally, remember that this is an affordable technology, especially with the advancement of cloud solutions. Therefore, you need to open your eyes to take advantage of this opportunity and be more competitive. In digital transformation, it is essential to adjust the sails and invest in technology to navigate more safely.
Also Read: Business Intelligence vs. Big Data: Understand The Differences